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Weekly News Select
                                                                                                    Jul 9, 2020 / Issue 28

Top News for the Week
        •    Singapore's productivity and median wage have grown by a third in the last 10 years:
             Tharman
        •    No plans to go back to Phase 1 after GE; rise in cases will be monitored
        •    Cinemas can reopen from July 13, with safety precautions
        •    More than 12,000 people placed in new jobs under SGUnited Jobs initiative
        •    Factories reopened in June, but weak global demand continues to hurt
        •    May retail sales hit all-time low; industry hoping for rebound
        •    Hotels, cinemas to reopen with safe management measures in place
        •    Zoo draws nearly 2,000 visitors on first day of reopening

Commercial
Springleaf Tower's level 22 office floor up for sale with guide price of over S$26m
An entire office floor on level 22 of Springleaf Tower is up for sale via expression of interest with
a guide price in excess of S$26 million.
The renovated office floor has a strata area of about 10,527 sq ft, and will be sold on a vacant
possession basis. It comes with exclusive use of the lift lobby, pantry and restrooms.
The expression of interest exercise will close on Aug 13 at 3pm.

Links to the story:
https://www.businesstimes.com.sg/real-estate/springleaf-towers-level-22-office-floor-up-for-sale-with-guide-price-
of-over-s26m
https://www.straitstimes.com/business/property/springleaf-tower-floor-for-sale-at-over-26m

Interactive Brokers opens Singapore office, offers access to local stocks
Nasdaq-listed Interactive Brokers Group has strengthened its presence in Singapore and broadened
its offering to local investors, including access to Singapore-listed stocks.
It has established a local entity, Interactive Brokers Singapore, and opened an office in the Marina
Bay financial district.
With its Singapore expansion, the brokerage can now offer Singapore stocks to local investors and
directly market to them offerings, which include the ability to invest globally in stocks, options,
futures, currencies, bonds and funds from a single integrated investment account.

Links to the story:
https://www.businesstimes.com.sg/companies-markets/interactive-brokers-opens-singapore-office-offers-access-to-
local-stocks
https://www.straitstimes.com/business/companies-markets/interactive-brokers-group-opens-singapore-office

                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, 2020 / Issue 28

S-E Asia's first S Korean startup centre opens in Singapore, focuses on fintech, cyber
security
South-east Asia's first South Korean startup centre was officially opened in Singapore with a focus
on fintech and cyber security.
The centre, launched by South Korea's Ministry of SMEs and Startups (MSS) and supported by
Enterprise Singapore (ESG), will be a channel for South Korean SMEs and startups to plug into
Singapore's and the region's innovation ecosystem. Centres in Sweden and Finland were also
launched at the same event.
The Singapore K-Startup Centre (KSC) is expected to host its first batch of six startups in October
2020. Startups will undergo an eight-week incubation programme on fintech and cyber security
hosted by NUS Enterprise, the entrepreneurial arm of the National University of Singapore (NUS).

Link to the story:
https://www.businesstimes.com.sg/garage/s-e-asias-first-s-korean-startup-centre-opens-in-singapore-focuses-on-
fintech-cyber-security

Toyota launches financial services arm in Singapore
Buyers of Toyota and Lexus cars now have another financing alternative for their car loans, with
options to pay zero instalments for the first year as well as zero down payments.
Toyota Financial Services, a wholly owned subsidiary of Japanese carmaker Toyota, launched its
services in Singapore - its 39th country globally - with an initial investment of S$23 million.
It is providing financial services through its partnership with Borneo Motors Singapore, the
distributor of Toyota and Lexus vehicles here.
This follows in the footsteps of other car brands with their own in-house financing arm, such as
BMW, Mercedes-Benz and Porsche.

Link to the story:
https://www.businesstimes.com.sg/banking-finance/toyota-launches-financial-services-arm-in-singapore

Retail
Cinemas can reopen from July 13, with safety precautions
Cinemas can reopen from July 13, according to a statement from the Infocomm Media
Development Authority (IMDA).
They have been closed since March 27 as part of the fight against Covid-19.
The reopening, which is the result of consultations between the authorities and cinema operators,
will take place with added safety precautions.
These include a 1m social distancing seat configuration.
Up to five patrons, comprising friends and family, can sit together without the 1m distancing
requirement, but different groups of patrons have to observe it.
Also, there will be a limit of 50 patrons per cinema hall. Masks will be mandatory at all times,
including inside the hall, except when consuming food and drink, according to the statement.

Weekly News Select
Jul 9, 2020 / Issue 28

Link to the story:
https://www.straitstimes.com/lifestyle/entertainment/cinemas-can-reopen-from-july-13-with-safety-precautions

Don Don Donki to open ninth Singapore outlet
Japanese retailer Don Don Donki, which opened an outlet in Jurong in January, is currently set to
open one more store in Singapore, putting it on track to hit its goal of 10 stores in the Republic by
2020 even amid the novel coronavirus pandemic.
It now has eight outlets in Singapore, the latest - and largest - being the one at Jem mall in Jurong.
The first one was opened at Orchard Central in December 2017.
The group did not reveal the location for the upcoming store. But it has mostly opened in the
western and central regions of Singapore so far, meaning that the northern and eastern regions
could be opportunities.

Link to the story:
https://www.businesstimes.com.sg/consumer/don-don-donki-to-open-ninth-singapore-outlet

Sports Link buckles under overdue debts
Retailer Sports Link Holdings has been ordered to be wound up upon an application by supplier
Adidas Singapore over S$1 million in overdue trade payables. The retailer with total debts
amounting to at least S$3.4 million did not oppose the move.
Sports Link's cash-flow difficulties appeared to have predated the novel coronavirus outbreak and
became acute in April 2018, when it failed to pay sportswear manufacturer Adidas Singapore
S$1.3 million it owed in trade payables, according to an affidavit by an Adidas Singapore director.
The High Court granted Adidas Singapore's application last Friday, with no objection from Sports
Link, The Business Times understands.

Links to the story:
https://www.businesstimes.com.sg/companies-markets/sports-link-buckles-under-overdue-debts
https://www.straitstimes.com/sport/sportslink-closes-down

Winding-up petitions filed against PappaRich Group
Two winding-up petitions were filed against food chain operator PappaRich group, an indirect
subsidiary of Australian-based food and beverage (F&B) ST Group Food Holdings.
The winding-up petitions were filed by investment holdings firm Agathisfour and Chen Khai Voon
with the High Court of Malaya, ST Group Food said.
Hearing for the court application is scheduled for Nov 3 and Sept 21 respectively.

Link to the story:
https://www.businesstimes.com.sg/companies-markets/winding-up-petitions-filed-against-papparich-group-0

Weekly News Select
                                                                                                   Jul 9, 2020 / Issue 28

Government
Singapore's productivity and median wage have grown by a third in the last 10 years:
Tharman
Contrary to the "urban myth" that Singapore has failed in its quest to raise productivity, the nation's
productivity and median wage have grown by about a third over the last decade, Senior Minister
Tharman Shanmugaratnam has said.
It grew by 2.4 per cent annually for each worker, or by 2.8 per cent per work hour - which is the
best measure of productivity - over the last 10 years, translating to a one-third gain, he said.
This meets the country's target of 2-3 per cent of productivity growth per year on average for the
last decade.
In turn, median income rose about 32 per cent, after adjusting for inflation, from S$2,900 to
S$4,600 in the last decade, added Mr Tharman.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapores-productivity-and-median-wage-have-grown-
by-a-third-in-the-last-10
https://www.straitstimes.com/politics/median-incomes-productivity-up-by-a-third-in-10-years

No plans to go back to Phase 1 after GE; rise in cases will be monitored
There are no plans to revert to Phase 1 or a lockdown immediately after the General Election,
despite a recent uptick in the number of new community cases reported daily, the multi-ministry
taskforce on Covid-19 said.
An average of 12 new community cases were reported daily in the past week, up from an average
of eight a day in the previous week.
This is expected to increase further in the coming weeks, given that Singapore has resumed
economic activities and social interaction for just two weeks, roughly the same as the incubation
period for the virus.

Links to the story:
https://www.businesstimes.com.sg/government-economy/no-plans-to-go-back-to-phase-1-after-ge-rise-in-cases-
will-be-monitored
https://www.straitstimes.com/singapore/health/workplace-covid-19-infections-up-after-phase-two-reopening

Coronavirus: Regional green lanes will take more time than bilateral ones
An Asean travel green lane or a broader regional travel bubble is something the Covid-19 multi-
ministry task force aspires towards, although it will not be achieved in the near term.
This is because the infection situation in Asean varies from country to country, said National
Development Minister Lawrence Wong during a virtual press conference.
Instead, discussions on bilateral green lanes, which will progress faster and be easier to set up, are
currently ongoing, he said.

               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, 2020 / Issue 28

Link to the story:
https://www.straitstimes.com/singapore/regional-green-lanes-will-take-more-time-than-bilateral-ones

IMDA to roll out parcel locker network by end-2021
A nationwide network of parcel lockers slated to be fully rolled out by end-2022 will be ready one
year ahead of schedule, the Infocomm Media Development Authority (IMDA) announced.
The acceleration comes as e-commerce purchases and demand for delivery solutions have surged
during the Covid-19 pandemic, making clear the need for lockers in residential areas, Minister for
Communications and Information S Iswaran shared in a virtual dialogue session with logistics and
e-commerce industry players.
IMDA has incorporated a wholly-owned subsidiary, Pick Network, to deploy, own and operate the
locker network. The 1,000 lockers will be located in nodes with high footfall near to residential
areas, like MRT stations and community centres, with the goal of having a Pick station within five
minutes' walk for every household.
The first batch of 200 stations will be rolled out in Q1 2021.

Links to the story:
https://www.businesstimes.com.sg/government-economy/imda-to-roll-out-parcel-locker-network-by-end-2021
https://www.straitstimes.com/singapore/1000-station-parcel-locker-network-ready-by-end-2021

Economy
More than 12,000 people placed in new jobs under SGUnited Jobs initiative:
Josephine Teo
More than 12,000 people have been placed in new jobs since March under the SGUnited Jobs
initiative, Manpower Minister Josephine Teo said.
The initiative was introduced in March as part of the supplementary Resilience Budget to help job
seekers cope with the worsening labour market prospects amid the Covid-19 pandemic.
Close to 70 per cent of the 12,000 placements were in the public sector, including Covid-19-
related, healthcare and digital positions, said Workforce Singapore, SkillsFuture Singapore, the
Infocomm Media Development Authority, the Public Service Division and NTUC's e2i in a joint
statement.
A breakdown was not provided in terms of temporary and permanent roles.

Links to the story:
https://www.businesstimes.com.sg/government-economy/more-than-12000-people-placed-in-new-jobs-under-
sgunited-jobs-initiative
https://www.straitstimes.com/singapore/manpower/job-schemes-aim-to-protect-singaporeans-says-minister
https://www.straitstimes.com/singapore/manpower/over-12000-people-get-new-jobs-under-sgunited-initiative

Factories reopened in June, but weak global demand continues to hurt
Singapore factories were set to ramp up activity in June as a two-month "circuit breaker" ended,
an early sentiment gauge has suggested.

                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, 2020 / Issue 28

But with end-demand still capped by the novel coronavirus pandemic that has ravaged the globe,
the manufacturing sector could still face negative territory in the coming months.
The Purchasing Managers' Index (PMI) reading for June, inched up by 1.2 points from the month
prior, to 48.0.
June's uptick came on the back of slower contractions in new orders, new exports, factory output,
employment and supplier deliveries, as well as imports, input prices, and order backlog.
Meanwhile, inventory expanded for the straight second month.

Links to the story:
https://www.businesstimes.com.sg/government-economy/factories-reopened-in-june-but-weak-global-demand-
continues-to-hurt-0
https://www.straitstimes.com/business/economy/singapores-june-factory-activity-improves-but-still-in-contraction

May retail sales hit all-time low; industry hoping for rebound
Singapore retailers crashed to an all-time low in May, as revenue was more than halved on the
year before.
Receipts posted a ghastly plunge of 52.1 per cent - the worst since records began in 1986, the
Department of Statistics (SingStat) said.
As stores warily reopen after a two-month quasi-lockdown, the hope is that the only direction left
is up. Yet it's far too early to shout "ka-ching!", industry watchers warn, despite hopes of a "revenge
buying" spree in June from pent-up demand.
Even with big-ticket motor vehicle purchases excluded, May's fall in retail sales was 45.2 per cent.
Supermarkets and hypermarkets, as well as mini-marts and convenience stores, were the only types
of retailers to post revenue growth for the month.
All other segments saw double-digit decreases of as much as 96.9 per cent for watches and
jewellery, 93.4 per cent for department stores, and 89.1 per cent for clothing and shoes. The
turnover declines, which exceeded the 40.3 per cent drop in April, were "due to circuit-breaker
measures in May", said SingStat.

Links to the story:
https://www.businesstimes.com.sg/government-economy/may-retail-sales-hit-all-time-low-industry-hoping-for-
rebound
https://www.straitstimes.com/business/economy/retail-sales-down-521-in-may-in-record-slump

Singapore May visitor arrivals plummet to just 880
Singapore had just 880 visitor arrivals in May 2020, as the country remained closed to short-term
visitors to stem the risk of importing Covid-19 during the second month of its "circuit breaker"
period.
Although visitor arrivals slowed to a trickle compared with the 1.49 million arrivals in May 2019,
the average length of stay for each visitor ballooned to 51.7 days, said the Singapore Tourism
Board (STB). Before February, the average length of stay was four days.
May's visitor arrivals were, however, a slight improvement over the 750 visitor arrivals in April.
The average length of stay then was 39.1 days. On the whole, year-to-date visitor arrivals was 2.7
million in the first five months of the year - a plunge of 65.7 per cent.

Weekly News Select
Jul 9, 2020 / Issue 28

Link to the story:
https://www.businesstimes.com.sg/government-economy/singapore-may-visitor-arrivals-plummet-to-just-880

Hospitality
Hotels, cinemas to reopen with safe management measures in place
The STB announced in an advisory that hotels may apply to resume two activities: providing
accommodation to guests for the purposes of leisure, and opening their recreation areas for
children, such as a kids' club.
But hotels must adhere to various safe management measures for their respective applications to
be approved, the STB said.
These measures include staggering the check-in and check-out timings for guests in different
rooms.
Hotel guests would be required to wear a mask within the hotel, except when they are in selected
areas such as their own room, or engaging in certain activities such as eating. They would also be
required to make a declaration as to their purpose for staying at the hotel.

Link to the story:
https://www.straitstimes.com/singapore/hotels-can-open-for-staycations-again

Visitors at attractions again - with safety measures in place
Attractions such as Universal Studios Singapore (USS) and the Singapore Zoo buzzed with visitors
once again yesterday, with a slew of safety measures in place.
Both attractions, as well as 11 others, were given the green light last week to reopen from July 1.
They had been closed for nearly three months, since the start of Singapore's circuit breaker on
April 7.

Link to the story:
https://www.straitstimes.com/singapore/visitors-at-attractions-again-with-safety-measures-in-place

Zoo draws nearly 2,000 visitors on first day of reopening
Close to 2,000 people visited the Singapore Zoo on 6 July, the first day of the reopening of the
zoo, Jurong Bird Park and the River Safari to the public.
The three wildlife parks were closed for nearly three months from the start of the circuit breaker
in April and first reopened their doors to members only from 3 July. The Night Safari will remain
closed for the time being.
Each park can host up to 25 per cent of its capacity at any one time, and all visitors must buy
tickets online, as well as book their time of entry, before their visit.
The parks are also using technology to monitor the number of visitors in real time and will trial
systems that track crowd density, said a spokesman for Wildlife Reserves Singapore, which runs
the parks.
At a quarter of its capacity, each park can hold between 1,000 and 2,250 visitors.

Weekly News Select
Jul 9, 2020 / Issue 28

Links to the story:
https://www.straitstimes.com/singapore/zoo-draws-nearly-2000-visitors-on-first-day-of-reopening
https://www.straitstimes.com/singapore/after-a-looooong-wait-the-zoo-reopens

Don't hold breath for fire sales by owners of Singapore hotels
Singapore’s hotel business continues to be pummelled by Covid-19 with buyers on the sidelines
waiting to pounce if owners throw in the towel.
Despite staycation offers, Singapore hotels are struggling, given their reliance on international
travellers. Foreign visitors in May numbered 880; 1.49 million visitors was recorded in May 2019.
In 2019, Singapore had 19.1 million visitors.
Still, investors may wait in vain if they are looking for fire sales, as Singapore remains attractive
for regional and global travellers - who will resume travel once the pandemic is contained, say
consultants.

Link to the story:
https://www.businesstimes.com.sg/real-estate/dont-hold-breath-for-fire-sales-by-owners-of-singapore-hotels

Hotels target staycations, as every bit helps
Hotels in Singapore are rolling out promotions for locals looking for a staycation, and are confident
of interest among locals for a holiday away from home.
This came as the Singapore Tourism Board announced that hotels here may apply to reopen for
staycation bookings.
Equity analysts said this latest development will give the hotel industry a much-needed boost, but
cautioned that the financial impact may not be substantial.

Link to the story:
https://www.businesstimes.com.sg/companies-markets/hotels-target-staycations-as-every-bit-helps

Industrial
Two freehold industrial properties for sale
Two industrial properties - a warehouse at 12 Tagore Drive and two strata units at 205 Henderson
Road - are going up for sale, with indicative prices of S$55 million and about S$8 million
respectively.
The properties will be put up for sale via an expression of interest (EOI) exercise.
The property at 12 Tagore Drive is a four-storey freehold warehouse with a site area of 5,355 sq
m or about 57,641 sq ft. At the indicative price, this translates to S$573 psf based on an existing
gross floor area (GFA) of 95,819 sq ft.
Under the Urban Redevelopment Authority's Master Plan 2019, the site is zoned as Business 1
with a plot ratio of 2.0, translating to a maximum allowable GFA of 10,710 sq m or about 115,281
sq ft.
Meanwhile, the two freehold strata industrial units at 205 Henderson Road are located in
Henderson Industrial Park, which is within the Bukit Merah planning area.

Weekly News Select
Jul 9, 2020 / Issue 28

Both units are vacant, and are to be sold with vacant possession.
The total strata area for the two industrial units is 1,105 sq m or about 10,926 sq ft. This translates
to about S$730 psf on strata area, based on the indicative price.
The EOI for both properties will close at 3pm on Aug 4.

Link to the story:
https://www.businesstimes.com.sg/real-estate/two-freehold-industrial-properties-for-sale

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

This document has been prepared by Huttons Asia for general information only. Huttons Asia does not guarantee warrant or represent that the
information contained in this document is correct. Any interested party should undertake their own enquiries as to the accuracy of the information.
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