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Weekly News Select
May 8, 2020 / Issue 19
Top News for the Week
• Developers get six-month extension on completion, sale, ABSD, QC deadlines
• Yishun EC site tender period to last 6 months
• Job-saving measures will cushion some of the pain hitting property sector
• Tightened circuit breaker measures to stay for another week
• Safe distancing may be new normal on return to workplaces
• Banks to follow standard deferment of more consumer loans: MAS
• URA seeks marketing consultancy for strategic review of Jurong Lake District to
draw businesses
• Dire outlook for manufacturing, services over next six months
• Industrial Reits asked to step up as government rebates fall short
Residential
Developers get reprieve on completion, sale, ABSD, QC deadlines
The government has rolled out temporary relief measures for the property sector, giving developers
much-needed breathing room as the Covid-19 pandemic disrupts construction timelines and
dampens home sales.
The temporary measures, which kick in immediately, are:
• a six-month extension of the project completion period (PCP) for residential,
commercial and industrial development projects;
• a six-month extension for the commencement, completion and sale of housing units in
residential development projects relating to Additional Buyer's Stamp Duty (ABSD)
remission for housing developers;
• an extension of the PCP and/or disposal period by up to six months for residential
development projects under the Qualifying Certificate regime for foreign housing
developers; and
• a six-month extension for the sale of the first residential property in relation to ABSD
remission for the second residential property bought by a Singaporean married couple.
However, developers and individuals must meet certain criteria to qualify for these reprieves. For
instance, to qualify for extension of the ABSD timeline for completion of the residential
development and the sale of all units, the land must have been purchased on or before June 1,
2020; and the original timeline for completion and sale of units must expire on or after Feb 1,
2020.
Pointing out that the pandemic could drag on till year-end, Huttons Asia's head of research Lee
Sze Teck suggested that the government look into extending the relief measures from a six-month
period to a 12-month period in the case of such a scenario.
Links to the story:
https://www.businesstimes.com.sg/real-estate/developers-get-reprieve-on-completion-sale-absd-qc-deadlines
https://www.straitstimes.com/business/temporary-relief-for-some-developers-homebuyers
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May 8, 2020 / Issue 19
Yishun EC site tender period to last 6 months
Property consultants have mixed views on the likely outcome for a state land tender for an
executive condo (EC) housing site in Yishun.
The Housing & Development Board's (HDB) launch of the site, which is on the confirmed list of
the first-half 2020 Government Land Sales Programme, has gone on as scheduled - but the tender
period will be longer than usual, at six months.
This is "to provide developers with additional time to make their assessment in view of the current
Covid-19 situation", HDB said.
The 2.15ha plot along Yishun Avenue 9 has a 99-year leasehold tenure and can yield about 600
residential units. ECs are a public-private housing hybrid with initial buyer eligibility and resale
conditions, which are completely lifted 10 years after the project has been completed.
The tender will close on Oct 29.
For the Yishun site, Huttons Asia research director Lee Sze Teck predicts "healthy participation"
of between six and eight bidders with a top bid between S$520 per square foot per plot ratio (psf
ppr) and S$550 psf ppr.
"The response for this EC plot is unlikely to be affected by Covid-19 as the launch of the new
project on this site will be 15 months after the site has been awarded, in 2022. The uncertainty
over the economy would have been cleared by then," he added. He also points to potential pent-
up demand for an EC project in Yishun.
Links to the story:
https://www.businesstimes.com.sg/real-estate/yishun-ec-site-tender-period-to-last-6-months
https://www.straitstimes.com/business/property/yishun-ec-site-for-sale-extended-tender-of-6-months
Job-saving measures will cushion some of the pain hitting property sector
As Singapore heads towards its worst recession since its independence, with dire predictions of
massive job losses, analysts believe the impact on the property sector will be cushioned by the
government's determination to support citizens' livelihoods.
In Q1, private home prices fell 1 per cent while total transactions fell 12.5 per cent. Both figures
are expected to worsen for the full year.
Private home prices are expected to fall by 5 to 10 per cent in 2020, and new home sales are
expected to fall to just half of the 9,912 units sold in 2019. But consultants said government
measures, including job support and mortgage relief measures, will mitigate the pain.
The horrors of a 45 per cent price collapse following the Asian Financial Crisis (AFC) and a 25
per cent dive after the Global Financial Crisis (GFC) are firmly in the past, the consultants added.
Compared to previous crises, the current housing market is more stable, said Lee Sze Teck, director
of research at Huttons Asia. "Speculation (measured by sub-sales) is negligible at 1 per cent," he
said.
In Q1 2020, there were 40 sub-sales out of a total of 4,269 transacted units. During the AFC, on
the other hand, some were flipping their queue numbers and options to purchase. Speculation
accounted for a quarter of transactions in 1996. During the GFC in 2008, sub-sales accounted for
13 per cent of transactions.
"Furthermore, the loan-to-value ratio is at 75 per cent for the first property loan and 45 per cent
for the second property loan," said Mr Lee, adding that the total debt servicing ratio framework
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May 8, 2020 / Issue 19
(TDSR) has further limited loan amounts. "This means that households are not exposed to high
leverage."
To support the property sector, Mr Lee of Huttons said the government should consider allowing
developers to extend their project completion periods and lifting some cooling measures. In
addition, it could also suspend government land sales to ease the supply situation.
Link to the story:
https://www.businesstimes.com.sg/real-estate/job-saving-measures-will-cushion-some-of-the-pain-hitting-property-
sector
Half of developers likely to cut prices of Singapore new launches
The sentiment of local property developers has dived, with half of them likely to lower the selling
prices of their new launches in the next six months.
This is according to the latest Real Estate Sentiment Index (Resi), published by the National
University of Singapore Real Estate (NUS+RE). The index hit a record low in the first quarter of
2020 amid the Covid-19 pandemic.
The current sentiment index went down to 4 in the first three months of the year, from 4.4 in the
previous quarter; the future sentiment index fell to 3.5 in the first quarter, from 4.1 in the fourth
quarter of 2019.
The quarterly survey is based on sentiments of senior executives of real estate firms. All the
developers polled worried most about the slowdown in the global economy and job losses or job
decline in the domestic economy.
Links to the story:
https://www.businesstimes.com.sg/real-estate/half-of-developers-likely-to-cut-prices-of-singapore-new-launches
Vicki Zhao's husband buys S$28m penthouse
Huang Youlong, the businessman husband of Chinese actress Vicki Zhao, has bought a penthouse
at freehold Ardmore Park condo for S$27.65 million or about S$3,164 per square foot based on
the strata area of 8,740 sq ft.
The penthouse - on levels 29 and 30 - is one of six penthouses in the development, which was
completed in 2001.
Mr Huang, a Singapore citizen, is understood to have made the purchase as trustee; the beneficiary
may be his daughter. The couple married in 2008. Their daughter was born in Singapore in 2010.
Link to the story:
https://www.businesstimes.com.sg/real-estate/vicki-zhaos-husband-buys-s28m-penthouse
More mortgagee listings go under hammer but buyers come up empty as sellers refuse
to blink
Highly indebted owners continue to hold out even as more homes go under the hammer amid
worsening economic conditions due to the Covid-19 pandemic.
Only one property was sold at auction in Q1 2020 as sellers baulk at firesale prices.
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May 8, 2020 / Issue 19
In Q1 2020, mortgagee sales as a percentage of total auction listings jumped to 68 per cent from
46 per cent in the same quarter last year. While listings have increased, the auction success rate
had not kept pace and in fact declined, alluding to a more cautious sentiment in the buyers' market,
it said. From 3.8 per cent in 2018, the success rate fell to 1.6 per cent in 2019, with only 21
properties knocked down during auctions.
As of now, there are no distress sales; the sellers pull out as the market is not favouring them. The
market is at a standstill, with banks holding back and giving borrowers more time
Links to the story:
https://www.businesstimes.com.sg/real-estate/more-mortgagee-listings-go-under-hammer-but-buyers-come-up-
empty-as-sellers-refuse-to
Commercial
Deliveroo cuts staff, Grab pushing no-pay leave to slash costs
Tech firms Deliveroo and Grab are trimming costs by cutting staff and getting workers to go on
no-pay leave, as the novel coronavirus outbreak continues to batter their businesses.
Deliveroo is laying off a quarter of its employees in Singapore amid the downturn. This comes
after its general manager in Singapore, Siddharth Shanker, left the company to pursue other
opportunities; The Business Times (BT) understands his departure is unrelated to Covid-19.
A total of 20 out of 80 Singapore staff will be affected by the headcount reduction, part of a global
cut that will hit more than 300 workers in several countries. Some employees will be put on
furlough.
Separately, Grab is urging its staff to take no-pay leave voluntarily as the downturn worsens.
Links to the story:
https://www.businesstimes.com.sg/garage/deliveroo-cuts-staff-grab-pushing-no-pay-leave-to-slash-costs
https://www.straitstimes.com/singapore/transport/grab-encourages-staff-to-take-voluntary-no-pay-leave
CapitaLand's jointly owned office building obtains TOP
Grade A office building 79 Robinson Road has received its temporary occupation permit (TOP)
on April 28, property giant CapitaLand said in a regulatory update.
The 29-storey office development has a net lettable area of 518,000 sq ft and is jointly owned by
CapitaLand, Japanese trading house Mitsui & Co and developer Tokyo Tatemono.
Tenants will take over their premises from June 2020 after the end of Singapore's "circuit-breaker"
period. They are expected to move in progressively from the third quarter of 2020.
Links to the story:
https://www.businesstimes.com.sg/real-estate/capitalands-jointly-owned-office-building-obtains-top
https://www.straitstimes.com/business/companies-markets/79-robinson-road-obtains-temporary-occupation-permit
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www.huttonsgroup.comWeekly News Select
May 8, 2020 / Issue 19
Perennial, SPH consortium to sell half stake in AXA Tower to Alibaba
A consortium led by Perennial Real Estate will divest a half stake in Grade A office building AXA
Tower to a subsidiary of Chinese e-commerce giant Alibaba Group Holding.
The consortium will also transfer half of an outstanding shareholders' loan to the subsidiary,
Alibaba Singapore, Perennial Real Estate said without disclosing the size of the loan.
The consideration payable for the 50 per cent equity interest will be calculated based on the net
asset value of Perennial Shenton Holding Pte Ltd (PSHPL) - which indirectly owns AXA Tower -
at the deal's close, and based on an agreed property value of S$1.68 billion.
Links to the story:
https://www.businesstimes.com.sg/companies-markets/perennial-sph-consortium-to-sell-half-stake-in-axa-tower-to-
alibaba-0
https://www.straitstimes.com/business/companies-markets/perennial-sph-consortium-to-sell-half-stake-in-axa-
tower-to-alibaba-0
Retail
Great Singapore Sale cancelled for first time in 26-year history
There will be no Great Singapore Sale (GSS) this year.
This will be the first time in the 26-year history of the event - usually held between June and
August - that it will not be taking place.
The Singapore Retailers Association (SRA), which organises the GSS, told The Straits Times it
will "take a break this year in the light of the Covid-19 pandemic".
Link to the story:
https://www.straitstimes.com/singapore/great-singapore-sale-cancelled-for-first-time-in-26-year-history
S'pore retailers must adapt to new shopping habits
A month into Singapore's circuit breaker, which has led to most stores being shut, retailers have
two options: adapt or die.
When the dust finally settles, the retail landscape is likely to be less vibrant as smaller players
disappear, and those that survive will have to respond to new shopping habits, industry observers
say.
The two-month closure of most retail stores will create new consumer habits which may have
lasting effects on the future of shopping, retailers said.
Link to the story:
https://www.straitstimes.com/singapore/spore-retailers-must-adapt-to-new-shopping-habits
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www.huttonsgroup.comWeekly News Select
May 8, 2020 / Issue 19
Heartland shops' business battered by coronavirus crisis
Heartland areas are usually bustling places with "mom-and-pop" shops selling all manner of useful
things, but the virus has battered these businesses, with many shuttered and few customers for the
ones still open.
Some outlets have seen turnover plunge by as much as 80 per cent, say associations.
Those that are deemed essential services also have seen sales at only 20 per cent to 30 per cent of
their usual level.
Links to the story:
https://www.straitstimes.com/business/heartland-shops-business-battered-by-coronavirus-crisis
https://www.straitstimes.com/business/shop-closed-but-jewellery-store-finds-customers-online
UOL, UIC retail tenants get rent rebate extension till July
Retail tenants of UOL Group and its subsidiary United Industrial Corporation have received their
rental rebates in March and April, and will continue to receive additional rental rebates in May till
July.
This will result in a total relief package of more than S$50 million for retail tenants, inclusive of
about S$16 million of property tax rebates from the government, property developer UOL said.
Full rental waivers have been granted to all eligible tenants which were required to or opted to
close during the periods starting either March 27 or April 7 till end-May.
As for tenants that are still operating - which account for about one-quarter of retail tenants - the
fixed component of their rent will be waived entirely, and they will be charged only variable rent
based on their gross turnover from the start of the "circuit breaker" on April 7 till the end of May.
In addition, "eligible tenants" will receive 50 per cent rental rebates for the months of June and
July, UOL said.
Links to the story:
https://www.businesstimes.com.sg/companies-markets/uol-uic-retail-tenants-get-rent-rebate-extension-till-july
https://www.straitstimes.com/business/property/uol-extends-rental-rebates-for-retail-tenants-to-july
Businesses on the brink
Singapore-based sofa maker HTL, which owes various banks US$46 million (S$65 million) in
total, has filed for insolvency protection, citing a cash-flow crunch as a result of the Covid-19
pandemic.
The previously public-listed company, which has more than 5,000 employees worldwide, is
seeking judicial management after DBS Bank issued a legal demand for full repayment under its
banking facilities.
Link to the story:
https://www.straitstimes.com/business/businesses-on-the-brink
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3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
www.huttonsgroup.comWeekly News Select
May 8, 2020 / Issue 19
Tough times to shutter Robinsons' Jem outlet
Robinsons Singapore is shutting its Jurong outlet, in a further sign that the department store model
may be increasingly untenable.
The department store with a 162-year history - which in recent years has been trimming its physical
footprint - announced that it is ceasing operations at its outlet in Jem, the suburban mall in Jurong
East, by the end of August, following discussions that started with its landlord Lendlease last
November.
The Jem outlet opened in 2013, the same year the mall did, occupying four floors totalling 85,000
sq ft. Its closure will leave Robinsons with two outlets, at The Heeren and Raffles City Shopping
Centre.
However, the company plans to revamp its e-commerce capabilities. Last month, it launched its
digital store on Lazada's LazMall platform.
Links to the story:
https://www.businesstimes.com.sg/consumer/tough-times-to-shutter-robinsons-jem-outlet
https://www.straitstimes.com/singapore/robinsons-to-shutter-jem-outlet-in-august
Government
Singapore must 'proceed cautiously' when easing circuit breaker: PM Lee
After the number of new Covid-19 cases comes down, Singapore can ease the circuit breaker
measures and progressively restart the economy, said Prime Minister Lee Hsien Loong.
But the process will not be a straightforward one, as the authorities will need to step up Covid-19
testing and speed up contact-tracing.
These include sectors critical to keeping the economy going domestically, and those that keep the
country connected to the world and to global supply chains, he said.
Other sectors will have to wait longer to do so, especially those that attract crowds, such as
entertainment outlets and major sporting events.
He noted that tourism and aviation are two sectors that "will take much longer" than others to
recover, because international travel will remain restricted as long as Covid-19 remains a global
problem. He described air transport as a strategic sector, fundamental to Singapore's role as a
global and regional hub, which is why the government is providing it with extra support.
he encouraged both employers and workers to take a longer-term view and to accept wage
sacrifices in order to keep businesses running; employers, on their part, should do all they can to
retain their staff.
Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-must-proceed-cautiously-when-easing-circuit-
breaker-pm-lee
https://www.straitstimes.com/politics/long-hard-road-ahead-to-recovery-from-covid-19-pm-lee-cautions
https://www.straitstimes.com/singapore/pm-lee-pledges-help-for-firms-workers-to-adapt-to-new-normal
https://www.straitstimes.com/singapore/singapore-to-take-a-step-by-step-approach-to-restarting-economy
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3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
www.huttonsgroup.comWeekly News Select
May 8, 2020 / Issue 19
Coronavirus: Tightened circuit breaker measures to stay for another week
The stiffer circuit breaker measures, which were meant to be in place until May 4, have been
extended by a week, as Singapore has not brought the number of coronavirus infections in the
community consistently down to single digits.
But as the spread of the virus in the local community has slowed down, some measures will be
tweaked gradually to allow selected businesses to open again in the coming weeks.
Most enhanced measures, such as going out only when necessary, and even then alone, will remain
in place until June 1, pending another review. But from 5 May, traditional Chinese medicine
acupuncture treatment will be allowed, with its medicine halls able to sell retail products.
Those living in condominiums can also exercise within their estate, although facilities like
swimming pools and gyms have to remain closed.
On May 12, some businesses will be allowed to restart their operations, provided they have put in
place measures to ensure safe distancing on their premises.
Also, hairdressers can resume giving basic haircuts, while pet supplies, and optical and cake shops
are among the businesses allowed to reopen, but after having put in place a contact-tracing system
for customers using the SafeEntry app.
Schools will also begin to bring back students in small groups for face-to-face lessons from May
19, with the focus on graduating cohorts taking national exams. Priority will go to those who need
school facilities for coursework or need support during the holidays.
Links to the story:
https://www.straitstimes.com/singapore/tightened-circuit-breaker-measures-to-stay-for-another-week
https://www.straitstimes.com/singapore/easing-measures-a-balance-between-need-and-risks
https://www.straitstimes.com/singapore/home-based-food-businesses-can-resume-operations-from-may-12
https://www.straitstimes.com/singapore/residents-of-condominiums-may-exercise-in-common-areas-from-may-5
https://www.straitstimes.com/singapore/workplaces-must-put-in-place-more-stringent-rules
https://www.straitstimes.com/singapore/jogging-in-park-taking-mrt-scan-qr-code
https://www.straitstimes.com/singapore/precautionary-measures-updated-as-new-findings-emerge-lawrence-wong
Three factors to consider before Singapore starts reopening economy
The phased reopening of Singapore's economy will take into account virus case numbers, the
global situation, and key enablers such as testing and contact tracing, said Health Minister Gan
Kim Yong, who co-chairs the multi-ministry taskforce on Covid-19.
To enable reopening, all firms will have to change work practices, said fellow co-chair and
National Development Minister Lawrence Wong in Parliament.
In a ministerial statement, Mr Gan laid out three conditions for reopening the economy.
First, community cases should fall to zero or single digits daily, with very low numbers of unlinked
cases, for a sustained period. There must also be a fall in migrant worker cases.
Second, in reopening borders, Singapore must assess the situation globally and for individual
countries, looking at transmission rates and measures taken.
Third, Singapore must "put in place a system to allow us to open up safely", Mr Gan said.
Elaborating on points made earlier, he named testing and contact tracing as key enablers.
Links to the story:
https://www.businesstimes.com.sg/government-economy/three-factors-to-consider-before-singapore-starts-
reopening-economy
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May 8, 2020 / Issue 19
https://www.straitstimes.com/politics/some-time-yet-before-dining-in-religious-services-can-resume
https://www.straitstimes.com/singapore/minister-warns-of-marathon-battle-against-coronavirus
Stay-home notice for construction sector extended till May 18
The stay-home notice (SHN) period for work permit holders and S Pass holders in the construction
industry has been extended from May 4 to May 18.
In a joint statement, the Ministry of Manpower (MOM), Ministry of Health (MOH) and the
Building and Construction Authority (BCA) said: "The number of infected construction work pass
holders living in non-PBD (purpose-built dormitories) premises continues to rise. Their
incidence/prevalence remains noticeably higher than the general community. This suggests that
transmission at construction worksites among such workers had occurred before the start of the
SHN period."
The dependant pass holders of these workers will also be placed on SHN until May 18.
Links to the story:
https://www.businesstimes.com.sg/government-economy/stay-home-notice-for-construction-sector-extended-till-
may-18
https://www.straitstimes.com/singapore/stay-home-notice-extended-for-foreign-workers-in-construction
Safe distancing may be new normal on return to workplaces
A safe distancing inspector in every workplace, staggered hours to prevent congregation of
workers, and measures barring staff from socialising in the pantry, rest areas and during lunch
breaks.
This could be the new normal for workplaces when workers gradually return to their offices or
worksites after the circuit breaker lifts, National Development Minister Lawrence Wong said, as
he outlined how containment measures for Covid-19 will become part of new workplace safety
and health standards or guidelines.
To ensure that Singapore's overall strategy for containing the Covid-19 spread remains effective,
these guidelines will also be complemented by a new testing regime that will involve a substantial
scaling up of such tests.
Technology solutions will also be implemented in workplaces, so that there will be better tracking
and monitoring if a confirmed case emerges in the workplace, added Mr Wong. "These are a whole
series of new protocols and measures that we are already planning, and (which) we will put in
place as we get nearer (to) the end of the circuit breaker," he said.
Link to the story:
https://www.straitstimes.com/singapore/safe-distancing-may-be-new-normal-on-return-to-workplaces
Singapore, Japan agree to deepen bilateral cooperation to fight Covid-19 pandemic
The Ministry of Trade and Industry (MTI) and Japan's Ministry of Economy, Trade and Industry
on Friday issued a joint statement agreeing to deepen bilateral economic cooperation to secure
supply chains for essential goods and ensure that their economies stay resilient during the Covid-
19 pandemic.
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.comWeekly News Select
May 8, 2020 / Issue 19
Both countries will refrain from imposing export restrictions on essential supplies, such as
agricultural food products and medical supplies.
As countries prepare for a recovery, both nations highlighted they could explore "facilitating the
essential movement of people with mutual assurance".
Links to the story:
https://www.businesstimes.com.sg/companies-markets/singapore-japan-agree-to-deepen-bilateral-cooperation-to-
fight-covid-19-pandemic
Singapore works with 4 nations to resume essential cross-border travel
Minister for Trade and Industry Chan Chun Sing and trade ministers from Australia, Canada, South
Korea and New Zealand have agreed to facilitate the resumption of essential cross-border travel.
This will be balanced with public health considerations amid the Covid-19 pandemic, they said.
Guidelines will be established to facilitate such travel, which should be for the purposes of
maintaining global supply chains.
They also agreed to expedite Customs procedures and refrain from introducing export restrictions
on essential items such as food and medical supplies, as well as ensure that logistics networks
continue to operate via air, sea and land freight.
Links to the story:
https://www.straitstimes.com/singapore/singapore-works-with-4-nations-to-resume-essential-cross-border-travel
https://www.straitstimes.com/singapore/spores-traveller-restrictions-under-constant-review
Coronavirus: Protecting Singaporeans' livelihoods MOM's top priority, says
Josephine Teo
Fresh graduates facing a job market weakened by Covid-19 will be helped, Manpower Minister
Josephine Teo said.
Mrs Teo told The Sunday Times that the Government recognises the worries of recent graduates
and graduating cohorts and that "this is a tough time to enter the job market".
This is why it will be rolling out the SGUnited Traineeships Programme next month to help recent
and new graduates gain valuable work experience and develop professionally while receiving a
stipend, she said.
The programme, which was announced as part of the Resilience Budget in March, will provide
8,000 paid traineeship positions for up to 12 months to fresh Institute of Technical Education,
polytechnic and university graduates.
The Government, which has set aside $100 million for the scheme, will fund 80 per cent of the
training allowance and host companies will cover the remainder. Protecting Singaporeans'
livelihoods remains the Manpower Ministry's (MOM) top priority, stressed Mrs Teo.
Link to the story:
https://www.straitstimes.com/singapore/protecting-singaporeans-livelihoods-moms-top-priority-josephine-teo
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Over 100,000 self-employed people to get $1b in total by end-May
By end-May, the Self-Employed Person Income Relief Scheme is expected to have paid out close
to $1 billion in cash to more than 100,000 self-employed people.
Since the Manpower Ministry (MOM) launched the SGUnited Jobs initiative in March, more than
16,000 immediate job vacancies have been made available - exceeding the initial target of 10,000.
Through the SkillsFuture Mid-Career Support Package, employers can get a hiring incentive of 20
per cent salary support for six months, capped at $6,000, for new hires aged 40 and above brought
in via an eligible skills training programme.
The Government has also launched the SGUnited Traineeships Programme.
There are now more than 4,000 traineeship opportunities from 280 organisations available through
this programme.
Links to the story:
https://www.straitstimes.com/politics/over-100000-self-employed-people-to-get-1b-in-total-by-end-may
https://www.straitstimes.com/politics/50000-more-will-benefit-from-jobs-scheme
Singapore's healthcare capacity can be expanded for Covid-19 needs: Gan Kim Yong
Hospitals have rapidly increased the number of isolation beds in response to the Covid-19
pandemic, and will do the same for intensive care beds if necessary, said Health Minister Gan Kim
Yong yesterday.
Thousands of beds have also been set up outside hospitals for patients who are only mildly ill, to
ensure Singapore retains the capacity to care for the most critical coronavirus cases in hospitals.
There are nearly 1,500 isolation beds available in hospitals today, up from about 550 in January.
The National Centre for Infectious Diseases has also increased its capacity from around 100
negative pressure isolation beds to more than 500 in the same period.
Singapore also has around 150 vacant intensive care beds and can quickly bring another 300 on
board, Mr Gan added.
More than 10,000 beds have been set up in community care facilities such as the Singapore Expo,
and this number is set to double, the minister said.
These facilities typically house patients who have only mild symptoms and do not need extensive
medical support.
Bed spaces in community recovery facilities, for patients who are past the 14th day of their illness
but still need to be isolated, are also being ramped up.
There are currently around 2,000 community recovery facility beds - some in dormitories and
others in army camps. This will go up to more than 10,000 beds by the end of next month.
Link to the story:
https://www.straitstimes.com/singapore/spores-healthcare-capacity-can-be-expanded-for-covid-19-needs-gan
Singapore restarts mask production to secure supply for frontline medical staff
Singapore has restarted local production of medical-grade surgical face masks to ensure supply for
its medical workers in the frontline fighting the Covid-19 pandemic, Trade and Industry Minister
Chan Chun Sing said.
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But Singapore will still continue to expand and diversify its external sources for masks to meet the
needs of its population and to stockpile for the possibility of a second wave of Coronavirus attack,
he told local reporters in a Zoom interview on Wednesday.
Mr Chan said Singapore's position is to keep working with other countries to keep supply chains
open rather than resort to protectionism.
Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-restarts-mask-production-to-secure-supply-for-
frontline-medical-staff
https://www.businesstimes.com.sg/companies-markets/innosparks-to-focus-on-making-masks-for-local-use-for-now
https://www.straitstimes.com/singapore/health/new-cloth-masks-for-all-residents-as-spore-ramps-up-production
https://www.straitstimes.com/singapore/singapore-boosting-production-of-masks-since-feb
RCEP trade deal on track to be signed by year end, says Chan
The Regional Comprehensive Economic Partnership (RCEP) trade agreement remains on track to
be signed by the year end, Trade and Industry Minister Chan Chun Sing said in an interview,
during which he stressed the importance of international cooperation amid the Covid-19 pandemic.
The RCEP is set to be the world's largest trade pact, and involves 15 countries: all 10 Asean
nations, as well as Australia, China, Japan, New Zealand and South Korea. India withdrew from
the deal last year.
Providing an update, Mr Chan said that an offer has been made to India to rejoin discussions in
the coming month.
Link to the story:
https://www.straitstimes.com/singapore/rcep-trade-deal-on-track-to-be-signed-by-year-end-says-chan
Banks to follow standard deferment of more consumer loans: MAS
From May 6, individuals can soon seek to defer repayment across a wider swathe of loans - such
as loans for industrial and commercial property, renovation, education and cars - the Monetary
Authority of Singapore (MAS) and other industry bodies said.
Borrowers with industrial and commercial property loans can apply to their respective banks and
financial institutions to defer their principal payments through to the end of this year. These
requests will be granted as long as the loan repayments were current as at Feb 1, 2020.
Those with mortgage equity withdrawal loans (MWLs) granted on or after April 6, 2020 may ask
to defer either principal repayments or both principal and interest payments. This will allow
individuals to monetise the equity in their existing properties to meet business expenses and family
needs, said the MAS in a statement. This supplements existing measures that allow qualifying
borrowers to seek payment deferment on their MWLs, regardless of when the MWLs were granted.
Those with renovation loans and with student loans not already covered by the Ministry of
Education can also apply to defer both principal and interest payments. Applications to defer these
four types of loans will be provided on an opt-in basis and may be extended through to the end of
this year. Applicants do not need to demonstrate any impact from Covid-19 to secure the
deferment.
These guidelines are part of a second relief package guided by MAS and other industry bodies for
individuals seeking support on their loan commitments.
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Links to the story:
https://www.businesstimes.com.sg/government-economy/banks-to-follow-standard-deferment-of-more-consumer-
loans-mas-0
https://www.straitstimes.com/business/banking/banks-to-allow-temporary-halt-in-payments-for-some-loans
JB-Singapore rail link agreement deadline deferred to July 31
The bilateral agreement deadline for the much delayed Johor Baru-Singapore Rapid Transit
System (RTS) Link project has been extended by three months to July 31.
The key pacts up for discussion are the RTS Link Bilateral Agreement between the two
governments and the joint venture agreement between Singapore's SMRT and Prasarana Malaysia,
the country's national rail operator, to constitute a joint venture operating company.
There is also a concession agreement for the governments to appoint this joint venture firm as the
RTS Link operator.
This is the third extension of the suspension at Malaysia's request. The initial target date for project
completion was by Dec 31, 2024.
Link to the story:
https://www.straitstimes.com/asia/se-asia/jb-spore-rail-link-agreement-deadline-deferred-to-july-31
URA seeks marketing consultancy for strategic review of Jurong Lake District to
draw businesses
The concept plans for Jurong Lake District (JLD) are up for strategic review, with the Urban
Redevelopment Authority (URA) looking to scale up marketing and promotion of the district from
the third quarter.
While the area is already home to a number of companies and plans are under way to inject buzz
with tourism development, there is a need to boost perceptions by presenting an exciting vision
and narrative for the district to better position it as a compelling business location, URA said.
Hence it has issued a tender for a multi-disciplinary marketing consultancy to undertake the
strategic review as well as to develop marketing and communication strategies aimed at attracting
developers, investors and businesses to JLD.
According to the tender specifications for the one-year contract, the marketing consultant or
consulting team will have "to conduct a strategic review of current plans, identify key areas (to)
focus on, and develop a comprehensive set of marketing and communication strategies and
collateral with the aim of primarily changing developers', investment funds' and businesses'
perception of Jurong as a predominantly industrial town and to help them... visualise what JLD
will become in future".
The tender, which was published on the GeBiz portal in March, has had its closing date extended
from April 20 to May 21.
Links to the story:
https://www.businesstimes.com.sg/real-estate/ura-seeks-marketing-consultancy-for-strategic-review-of-jurong-lake-
district-to-draw
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www.huttonsgroup.comWeekly News Select
May 8, 2020 / Issue 19
Economy
Dire outlook for manufacturing, services over next six months
With the Covid-19 outbreak, manufacturing and services firms in Singapore have turned much
grimmer about business conditions in the next six months, according to two separate surveys
released.
Compared with the last quarter's surveys, manufacturing sentiment swung from optimistic to near-
record pessimism, while services pessimism deepened to a historic low.
With the pandemic having posed a significant challenge to businesses, it is "not surprising that
many businesses surveyed are pessimistic about their near-term outlook", said the Ministry of
Trade and Industry said in response to media queries.
Covering firms' expectations for April till September, the surveys were released by the Economic
Development Board (EDB) for the manufacturing sector and the Department of Statistics
(Singstat) for services.
Links to the story:
https://www.businesstimes.com.sg/government-economy/dire-outlook-for-manufacturing-services-over-next-six-
months
https://www.straitstimes.com/business/economy/local-manufacturing-service-firms-pessimistic-about-prospects-
polls
April PMI in negative territory across all sectors
The societal shutdowns adopted to contain the deadly Covid-19 are weighing on factories in the
region, and Singapore has been no exception.
Manufacturing sentiment fell in April to its lowest since late 2008, data showed, as every segment
of the Purchasing Managers' Index (PMI) stood in negative territory.
The overall PMI reading fell for the third straight month, losing 0.7 point on the month before, to
44.7 points, while the sub-index for the electronics industry shed 1.3 points to 42.8.
The manufacturing contraction in April was broad-based, with inventory, employment, finished
goods, input prices and order backlog among the key readings in the red. Electronics factory
output, which dipped from 40.9 to 38.3 points, is now at its lowest recorded.
Links to the story:
https://www.businesstimes.com.sg/government-economy/april-pmi-in-negative-territory-across-all-sectors
https://www.straitstimes.com/business/economy/spore-factory-activity-at-11-year-low
Opportunities for electronics sector with shift in supply chains
The electronics sector will need to keep an eye on opportunities emerging from the rearrangement
of supply chains amid the pandemic.
Many companies are likely to continue to relocate from China and may reshore some of their
production facilities, given the risk of re-escalation in the US-China trade war.
Companies in the United States, the world's largest market for electronics products by final demand
after China, are rushing to find new manufacturing partners in Mexico.
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The reconfiguration of supply chains may kindle new opportunities for the region's industry.
Link to the story:
https://www.straitstimes.com/business/economy/opportunities-for-electronics-sector-with-shift-in-supply-chains
Sectors vital to global supply chains to lead reopening of Singapore economy: Chan
Chun Sing
Singapore will prioritise sectors "closely intertwined" with global supply chains - such as precision
manufacturing, biopharmaceuticals and petrochemicals - as the country allows some businesses to
gradually resume operations from May 12, said Minister for Trade and Industry Chan Chun Sing.
Speaking at an online press briefing, Mr Chan said that sectors that enable Singapore to "trade with
the world and access critical supplies" will progressively restart first.
But even as businesses gradually reopen, employees who are able to work from home will still
continue to do so into the "foreseeable future", Mr Chan said.
Meanwhile, the government will also review help schemes for sectors that have to restart later. It
will consult trade associations and chambers on how the various sectors can be restarted.
Links to the story:
https://www.businesstimes.com.sg/government-economy/sectors-vital-to-global-supply-chains-to-lead-reopening-
of-singapore-economy-chan
https://www.straitstimes.com/singapore/essential-business-travel-to-resume-first-says-minister
https://www.straitstimes.com/singapore/working-from-home-to-be-the-norm-for-some-time-chan
Oil-related industries face challenging times, say analysts
With a drop in oil demand expected to get worse in Q2, oil-related segments of the economy are
in for a challenging environment, as outlined by policy makers recently.
In its Macroeconomic Review released last week, the Monetary Authority of Singapore's
Economic Policy Group noted that demand collapse in oil coupled with the supply glut in the
market have led to crude oil price plunge and volatility in recent times. These are affecting not
only marine & offshore engineering, petroleum refining and petrochemicals manufacturing, but
also midstream activities such as wholesale trade, and transportation and storage of crude oil and
fuels.
Collectively, these industries account for around 4 per cent of Singapore's GDP. In particular, the
wholesale trade of fuels is of concern as it is a sizeable industry that generated an operating surplus
of around S$13 billion in 2018, accounting for 4.7 per cent of Singapore's total gross operating
surplus, noted the report.
Links to the story:
https://www.businesstimes.com.sg/energy-commodities/oil-related-industries-face-challenging-times-say-analysts
Economy may be in bigger trouble than many realise
The Singapore economy is headed for what many said will be an "unprecedented recession" this
year - and watchers are warning that most people may not have grasped how tough the road to
recovery could get.
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Though the gross domestic product (GDP) is already predicted to shrink by between 1 per cent
and 4 per cent this year, the Monetary Authority of Singapore (MAS) last week warned of
"significant downside risks to Singapore's growth outlook".
Even a contraction of just 4 per cent - more modest than private-sector economists' worst-case
fears of 10 per cent - would dwarf the 2.2 per cent decline in 1998. The Asian financial crisis was
the biggest recession since a plunge of 3.1 per cent in 1964.
Indeed, jobs are a serious concern for economy watchers, who are unanimous that this year's
layoffs will top the 28,300 in 1998 and the most recent peak of 23,430 in 2009.
For instance, travel may not bounce back to pre-pandemic levels for another two or three years,
which bodes ill for workers in the aviation, retail and recreation sectors.
Even after the pandemic is over, companies - burnt by viral supply-chain disruptions - "may
'reshore' production to reduce geopolitical or public health risks faced abroad".
Link to the story:
https://www.businesstimes.com.sg/government-economy/economy-may-be-in-bigger-trouble-than-many-realise
Singapore had fourth record year for tourism in 2019
Before the Covid-19 pandemic devastated international travel, Singapore had its fourth
consecutive record year for tourism in 2019, with healthy growth in the fourth quarter, a Singapore
Tourism Board (STB) quarterly report showed.
International visitor arrivals grew 6.9 per cent year on year in the fourth quarter of last year, to 4.8
million; tourism receipts rose 12.8 per cent to S$7.1 billion.
These took full-year figures to a record 19.1 million arrivals, up 3.3 per cent, and S$27.7 billion
in receipts, up 2.8 per cent.
Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-had-fourth-record-year-for-tourism-in-2019
March retail sales down 13.3%; Worse dive expected for April, May
Singapore’s retail sales fell 13.3 per cent year on year in March - the sharpest fall in two decades
- as the Covid-19 outbreak continued to take a toll, according to Department of Statistics (Singstat)
figures.
Deepening from -8.4 per cent in February, this was the worst fall since -16.9 per cent in September
1998.
With the latest figures, retail sales fell 8.9 per cent year on year in the first quarter, marking the
worst quarter for domestic retailers since the third quarter of 2009.
Links to the story:
https://www.businesstimes.com.sg/government-economy/march-retail-sales-down-133-worse-dive-expected-for-
april-may
https://www.straitstimes.com/business/economy/spore-retail-sales-plunge-13-in-sharpest-drop-in-22-years
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www.huttonsgroup.comWeekly News Select
May 8, 2020 / Issue 19
Hospitality
Coronavirus: Changi Airport T2 closes today, upgrade works to be accelerated
Changi Airport's Terminal 2 will be closed for 18 months from today as the airport cuts costs
during the Covid-19 pandemic and gets a head start on planned upgrade works.
Changi Airport Group (CAG) said: "The suspension of operations will allow the T2 expansion
works announced earlier to be accelerated. Scheduled for completion in 2024, the project can
possibly be finished earlier by up to one year."
Carriers with operations in T2 have been reallocated to T1 and T3. Singapore Airlines and Etihad
Airways, for example, now operate at T3. CAG has also noted that operations at T4 could be
suspended as well, with only a small number of flights still landing there.
Link to the story:
https://www.straitstimes.com/singapore/transport/changi-airport-t2-closes-today-upgrade-works-to-be-accelerated
Industrial
Industrial Reits asked to step up as government rebates fall short
Some industrial real estate investment trusts (Reits) such as Mapletree Industrial Trust (MIT) and
Ascendas Reit may have to dig deeper into their coffers than unitholders are prepared for as tenants
seek further reliefs.
This comes as Singapore's partial lockdown amid the virus outbreak has hit businesses across most
sectors, not just those at the frontline. And for a certain group of tenants that not only run retail
outlets but also industrial operations, the impact of the outbreak is keenly felt on both ends of the
business.
Yet, the property tax rebate to be passed down to industrial properties is just 30 per cent. In
comparison, some other categories of properties, among them retail properties, qualify for rebates
of 100 per cent.
Links to the story:
https://www.businesstimes.com.sg/companies-markets/industrial-reits-asked-to-step-up-as-government-rebates-fall-
short
https://www.straitstimes.com/business/more-industrial-retail-tenants-to-seek-relief-under-new-law
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www.huttonsgroup.comWeekly News Select
May 8, 2020 / Issue 19
Contact:
Lee Sze Teck
Head, Research
(65) 6500 6510
szetecklee@huttonsgroup.com
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