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Weekly News Select
                                                                                                 Jul 17, 2020 / Issue 29

Top News for the Week
        •   GE2020: PAP wins 83 of 93 seats; WP takes two GRCs
        •   June new condo sales more than double on pent-up demand, foreigner buying
        •   Some new BTO flats may be delayed by up to 9 months: HDB
        •   Surge in HDB resale transactions in June after circuit breaker restrictions lifted,
            prices stable
        •   Aug 10 target to restart Singapore-Malaysia travel
        •   Singapore enters recession with record 12.6% GDP fall in Q2
        •   Economy may be on the path to recovery
        •   S'pore drops 2 spots to be world's 14th most costly city for expats: Poll
        •   S'pore tops index as key global shipping hub for 7th straight year

Residential
June new condo sales more than double on pent-up demand, foreigner buying
Developers in Singapore sold 998 new private homes in June, 105 per cent more than May's 486,
on pent-up demand and an increase in foreign buying as show galleries reopened.
Buyers remained largely prudent though, with 919 suburban homes sold out of the total 998
transactions - comprising 489 in outside central region (OCR), and 430 in rest of central region
(RCR). There were 79 units in the posh core central region (CCR).
The three top-selling projects last month were the mass market developments located in the OCR
- Treasure At Tampines, Parc Clematis and The Florence Residences.
Despite the deep recession, some consultants are hopeful that the residential market is normalising
as recovery gathers pace, though prices continue to weaken.
"We estimate there could be up to 20 new launches (around 6,000 units) in H2 2020 with Cairnhill
16 first to hit the road on July 17," said Lee Sze Teck, Huttons Asia, director, research.
While the economy contracted by 12 per cent in Q2 2020, economists have agreed that the worst
is over and recovery is on the cards, he said.
"The resilience in the market and property as an endearing asset class among investors will drive
sales in the market," added Mr Lee.

Links to the story:
https://www.businesstimes.com.sg/real-estate/june-new-condo-sales-more-than-double-on-pent-up-demand-
foreigner-buying
https://www.straitstimes.com/business/property/new-private-home-sales-post-surprise-rebound

Some new BTO flats may be delayed by up to 9 months: HDB
In May, HDB had said that the completion of some BTO projects was expected to be delayed by
up to six months due to the halt in construction works during the two-month circuit breaker period,
which started on April 7.

               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 17, 2020 / Issue 29

Even though construction works have resumed gradually since June 2, when the circuit breaker
measures were eased, companies have had to adhere to strict safe management measures at work
sites amid the Covid-19 outbreak.
HDB told ST that while the delay is still up to six months for most projects, there are some blocks
in a few projects where the delay could be longer, by up to nine months.
It did not specify how many projects are facing a nine-month delay or the number of units affected.
"The delay is due to various reasons, such as the disruption in supply of precast components and
materials from overseas, the availability of manpower and the ability of contractors to meet the
safety pre-requisites by the authorities for works to restart," HDB said in a statement.

Link to the story:
https://www.straitstimes.com/singapore/housing/some-new-bto-flats-may-be-delayed-by-up-to-9-months-hdb

Singapore condo resale volumes pick up, prices hold steady in June: SRX
Resale prices of non-landed private homes were stable in June, with sales volume recovering from
the previous month, according to flash figures from a real estate portal.
Last month, 497 units were resold, representing a 174.6 per cent increase, or more than double the
181 units resold in May this year. However, last month's resale volume is 26.3 per cent lower than
in June 2019, and a 40.7 per cent drop from the five-year average volume for the month of June.
Overall, condo resale prices last month remained unchanged over May. Prices in the core central
region declined 1.8 per cent, and prices in the rest of central region or city fringes fell 1.1 per cent,
while prices outside the central region rose 1.4 per cent in June this year.

Links to the story:
https://www.businesstimes.com.sg/real-estate/singapore-condo-resale-volumes-pick-up-prices-hold-steady-in-june-
srx
https://www.straitstimes.com/business/property/condo-resale-volume-recovered-in-june

Surge in HDB resale transactions in June after circuit breaker restrictions lifted,
prices stable
The Housing and Development Board (HDB) resale market has roared back to life after Singapore
moved to reopen its economy following the two-month long circuit breaker period, with 2,452
units changing hands in June.
This was a 573 per cent increase from May this year, part of the period when the circuit breaker
measures restricted real-estate activity. The data is from the latest flash report by a real estate portal
on the HDB resale market.
Despite the massive jump in transactions, HDB resale prices slipped by a modest 0.2 per cent in
June compared with May — though prices were 0.8 per cent higher than in June 2019.
Analysts told TODAY that the month-on-month fall is not a significant drop and reflects the stable
nature of the HDB market.
Analysts agreed that the sharp rise in HDB resale transactions for the month of June was due to
the “pent-up demand” from the circuit breaker period, when potential buyers were not allowed to
view the properties that were on sale.

Weekly News Select
                                                                                                  Jul 17, 2020 / Issue 29

Mr Lee Sze Teck, director of research at property agency Huttons Asia, said that the jump in
transactions reflected that Singaporeans would want to take the “window of opportunity” to enter
the market now, given the possibility of a second lockdown or new restrictions being imposed
should Covid-19 cases in the community rise.

Links to the story:
https://www.todayonline.com/surge-hdb-resale-transactions-june-after-circuit-breaker-restrictions-are-lifted-prices-
remain
https://www.businesstimes.com.sg/real-estate/hdb-resale-volume-jumps-67-times-in-june-srx
https://www.straitstimes.com/singapore/housing/hdb-resale-volume-surges-in-june

Condo, HDB rents slide further in June: SRX
Rents for private apartments and Housing and Development Board (HDB) flats continued their
decline amid the Covid-19 outbreak, according to flash data released by a real estate portal.
In the private rental market, rents in June dipped 0.6 per cent from May.
Year on year, private rents in June fell for the Core Central Region (CCR) and Rest of Central
Region (RCR) by 0.7 per cent and 2.2 per cent respectively.
For the HDB rental market, rents in June fell by 0.5 per cent from May. Year on year, HDB rents
fell by 2 per cent, and were 16.1 per cent down from their peak in August 2013.

Links to the story:
https://www.businesstimes.com.sg/real-estate/condo-hdb-rents-slide-further-in-june-srx
https://www.straitstimes.com/singapore/condo-hdb-rents-continue-decline-amid-pandemic

OCBC launches first SORA-based home loan
OCBC has launched Singapore's first home loan referencing the Singapore Overnight Rate
Average (SORA), an alternative benchmark rate, available to buyers of completed private
properties with a minimum loan size of S$1 million.
This is another step in the industry's move towards adopting the SORA - the average rate of
unsecured overnight interbank Singdollar (SGD) transactions brokered in Singapore - as the new
interest rate benchmark for the SGD cash and derivatives market.
Compounded SORA rates, which are backward-looking overnight rates, are thought to offer more
stability compared to forward-looking term rates commonly used for floating home loan packages
in Singapore, such as the Singapore Interbank Offered Rate (Sibor). Forward-looking term rates
are more exposed to market factors on a single day's fixing, such as quarter or year-end volatility.
As an overnight lending and borrowing rate among banks, SORA lacks a term and credit risk
premium. This results in SORA being typically lower than Sibor - at an average of 0.35 per cent,
based on OCBC's computations using variances between the rates from Jan 1, 2019 to June 30,
2020.
OCBC's SORA loan package has a one-year lock-in period, which means customers can switch to
another home loan package after a year at no cost.
Customers can also make pre-payments of up to 50 per cent of the loan amount in the first year
without any penalty fee.

                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 17, 2020 / Issue 29

Links to the story:
https://www.businesstimes.com.sg/companies-markets/ocbc-launches-first-sora-based-home-loan-0

Commercial
Redevelopment may head off office market blues
Singapore office rents are easing amid a drop in demand as businesses go into cash-conservation
mode amid a recession, prompting some to downsize their headcount.
However the limited completion of new CBD Grade A offices this year and next should mitigate
the rental drop. Another silver lining may turn up in timely fashion - the redevelopment of ageing
office blocks in the central business district (CBD), spurred by an incentive scheme unveiled by
the Urban Redevelopment Authority last year to rejuvenate the old CBD.
So far, owners of at least two office assets - AXA Tower and Fuji Xerox Towers - have shown
their hands. City Developments has said that it is actively studying the feasibility of redeveloping
the 38-storey Fuji Xerox Towers along Anson Road.
BT understands that AXA Tower's redevelopment could begin in the late-2021 to early-2022
period.
A similar situation may unfold at Fuji Xerox Tower, which has 353,575 sq ft net lettable area.
Buildings coming up for redevelopment may be a source of unforeseen leasing demand for offices,
said observers.

Link to the story:
https://www.businesstimes.com.sg/real-estate/redevelopment-may-head-off-office-market-blues

A stream of office space leasing deals in pipeline despite uncertain business climate
The Covid-19 outbreak may have caused some potential tenants to pause their office leasing plans
but at least a few deals have been done. These include two floors that will be vacated by Grab at
Guoco Tower in Tanjong Pagar.
At the soon-to-be-completed Afro- Asia i-Mark project along Robinson Road, Foodpanda parent
Delivery Hero is leasing 50,000 to 60,000 sq ft, according to the grapevine.
There is also talk that e-commerce giant Amazon is in discussions to lease 90,000-plus sq ft on
three levels at Asia Square Tower 1.
Meanwhile Fuji Xerox is said to be in advanced discussions to ink a lease for nearly 60,000 sq ft
at Mapletree Business City (MBC). It currently occupies about 100,000 sq ft at Fuji Xerox Towers
in Anson Road.
At Guoco Tower, where Grab will be vacating two floors adding up to about 54,000 sq ft as part
of its move to its new headquarters in one-north, one floor has been leased to QBE Insurance
(Singapore) and the other to Toyota Motor Asia Pacific, BT understands. Toyota Motor Asia
Pacific has also leased some additional space on another floor at Guoco Tower, resulting in a total
of 62,000 sq ft being leased to the two parties.

Link to the story:
https://www.businesstimes.com.sg/real-estate/a-stream-of-office-space-leasing-deals-in-pipeline-despite-uncertain-
business-climate

Weekly News Select
Jul 17, 2020 / Issue 29

Commercial podium of Tedge put up for sale
The entire commercial podium of Tedge, a freehold mixed-use development at the corner of
Changi Road and Telok Kurau Road, in district 15 has been put up for sale.
The guide price is in excess of S$18 million or S$3,228 per sq ft.
The sale offering comprises four adjoining commercial units on the ground floor - two purpose-
built food and beverage (F&B) units equipped with kitchens, and two shop units, making up a total
strata area of about 5,576 sq ft.
As the property is approved as "commercial", no additional buyer's stamp duty or seller's stamp
duty will be imposed.
The property is slated for completion by the end of 2022. The expression of interest exercise will
close on Aug 18, 2020.

Link to the story:
https://www.businesstimes.com.sg/real-estate/commercial-podium-of-tedge-put-up-for-sale

Retail
Steeper falls likely for Singapore retail rents in H2
Vacancies from the second quarter of 2020 are expected to put further downward pressure on retail
rents in Singapore as more businesses shutter for good, said a report.
Many activity-based tenants such as those in food and beverage (F&B) and health and wellness
will not be able to operate at full capacity with safe-distancing measures remaining in place, despite
most retail businesses resuming operations since June 19 after Singapore's "circuit-breaker"
period.
As such, vacancies in non-prime locations are expected to rise in the second half of the year, as
activity-based tenants are usually located in non-prime spaces within malls, given their larger size
requirements.
The entire retail market may see steeper falls in rent in H2 2020, due to higher expected vacancies,
lower footfalls, safe-distancing measures and economic uncertainties from the Covid-19
pandemic.

Links to the story:
https://www.businesstimes.com.sg/real-estate/steeper-falls-likely-for-singapore-retail-rents-in-h2
https://www.straitstimes.com/business/property/retail-rent-to-fall-more-sharply-amid-mounting-mall-vacancies

Shopper traffic stabilises but many spend cautiously
Three weeks into phase two of Singapore’s reopening, shoppers here have adjusted well to safety
measures, said retailers. Though some stores continue to see consistent shopper traffic, the initial
rush of crowds seen during the first week of phase two has subsided.

Weekly News Select
                                                                                                  Jul 17, 2020 / Issue 29

A check with retailers found that the response from shoppers has varied, with some stores seeing
more shoppers as the weeks go by, while others have found that traffic peaked in the first week of
phase two.
Retail experts said that while there had been some shoppers splurging at the onset of phase two
due to accumulated demand over the circuit breaker period, that might not continue.

Link to the story:
https://www.straitstimes.com/singapore/shopper-traffic-stabilises-but-many-spend-cautiously

Reopening cinemas offer blockbusters - and a pivot to digital
Cinemas reopened their doors on 13 July after a 109-day hiatus, as Singapore took another step
towards a new post Covid-19 normality.
Closed since March 27, cinemas have to follow regulations laid down by the Ministry of Health
with their reopening. These include a one-metre social-distancing seat configuration between
groups of up to five people, the mandatory use of face masks for the film's duration (unless eating
or drinking), and a limit to the number of people per hall to 50.
High touch points such as seats, door handles and cup holders will also have to be wiped down
and disinfected regularly after each screening.

Links to the story:
https://www.businesstimes.com.sg/sme/reopening-cinemas-offer-blockbusters-and-a-pivot-to-digital
https://www.straitstimes.com/singapore/quiet-start-for-cinemas-but-operators-expect-pickup-in-attendance

Naiise exits Design Orchard, cuts headcount, operating costs
Following a series of cost-cutting measures which have included layoffs, design retailer Naiise is
now withdrawing prematurely as the operator of Design Orchard's retail showcase, with the Textile
and Fashion Federation (TaFF) set to take over the role on Aug 1.
The Singapore Tourism Board (STB) announced this in a statement, noting that Naiise was leaving
Design Orchard to "consolidate" its business operations and focus on its namesake online and
brick-and-mortar stores amid the current economic climate.
It was supposed to run the retail showcase on the ground floor space until at least January 2022,
The Straits Times (ST) reported.

Links to the story:
https://www.businesstimes.com.sg/consumer/naiise-exits-design-orchard-cuts-headcount-operating-costs

Eateries pull out all the stops to ensure customer safety
From rolling out digital menus to providing diners with antiseptic wipes for their cutlery, eateries
here are doing what they can to keep Covid-19 away.
A spokesman for the Restaurant Association of Singapore, which has more than 470 members,
told The Straits Times that food and beverage (F&B) operators are complying with regulations,
such as putting up signs to remind customers of safety measures like safe distancing.
Staff also ensure that diners put their masks back on when they are done eating and drinking.

                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 17, 2020 / Issue 29

Links to the story:
https://www.straitstimes.com/singapore/eateries-pull-out-all-the-stops-to-ensure-customer-safety
https://www.straitstimes.com/singapore/more-safety-measures-at-holland-village-eatery-since-reopening

Government
GE2020: PAP wins 83 of 93 seats; WP takes two GRCs
Singaporeans returned the People's Action Party (PAP) to government, handing it 83 of the 93
seats, but there was a major upset in Sengkang GRC, which fell to the Workers' Party (WP), amid
a stronger showing for the opposition.
In what was dubbed a crisis election, or the Covid-19 polls, the PAP won 61.24 per cent of the
votes, an 8.7-point swing from its 69.9 per cent share in the 2015 polls.
This was slightly above the 60.1 per cent it garnered in 2011, which was the party's worst showing.
The election, billed as the most significant since Singapore's independence given the backdrop of
the pandemic, will see the opposition presence almost doubled to 10 elected MPs in the next
Parliament, Singapore's 14th, since 1965.

Links to the story:
https://www.straitstimes.com/singapore/pap-wins-83-of-93-seats-wp-takes-two-grcs
https://www.businesstimes.com.sg/government-economy/pap-retains-supermajority-but-with-lower-vote-share

MAS, banks to see how best to wean borrowers off Covid-19 reliefs
The Monetary Authority of Singapore (MAS) is studying the delicate balance of when and how to
ease virus relief measures, so as to mitigate unintended "cliff" effects when these helplines expire
towards the end of the year.
While the support helped alleviate cashflow pressures faced by individuals and businesses, it is
unsustainable to have them continue indefinitely, said MAS managing director Ravi Menon at the
release of MAS's annual report.
MAS is now engaging the banks, finance companies and insurers on how best to ease borrowers
and policy holders into gradually resuming repayments.
He stressed that the pace of relief withdrawal needs to balance between the cashflow situation of
the borrowers against the accumulation of more debt that could raise the risk of default later. "If
the banks have to take large losses, it affects their ability to lend to the rest of the economy. That
is a trade-off that we're considering. We can't withdraw all of that relief suddenly because that will
create big problems," he noted.

Links to the story:
https://www.businesstimes.com.sg/government-economy/mas-banks-to-see-how-best-to-wean-borrowers-off-covid-
19-reliefs
https://www.straitstimes.com/business/economy/mas-to-help-people-firms-ease-dependence-on-relief-measures

                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 17, 2020 / Issue 29

Redevelopment of Marina Bay floating platform to start in 2022
The redevelopment works on The Float @ Marina Bay are scheduled to start in March 2022 and
be done by end-2025, the Ministry of National Development (MND) and the Ministry of Defence
(Mindef) said.
The floating platform will be transformed into a permanent space to stage large-scale national and
community events, such as the National Day Parade, River Hongbao and the Marina Bay
Singapore Countdown. It will also provide spaces within Marina Bay for the public to enjoy
community and recreational activities.
MND and Mindef have awarded the design consultancy tender to a consultant team led by Woha
Architects. The Singapore-based architectural practice will be the principal consultant and lead the
project team to develop and implement the design.
The concept-design proposal submitted by Woha Architects, in collaboration with design firm
Populous, will create a fit-for-purpose and flexible events venue that also features community
sports facilities, such as a swimming pool and water-sports centre.
There will also be a new public waterfront promenade forming part of the loop around Marina Bay
and improved pedestrian connectivity, based on the concept-design proposal. Food-and-beverage
and retail offerings are also being considered.

Links to the story:
https://www.businesstimes.com.sg/real-estate/redevelopment-of-marina-bay-floating-platform-to-start-in-2022
https://www.straitstimes.com/singapore/tender-awarded-for-floating-platform-project

S'pore's 4th desalination plant begins operations
Singapore's fourth desalination plant, which can produce about 30 million gallons of fresh drinking
water a day, has begun commercial operations, said national water agency PUB yesterday.
This amount of water is equivalent to the water demands of about 200,000 households, and
accounts for about 7 per cent of Singapore's daily water demand of 430 million gallons.
The Keppel Marina East Desalination Plant, which officially started operations on June 29, is the
Republic's first large-scale plant able to treat both fresh water and seawater.
Singapore's three other desalination plants are the SingSpring, Tuas South and Tuas plants, which
began operations in 2005, 2013 and 2018 respectively. Including the new plant, the four plants
now have a combined capacity of 160 million gallons of water a day.

Link to the story:
https://www.straitstimes.com/singapore/spores-4th-desalination-plant-begins-operations

Aug 10 target to restart Singapore-Malaysia travel
Singapore and Malaysia are aiming to restart cross-border travel by Aug 10 for long-term pass
holders and essential business and official travellers.
While it would bring some relief to Malaysian employees stuck here, and the employers supporting
them, industry observers say it won't be a panacea for all the issues that affected parties are
currently struggling with.

Weekly News Select
Jul 17, 2020 / Issue 29

Notably, a periodic commuting arrangement (PCA) would also allow Singapore and Malaysia
residents who hold long-term immigration passes for business and work purposes in the other
country, to enter that country for work.
After at least three consecutive months in their country of work, they may return to their home
country for short-term home leave, and thereafter re-enter their country of work to continue work
for at least another three consecutive months. They must also abide by prevailing Covid-19
prevention and public health measures mutually agreed by both countries.

Links to the story:
https://www.businesstimes.com.sg/government-economy/aug-10-target-to-restart-singapore-malaysia-travel
https://www.straitstimes.com/singapore/spore-malaysia-to-start-limited-cross-border-travel-on-aug-10

Economy
Singapore enters recession with record 12.6% GDP fall in Q2
Singapore entered what might be its deepest - if not longest - recession in the second quarter, as
gross domestic product (GDP) plummeted a record 12.6 per cent year on year due to Covid-19
measures and weak external demand, Ministry of Trade and Industry (MTI) advance estimates
showed on Tuesday.
Though Q2 might mark a trough, recovery is likely to be slow, said economists, who expect the
recession to last four quarters - as long as the one in the global financial crisis. Still, most expect
the Monetary Authority of Singapore (MAS) to keep foreign exchange policy unchanged in
October.
The manufacturing sector was the only one to see positive growth in Q2, up 2.5 per cent year on
year, though slowing from 8.2 per cent in Q1. This was due mainly to a surge in output in
biomedical manufacturing. Weak external demand and disruptions during the "circuit breaker"
weighed on output in chemicals, transport engineering and general manufacturing.
Services shrank 13.6 per cent year on year, steepening from Q1's 2.4 per cent fall. Tourism-related
services such as accommodation and air transport remain stifled by travel restrictions; other
outward-oriented services such as wholesale trade and water transport were hit by falling external
demand. At home, "circuit-breaker" measures hurt domestically-oriented services such as food
services, retail and business services.
Construction was hardest hit by "circuit-breaker" measures, contracting 54.7 per cent year on year,
compared to Q1's 1.1 per cent fall. With most activities having stopped in Q2, and manpower
disruptions due to Covid-19 measures, the sector shrank 95.6 per cent quarter to quarter, far worse
than Q1's 12.2 per cent fall.
The advance estimates are based largely on data from April and May. With Phase Two of
reopening having begun earlier than expected on June 19, the Q2 figure is expected to be revised
upward in the August estimate.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-enters-recession-with-record-126-gdp-fall-in-q2
https://www.straitstimes.com/business/economy/singapore-enters-technical-recession-as-gdp-dives-126

Weekly News Select
Jul 17, 2020 / Issue 29

Economy may be on the path to recovery
The double-digit decline in second-quarter economic growth could mark the beginning of the end
for Singapore's worst recession.
Analysts believe the economy may have already hit rock bottom and is now on the path to recovery,
but the depth of the decline means growth will remain in negative territory through the year.
However, the advance estimates were largely based on data from April and May, coinciding with
the two-month circuit breaker.
The absence of data from last month, when Singapore started to relax restrictions may have
distorted the estimate, said analysts, who expect the second-quarter estimate to be revised higher
next month to reflect the impact of the reopening.
The unprecedented fiscal measures, in the form of four stimulus packages, would also start to show
up in gross domestic product growth from the third quarter.

Link to the story:
https://www.straitstimes.com/business/economy/economy-may-be-on-the-path-to-recovery

A twist, but businesses still see stability, continuity after GE2020
The ruling People's Action Party (PAP) may not have gained as strong a mandate as desired in
Friday's General Election (GE), but this is unlikely to put off investors, who can expect Singapore's
stability and economic policy direction to continue, said economists and business groups.
While many alternative economic proposals were raised during campaigning, this does not
necessarily herald changes ahead, they added.
Business groups were upbeat, remaining confident in stability and continuity. Responding to the
results, the Singapore Chinese Chamber of Commerce & Industry said that "a stable environment
with continuity of good policies" are essential to help companies transform and adapt.

Link to the story:
https://www.businesstimes.com.sg/government-economy/a-twist-but-businesses-still-see-stability-continuity-after-
ge2020

S'pore drops 2 spots to be world's 14th most costly city for expats: Poll
Singapore has fallen two places over the past 12 months to be the 14th most expensive city in the
world for expatriates and it is now the seventh priciest in Asia, according to a new survey.
While Singapore has been overtaken by the Japanese cities Yokohama at 10th, Osaka at 12th and
Nagoya at 13th, living costs have remained largely steady and it remains a costly location due to
the strong Singapore dollar.
Hong Kong dropped out of the top five to sixth place in the survey compiled by ECA International.
The world's most costly city is Ashgabat in Turkmenistan, which also topped last year's league
table compiled by ECA International.
The biannual survey assesses living costs in cities for non-local employees based on a basket of
goods and services such as groceries, clothing and leisure activities.

Link to the story:
https://www.straitstimes.com/singapore/spore-drops-2-spots-to-be-worlds-14th-most-costly-city-for-expats-poll

Weekly News Select
Jul 17, 2020 / Issue 29

S'pore tops index as key global shipping hub for 7th straight year
Singapore retained its top position as the world's most important shipping hub on the Xinhua-
Baltic International Shipping Centre Development (ISCD) Index.
This is the seventh consecutive year for Singapore to be ranked first on the index based on its
advantages of geographical location, shipping industry ecosystem and supportive government
policies, according to the Xinhua-Baltic Report 2020 released.
The ISCD Index is published by the Baltic Exchange in collaboration with Chinese state news
agency Xinhua. The index provides an independent ranking of the performance of the world's
largest cities that offer port and shipping business services.

Link to the story:
https://www.straitstimes.com/business/economy/spore-tops-index-as-key-global-shipping-hub-for-7th-straight-year

Zilingo cuts Singapore and global headcount, puts Singapore HQ up for rent
Fashion commerce and technology startup Zilingo has laid off another 11 employees in Singapore
as part of a 12 per cent global cut to its staffing, and had briefly put its Singapore office up for
rent.
The company, which is backed by investors such as Temasek, EDBI and Sequoia Capital, had
made under 5 per cent of its 796-strong workforce redundant in April, The Business Times reported
then.
About 35 employees in Singapore were affected in the first wave; the second wave of 11 were told
to go at the end of June, sources told BT.
Sources told BT that the company had listed its 7,000-square-feet Duo Tower office on online
platform CommercialGuru at a negotiable rate of S$84,000 per month. This translates to S$12 per
sq ft.

Links to the story:
https://www.businesstimes.com.sg/garage/zilingo-cuts-singapore-and-global-headcount-puts-singapore-hq-up-for-
rent-0
https://www.straitstimes.com/business/companies-markets/e-commerce-start-up-zilingo-cuts-12-more-jobs-amid-
covid-19-fallout

Rolls-Royce to cut quarter of Singapore workforce
British engine-maker Rolls-Royce will shed 24 per cent of its workforce in Singapore amid
expectations that demand for civil aerospace engines and aftermarket services will take several
years to recover from the effects of the pandemic.
Two hundred and forty - mostly technical - roles will be affected starting mid-August as a result
of a global restructuring, the company told The Business Times. The lay-offs come after the
engineering giant announced in May that it would slash at least 9,000 jobs worldwide, or over 17
per cent of its global headcount.
Rolls-Royce employs about 1,000 people in Singapore, where it manufactures fan blades as well
as carrying out assembly and testing of its engines at Seletar Aerospace Park. This excludes its

Weekly News Select
                                                                                                  Jul 17, 2020 / Issue 29

maintenance, repair and overhaul (MRO) joint venture with SIA Engineering Co, known as
Singapore Aero Engine Services.

Links to the story:
https://www.businesstimes.com.sg/transport/rolls-royce-to-cut-quarter-of-singapore-workforce
https://www.straitstimes.com/business/companies-markets/rolls-royce-to-cut-240-jobs-here-as-pandemic-hits-
aviation-sector

Skyscanner to downsize Singapore marketing team
Travel booking firm Skyscanner is set to downsize its marketing division in Singapore, as it plans
to centralise the function in the United Kingdom, a company spokesperson told The Business
Times. It has not made any decision yet on whether to downsize its office space here.
Social networking site LinkedIn lists over 120 Skyscanner employees in Singapore, in roles
including marketing, talent acquisition, advertising, commercial operations, partnerships, software
engineering and data analytics. Back in 2013, it had a headcount of just 30 staff here, but this
number had since boomed as Singapore served a more active role as the company's Asia-Pacific
headquarters.

Links to the story:
https://www.businesstimes.com.sg/garage/skyscanner-to-downsize-singapore-marketing-team

Over 10,000 firms tapped ESG schemes to grow and transform in first half of 2020
More than 10,000 companies tapped Enterprise Singapore (ESG) schemes in their growth and
transformation efforts in the first half of this year, double the number of firms which benefited
from these schemes over the same period last year.
About 80 per cent of firms which have tapped these schemes are small and micro enterprises with
under S$10 million of annual revenue.
While the firms come from diverse sectors, about a fifth were in wholesale trade, 15 per cent from
construction and 14 per cent from manufacturing.

Links to the story:
https://www.businesstimes.com.sg/government-economy/over-10000-firms-tapped-esg-schemes-to-grow-and-
transform-in-first-half-of-2020
https://www.straitstimes.com/business/10k-firms-tap-enterprise-spore-schemes-in-first-half-of-2020

Axe falls on Resorts World jobs; MBS not expected to be spared
Resorts World Singapore (RWS) held a "one-off workforce rationalisation" - just two weeks after
the integrated resort (IR) reopened.
No estimates have been offered at this time for Genting Singapore, where annual reports show
headcount trending down in recent years.
Rival IR Marina Bay Sands (MBS) did not comment when asked by BT if it has similar plans in
store for its more than 10,000 staff.
Even with the layoffs, RWS managed to keep "a vast majority of local staff", it said, without
specifying.

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Weekly News Select
                                                                                                  Jul 17, 2020 / Issue 29

Links to the story:
https://www.businesstimes.com.sg/companies-markets/axe-falls-on-resorts-world-jobs-mbs-not-expected-to-be-
spared
https://www.businesstimes.com.sg/government-economy/casinos-cant-survive-on-local-revenge-gamblers-alone
https://www.businesstimes.com.sg/companies-markets/new-job-scopes-for-remaining-rws-staff
https://www.straitstimes.com/singapore/manpower/rws-retrenches-staff-to-cope-with-devastating-covid-19-fallout
https://www.straitstimes.com/singapore/manpower/help-for-retrenched-local-rws-staff
https://www.straitstimes.com/singapore/uncertain-future-for-laid-off-workers-and-those-who-kept-jobs
https://www.straitstimes.com/singapore/job-losses-likely-to-hit-mbs-eventually-say-analysts

Shophouse
2 corner shophouses for sale with $13.2m guide price
Two freehold corner shophouses in the Lavender/Kallang area are up for sale with a guide price
of $13.2 million.
The property at 52 Foch Road comprises a pair of two-storey conservation shophouses with attic,
with a four-storey rear extension. They sit on a freehold site of 2,848 sq ft and have a built-up area
of about 8,417 sq ft.
It is zoned "commercial" under the Jalan Besar Secondary Settlement Conservation Area, which
allows for rear extension of up to six storeys.
Expression of interest will close at 3pm on Aug 17.

Link to the story:
https://www.straitstimes.com/business/property/2-corner-shophouses-for-sale-with-132m-guide-price

Industrial
MacPherson Road building for sale with S$21m guide price
A seven-storey light industrial building at 463 MacPherson Road is up for sale via private treaty,
with a guide price of S$21 million.
The property has a total gross floor area of about 38,287 sq ft, a land area of 14,400 sq ft, and
comes with a basement car park and a sky terrace.
The property sits on land zoned B1 Industrial and has a leasehold tenure of 99 years, effective
April 1, 1965. Its remaining lease is thus around 44 years.

Link to the story:
https://www.businesstimes.com.sg/real-estate/macpherson-road-building-for-sale-with-s21m-guide-price

Aerospace firms rechart flight path as pandemic grounds carriers
As businesses nosedives in the wake of the Covid-19 outbreak, aerospace companies here are
repositioning themselves for the long, hard road to recovery.

                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 17, 2020 / Issue 29

With international air travel paralysed by border closures and airlines forced to ground scores of
aircraft, the aerospace industry - including plane-makers, component manufacturers and
maintenance firms - is equally reeling from the fall-out. Aerospace companies are looking to tweak
their offerings, upskill and reskill employees as well as push ahead with digitalisation efforts
during the lull period. Some are also reining in costs and reducing headcount.
In the current environment, some operators are turning to passenger-to-freighter (P2F) to capitalise
on the capacity crunch in the air cargo market, which has arisen from the global grounding of
passenger aircraft, thereby removing belly capacity from the market.

Links to the story:
https://www.businesstimes.com.sg/transport/aerospace-firms-rechart-flight-path-as-pandemic-grounds-carriers

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

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