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Weekly News Select
                                                                                                    Jul 9, 2021 / Issue 27

Top News for the Week
        •   BTO flat buyers affected by Covid-19 construction delays may be able to cancel
            booking without penalties
        •   HDB resale prices up again, 19 million-dollar flats sold in June
        •   Most want more subsidies, stricter criteria for BTO flats in prime areas: Desmond Lee
        •   More firms in Singapore set to cut office space in coming months amid Covid-19
        •   S$1.2b in extra Covid-19 support partly funded by reallocation under SINGA
        •   Differentiated measures for fully vaccinated persons to kick in soon
        •   Singapore's June PMI remains buoyant, but signs of inflation loom
        •   Retail sales up 79.7% in May from 'circuit breaker' low base
        •   Digital sector to grow economy, add 20,000 jobs: Josephine Teo

Residential
BTO flat buyers affected by Covid-19 construction delays may be able to cancel
booking without penalties
Home buyers affected by Build-To-Order (BTO) construction delays may be able to cancel their
flat booking without penalties. They can appeal, and the Housing Board will consider each case
depending on the individual circumstances.
For instance, there could be buyers hoping to cancel their BTO booking to get a resale flat to meet
urgent housing needs, the Ministry of National Development (MND) said in various written
parliamentary replies on July 5.
"We recognise the challenges faced by flat buyers given the Covid-19 situation and HDB will
consider waiving forfeiture based on an assessment of the flat buyers' specific circumstances," said
MND.
Typically, buyers who cancel their flat booking will have to forfeit either their option fee which
ranges from $500 to $2,000, or the 5 per cent of the flat purchase price paid in advance, depending
on which stage of the process they are in.
In addition, they have to wait out a one-year period before they can apply for another subsidised
unit, either BTO or a resale flat with grants.
"These measures are in place to ensure that buyers are serious when they buy a flat and do not
deprive others with urgent housing needs of the opportunity to do so," said MND.
However, if buyers are successful in their appeal, the HDB will waive the financial penalty and
the one-year wait-out period.
"The waiver of the one-year wait-out period will allow first-timer families with urgent housing
needs to receive housing grants if they decide to buy a resale flat," said MND.
Eligible buyers can receive up to $160,000 in grants when they purchase a resale flat.

Link to the story:
https://www.straitstimes.com/singapore/housing/bto-buyers-affected-by-delays-may-be-able-to-cancel-flat-booking-
without-penalties

                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 9, 2021 / Issue 27

HDB resale prices up again, 19 million-dollar flats sold in June
The Housing Board resale market bounced back quickly last month, with prices continuing to
climb and more flats changing hands as tightened Covid-19 measures were eased.
HDB resale prices rose for the 12th straight month, advancing 0.9 per cent last month compared
with May, according to flash data from a real estate portal.
Year on year, resale prices increased 13.2 per cent from June last year, and are just 1.7 per cent off
their peak in April 2013.
A total of 2,311 resale flats changed hands last month, rising 17.5 per cent from the month before.
Huttons Asia senior director of research Lee Sze Teck said the jump in transaction volume reflects
the demand that was artificially constrained by viewing restrictions imposed during the phase two
(heightened alert) period, when households could receive only two unique visitors each day.
Analysts expect resale prices to continue rising so long as Build-To-Order (BTO) flats face
construction delays.
Huttons' Mr Lee said HDB's willingness to consider waiving penalties for buyers who cancel their
BTO applications to buy a resale flat to meet their urgent housing needs may likely prop up demand
in the resale market in the months to come.
Besides increased demand and rising prices, another issue that buyers might be contending with is
the cash-over-valuation (COV) component, said Mr Lee.

Links to the story:
https://www.businesstimes.com.sg/real-estate/hdb-resale-prices-up-again-19-million-dollar-flats-sold-in-june
https://www.straitstimes.com/singapore/housing/hdb-resale-prices-rise-for-12th-straight-month-19-million-dollar-
flats-sold-in

Most want more subsidies, stricter criteria for BTO flats in prime areas: Desmond
Lee
The majority of Singaporeans who shared their views on public housing in prime locations support
the giving of additional subsidies to keep these flats affordable and the imposing of strict criteria
for first-time buyers and subsequent resale buyers.
More than 6,500 Singaporeans gave their feedback through a national online survey, dialogues,
focus group discussions and e-mail since last November, when plans to build new flats in prime
areas were announced.
There was great diversity in opinions on how to keep these upcoming Housing Board flats
inclusive, according to National Development Minister Desmond Lee.
Mr Lee raised various issues that the government has to address when formulating a housing model
for future public housing.
"What is the entry point for 'affordable'? Are we catering to middle-income professionals? Retirees
who want to right-size? Working Singaporeans who need to live near those areas because they
work there as security, cleaners and F&B?"
There is also the issue of the income ceiling for Build-To-Order (BTO) flats and whether it is
sufficient as an eligibility criterion to buy these prime flats, added Mr Lee.
Even the way the HDB allocate new flats - currently done by ballot - is also worth looking at, he
said.

Weekly News Select
Jul 9, 2021 / Issue 27

The most difficult challenge in formulating the new model is to ensure that flats remain affordable
in the long term, in subsequent resales, Mr Lee added.
Mr Lee reiterated that the model will not be retroactively applied to existing flat owners, but will
apply only to future public housing in prime locations.

Links to the story:
https://www.businesstimes.com.sg/government-economy/most-want-more-subsidies-stricter-criteria-for-bto-flats-in-
prime-areas-desmond
https://www.straitstimes.com/singapore/housing/most-singaporeans-want-more-subsidies-stricter-criteria-for-bto-
flats-in-prime

Future of student hostel market in Singapore has no textbook answer
When marketing agents tout shop-houses or mixed-use buildings, a few have advertised that these
private properties could convert the approved use to student hostels.
But whether that bait works is debatable. The investor demand for such student hostels in
Singapore, which typically house students not yet in university, may not be as robust as that in
Western markets yet.
The attraction for investing in this specific asset class is less clear as rental income from co-living
spaces as well as HDB flats or condos can be relatively stronger, while current licensing rules add
another deterrent.
Approvals for conversion of use are no guarantees either - a possible turn-off for investors too.
Under URA rules, student hostels may be located in the residential part of mixed-use buildings, as
well as in shophouses, subject to approval.
However applications and approvals to change a building's planning use to student hostels remain
rare.

Link to the story:
https://www.businesstimes.com.sg/real-estate/future-of-student-hostel-market-in-singapore-has-no-textbook-answer

Metropolitan YMCA Residences at Stevens Road up for sale with S$57m guide price
Metropolitan YMCA Residences at 58 Stevens Road has been put up for sale via tender with a
guide price of S$57 million.
Spanning 21,480 sq ft, the site is zoned residential with a gross plot ratio of 1.4 and an allowable
height of up to five storeys. This amounts to about S$1,942 per sq ft per plot ratio.
It is run as a serviced apartment with a total of 27 units, a swimming pool and a 24-lot basement
carpark. This gives a total gross floor area of some 27,216 sq ft or a price of S$2,094 per sq ft.
The sale would be on a fresh leasehold tenure of 103 years and will not be subject to Strata Titles
Board application for a sale order.
The tender will close on Aug 11 at 3pm.

Link to the story:
https://www.businesstimes.com.sg/real-estate/metropolitan-ymca-residences-at-stevens-road-up-for-sale-with-s57m-
guide-price

Weekly News Select
Jul 9, 2021 / Issue 27

Grab CEO Anthony Tan's family buys GCB in Bin Tong Park for S$40m
Grab co-founder and CEO Anthony Tan's family has bought a property in the Bin Tong Park Good
Class Bungalow (GCB) Area for S$40 million. The purchase was made by his wife, Chloe Tong,
BT understands.
The couple is expected to redevelop the property, which has a bungalow on site understood to have
been built in the 1990s.
The property was sold by a doctor. The price works out to S$1,849 per sq ft based on the freehold
land area of 21,637 sq ft. The deal was entered into a few months ago and has been completed.

Link to the story:
https://www.businesstimes.com.sg/real-estate/grab-ceo-anthony-tans-family-buys-gcb-in-bin-tong-park-for-s40m

Commercial
More firms in Singapore set to cut office space in coming months amid Covid-19
More office space is expected to be freed up or vacated in Singapore in the coming months as
companies here review their workplace needs in light of changes brought about by the Covid-19
pandemic.
Over the past year, real estate consultancy firms have seen a significant uptick in the number of
companies rethinking - many for the first time - their office work arrangements.
Investment banking firm Societe Generale will be returning one floor space to its landlord at
Marina Bay Financial Centre, for instance. Japanese bank SMBC is also planning a move out of
Centennial Tower to CapitaSpring next year, according to sources.
Investment bank JP Morgan is also exiting Capital Tower, and when it does, will leave six
consecutive floors or 150,000 sq ft available for lease.
Amid the economic uncertainty, demand is being driven mainly by growth sectors such as
technology, wealth management, family businesses and healthcare.
E-commerce firms Amazon and Lazada have committed to 90,000 sq ft and 140,000 sq ft office
space respectively, with Amazon taking over some of Citigroup's office space at Asia Square
Tower and Lazada exiting AXA Tower, which is due for redevelopment.
Meanwhile, Chinese technology company ByteDance continues to expand in One Raffles Quay
and at Guoco Tower.

Link to the story:
https://www.straitstimes.com/business/property/more-singapore-firms-set-to-cut-office-space-in-coming-months-
amid-covid-19

Sea Ltd expected to lease majority of office space in Rochester Commons
Sea Limited - the parent company of e-commerce player Shopee, games developer Garena and
digital financial services provider SeaMoney - is expanding its physical footprint in Singapore, in
tandem with its business growth.

Weekly News Select
Jul 9, 2021 / Issue 27

The Singapore-based, New York-listed group is expected to lease most of the office space at
CapitaLand's upcoming Rochester Commons development in the one-north area, The Business
Times understands.
Rochester Commons has about 200,000 sq ft of office space in the upper part of a 17-storey tower
in the development; the typical floor plate size is about 22,500 sq ft.
Market watchers suggest that Sea may be paying a gross effective monthly rental in the high-S$7-
per-sq-ft range for the office space at Rochester Commons.

Link to the story:
https://www.businesstimes.com.sg/real-estate/sea-ltd-expected-to-lease-majority-of-office-space-in-rochester-
commons

CBD Grade A offices' net demand turns positive, but vacancies rise again
The full-year net demand for Grade A office space in Singapore's central business district (CBD)
for 2021 is likely to be up to six times that of 2020, according to a forecast.
This comes as net demand in the first half of this year turned positive, at 68,000 sq ft, going by
data from the real estate consultancy.
However, vacancy rates of CBD Grade A offices continued to increase as net supply again
outpaced net demand, which remained "relatively weak".
Net supply amounted to nearly 359,000 sq ft in H1 2021, from zero in H2 2020. The greater net
supply was attributed to Afro-Asia Building and the addition of Lazada One, formerly known as
5One Central, to the CBD Grade A basket.
Vacancies climbed for the fifth consecutive quarter, reaching 4.6 per cent in Q2 2021, up from 4.2
per cent in Q1 2021. The latest figure is the highest vacancy rate for the CBD Grade A office
market since Q1 2018, when it was 4.9 per cent.

Links to the story:
https://www.businesstimes.com.sg/real-estate/cbd-grade-a-offices-net-demand-turns-positive-but-vacancies-rise-
again
https://www.straitstimes.com/business/property/singapore-cbd-office-net-demand-turns-positive-but-vacancies-rise-
again

Singapore office market abuzz with investment sale activity
Investment sale activity for Singapore office properties is headed for a recovery, with a flurry of
potential deals under way.
These include One George Street and Twenty Anson. Suntec City has also seen strata office deals
lately.
Outside the financial district, observers say it is just a matter of time before the owners of Lazada
One, at 51 Bras Basah Road, explore the possibility of a sale.
Over at the other end of the Central Business District, near Tanjong Pagar MRT station, AEW's
Twenty Anson has been put on the market.
Over at Cecil Street, LaSalle Investment Management is understood to be taking the majority stake
in a consortium spearheaded by TE Capital, which is in exclusive due diligence to buy PIL
Building.

Weekly News Select
Jul 9, 2021 / Issue 27

Activity in the strata office market was given a boost lately with Suntec Reit's sale of six office
floors in the Suntec City mixed development.

Link to the story:
https://www.businesstimes.com.sg/real-estate/singapore-office-market-abuzz-with-investment-sale-activity

Retail
Heartland malls in areas with less retail space per capita may recover more quickly
The recovery of suburban malls will likely be uneven across different locations in Singapore, due
to the varying tenant mixes, shopping experiences and catchment sizes.
Retail spaces in predominantly residential zones may emerge as more resilient amid limited
competition.
The overall retail sector has been reeling from the impact of the Covid-19 pandemic, with many
shopping centres seeing lower footfall. As a whole, heartland malls have fared better than those
along the Orchard Road shopping belt and in the central business district, which continue to be
affected by the absence of tourists as well as thinner office crowds due to remote working.
Generally, areas with substantially more retail space per capita have large working populations or
are made up of more established housing estates. These include established regional centres such
as in Tampines and Jurong East, as well as fringe areas like Bukit Merah, Kallang and Geylang.
Established regional centres tend to have more retail space per resident, compared to other
planning areas with similar residential population sizes.

Link to the story:
https://www.businesstimes.com.sg/real-estate/heartland-malls-in-areas-with-less-retail-space-per-capita-may-
recover-more-quickly

Government
S$1.2b in extra Covid-19 support partly funded by reallocation under SINGA
Additional Covid-19 support measures for Singapore's "Heightened Alert" period are expected to
cost S$1.2 billion.
This will be financed by a reallocation of monies previously budgeted for, Finance Minister
Lawrence Wong said in Parliament as he introduced a Supplementary Supply Bill for this.
Half of the amount - S$600 million - will come from capitalisation of development expenditure
under the recently-passed Significant Infrastructure Government Loan Act (SINGA), and the rest
from underutilisation of development expenditure. This is from two major infrastructure projects:
the deep tunnel sewerage system, and the North-South Corridor.
With SINGA having been passed by the House in May, the development expenditure meant for
these two projects will be capitalised from the fourth quarter of 2021.
The remaining S$600 million will be reallocated from underutilised development expenditure,
mainly due to construction delays as a result of the pandemic.

Weekly News Select
Jul 9, 2021 / Issue 27

Links to the story:
https://www.businesstimes.com.sg/government-economy/s12b-in-extra-covid-19-support-partly-funded-by-
reallocation-under-singa
https://www.straitstimes.com/singapore/politics/support-measures-for-companies-workers-to-cost-12-billion-
parliament
https://www.straitstimes.com/singapore/politics/parliament-singapore-to-borrow-under-singa-for-first-time

Differentiated measures for fully vaccinated persons to kick in soon
Fully vaccinated persons will soon enjoy differentiated safe management measures including
larger social gathering group sizes, said the multi-ministry taskforce, when it also confirmed the
list of updated measures that will kick in from next week.
These measures include increasing the cap on dine-ins and the resumption of wedding receptions
and work gatherings. In addition, gyms and fitness studios may conduct indoor mask-off activities
in group sizes of up to five persons.
The next milestone will be when 50 per cent of the population has been fully vaccinated.
This is expected to happen around the week of July 26, said Health Minister Ong Ye Kung, adding
that about 39 per cent of the population is fully vaccinated. About 65 per cent have received their
first dose.
When that target is hit, social gathering group sizes may increase to 8 persons.
Meanwhile, cinemas, congregational worship, Mice events, live performances, spectator sports
and wedding solemnisations could see a doubling in the group size (that is, up to 500 persons) for
fully vaccinated persons. Higher-risk indoor mask-off activities would also see differentiated
guidelines for groups of five, versus eight for unvaccinated and vaccinated persons.
While work-from-home will continue to remain the default, more may be allowed to return to the
workplace based on the percentage of total employees who are fully vaccinated.
Meanwhile, the government is taking progressive steps to ease border measures, said Finance
Minister Lawrence Wong.
Separately, the Fast and Easy Tests (FETs) for staff in higher-risk settings will be made mandatory
from July 15. These include staff at dine-in F&B establishments, and those in personal care
services such as facial and nail services, spas/saunas, massage establishments, hairdressing, and
make-up services, as well as gyms and fitness studios where clients are unmasked.
The sale of over-the-counter antigen rapid tests will be extended to more general retailers from
July 16. The restriction that caps sales at 10 kits per individual will also be lifted.

Links to the story:
https://www.businesstimes.com.sg/government-economy/differentiated-measures-for-fully-vaccinated-persons-to-
kick-in-soon
https://www.straitstimes.com/singapore/dining-in-group-size-raised-to-five-from-july-12-task-force-sets-out-further-
easing-of
https://www.straitstimes.com/singapore/differentiation-still-needed-for-those-who-received-sinovac-jab-but-could-
be-removed-once
https://www.straitstimes.com/singapore/health/regular-covid-19-testing-soon-to-be-required-for-staff-in-high-risk-
settings
https://www.straitstimes.com/singapore/politics/larger-groups-of-five-diners-expected-to-be-allowed-from-july-12-
lawrence-wong

Weekly News Select
Jul 9, 2021 / Issue 27

Share of EP holders from India has roughly doubled since 2005
The share of Employment Pass (EP) holders from India has roughly doubled from about one-
seventh in 2005, to one-quarter in 2020.
But that reflects the global market for tech talent, and is not due to more favourable treatment
under the India-Singapore Comprehensive Economic Cooperation Agreement (CECA), Minister
of Manpower Tan See Leng said in Parliament.
The top nationalities that comprise about two-thirds of Singapore's EP population have been
consistent since 2005, he said. These are China, India, Japan, Malaysia, the Philippines, and the
UK. Since 2005, the share of EP holders from India has risen, but the share of those from China
has stayed relatively stable.
This is not the result of more favourable treatment for Indian EP holders due to the CECA, he said.
All work pass holders must meet the same criteria to enter, and there is no differentiation based on
nationality.
Rather, this reflects the global demand and supply of tech talent.
China has many tech unicorns and a huge demand for tech talent, so many Chinese stay in their
country to work. "India's talent, on the other hand, have continued to look outwards. They also
have the advantage of being English-speaking."
This is a global phenomenon, he added. India accounts for the most international migrants today.
It is the second-largest source of immigrants to the United States and the third largest to the United
Kingdom, two countries which are also developing technological capabilities.

Links to the story:
https://www.businesstimes.com.sg/government-economy/share-of-ep-holders-from-india-has-roughly-doubled-
since-2005
https://www.straitstimes.com/singapore/politics/ceca-does-not-allow-unconditional-entry-of-indian-professionals-
into-singapore
https://www.straitstimes.com/singapore/politics/proportion-of-indian-ep-holders-doubled-but-not-a-result-of-more-
favourable
https://www.straitstimes.com/singapore/politics/jobs-created-for-local-pmes-outstrip-rise-in-eps-in-finance-
infocomm-tan-see-leng

SME bridging loans extended till March 2022
The government is extending its loan assistance programmes for small- and medium-sized
enterprises (SMEs) for another six months, until March 31, 2022, Finance Minister Lawrence
Wong said.
The Temporary Bridging Loan Programme and the Enhanced Enterprise Financing Scheme -
Trade Loan will be extended beyond Oct 1 this year.
The parameters for both schemes remain the same, with the government continuing to take on 70
per cent of the risk-share.
Since its introduction in April last year, the facility has disbursed S$13.3 billion to eligible
financial institutes to support their lending to companies under the loan schemes, said the central
bank.

Links to the story:
https://www.businesstimes.com.sg/government-economy/sme-bridging-loans-extended-till-march-2022

Weekly News Select
Jul 9, 2021 / Issue 27

https://www.straitstimes.com/singapore/politics/extension-of-credit-for-smes-until-march-2022-under-two-loan-
schemes

Singapore and Japan sign MOC on digital economy, AI, cybersecurity
Singapore and Japan on Friday signed a Memorandum of Cooperation (MOC) on the digital
economy, artificial intelligence (AI), cybersecurity and information and communications
technology.
This will see the two countries collaborate even more closely to exchange information on best
practices, policies and regulations relating to the above areas, as well as deepen partnerships on
joint initiatives to promote and support the growth of digital trade and the interoperability of
frameworks.

Link to the story:
https://www.businesstimes.com.sg/global-enterprise/singapore-and-japan-sign-moc-on-digital-economy-ai-
cybersecurity

Economy
Singapore's June PMI remains buoyant, but signs of inflation loom
Singapore’s manufacturing sentiment remained buoyant in June, but economists are picking up
small signs of rising price pressures in the months ahead.
The purchasing managers' index (PMI) in June rose 0.1 point from the previous month to 50.8,
marking the 12th month of expansion, said the Singapore Institute of Purchasing & Materials
Management (SIPMM).
Similarly, PMI for the electronics sector posted an increase to 50.6 in June, up 0.2 point from the
previous month. This is the sector's 11th month of growth.
For both indices, the increase was attributed to faster expansion rates in the key indices of new
orders, new exports, factory output, inventory and employment, SIPMM said.

Link to the story:
https://www.businesstimes.com.sg/government-economy/singapores-june-pmi-remains-buoyant-but-signs-of-
inflation-loom

Retail sales up 79.7% in May from 'circuit breaker' low base
Singapore’s retail sales rose 79.7 per cent year on year in May to S$3.3 billion, rebounding from
the low base during the 2020 "circuit breaker", Singapore Department of Statistics (SingStat) data
showed.
This was up from April's 54 per cent jump, and exceeded economists' expectations of a 65 per cent
rise. Yet it remains below pre-Covid levels, noted SingStat. May's figures were also down 6.8 per
cent on a month-on-month, seasonally adjusted basis.
Online sales accounted for 13.7 per cent of May's takings, up from 11.2 per cent in April.
Excluding motor vehicles, May's retail sales were up 61.6 per cent year on year, but down 5.2 per
cent on a month-on-month, seasonally adjusted basis.

Weekly News Select
Jul 9, 2021 / Issue 27

Due to "the low base in May 2020, when most physical stores were closed for the whole month",
all retail industries saw major year-on-year increases, except for two categories: supermarkets and
hypermarkets, and mini-marts and convenience stores.
The largest rises were for watches and jewellery, department stores, and wearing apparel and
footwear.

Links to the story:
https://www.businesstimes.com.sg/government-economy/retail-sales-up-797-in-may-from-circuit-breaker-low-base
https://www.straitstimes.com/business/economy/retail-sales-surge-by-797-in-may-due-to-low-base-during-last-
years-circuit-breaker

Global outlook uncertain but S'pore's GDP still set to grow 4% to 6% this year:
Lawrence Wong
The global economic outlook continues to be highly uncertain and will weigh on a small and open
economy such as Singapore.
But the Republic can continue to expect gross domestic product growth of at least 4 per cent to 6
per cent this year, barring unforeseen circumstances, said Finance Minister Lawrence Wong July
5.
Noting that the global outlook depends critically on the path of the pandemic, he said a faster-than-
anticipated global vaccine roll-out and effective pandemic containment could boost growth
prospects.
On the other hand, there are many downside risks, including the threat of new waves of infections,
which could force a return to lockdowns in some jurisdictions, and a slower timeline for the
reopening of borders, he added.
"As a small open economy, Singapore's outlook depends crucially on these external developments.
The uncertainty surrounding our economic outlook is therefore larger than usual."

Link to the story:
https://www.straitstimes.com/singapore/politics/global-outlook-uncertain-but-spores-gdp-still-set-to-grow-4-to-6-
this-year

FTAs and globalisation critical to Singapore's survival: Ong Ye Kung
Embracing globalisation is critical to Singapore's survival and pursuing free trade agreements
(FTAs) are key to the country's existence, said Health Minister Ong Ye Kung on July 6.
Singapore, Mr Ong said, is a country that is too small to live on its own, and which needs to tap
global markets to earn a living and be self-reliant.
While it has no natural resources, Singapore does have its geographical location, which is its "one
precious natural endowment", he added.
The country's strategic spot has allowed it to capture trade flows through the Strait of Malacca and
Singapore, as well as connect many countries in the East and West. That, Mr Ong said, has enabled
home-grown port operator PSA to become the largest container transhipment port in the world.
Singapore's port now sustains about 160,000 jobs, he added. Changi Airport was one of the busiest
airports in the world and supported 190,000 jobs before Covid-19 struck, he added. Good
international connections have allowed Singapore to build up its manufacturing and service sectors

Weekly News Select
Jul 9, 2021 / Issue 27

too. Manufacturing, which accounts for about one-fifth of the country's gross domestic product,
supports 440,000 jobs and services employs more than 170,000 people, said Mr Ong.
Singapore is also growing into a centre for technology, research and development, with many
global tech firms choosing the country to set up their regional or global innovation centres, he said.
About 50,000 international firms operate in the country, with 750 of them making Singapore their
regional headquarters, Mr Ong added.

Link to the story:
https://www.straitstimes.com/singapore/politics/parliament-ftas-and-globalisation-critical-to-singapores-survival-
says-ong-ye

Half of Singapore worry over job prospects
More than half of Singapore's residents are concerned about their job security, employment
prospects and children's future, according to a study by the Institute of Policy Studies (IPS) think-
tank.
It also found that over seven in 10 here identify as belonging to the working and lower-middle
classes. The report, released on July 2, examines the respondents' lived experience in Singapore.
Three in 10 respondents said they were "very much worried" about losing or not finding a job,
while 23.6 per cent said they were worried "a great deal".
The unemployed and those who were studying were unsurprisingly the most concerned by far -
nearly seven in 10, compared to approximately half of all other groups. The study said this
indicated some level of concern about the employment market.
Younger respondents also generally expressed more fears. The study said this was to be expected
of the most economically active age group.
For those aged 21 to 35, 33.2 per cent were very much worried; this figure was slightly higher
(34.9 per cent) for the 36 to 50-year-olds.
The older group is likely to have heightened worries because they face competition from younger
employees, said the study. They are also more likely to have children still in their school-going
years; and thus have greater concerns over the sufficiency of their household income.

Links to the story:
https://www.businesstimes.com.sg/government-economy/half-of-singapore-worry-over-job-prospects
https://www.straitstimes.com/singapore/half-of-spore-worry-over-job-prospects-7-in-10-identify-as-working-or-
lower-middle-class

Digital sector to grow economy, add 20,000 jobs: Josephine Teo
The infocomm media (ICM) sector is likely to occupy a bigger share of Singapore's economy in
future, Minister for Communications and Information Josephine Teo said.
This comes as some 20,000 digital roles are tipped to be added by the committed investments that
the Economic Development Board attracted in 2019 and 2020 - or two-fifths of the job creation
from these investments.
Besides the tech sector, positions could open in industries such as financial services, healthcare,
chemicals, green technology, and semiconductor and electronics manufacturing, industry watchers
told The Business Times. Still, they noted that Singapore must stay open to global talent to fill
some of the upcoming jobs.

Weekly News Select
                                                                                                    Jul 9, 2021 / Issue 27

Links to the story:
https://www.businesstimes.com.sg/government-economy/digital-sector-to-grow-economy-add-20000-jobs-
josephine-teo
https://www.straitstimes.com/tech/tech-news/local-employment-in-infocomm-media-sector-grew-5-in-singapore-
amid-covid-19

Singapore's construction, marine and process sectors piloting tightened process to
bring in foreign workforce
The construction, marine and process (CMP) sectors have begun piloting a programme that will
allow foreign workers to be brought into Singapore to address the manpower crunch issue, while
mitigating the public health risk associated with the entry of such workers.
Beginning in July, workers from India will be brought in via the pilot programme, which has
already been trialled on workers from Malaysia, said the Singapore Contractors Association Ltd
(SCAL), Association of Singapore Marine Industries (ASMI) and the Association of Process
Industry (ASPRI) in a joint statement.
The associations told The Business Times that the programme began in June, and that "a few
hundreds were brought in, but are done in batches".
The programme aims to integrate the overseas training, testing and on-boarding process with
Singapore's on-arrival testing and stay-home notice (SHN) protocol, noted the statement.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapores-construction-marine-and-process-sectors-
piloting-tightened-process-to
https://www.straitstimes.com/singapore/migrant-workers-from-india-to-enter-singapore-in-small-numbers-through-
industry-led-pilot

Hospitality
Business travel scheme suspension in S'pore stretches on
A pilot initiative to allow for international business meetings in Singapore amid the Covid-19
pandemic is indefinitely suspended, extending an initial two-week suspension that started in late-
May.
The Connect @ Singapore initiative, which was announced in December last year, was meant to
facilitate global business exchanges, as well as to support the revival of Singapore's air hub.
It started in February to much fanfare, with the opening of the first appointed facility in
Connect @ Changi at the Singapore Expo. But it was suspended on May 28 during phase two
(heightened alert) of Covid-19 measures.
The Ministry of Trade and Industry (MTI) told The Sunday Times that Connect @ Singapore was
suspended initially after a rise in Covid-19 community cases. It remains suspended until further
notice as a precautionary public health measure, MTI added.
MTI did not explain why it did not lift the suspension in line with eased restrictions after phase
two (heightened alert) from June 14.

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Weekly News Select
Jul 9, 2021 / Issue 27

Link to the story:
https://www.straitstimes.com/singapore/transport/business-travel-scheme-suspension-in-spore-stretches-on

Shophouse
Singapore's shophouse transaction value up 29.9% in H1 2021
Singapore’s total shophouse transaction value hit S$836.1 million in H1 2021, up 29.9 per cent
from H2 2020, backed by the pick-up in activity from the fourth quarter of 2020.
This total was made up of the first and second quarter's transaction values of S$365.4 million and
S$470.7 million respectively. In terms of volume, the half-year saw 118 sales, up from the 90 in
H2 2020.
While freehold shophouses still accounted for the bulk of transactions - 78.8 per cent - leasehold
sales volume more than doubled from the previous half year to 25 units.
The average unit price of freehold shophouses during the half year dipped 0.4 per cent from that
of H2 2020, to S$4,344 psf on land. This is 59.5 per cent higher from H1 2020, when Singapore
was experiencing the onset of the pandemic.
Meanwhile, leasehold prices reached S$4,418 psf on land, up 4.9 per cent from the previous half-
year and 23 per cent from the year ago. The rise came on the back of transactions in the Tanjong
Pagar and Kreta Ayer Conservation Areas fetching higher prices.

Link to the story:
https://www.businesstimes.com.sg/real-estate/singapores-shophouse-transaction-value-up-299-in-h1-2021-0

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

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