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Weekly News Select
                                                                                                   Jun 4, 2021 / Issue 22

Top News for the Week
        •    First EC site in Tengah awarded for $400.32 million in new record
        •    Telok Blangah 4-room BTO flats see overwhelming demand; over 28 first-time
             applicants for each unit
        •    Singapore on track to ease tightened Covid-19 curbs after June 13: PM Lee
        •    Hidden Covid-19 cases in S'pore community 'very concerning': Lawrence Wong
        •    S$800m Covid-19 aid package for firms and individuals
        •    Singapore residents can get more types of Covid-19 jabs - but at their own cost and
             risk
        •    Singapore, South Korea in exploratory talks on air travel bubble since March
        •    The super rich are choosing Singapore as the world's safest haven
        •    Singapore PMI stays in expansion in May, though slowing from Apr on Covid-19
             curbs
        •    Singapore unemployment situation keeps improving in April for citizens, residents

Residential
First EC site in Tengah awarded for $400.32 million in new record
The first executive condominium (EC) site in the "forest town" Tengah has been awarded to Taurus
Properties SG for $400,318,000, the Housing Board announced.
This translates to $603 per square foot per plot ratio (psf ppr) for the 99-year leasehold site - a
record land rate for an EC site under the government land sales (GLS) programme.
The bid smashed the previous record of $583 psf ppr garnered by the Sumang Walk EC site in
Punggol, which was awarded in March 2018.
One analyst says the potential selling price of the new Tengah EC could hover around $1,190 to
$1,250 psf.

Link to the story:
https://www.straitstimes.com/singapore/housing/first-ec-site-in-tengah-awarded-for-40032-million-in-new-record

Telok Blangah 4-room BTO flats see overwhelming demand; over 28 first-time
applicants for each unit
Home seekers made a rush for the four-room Build-To-Order (BTO) flats in Telok Blangah,
contributing to one of the highest application rates in recent years.
This comes even as these flats are the most expensive units in the Housing Board's sales exercise
this month.
Located in the mature estate of Bukit Merah, there were only 70 such flats on offer in the Telok
Blangah Beacon project, yet they attracted 3,124 applicants as at 5pm on May 31.
This means that only one in more than 28 first-time applicants will get a unit.
Second-time applicants face even bleaker prospects, with more than 412 applicants vying for each
available unit.

                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
Jun 4, 2021 / Issue 22

Prices for these Telok Blangah four-room flats, which are located within walking distance of Telok
Blangah MRT station, range from $602,000 to $710,000.
Buyers will also have to wait more than five years for these flats - the longest wait in this launch -
as the project is estimated to be completed in the first quarter of 2027.
Mr Lee Sze Teck, director of research at Huttons Asia, said the project's central location in a mature
estate is the key draw.
It is also the closest BTO project that has been announced so far to the future Greater Southern
Waterfront, he added.
"Even paying $710,000 and a wait of more than five years is no deterrent to buyers who desire the
location and the potential upside of the transformation in years to come," he said.
The other BTO project in a mature estate in this month's sales exercise, which will conclude at
11.59pm on May 31, was also popular, although demand was less competitive.
The 1,010 four-room flats in MacPherson Weave in Geylang attracted four first-time applicants
for each unit. The 156 three-room flats attracted fewer than two applicants for each.
In the non-mature estate of Woodlands, the 359 five-room flats in Woodgrove Ascent were the
most in demand, drawing close to four first-time applicants for each unit.
Its 411 four-room and 84 three-room units also attracted more than three first-time applicants for
each available unit.
Similarly, the 251 five-room flats in Garden Bloom @ Tengah had more than three first-time
applicants each, while the 265 four-room units had three first-time applicants vying for each.
In both Woodlands and Tengah, buyers will have to wait for just under four years for the flats.
Both projects are slated to be completed in the third quarter of 2025.

Link to the story:
https://www.straitstimes.com/singapore/housing/telok-blangah-4-room-bto-flats-see-overwhelming-demand-more-
than-28-applicants-for

87 million-dollar HDB flats sold in first five months of 2021 in new high
A total of 87 Housing Board flats have changed hands for at least $1 million in the first five months
of the year, surpassing the 82 units sold for at least that amount in the whole of 2020.
So far, this is the highest number of million-dollar flats sold in a year on record, since the first unit
sold for more than $1 million in 2012. That year, only two units changed hands for at least that
amount.
In total, 389 HDB resale flats have sold for more than $1 million as at May 31 this year.

Link to the story:
https://www.straitstimes.com/singapore/housing/87-million-dollar-hdb-flats-sold-in-first-five-months-of-2021-82-
sold-in-2020

HDB resale prices climb for 11th straight month in May
HDB resale prices rose 1.2 per cent in May 2021 from the previous month to remain on their
upward trajectory for the eleventh straight month, according to flash data from a real estate portal.
Year on year, the overall price increase for HDB resale flats grew 12 per cent in May although it
remained 2.6 per cent lower than the peak in April 2013.

Weekly News Select
                                                                                                   Jun 4, 2021 / Issue 22

Prices for all room types grew, with three-room, four-room, five-room and executive flats seeing
a 13.7 per cent, 11.1 per cent, 12 per cent and 13 per cent year-on-year hike, respectively.
Matured estate prices grew 11.6 per cent from the previous year, while prices in non-mature estates
increased 12.4 per cent from a year ago.
There were 1,966 HDB resale transactions for May 2021, representing a 16 per cent decrease from
the previous month but 440.1 per cent higher year on year. A five-room unit at Buona Vista Court
fetched the highest transacted price for a resale flat in May 2021 at S$1.2 million.
Huttons Asia research director Lee Sze Teck believes there will be more million-dollar HDB resale
transactions in 2021 as homeowners "ride on the buoyant resale market to cash out and upgrade".
He attributed May's dip in transaction volumes to HDB's launch of a sale of balance flats (SBF)
exercise in the same month, which he believes attracted some buyers to "try their luck" in the SBF
whose completion dates were shorter than those of build-to-order (BTO) flats.
"The longer construction periods are pushing many buyers either to the resale market or SBF.
Some buyers changed their minds after applying for a BTO and switched to a resale flat instead
because of the long waiting time," noted Mr Lee.

Links to the story:
https://www.businesstimes.com.sg/real-estate/hdb-resale-prices-climb-for-11th-straight-month-in-may-srx
https://www.straitstimes.com/singapore/housing/hdb-resale-prices-rise-for-11th-straight-month-as-volume-dips-on-
tighter-covid-19

Raising land supply may aggravate housing issues
Adjusting the additional buyer's stamp duty (ABSD) remission deadline on government land sales
(GLS) sites and allowing a change of use for hospitality properties may help reduce pressure on
housing developers in the short run, amid the construction industry's labour shortage.
Noting a supply-side "dilemma" in the residential market, while more GLS sites may need to be
released to prevent land prices from soaring, that will also likely further heat up competition for
labour and construction materials.
However, releasing more GLS sites will drive up construction activity and thus the costs of raw
materials and manpower, adding upward pressure to prices of private homes and HDB resale flats.
This comes as the construction sector is already facing an increasingly acute labour shortage.
The number of private residential and executive condominium (EC) units under construction as at
the end of 2020 and 2016 were similar, at 46,452 and 44,149 respectively, but there were fewer
workers last year. At end-2020, the construction, marine and process sectors had 311,000 Work
Permit (WP) holders, down 24 per cent from 2016, the Ministry of Manpower's annual figures
showed.
Meanwhile, private residential and EC units under construction as at end-March 2021 kept largely
steady at 45,324, ticking down by 2.4 per cent from end-December 2020, according to quarterly
data from the Urban Redevelopment Authority.
In the immediate term, it is suggested that the supply of GLS residential sites may be increased to
satiate the strong demand for housing, but this could ideally be accompanied by an extension of
the typical five-year ABSD remission deadline for developers. "It may be worthwhile to review
the deadlines for GLS sites, especially the larger plots, to give developers and contractors more
room to manoeuvre. That'll help ease pressure on resources and manpower."

                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
Jun 4, 2021 / Issue 22

Link to the story:
https://www.businesstimes.com.sg/real-estate/raising-land-supply-may-aggravate-housing-issues

Commercial
Strong leasing interest for part of StanChart space in MBFC
The asset manager of the Marina Bay Financial Centre (MBFC) has received strong interest from
potential tenants for about 200,000 sq ft office space that it has been actively marketing in the
development's Tower 1. This is part of the roughly 400,000 sq ft currently leased to Standard
Chartered (StanChart) in the tower.
The profiles of occupiers that have shown the strongest interest are tech firms from the United
States, China and Singapore, as well as companies in media and financial services.

Link to the story:
https://www.businesstimes.com.sg/real-estate/strong-leasing-interest-for-part-of-stanchart-space-in-mbfc

Retail
Some retailers expanding even as others exit Singapore amid Covid-19 crisis
Some retailers are expanding their presence in Singapore even as others make their exit amid the
Covid-19 pandemic.
Consumers' changing needs as more people work and study from home have given opportunities
to retailers who cater to them.
At a time when others are closing their outlets, Ikea has expanded its footprint here with a third
outlet, in Jem in Jurong East, which has clocked healthy footfalls since its opening in April. The
chain's two other outlets are in Alexandra Road and Tampines.
Demand is likely to hold as many workers have taken to working from home, and a growing list
of large companies, such as Google and Twitter, are becoming more accepting of remote
arrangements.
The exit of retailers such as Robinsons department store chain has also freed up prime space in the
heart of Orchard Road.
Electronics and furniture retailer Courts will be taking over in the first quarter of next year all six
storeys of The Heeren that were once occupied by Robinsons.
Footwear retailer Skechers made a splash late last year and early this year, opening stores in prime
locations such as Wisma Atria, City Square Mall, 313 @ Somerset and Paragon.

Link to the story:
https://www.straitstimes.com/singapore/consumer/some-retailers-expanding-even-as-others-exit-singapore

Weekly News Select
                                                                                                   Jun 4, 2021 / Issue 22

Deliveries surge, but F&B orders diluted as more players crowd market, takeaway
fatigue sets in
Food and beverage (F&B) firms emerged from last year's "circuit breaker" better prepared for
similar disruptions like the latest ban on dining-in at eateries - but new challenges have surfaced.
Some firms have reported slower demand for takeaways and deliveries compared to the circuit-
breaker in April and May last year, despite the restrictions being largely similar.
The lower sales seen by the individual F&B firms could be due to increased competition, both
from more existing players offering delivery, as well as new entrants.
Some 96 new players joined the industry in the first half of 2020, despite the Covid-19 pandemic,
possibly to capitalise on diminished competition and increased demand for takeaway food, The
Business Times reported last August.
In addition, many F&B operators joined delivery platforms during the circuit breaker, and more
have followed.
Besides the stiffer competition, other reasons for slower sales could be consumer fatigue and belt-
tightening as the pandemic drags on.

Link to the story:
https://www.businesstimes.com.sg/consumer/deliveries-surge-but-fb-orders-diluted-as-more-players-crowd-market-
takeaway-fatigue-sets

Some major retail and all govt landlords in S’pore accept code of conduct on lease
negotiations
At least eight major retail landlords from the private sector and all government landlords have
committed to abide by a new code of conduct on the leasing of retail premises in Singapore.
The code is aimed at making lease negotiations between landlords and retail tenants fairer and
more balanced.
With effect from June 1, CapitaLand, City Developments (CDL), Frasers Property Retail,
GuocoLand, Mercatus Co-operative, UOL Group and SPH Reit, as well as all government
landlords such as JTC Corporation and the Housing Board, will abide by the code of conduct,
which sets out fair guidelines for lease negotiations in 11 areas.
These include rental structure, third-party fees, pre-termination by landlords or tenants, and data
sharing.
The code also sets out a process for resolving disputes after lease agreements have been signed.

Link to the story:
https://www.straitstimes.com/business/economy/code-of-conduct-for-fairer-landlord-tenant-lease-negotiations-in-
spore-accepted-by

Government
Singapore on track to ease tightened Covid-19 curbs after June 13: PM Lee
While Covid-19 is likely to become endemic and circulate for years to come, living with the virus
does not mean Singapore will completely close its borders, said Prime Minister Lee Hsien Loong.

                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
Jun 4, 2021 / Issue 22

And barring any super-spreader events or large clusters forming, the country should be "on track"
to bring the outbreak under control, and that "we will know for sure" in another week or so. He
added that if the situation improves and the number of community cases falls further, the
authorities "should be able to" relax the restrictions under the current Phase 2 (Heightened Alert)
after June 13.
In a televised address delivered at the Istana, Mr Lee said the priority for now is to get through the
pandemic and position Singapore strongly for the future, even as the virus continues to rage
elsewhere.
He outlined a three-pronged strategy where Singapore must carry out Covid-19 tests faster and
more extensively, speed up and widen the contact-tracing process, and vaccinate as many people
as possible within the shortest amount of time.
On the testing front, he said more and different kinds of tests are coming on stream. These include
breathalyser tests that take only a minute and are being used at the Causeway and the airport. Do-
it-yourself tests will soon be sold over the counter at pharmacies, he added.
Turning to the move towards faster and more effective contact tracing, Mr Lee said the current
system can be improved by casting the net wider to identify and quarantine close contacts of an
infected case.
In future, a first-degree contact will be isolated and tested for the virus. His household members
will be notified to isolate themselves immediately - without waiting to see if the first-degree
contact tests positive.
As for vaccinations, Mr Lee announced that there will be faster vaccine deliveries over the next
two months. This will enable the government to boost the vaccination programme and offer the
shots to everyone, "even sooner than we expected".
With those 40 and above already eligible for the jabs, Mr Lee said the next group in the queue are
students.
Bookings will open on June 1 with priority given to the graduating cohorts for the 'O', 'N' and 'A'
Level examinations, as well as special-needs students. Those aged 12 and above will follow after,
including students in institutes of higher learning.
Young adults aged 39 and younger will have their turn from around mid-June, with the
Singaporeans in this group given a two-week priority window to book their appointments first.
"We will reopen our borders safely. Visitors will again come to Singapore. Singaporeans will
travel again to countries where the disease is well under control, especially if we have been
vaccinated," he said. "Eventually we will even go about without masks again, at least outdoors.
Right now, we are some ways off from this happy state. But we are heading in the right direction."
At a press conference held after Mr Lee's speech, Finance Minister and Covid-19 taskforce co-
chair Lawrence Wong said it was "very unlikely" that Singapore will immediately go back to Phase
3 of its re-opening at the end of Heightened Alert on June 13. "If all goes to plan, there may be a
chance... for some adjustment and relaxation of measures," he said, adding that this had to be done
"gradually and in a controlled manner".

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-on-track-to-ease-tightened-covid-19-curbs-
after-june-13-pm-lee
https://www.straitstimes.com/singapore/singapore-planning-for-a-new-normal-of-living-with-the-virus-says-pm
https://www.straitstimes.com/singapore/health/spore-should-be-able-to-ease-covid-19-restrictions-after-june-13-if-
community-cases

Weekly News Select
                                                                                                   Jun 4, 2021 / Issue 22

https://www.straitstimes.com/singapore/routine-large-scale-extensive-covid-19-testing-to-become-part-of-new-
normal-says-pm
https://www.straitstimes.com/singapore/health/singapore-to-also-isolate-household-members-of-a-close-contact-of-
covid-19-case
https://www.businesstimes.com.sg/government-economy/likely-no-tightening-of-covid-19-restrictions-for-now-
with-cases-stabilising
https://www.straitstimes.com/singapore/likely-no-need-to-further-tighten-spores-covid-19-rules-as-curbs-are-
working-lawrence-wong

Hidden Covid-19 cases in S'pore community 'very concerning': Lawrence Wong
The "hidden" Covid-19 cases that continue to circulate within the community remain a cause for
concern, said Finance Minister Lawrence Wong on June 3, adding that the recent coronavirus
outbreak in a home for intellectually disabled adults is a "stark reminder" of this fact.
"We are dealing with a very infectious and highly contagious strain of the virus, which is capable
of spreading much faster than anything we've had to deal with before and causing large clusters to
break out easily," Mr Wong said in a video message on Facebook.
"So we really need to take the precautions and safeguards very seriously."
"We've been monitoring the situation carefully and considering what are some of the next steps
we might take," added Mr Wong, who co-chairs the task force.
"We are very concerned about the hidden or cryptic cases that are still out there in the community."

Link to the story:
https://www.straitstimes.com/singapore/health/hidden-covid-19-cases-in-spore-community-very-concerning-
lawrence-wong

S$800m Covid-19 aid package for firms and individuals
The government will enhance its support measures to the tune of S$800 million to help companies
and individuals during the current Phase 2 (Heightened Alert), said Finance Minister Lawrence
Wong.
This move comes about two weeks after further restrictions - including a ban on dining-in and
reducing the permissible size of group gatherings from five to two people - were made to curb the
spread of Covid-19, and after engaging workers, unionists and business leaders to get their
feedback and hear their concerns.
Mr Wong said the broadened support package is "not quite a second Budget" and is meant to
"provide short-term relief" so that businesses and people can "tide over this period".
The package will be funded by a reallocation of spending, which means there is no need to draw
from the past reserves again. Mr Wong, however, intends to table a Supplementary Supply Bill at
the next Parliament sitting in July to effect the reallocation.
A key plank of the package is the extension of the Jobs Support Scheme (JSS) - which provides
wage subsidies to firms for the first S$4,600 of gross monthly wages paid to local employees - to
more affected sectors. Gyms and fitness studios are among those that will get JSS support of 50
per cent, while businesses that are not required to suspend operations but have been affected -
cinemas, personal care services, family entertainment centres and others - will get a 30 per cent
subsidy.

                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
                                                                                                   Jun 4, 2021 / Issue 22

The government is also helping businesses with cash flow concerns by supporting their rental
costs, while help is also on the way in the form of one-off support for lower to middle-income
employees and self-employed persons.

Links to the story:
https://www.businesstimes.com.sg/government-economy/s800m-covid-19-aid-package-for-firms-and-individuals
https://www.straitstimes.com/singapore/800-million-covid-19-support-package-to-help-firms-and-workers-
including-enhanced-wage
https://www.straitstimes.com/singapore/eligible-smes-non-profit-organisations-in-commercial-properties-to-get-
rental-relief
https://www.straitstimes.com/singapore/rental-rebates-to-be-passed-directly-to-tenants-in-privately-owned-
commercial-properties
https://www.straitstimes.com/singapore/spore-will-not-dip-into-reserves-to-fund-new-covid-19-support-package
https://www.straitstimes.com/singapore/temporary-grant-of-up-to-700-for-lower-to-middle-income-and-self-
employed-workers-impacted

Singapore residents can get more types of Covid-19 jabs - but at their own cost and
risk
Healthcare providers are keeping an eye on the decision to make more types of Covid-19 vaccines
available through the private sector.
That is as the Ministry of Health (MOH) announced that even vaccines without the Health Sciences
Authority (HSA)'s approval can be used here under the Special Access Route (SAR), as long as
they have been green-lit for emergency use by the World Health Organization (WHO).
But, several private operators were caught off-guard by the news and are awaiting guidance from
the ministry, The Business Times (BT) understands.
One key concern is how they can secure a supply of the alternative vaccines, which are not
manufactured here.
Still, individuals who want to take these shots, do so at their own cost and risk.
The government will not subsidise the alternative Covid-19 vaccines, and recipients do not qualify
for a goodwill financial assistance scheme for serious side effects.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-residents-can-get-more-types-of-covid-19-jabs-
but-at-their-own-cost-and
https://www.straitstimes.com/singapore/health/moh-to-allow-other-covid-19-vaccines-through-private-sector-
reviewing-mrna-jabs-for

Singapore, South Korea in exploratory talks on air travel bubble since March
Singapore is said to be one of the top choices for South Korea to launch a travel bubble with.
The Straits Times understands that the two countries started "very preliminary, exploratory talks
at the working level" in March.
This came after South Korean Deputy Prime Minister Hong Nam-ki said during a meeting that the
government will seek to create travel bubbles with other countries in order to revive air travel,
which has been badly hit by the Covid-19 pandemic.
Industry sources have named Singapore among potential partners that also include New Zealand,
Taiwan, Guam and Saipan.

                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
Jun 4, 2021 / Issue 22

Link to the story:
https://www.straitstimes.com/asia/east-asia/singapore-south-korea-in-exploratory-talks-on-air-travel-bubble

IRAS withholds S$85m in JSS, JGI payouts to 2,600 employers, pending checks
The Inland Revenue Authority of Singapore (IRAS) has withheld S$85 million in the March 2021
Jobs Support Scheme (JSS) and Jobs Growth Incentive (JGI) payouts to investigate gaming and
the authenticity of employers' claims.
These comprise of S$52 million from JSS claims and S$33 million in JGI claims from some 2,600
employers. According to a press statement, this makes up about 2 per cent of all qualifying
employers for the payouts.
This is part of IRAS's efforts to ensure the payouts are fairly disbursed, and employers will receive
the payouts once the accuracy of information provided is confirmed. Otherwise, payouts will be
adjusted or denied accordingly.
So far, IRAS has concluded the review of over 800 JSS and nearly 1,100 JGI payouts from the
March 2021 allotment. Having denied some 500 and 800 employers respectively under each
scheme, S$16 million in payouts have been denied for each scheme.

Links to the story:
https://www.businesstimes.com.sg/government-economy/iras-withholds-s85m-in-jss-jgi-payouts-to-2600-
employers-pending-checks
https://www.straitstimes.com/singapore/politics/85-million-in-jobs-support-scheme-and-jobs-growth-incentive-
payouts-withheld-from

Economy
The super rich are choosing Singapore as the world's safest haven
Singapore has long been a draw for wealthy Chinese, Indonesians and Malaysians who would
come for short trips to shop, play baccarat at the casino or get medical check-ups at world-class
clinics. Mount Elizabeth Hospital Orchard, just steps from the flagship stores of Gucci and Rolex,
features a UOB Privilege Banking Centre in the lobby.
The pandemic has changed all that, prompting many tycoons and their families to stay for months
- in some cases seeking residency to ride out the storm. On a per-capita basis, the mortality rates
in Malaysia and Indonesia are more than 10 and 30 times higher than in Singapore, showed data
collected by Johns Hopkins University.
The number of single-family offices in the city-state has doubled since the end of 2019 to about
400, including firms recently set up by Google co-founder Sergey Brin and Shu Ping, the
billionaire behind Chinese hotpot empire Haidilao International Holding Ltd. Demand for private
golf club memberships is soaring, real estate prices have jumped the most since 2018 and, until
the recent clampdown, Michelin-star restaurants were packed. Meanwhile, global banks such as
UBS Group are expanding in the city to manage the massive influx of assets.
Singapore does not divulge many details on its super-rich migrant residents, but private bankers,
multi-family offices and other service providers say the new arrivals are helping their businesses
in a city famous as the setting for the Crazy Rich Asians film.

Weekly News Select
Jun 4, 2021 / Issue 22

Singapore makes it relatively easy for the super rich to settle. Through its Global Investors
Programme, it grants a fast-track to permanent residency to qualified business owners or families
if they invest S$2.5 million in a local business, certain funds or a family office with at least S$200
million in assets.
The government also introduced a new investment vehicle last year, known as the Variable Capital
Company (VCC), making it more attractive for family offices, hedge funds and private equity
firms to set up shop. Over 260 VCCs have been established since then, said the Monetary Authority
of Singapore.
The influx of foreigners is helping to fuel the property market, with the strongest growth in the
luxury sector. It has also made Singapore an outlier in the rental market, with rates rising even as
they fall in New York, Hong Kong and London.

Link to the story:
https://www.businesstimes.com.sg/government-economy/the-super-rich-are-choosing-singapore-as-the-worlds-
safest-haven

Rich China tycoons park family offices in S'pore
Singapore is home to a total of 400 SFOs as at the end of last year, according to the Monetary
Authority of Singapore (MAS). And banks here testify to the growth.
Three years ago, customers from the Greater China region made up 25 to 30 per cent of DBS
Private Bank's family office clientele. This has now grown to 45 per cent, making the Greater
China region the largest of its customer base. The remaining 35 per cent of the bank's family office
clientele are from South-east Asia, while 20 per cent are from Europe and the US.
Seeing immense potential in the sector, Helen Wong, OCBC Group CEO, said at the bank's annual
general meeting at the end of April that it would expand its family office business significantly.
When the pandemic eased in the second half of 2020, more of the wealthy headed to Singapore.
Since July last year, more than 60 have looked into setting up family offices. Among them, 70 per
cent were from China. Their initial capital investments are in the range of US$10 million to US$20
million.
Industry insiders have observed that the surge in the number of Singapore- based family offices
set up by the China rich is mainly due to the city state's favourable tax regime and legal
environment.
Under the structure set by MAS, a family office here would be eligible for tax exemption scheme
13R and 13X of the Income Tax Act. Single family offices do not require a capital markets services
licence issued by MAS to operate; asset managers of these entities are not required to hold
professional financial qualifications and would also be eligible for employment passes.
The Singapore Economic Development Board's Global Investor Programme (GIP) is another
channel which foreign entrepreneurs can tap to set up their family offices. However, a net
minimum investment of S$200 million is required. Few SFOs have been set up through GIP.
To boost Singapore's attractiveness as the location of choice for family offices, MAS and EDB
established the Family Office Development Team in 2019. The alliance would build a more
conducive operating environment; expand the professional capabilities of various professional
sectors; and strengthen the connection between SFOs and the local and international markets, so
as to facilitate the development of the whole family office ecosystem.

Weekly News Select
                                                                                                   Jun 4, 2021 / Issue 22

In addition to preferential policies, the independence of the Singapore judiciary has also been
considered an advantage internationally.

Link to the story:
https://www.businesstimes.com.sg/asean-business/rich-china-tycoons-park-family-offices-in-spore

Reassuring to plan a future in which Covid 19 is endemic, say economists
While living with Covid-19 as an endemic disease is not the cheeriest future, the long-term
scenario painted by Prime Minister Lee Hsien Loong - on how Singapore can still thrive in such a
new normal - should provide some reassurance to businesses, economists say.
Living with endemic Covid-19 means not completely closing borders, but staying connected to the
world with safeguards and border curbs, he added.
Some infected persons might slip through at times, but as long as the population is mostly
vaccinated, Singapore "should be able to trace, isolate and treat the cases that pop up, and prevent
a severe and disastrous outbreak".
Mr Lee's speech might give firms a sense of stability, and the ability to have confidence in the
"sustainable, proactive measures" that Singapore has at its disposal.

Link to the story:
https://www.businesstimes.com.sg/government-economy/reassuring-to-plan-a-future-in-which-covid-19-is-endemic-
say-economists

Business confidence, loan demand still mixed amid uneven Covid-19 recovery
Data from the Monetary Authority of Singapore showed that total business loans in Singapore
came in near flat at S$427.69 billion in April after four straight months of steady growth.
This was even as loans to the single largest business segment - building and construction - rose 0.3
per cent month on month to S$152.15 billion to reverse the 0.3 per cent decline in March.
Loans to the manufacturing sector were down 3.4 per cent month on month to S$26.89 billion in
April; loans to the transport sector fell 4.1 per cent to S$24.70 billion; and loans to business
services slumped 5 per cent to S$10.92 billion.
Year on year, total business loans contracted for the eight straight month by 1.4 per cent.
Consumer loans, on the other hand, were up 0.3 per cent in April for the ninth straight month,
aided by loan demand recovery in the housing segment.
Housing loans, which make up three-quarters of consumer lending, extended their growth streak
for the eighth straight month, up 0.4 per cent to S$204.65 billion in April.
Overall, loans through the domestic banking unit - which captures lending in all currencies but
reflects mainly Singapore-dollar lending - rose for the sixth consecutive month by 0.1 per cent in
April to S$692.17 billion, albeit slower than the 0.7 per cent increase in March.
Year on year, total bank lending in April was up 0.4 per cent - the first step into positive growth
territory since May 2020.

Links to the story:
https://www.businesstimes.com.sg/banking-finance/business-confidence-loan-demand-still-mixed-amid-uneven-
covid-19-recovery
https://www.straitstimes.com/business/banking/singapore-bank-lending-up-01-in-april-mas-data

                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
Jun 4, 2021 / Issue 22

HSBC to expand wealth businesses here and in region, build on Singapore's growing
stature as hub
HSBC is building on Singapore's growing stature as a hub for the well-heeled by expanding its
wealth businesses here and in the region.
It plans to hire around 5,000 customer-facing staff in the next five years in Hong Kong, Singapore
and mainland China to serve clients in the coveted sector.
The roles include relationship managers, investment counsellors and specialists to support wealthy
customers.
It is already on track to bring 1,000 of these new employees on board by the end of this year,
including a "significant number" in Singapore.

Link to the story:
https://www.straitstimes.com/business/banking/hsbc-to-expand-wealth-businesses-here-and-in-region-build-on-
singapores-growing

Singapore PMI stays in expansion in May, though slowing from Apr on Covid-19
curbs
Manufacturing sentiment in Singapore stayed strong in May, albeit slowing slightly from April's
recent high, which economists attributed to the tightening of Covid-19 restrictions.
In the latest Purchasing Managers' Index (PMI) release, May's PMI was 50.7, marking the 11th
straight month in expansion - that is, a reading above 50. This was down from 50.9 in April, which
had been the highest reading since December 2018.
The PMI for the key electronics sector was 50.4, down from 50.7 in April, but still in expansion
for the 10th straight month.
The Singapore Institute of Purchasing and Materials Management (SIPMM), which compiles the
index, attributed May's lower PMI reading to slower expansion rates in new orders, new exports,
factory output, and employment.
Lower readings were seen for those indexes in the electronics sector too, where inventory also
expanded at a slower rate.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-pmi-stays-in-expansion-in-may-though-
slowing-from-apr-on-covid-19-curbs
https://www.straitstimes.com/business/economy/covid-19-curbs-slow-down-singapore-manufacturing-activity-in-
may

Wages of workers in unpopular jobs could stay up for good, observers say
More than a year into the economic hurricane, Singapore faces both a foreign manpower shortage
and elevated local unemployment.
Border curbs have put upward pressure on wages in some rank-and-file jobs typically filled by
work permit and S-Pass holders, as migrants command higher pay, and employers woo local staff
to plug the gaps.

Weekly News Select
                                                                                                   Jun 4, 2021 / Issue 22

Cleaners, construction workers and waiters were among the leading non-PMET positions that went
unfilled for at least six months, according to the last job vacancy survey released by the Ministry
of Manpower (MOM) in April.
So, although 122,900 residents were unemployed as at mid-2020, Singapore still brought in 70,000
foreigners for services industries such as healthcare and cleaning.
This is even as the salary floor for cleaners ticked up from S$1,300 in 2019 to S$1,352 to 2020;
the ceiling for nursing professionals, who typically require a diploma-level qualification, rose from
S$2,800 to S$4,500, according to MOM data.

Link to the story:
https://www.businesstimes.com.sg/government-economy/wages-of-workers-in-unpopular-jobs-could-stay-up-for-
good-observers-say

Singapore unemployment situation keeps improving in April for citizens, residents
Singapore’s unemployment rates for residents and citizens continued to decrease in April, though
the overall unemployment rate stalled, according to a Manpower Ministry (MOM) release.
The overall, resident and citizen unemployment rates have been declining since September's peak.
In April, both the resident and citizen unemployment rates fell a further 0.1 percentage point, to
3.9 per cent and 4.1 per cent respectively.
The overall rate was unchanged from March at 2.9 per cent, having earlier fallen from February's
3 per cent figure.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-unemployment-situation-keeps-improving-in-
april-for-citizens-residents
https://www.straitstimes.com/business/resident-unemployment-falls-for-sixth-consecutive-month

Hospitality
HPL ropes in IHG to rebrand Hilton hotel as voco Orchard Singapore
The 51-year-old Hilton Singapore, a landmark Orchard Road hotel belonging to Hotel Properties
Limited (HPL), will be rebranded as a fairly new brand under IHG Hotels & Resorts.
The 423-room voco Orchard Singapore will open its doors in January next year.
The Singapore property will be the first voco hotel to open in South-east Asia. Existing voco hotels
in the Asia-Pacific region are in places such as Australia and China; more openings are set for
Vietnam, Thailand, South Korea, New Zealand and Saipan.
The voco Orchard Singapore will be IHG's 12th hotel and seventh brand here, joining Regent,
InterContinental, Crowne Plaza, Hotel Indigo, Holiday Inn and Holiday Inn Express.

Links to the story:
https://www.businesstimes.com.sg/real-estate/hpl-ropes-in-ihg-to-rebrand-hilton-hotel-as-voco-orchard-singapore
https://www.straitstimes.com/business/companies-markets/hilton-singapore-along-orchard-road-to-be-rebranded-as-
voco-orchard

                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
Jun 4, 2021 / Issue 22

Industrial
Portfolio of 29 cloud kitchen units at Lavender Street served up for sale
Design and construction firm Chiu Teng Group is understood to be selling its portfolio of 29
ground-floor cloud kitchen units at CT Hub 2 via expression of interest.
The portfolio for sale comprises units ranging from 26 to 42 sq m, making up a total strata area of
906 sq m.
Located at 114 Lavender Street, the commercial property is approved for food & beverage (F&B)
use and fully leased, with Deliveroo Editions as its major tenant. It houses familiar names such as
Mos Burger, Da Paolo, Teppei Syokudo, Pho Stop, Kings Cross Bar and Restaurant, Donburi Yo!
and FortyThieves. Before Phase 2's heightened restrictions, the kitchens offered both dine-in and
pick-up options.
The expression of interest for the cloud kitchen at Lavender will close at 3pm on June 8.

Link to the story:
https://www.businesstimes.com.sg/real-estate/portfolio-of-29-cloud-kitchen-units-at-lavender-street-served-up-for-
sale

S'pore semiconductor firms boost capacity amid global chip crunch
Local players in the semiconductor industry are ramping up production capacity amid a worsening
global chip shortage sparked by high demand from consumer electronics and automobile firms.
Examples include major contract chip manufacturer GlobalFoundries Singapore, which is
increasing its capital expenditure; and smaller players such as NexGen Wafer Systems, which is
renovating its facilities here.
GlobalFoundries said the firm's orders have been overwhelming since the third quarter of last year
and its wafer fabrication plants (fabs) are all fully loaded for the rest of the year. GlobalFoundries
Singapore serves sectors such as automotives and security.
Firms supporting semiconductor manufacturers are similarly squeezed by the demand surge and
are trying to expand capacity. NexGen Wafer Systems, which makes equipment for producing
semiconductor wafers, is renovating its production facilities so it can lift output by 25 per cent.

Link to the story:
https://www.straitstimes.com/business/economy/spore-semiconductor-firms-boost-capacity-amid-global-chip-
crunch

Weekly News Select
                                                                                                                     Jun 4, 2021 / Issue 22

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

This document has been prepared by Huttons Asia for general information only. Huttons Asia does not guarantee warrant or represent that the
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                     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
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