Latest News - Economy

S'pore has least happy millionaires in Asia

Fri, 25 May 2012 00:00:00 +0800

PropertyGuru.com.sg :

Singapore, Hong Kong and South Korea are home to Asia's least happiest millionaires while those in Malaysia, Indonesia and Thailand are the most contented, according to a new report.

The findings, part of the Futurepriority Report 2012 published by Scorpio Partnership and supported by Standard Chartered Priority Bank, gathered views from individuals worth more than US$1.4 million (S$1.8 million).

“The results are striking. The Malaysian, Indonesian and Thai markets have shown positive exuberance in these tough markets when it comes to wealth creation, and is matched only by Indian millionaires. The linkage between happiness and confidence in wealth creation ambitions is significant,” said Catherine Tillotson, Managing Partner at Scorpio Partnership.

Some 89 percent of the 2,800 survey participants wanted more guidance about how to manage their investments, while 86 percent specified a need for more education about how best to manage their wealth.

Banks dominate when it comes to money management, with 69 percent of Asia’s wealthy having this relationship. Financial advisors, online investment firms, private banks and wealth advisors all jostle for second place in terms of popularity.

Inflation hits 4-month high: MAS

Thu, 24 May 2012 00:00:00 +0800

PropertyGuru.com.sg :

By Romesh Navaratnarajah:

The Monetary Authority of Singapore (MAS) has announced that inflation climbed to a four-month high in April, following simultaneous increases in housing and transport costs.

In a statement, the MAS said that the consumer price index grew 5.4 percent in April compared to the same period last year and up from March’s 5.2 percent.

In addition, the central bank said that housing prices climbed 11 percent, alongside a 7.5 percent growth in transport costs.

Meanwhile, inflation is expected to remain at an average of five percent in the first half of the year, before gradually slipping. The MAS has maintained its inflation forecast at 3.5 to 4.5 percent this year.

Despite weaker economic conditions, inflation has accelerated this year. The government is forecasting that the economy will grow as little as one percent compared to last year’s 4.9 percent.

Singapore remains Asia's top convention city for 2011

Wed, 23 May 2012 00:00:00 +0800

PropertyGuru.com.sg : By Cheryl Tay:

Singapore has retained its position as Asia’s top convention city for 10 straight years, according to the latest global rankings by the International Congress and Convention Association.

Singapore is also the only Asian city among the top five convention cities worldwide, alongside Vienna, Barcelona, Paris and Berlin, since 2006.

The ranking comes after the country saw a record high 13.2 million visitors in 2011, exceeding its estimates of between 12 million and 13 million tourist arrivals. The number of business visitors also climbed 2.6 percent to 3.2 million from 2010, and formed 24 percent of total visitorship to the country. Expenses by these business visitors also increased 4.1 percent to an average of S$5.6 billion, contributing around 25 percent of total tourism receipts.

Meanwhile, the Meetings, Incentives, Conventions and Exhibitions (MICE) industry also saw robust performance, with the number of such events increasing 46 percent year-on-year in 2011.

“We are proud that we have maintained our appeal to global businesses as a premier hub in the Asia Pacific region,” said Neeta Lachmandas, Assistant Chief Executive of the Singapore Tourism Board.

“Our success can be attributed to several factors: a vibrant eco-system that nurtures business events of exceptional quality, the dynamic growth in Asia, and most importantly, the dedication of our MICE industry partners.”

Looking ahead, Lachmandas said that Singapore aims to continually leverage “the growing opportunities in Asia and our strong knowledge network to further strengthen our position as a preferred MICE destination.”

“Singapore strives to differentiate itself by co-creating and developing a strong network of business events within Singapore’s key priority industries,” she said.

“Through close collaboration with professional industry partners and sustained efforts to develop the capabilities of Singapore’s key industry clusters such as biomedical and healthcare; infocomm technologies; environment and energy; and banking and finance, STB serves to attract and develop flagship MICE events of international standing that reinforce Singapore’s attractiveness as a leading MICE city.”

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Singapore a safe haven for investors

Singapore economy at risk from Eurozone crisis

Rising prices won't hit Singaporeans hard, minister says

Singapore a safe haven for investors

Tue, 22 May 2012 00:00:00 +0800

PropertyGuru.com.sg :

By Romesh Navaratnarajah:

Singapore has been ranked as the third safest country in the Asia Pacific to invest, behind Australia and Hong Kong, according to Dun & Bradstreet's Global Risk Indicator (GRI).

The report revealed that Singapore’s ranking was boosted by its stable risk profile and low degree of economic uncertainty.

“Hong Kong and Singapore are ranked second and third respectively in the Asia Pacific region; although they are both also on a deteriorating trend,” noted the report.

“Hong Kong's banking sector is suffering from a spate of alleged malpractices and political scandals, while Singapore is experiencing inflationary pressures and slowing economic growth.”

Meanwhile, Australia is considered one of the safest countries in the world to invest due to the relatively mild economic slowdown that it experienced during the global financial crisis.

The report placed Australia in the top four countries, with a ranking in line with Canada, Norway and Switzerland.

“The world is continuing to change at a rapid pace and although Australia is faring well compared to other nations we cannot afford to stand still,” said Christine Christian, Chief Executive of D&B.

The GRI report provides a complex assessment on the economic, political, commercial and external risk of conducting business in 131 countries around the world.

Singapore economy at risk from Eurozone crisis

Fri, 18 May 2012 00:00:00 +0800

PropertyGuru.com.sg :

By Romesh Navaratnarajah:

Increased risk is expected to pose new threats to Singapore’s economy should the Eurozone crisis get out of control, warned the government.

As a result, the Ministry of Trade and Industry (MTI) has kept its growth forecast at one to three percent this year, while there have been positive signs recently. In fact, the economy grew by 1.6 percent in Q1 from last year, driven by the construction and services industries.

However, the MTI noted that the outlook for the rest of the year remains uncertain, given the weak chances for a recovery in the global economy. The surging growth in the US earlier this year seems to have faded while China has revised its growth prospects downwards.

The Eurozone remains the biggest risk, as worries that Greece will default on its loans have burdened financial markets.

Ow Foong Pheng, Permanent Secretary at the MTI, said changes in the Eurozone political landscape “endanger promised reforms and crisis measures”. She noted that France has just elected a new President while the Greeks will hold polls next month.

“The high level of uncertainty surrounding the euro zone's political climate and fiscal outlook will continue to weigh on the global economy. This will in turn dampen growth in Singapore's externally oriented sectors.”

The MTI believes that ‘disorderly’ default by Eurozone members “cannot be ruled out at this stage,” noting that “if it materialises, there will be considerable downside for the global economy and Singapore’s externally oriented industries”.

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Rising prices won't hit Singaporeans hard, minister says

S'pore's inflation rate worrying, says ING economist

MAS to act decisively to control inflation

Rising prices won't hit Singaporeans hard, minister says

Tue, 15 May 2012 00:00:00 +0800

PropertyGuru.com.sg :

By Romesh Navaratnarajah:

Singapore’s inflation rate is tipped to stay at five percent over the next few months before slowing down in the second half of 2012 to reach between 3.5 and 4.5 percent this year, said Lim Hng Kiang, Minister for Trade and Industry.

Speaking in Parliament yesterday, he said that rising prices in the coming months will not hit consumers hard since car prices and rentals on owner-occupied properties are expected to be the two biggest contributors to the increase in the Consumer Price Index (CPI), which hit 5.2 percent in March.

“As the majority of resident households in Singapore own their homes, they do not actually incur rental expenditure,” he said. “Likewise, the majority of resident households will not be directly affected by the rise in COE premiums as new car buyers make up a small proportion of all resident households.”

Meanwhile, the Monetary Authority of Singapore (MAS) has further tightened its monetary policy to ease the external demand for Singapore exports and keep imported inflation in check.

“The approach we have adopted is a multi-pronged one, which also includes measures to ameliorate domestic supply-side constraints,” said Mr Lim.

He added that the government will also cushion the impact of the rising cost of living with cash grants.

“Although these grants do not reduce the headline CPI inflation, they help to offset the higher cost of living experienced by households.”

S'pore's inflation rate worrying, says ING economist

Wed, 09 May 2012 00:00:00 +0800

PropertyGuru.com.sg :

by Cheryl Tay

Economic growth in Asia will likely pick up in the second quarter, as Europe recovers from its worst debt crisis, according to a senior economist at Dutch ING Bank.

In Singapore, economic growth will pick up at the end of the year, expanding 2.7 percent, at the higher end of the one to three percent official forecast, said Tim Condon, the bank’s chief economist for Asia.

However, he warned that the country’s inflation rate may accelerate at a faster pace if it is not restricted at a reasonable rate.

Following the 5.2 percent increase in the consumer price index in March, Condon said he is worried that the constant high inflation rate could disrupt price stability and change people’s expectations. He added that this could lead to higher inflation than usual.

Condon was also unsure on the question of whether the Monetary Authority of Singapore (MAS) should use interest rates as its monetary policy tool rather than the current exchange rate policy.

“I would hesitate to give advice to the MAS as this is a central bank that has really delivered the goods. I think they are really putting their head on the issue,” he said.

S'pore the world's 4th best place to live, work

S'poreans spending habits don't change: MAS

MAS to act decisively to control inflation

Tue, 08 May 2012 00:00:00 +0800

PropertyGuru.com.sg :

By Romesh Navaratnarajah:

The Monetary Authority of Singapore (MAS) should implement policies that react “decisively” to control short-term inflation driven by strong demand. However, the policies should restrain, and not quash price pressures caused by long-term supply constraints, according to a report by The Business Times.

Ong Chong Tee, Deputy Managing Director at MAS, revealed that the challenge for the central bank is to distinguish between the supply and demand drivers of inflation, while staying vigilant to prevent spiralling inflation and its effects.

These are the reasons why the agency tightened its monetary policy last month, he explained during a conference held by the Singapore Management University’s Sim Kee Boon Institute for Financial Economics (SKBI).

“Higher labour costs in the short term due to permanent supply shifts are part and parcel of the market’s equilibrating process to guide the economy to a sustainable growth path,” he noted.

Thus, business cost increases due to less reliance on low-cost foreign workers will be shifted to the prices of services in the short-term.

But if strong demand increases short-term inflationary pressures, MAS will “act decisively” even if this dampens overall economic activity, said Ong. He added that the authority’s latest move was aimed at “keeping the economy on an even keel” with growth of one to three percent in 2012.

Moreover, Ong reiterated the “targeted and incremental” use by MAS of macro-prudential tools to avert the formation of asset price bubbles.

Aimed at specific markets, particularly the property sector, the country’s measures focus on “discouraging short-term speculative activity that can distort underlying prices, while encouraging greater financial prudence among property purchasers,” said Ong.

S'pore the world's 4th best place to live, work

Thu, 03 May 2012 00:00:00 +0800

PropertyGuru.com.sg :

By Romesh Navaratnarajah:

Singapore has been named the world’s fourth most desirable place to live and work, according to the latest survey conducted by recruitment firm Hydrogen Group and business school ESCP Europe.

The US remained the most popular destination, followed by Britain and Australia, (despite diminishing dominance), while Hong Kong remained in sixth place.

Singapore’s position reflects the growing number of multinational companies establishing their presence in the country due to clear benefits such as additional jobs for locals and more taxes collected, according to Hydrogen.

“These new industries growing their presence in Asia, with Singapore as their base, is one of the key drivers behind the continuous flow of talent into the country and the range of opportunities is making Singapore a very exciting destination to consider for international tenure,” said Simon Walker, Managing Director of Hydrogen Group in Asia.

“Singapore is cleverly making itself an international player by welcoming a global workforce. The big question is whether Singapore will become Asia's Silicon Valley or its Switzerland.”

As Singapore becomes a more attractive destination for expats, employers will enjoy a wide selection of the world's top professional talent, noted Hydrogen.

“Singapore has one of the lowest crime rates in the world, and it offers a clean and healthy environment free from traffic pollution,” said Walker. “So it is not surprising that 88 percent of those who have moved to Singapore feel that their living conditions have improved.”

S'poreans spending habits don't change: MAS

Wed, 02 May 2012 00:00:00 +0800

PropertyGuru.com.sg :

By Romesh Navaratnarajah:

Despite the fluctuation in property and stock prices, Singaporeans aren’t changing how they spend, according to a recent macroeconomic report by the Monetary Authority of Singapore (MAS).

It noted that the ‘wealth effect’ is not seen in Singapore, as people here do not usually go on shopping sprees just because home and stock prices rise. Neither do they cut back significantly on expenses on the back of a downturn.

Such a trend is a contradiction to the US, UK and Australia, where consumer spending is affected by the rise and fall of their assets’ value.

Irvin Seah, an economist at DBS, said that Singapore emulates a conservative spending culture. “Singaporeans are more prudent with their finances. We have a saving culture. High inflation is also eroding the wealth effect.”

On the contrary, consumers in other countries like the US and UK tend to use credit cards or bank loans for short-term spending, noted Sundaram Janakiramanan, Finance Programme Head at SIM University.

MAS noted that the study aims to find out whether the active property market and growing interest in stocks have pushed people to spend more. It used data on per capita private spending, real GDP per capita, retail sales, the private property price index, money supply and the Straits Times Index (STI).

MAS added that there is ‘little evidence’ that consumer spending in the short term will be considerably affected by property or stock prices.

“The findings…should be taken as tentative since a more complete analysis of wealth effects requires appropriate controls for socioeconomic characteristics, and agents' expectations that may affect both expenditure and wealth,” it said.

Singapore's inflation up 5.2% in March

Tue, 24 Apr 2012 00:00:00 +0800

PropertyGuru.com.sg :

By Romesh Navaratnarajah:

Singapore’s inflation rate grew sharply in March, driven by the rising costs of housing and cars, suggesting that the Monetary Authority of Singapore (MAS) may tighten its monetary policy further in the coming months.

According to the latest figures, the country’s consumer price index (CPI) climbed 5.2 percent in March, beating February’s 4.6 percent increase and exceeding the estimates of 11 economists surveyed by Reuters.

“Singapore is in danger of losing its low inflation status,” said Robert Prior-Wandesforde, an economist at Credit Suisse.

“The current episode is the second major inflation shock Singapore has experienced in the last four years; but what makes this time different from 2008 is that inflation in most other Asian countries remains well contained.”

In a joint statement, the MAS and the Ministry of Trade and Industry (MTI) said that headline inflation could “average around five percent year-on-year in the first half before easing gradually in the second half of 2012”.

They noted that housing would remain the biggest factor for inflation this year, as rental contracts were renewed at “considerably higher” levels, particularly for HDB flats.

Singapore the most liveable city for Asian expats

Wed, 18 Apr 2012 00:00:00 +0800

PropertyGuru.com.sg :

By Romesh Navaratnarajah:

Once again, Singapore has been named the world’s most liveable city for Asian expats, with its low crime rate and excellent infrastructure as key factors, according to the latest survey by ECA International.

Singapore retained its top spot out of 265 locations globally. Its geographical location in the heart of Southeast Asia makes it even more attractive to Asian expats, with its low culture and language barriers, comfortable climate and close proximity to their home countries.

Lee Quane, Regional Director of ECA International, Asia, acknowledged Singapore’s position as one of only two cities in Asia to make it into the top 10, driven by its “good air quality, excellent infrastructure and healthcare facilities, low crime and health risks”.

Meanwhile, air pollution proved to be a major issue for Singapore’s long-time regional rival Hong Kong, which is one of the worst countries for air quality globally.

“Hong Kong is very liveable city in many respects,” he said. However, its poor air quality was a serious factor for anyone planning to relocate there.

Japan also took a big hit due the devastating earthquake and tsunami that struck the country’s north-east coast in 2011. Tokyo and Yokohama, which were both in last year’s top 10 list, fell to joint 17th spot this year.

“When a natural disaster occurs, infrastructure, utilities and availability of goods are all likely to be impacted for the worse,” said Quane. “This is what we have seen in these two locations.”

Meanwhile, the ranking for Chinese and Indians cities remained stable, with Shanghai and Bangalore coming in 83rd and 156th spots respectively.

At the same time, Australia dominated the top 10 list, with six cities making the cut.

Singapore economy speeds up in Q1

Fri, 13 Apr 2012 00:00:00 +0800

PropertyGuru.com.sg :

Singapore’s economy grew 9.9 percent in the first three months of 2012, leading the Monetary Authority of Singapore (MAS) to raise its inflation forecast for the year to between 3.5 and 4.5 percent, from the current 2.5 to 3.5 percent.

On a year-on-year basis, the economy grew 1.6 percent compared to the 3.6 percent rise seen in the previous year. The central bank noted that it would let the local currency appreciate at a “modest and gradual” pace.

The country manages its monetary policy by allowing the local dollar to rise and fall in an undisclosed band against a basket of undisclosed trade-weighted currencies of its main trading partners.

Meanwhile, many analysts expect the central bank to stand by its policy.

“In terms of growth, prospects are looking better compared to a month back. MAS did highlight the inflation risk but they also said pressures will ease,” said Chua Hak Bin, an economist at Bank of America Merrill Lynch.

“The tail risks (to the economy) have receded - that's why there is the narrower band. They are more comfortable with the slightly steeper slope - it could be half a percent, it could be one percent (further appreciation of the Singapore dollar).”

“Overall, it's a more bullish statement,” he said.

Constant inflation a complex challenge for MAS

Wed, 11 Apr 2012 00:00:00 +0800

PropertyGuru.com.sg : As Singapore’s open economy makes it vulnerable to prices of foreign goods and money inflows which causes home prices to skyrocket, the Monetary Authority of Singapore (MAS) faces a complex challenge when it comes to constant inflation issues.

However, Trade and Industry Minister Lim Hng Kiang said the MAS has imposed measures to curb inflation, including the tightening of the property market, introducing measures to raise productivity and strengthening the Singapore dollar.

He noted that the country’s monetary agency is “very concerned” about inflation, as the consumer price index remained at below five percent and core inflation was stuck at three percent.

NMP Tan Su Shan, Managing Director at DBS Bank, commented that a strong Singapore dollar helps control both domestic and imported inflation, although it could boost the amount of money in circulation and in turn cause asset inflation.

Lim acknowledged that this monetary concern is part of the “very complex environment that MAS has to deal with”, adding that while MAS does not have an official inflation target, its objective is “to maintain price stability for sustained economic growth over the medium term”.

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Singapore the 3rd most competitive city

Wed, 14 Mar 2012 00:00:00 +0800

PropertyGuru.com.sg :

Singapore has been ranked the world’s third most competitive city due to its first-class infrastructure, strong economy and clean environment, according to the latest report published by the Economist Intelligence Unit (EIU).

Ranked by the World Bank as the easiest place to do business, Singapore also tops the list as the most competitive city in Asia, surpassing Hong Kong and Tokyo which placed second and third respectively. However, Singapore fared relatively worse in terms of social character and cultural vibrancy, which were also factors examined in the ranking.

Singapore's future competitiveness may also be affected, as the country weans itself off its dependence on a foreign workforce, noted Sudhir Thomas Vadaketh, Senior Editor for Industry and Management Research at EIU Asia.

“If Singapore decides to seriously crimp the hiring of foreign nationals - which I don't think it will, for a multitude of reasons - then yes, you could argue that its score could go down in the future,” he said.

Commissioned by banking giant Citi, the report ranked 120 cities based on their demonstrated ability to attract business, capital, tourists and talent.

Globally, New York and London grabbed the top two spots, while Paris and Hong Kong shared the fourth spot. Tokyo, Zurich, Washington, Chicago and Boston completed the top 10 list of most competitive cities in the world.

Khoo Teng Chye, Executive Director of Singapore’s Centre for Liveable Cities, a government think tank, said the key to Singapore’s competitiveness has been its openness to the rest of the world.

“We have always been a hub open to the flow of people, ideas, capital, goods and services,” he said, noting that the city has always strived to attract both businesses and human capital, and has lured in businesses by, among other things, offering tax incentives and streamlining license approvals.

Singapore is recession ready, says S&P

Tue, 13 Mar 2012 00:00:00 +0800

PropertyGuru.com.sg :

With a strong financial standing, effective policymaking and structural reforms, Singapore is in good shape to minimise the impact of a possible recession. The country’s sovereign ratings are expected to remain stable this year but it needs to maintain sizeable reserves as well as flexible policy responses.

In a new report on Asia Pacific economies, credit rating agency Standard & Poor's (S&P) noted that Singapore has a stable outlook and will likely keep its current AAA rating.

“The stable outlook reflects our expectation that Singapore will maintain its considerable fiscal and external reserves,” said Tan Kim Eng, Asia-Pacific Head of Sovereign Ratings at S&P.

“The outlook also incorporates our expectation that the government's forward-looking and pragmatic approach to policymaking will prevail in the long term, ensuring that ongoing structural reforms will sustain Singapore's high global competitiveness,” he added.

Singapore’s macroeconomics also draws strength from strong public finances, net external creditor position and a strong track record of macroeconomic management and political stability.

Tan added that “strong fiscal performance continues to underpin the sovereign ratings.”

Although the government previously estimated a balanced budget for FY 2011-2012, he noted that higher property stamp duties and corporate income tax collections led to an eventual budget surplus of around S$2.3 billion, amounting to 0.7 percent of the GDP.

Moving forward, Tan expects the present fiscal year to be as good, noting that “the government projects the overall budget surplus to be S$1.3 billion, although we expect the eventual outcome will likely be higher due to the government's prudent and conservative fiscal track record.”

Singapore's inflation eases to 4.8%

Fri, 24 Feb 2012 00:00:00 +0800

PropertyGuru.com.sg :

Singapore’s inflation rate eased to 4.8 percent in January from 5.5 percent in December, marking the first time that price rises fell under five percent since May last year, according to the Monetary Authority of Singapore (MAS).

The decline was attributed to lower COE (Certificate of Entitlement) premiums seen in December, with a moderation of eight percent backed by concerns over the gloomy economy.

Meanwhile, housing costs, which grew 10 percent, was biggest contributor to inflation numbers, with rentals of new accommodation and renewed releases going up.

The MAS noted that the upswing was expected. It could also be attributed to the increase in prices of food and retail-related items within the period leading up to Chinese New Year.

Inflation will likely remain volatile and elevated in the coming months with an expected rate of about three percent caused by continued growth in housing rentals due to a shortage of completed accommodation, along with higher labour costs and shortage of COE supply.

Singapore the world's 9th most expensive city

Mon, 20 Feb 2012 00:00:00 +0800

PropertyGuru.com.sg :

Singapore has been ranked the ninth most expensive city in the world, surpassing New York, London, Frankfurt and Hong Kong which are normally associated with high-end living, according to latest Economist Intelligence Unit survey.

While Singapore has dropped three notches from last year’s ranking, the new survey shows that the country is still an expensive city. It has joined the elite list of the top 10 most expensive Asian cities, together with Tokyo, Osaka and Kobe.

Meanwhile, Zurich emerged as the world's most expensive city for the first time, beating Tokyo, which fell to second spot.

Several surveys released recently point to Singapore’s rising cost of living, particularly among expats. In December 2011, the country was ranked Asia’s sixth most expensive city, beating Hong Kong for the first time.

“This is the price to pay to become an international financial centre – high prices and a wide income gap within a single city,” said Kit Wei Zheng, an economist from Citigroup. “Wages, land, property and rentals are under cost pressures due to excess demand, symptoms of a fast-growing economy.”

S'pore has enough firepower amid looming economic risks

Fri, 17 Feb 2012 00:00:00 +0800

PropertyGuru.com.sg :

Singapore’s GDP growth has been forecasted to slow to 2.7 percent this year from 4.8 percent last year, accompanied by weaker external demand, according to the International Monetary Fund (IMF).

The IMF noted that the outlook is clouded by “significant downside risks” — most notably, “a sharp and protracted downturn in large advanced economies and extreme financial stress spreading from the Euro area”.

However, Singapore has “sufficient policy firepower” to counter the effects of this slowdown and the external factors that contributed to it, the Washington-based organisation added.

This latest assessment from the IMF focused on five areas: the main risks, the outlook for the economy, economic rebalancing, the issue of domestic credit growth and policies for inclusive growth.

On the outlook for the economy, it explained that external demand will continue to cool this year and the electronics sector will be “particularly hard hit”. Inflation will also moderate to three percent due to softer commodity prices, lower rentals and slower growth.

The IMF further estimates that a one percentage point drop in global growth will lead to a decline of around 1.7 to 1.9 percentage points in Singapore’s GDP.

However, the IMF added that even if the city-state is affected by the slowdown, its government has sufficient capabilities via its policies to dampen the impact.

“There is sufficient fiscal space to introduce, as in 2008, a discretionary stimulus package to support employment (if necessary), help low-income families, and enhance the cash flow of firms,” it added.

Fund managers positive on global economic sentiment

Fri, 17 Feb 2012 00:00:00 +0800

PropertyGuru.com.sg :

A growing number of fund managers are regaining their confidence in global equities and in the growth of the global economy, specifically in China. The positive sentiment has helped improve the economic outlook across the region and eased concerns over the Eurozone debt crisis.

These findings are based on a survey of fund managers, conducted by Bank of America (BofA) Merrill Lynch in February. The survey revealed that 11 percent of the fund managers polled expect positive economic growth next year. The figure is a significant increase from the 27 percent forecasted last December.

Responses from 277 panellists revealed that net 32 percent expect positive liquidity in the market, countering the net seven percent that believed otherwise last month. This also marks the largest month-on-month improvement since October, when the survey was first conducted.

Such sentiment was reflected in fund managers’ sentiments regarding emerging market equities, where there has been a notable rise in healthy risk appetite.

Global asset allocators have doubled their overweight in emerging market equities in the past month, from 20 percent in January to 44 percent this month.

Moreover, 86 percent of the respondents believe that China's economy will land soft.

S'pore average household income up 11%

Wed, 15 Feb 2012 00:00:00 +0800

PropertyGuru.com.sg :

The average Singaporean household income increased 11 percent to SS$7,040 in 2011, from S$6,340 in 2010, according to latest figures released by the Singapore Department of Statistics.

“Household income from work increased for all income groups, in tandem with strong employment creation in 2011,” it said.

After adjusting the consumer price inflation, average household income from work surged 5.6 percent.

For employed households, which refer to a family with at least one working person, the average income from work per household member also rose to S$1,990 in 2011 from S$1,850 in 2010.

On a total household income basis, the average monthly household income from work grew 22 percent between 2001 and 2011.

S'pore consumer confidence remains low

Wed, 08 Feb 2012 00:00:00 +0800

PropertyGuru.com.sg :

Consumer confidence in Singapore remains at a two-year low, with the country ranking the fifth most pessimistic of the 14 Asia Pacific nations, according to Nielsen's Q4 global online consumer confidence index.

Based on the findings, Singapore started the previous year with 109 points in the consumer confidence index, before slipping 15 points to 94 by the year’s end. Consumer confidence below the 100 baseline level shows the extent of pessimism.

“The picture painted by Singaporeans is relatively less optimistic, driven primarily by concerns over job prospects,” said Joan Koh, Managing Director of Nielsen Singapore.

The research revealed that the key concerns among Singaporeans in Q4 last year were work / life balance, job security and the economy. As a result, more of them are channelling spare cash into savings and reducing household expenses.

“Consumers here are generally continuing to hold back on their spending with a wait-and-see attitude,” said Koh, adding that she expects this to continue into 2012.

S'pore ranks 3rd for ideal home among expats

Fri, 03 Feb 2012 00:00:00 +0800

PropertyGuru.com.sg :

Singapore has been ranked the third most ideal place to live in due to its quality of life and career opportunities, according to HSBC’s Expat Explorer survey.

More than 3,000 expatriates from over 100 countries rated locations on a range of criteria, from food to accommodation, healthcare, transportation and work.

Nine percent of the respondents believe that Singapore combines the best of both worlds, highlighting its prime job opportunities along with good quality of life.

Meanwhile, Australia took top spot, with 10 percent of respondents preferring to live and work in the country, famous for its sun-drenched beaches and solid economy.

“The report suggests expats are putting lifestyle and well-being ahead of money and Australia wins hands down on this front,” said Graham Heunis, Head of Retail Banking and Wealth Management at HSBC Bank Australia.

With only a slight difference in votes, the United States came in second, and was perceived to offer the best career opportunities with higher remuneration, said the report.

Hong Kong took fourth place, followed by Canada, the United Kingdom and France. Respondents revealed that they were drawn to Hong Kong’s high income, while the UK and Canada were picked by expats due to lifestyle.

Inflation in Asia to fall, then rise

Fri, 20 Jan 2012 00:00:00 +0800

PropertyGuru.com.sg :

Although inflation in Asia will rapidly decline within the next six months, prices will pick up speed again by year-end, according to Michael Spencer, Chief Economist for Asia at Deutsche Bank.

With crude oil prices moving sideways and food prices tumbling, worries may switch to global deflation from sky-rocketing prices. However, Spencer’s forecast claims the exact opposite, that inflation will be seen by the end of 2012, said a Business Times report.

Deutsche Bank predicts Europe’s economy to shed 0.5 percent over a shallow three quarters-long recession this year. From Asia’s perspective, concerns must be muted as Greece and Portugal are tiny economies that form about five percent of euroland.

“Investors are so worried that peripheral problems will affect the rest of Europe that it is colouring how people see the outlook for Asia,” Spencer added.

However, this will likely change before the middle of the year when the unlikely risks weaken and investors stop panicking.

Spencer also expects China to face a similar scenario of slow growth in the first half and an improvement in the second half.

“An earlier and slightly more vigorous policy response”, he noted, should ease falling property prices.

HK pips Singapore as world's freest economy

Construction industry due for overhaul

Investments into Singapore to remain at 2011 levels

Wed, 18 Jan 2012 00:00:00 +0800

PropertyGuru.com.sg :

Amid a bleak global economic outlook this year, investments into Singapore will remain around the 2011 levels, according to the Economic Development Board (EDB).

EDB expects fixed asset investments (FAI) for 2012 to hit between S$13 billion and S$15 billion, most likely besting last year’s record S$13.7 billion (excluding 2007 and 2008, when Singapore inked two petrochemical cracker projects).

Aside from some 20,300 skilled jobs, the slew of projects secured in 2011 is also expected to contribute S$15.5 billion to the country’s gross domestic product (GDP) per year once fully completed.

Last year, local companies’ business spending amounted to S$7.3 billion excluding depreciation, a measure of economic activity without taking fixed assets into account.

“The year 2012 will be a challenging year on the economic front, but we continue to see active investor interest in Asia, and Singapore is well-positioned to harness some of these investment flows,” said Mr Leo Yip, Chairman at EDB.

Chemicals and electronics will likely account for majority of the higher FAI in 2012, as they made up 54 percent and 18.3 percent of last year’s FAI respectively.

Construction industry due for overhaul

Property, foreign worker curbs here to stay

HK pips Singapore as world's freest economy

Mon, 16 Jan 2012 00:00:00 +0800

PropertyGuru.com.sg :

Hong Kong has bested Singapore and other economies in terms of trade and financial freedom, clinching the top spot for 18 consecutive years.

“Of the 10 economic freedom factors assessed, Hong Kong ranked first in financial and trade freedom, second in investment freedom and property rights, and third in business freedom,” said Hong Kong’s Information Services Department.

According to the 2012 Index of Economic Freedom by the Heritage Foundation, Singapore scored 87.5 out of 100, ranking second in terms of economic freedom across 179 economies around the world. Australia, New Zealand and Switzerland joined Hong Kong and Singapore in the top five spots.

The index evaluates economic freedom, gauging factors such as regulatory efficiency, rule of law, open markets and size of government.

The report stated that general economic freedom in the world had declined over the past year. “Most of that decline is due to a large increase in government spending worldwide,” said Edwin Feulner, President of the Heritage Foundation.

Although Hong Kong remained at the top, Feulner said Singapore “was narrowing the gap”. Hong Kong is moving “modestly in the direction of a more bureaucratic and politicised economy”, with the introduction of a minimum wage in May last year.

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Construction industry due for overhaul

Property, foreign worker curbs here to stay

S'pore economy contracted by 4.9% in Q4

Construction industry due for overhaul

Fri, 13 Jan 2012 00:00:00 +0800

PropertyGuru.com.sg :

Singapore’s construction industry needs rebranding and restructuring to ensure sustained growth, despite the industry’s robust outlook for the next three years.

“To achieve a breakthrough, we will need to go beyond cosmetic changes so rebranding cannot just be about having more spin (or) more snazzy adverts,” said Tan Chuan-Jin, Minister of State for National Development and Manpower.

“I think the industry as a whole does rely quite extensively on foreign workers, but as we try to tighten this up, we should take this opportunity to look at how we can do the same, or more, but with fewer people,” he said.

The industry also faces the problem of an ageing local workforce. According to the 2010 BCA manpower survey, only 12 percent of the local workforce are below the age of 30 and almost 50 percent are above 45.

Rebranding the industry is crucial to attract more Singaporeans and one way to do so is to implement a Construction Productivity Roadmap, said Tan.

“We need to take bold steps to start reshaping the construction industry fundamentally, and through these efforts, enhance the industry's image.”

With that goal in mind, BCA and MND will study how to rebrand the industry in order to meet future manpower needs, support green building initiatives and construction productivity.

Meanwhile, the construction industry demand for 2012 is predicted to be lower than the S$32 billion recorded last year.

The overall construction demand for this year is probably between S$21 billion and S$27 billion, said Tan.

Although the projection is lower than the previous year’s record, he explained that construction demand remains healthy due to the on-going construction of major civil engineering projects like the Downtown Line and the volume of contracts awarded over the last two years.

Property, foreign worker curbs here to stay

Thu, 05 Jan 2012 00:00:00 +0800

PropertyGuru.com.sg :

The latest property curbs along with the tightened foreign worker policy are here to stay, as the Singapore government is now trying to increase productivity instead of the country’s population in order to drive growth, according to Bank of America Merrill Lynch economist Chua Hak Bin.

Chua added that although the government is expected to unveil stimulus measures to help ease transition pains, the country will still face prolonged high costs and slow growth amid global economic uncertainty.

“It's probably not a good time to embark completely (on this) when the whole world is in a storm and you're trying to force this structural change,” said Chua.

He also revealed that Singapore will likely face a technical recession in Q1 2012, and a 30 to 40 percent chance of negative growth in Q2.

He noted that the gradual slowdown implies that the country’s chance for a sharp V-shaped recovery is unlikely, as economic activity has not fallen from potential output fast and far enough to induce a quick rebound. The current foreign worker policy also hinders companies from fully capitalising on growth momentum.

“The point is that even after that negative quarter, when you do resume growth, it will not be as strong an uplift as we saw in the past,” added Chua.

After the watershed general elections in 2011, Singapore has tried to move towards a new growth model that highlights productivity-led growth, partly an acknowledgement of the previous population-led model’s limitations, said Chua.

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S'pore economy contracted by 4.9% in Q4

Global investor confidence down in December

Inflation figures grow higher than expected

S'pore economy contracted by 4.9% in Q4

Wed, 04 Jan 2012 00:00:00 +0800

PropertyGuru.com.sg :

Singapore's economy contracted by 4.9 percent quarter-on-quarter in Q4 2011, affected by the sharp decline in manufacturing, as the Eurozone economic slowdown hurt demand for Asian exports.

According to the Ministry of Trade and Industry (MTI), the country’s GDP dropped 4.9 percent on a seasonally adjusted, annualised rate, attributed to the 21.7 percent decline in manufacturing output.

Singapore, whose trade is approximately three times GDP, is considered Southeast Asia’s bellwether, due to its small domestic economy and dependence on global investments and trade.

The country’s GDP expanded 3.6 percent in Q4 from a year ago, slowing from the 5.9 percent growth in Q3.
Meanwhile, MTI estimated that the country’s economy jumped 4.8 percent for the whole of 2011, in line with its economic growth forecast of about 5.0 percent for the year.

“A renewed slump in manufacturing output as a pullback in pharmaceuticals exacerbated the steady downturn in the electronics sector,” said George Washington, Chief Economist for Asia Pacific at IFR Markets.

Looking ahead, Wu Kun Lung, an economist at Credit Suisse, said Singapore’s economy may further weaken in the present quarter before recovering later in 2012.

“We think Q1 2012 will probably be the bottom for the overall Singapore economy. If you look at US indicators, they are definitely improving. The biggest risk is from the euro zone, but right now our base case assumption is that they will avoid a disorderly type of break-up scenario.”

Inflation figures grow higher than expected

S'pore construction sector expected to slow in 2012

Global investor confidence down in December

Fri, 30 Dec 2011 00:00:00 +0800

PropertyGuru.com.sg :

Global investor confidence dipped slightly in December but a glimpse at individual regions showed that European institutional investors are more upbeat than their Asian and North American counterparts.

According to the State Investor Confidence Index for December, which was released by State Street Global Markets, the confidence of institutional investors in Asia declined 1.0 points to 93.7 from November's revised reading of 94.7, while in North America, the figure dropped 2.0 points to 96.4 from the revised reading of 98.4 in November.

However, European institutional investors bucked the trend, with confidence surging 0.6 points to 102.2, from the revised level of 101.6 in November.

Developed by Paul O'Connell of State Street Associates and Harvard University professor Kenneth Froot, the index differs from survey-based measures as it is based on the actual trades and not the opinions of institutional investors.

Commenting on the confidence of European investors, O'Connell said this is a turnabout from the first half of the year, “when European investors showed the most pessimism.”

“It does not necessarily mean that prospects for the European region itself have improved, but it does suggest that European institutions are more willing to allocate to equities both inside and outside Europe than they were earlier in the year,” he said.

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Inflation figures grow higher than expected

S'pore construction sector expected to slow in 2012

S'poreans less confident about economy

Inflation figures grow higher than expected

Tue, 27 Dec 2011 00:00:00 +0800

PropertyGuru.com.sg :

Ending the generally gloomy economic year, inflation for November has reached higher levels than expected, amid deepening concerns over slow economic growth, according to the Straits Times.

Exceeding market expectations of 5.3 percent, the report noted that consumer prices surged by 5.7 percent compared to a year ago. According to data released by the Department of Statistics, the new inflation figure was due mainly to the increase of housing, food and transport costs.

The report added that the weaker Singapore dollar, which makes imports pricier, is also a contributing factor.

S'poreans less confident about economy

Economic growth to exceed govt forecast

S'pore construction sector expected to slow in 2012

Fri, 23 Dec 2011 00:00:00 +0800

PropertyGuru.com.sg :

Following two years of a construction boom and the recent government measures to curb property prices, OCBC expects the pace of construction demand to slow next year, according to a report by Singapore Business Review.

However, OCBC noted that the slowdown will likely pick up from demand in the public housing sector, as the Housing & Development Board (HDB) plans to roll out more flats.

“For Build-To-Order (BTO) flats alone, around 25,000 units will be introduced into the market,” said OCBC.

”In addition, with the bearish global economic outlook, we believe the government is likely to increase infrastructure spending to help beef up domestic economic activities. As it stands, the government has already committed to big infrastructure projects such as the North South Expressway.”

While the drivers of construction demand will change, OCBC pointed out that the overall impact will not mean “a big drop in construction activities and prospects are in general still healthy.”

The Building and Construction Authority estimates between S$21 billion and S$28 billion of construction contracts will be up for grabs in 2012 and 2013.

“This implies that construction demand will moderate slightly as compared to 2011, but will still be robust. We believe there will be enough jobs in the coming two years, and therefore, remain positive on the sector,” said OCBC.

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S'poreans less confident about economy

Economic growth to exceed govt forecast

S'pore the 6th most expensive Asian city

S'poreans less confident about economy

Wed, 21 Dec 2011 00:00:00 +0800

PropertyGuru.com.sg :

Singaporeans are gradually becoming more concerned about the condition of the economy and will probably tighten their belts further in the coming year, according to the latest Aviva Consumer Attitudes to Savings (CAS) study.

The study, which polled around 1,000 Singaporeans, revealed that 32 percent of the respondents believe that the general economic situation will decline in the next 12 months, while 36 percent expect it to remain unchanged in the same period.

The results were in stark contrast to the CAS study performed six months ago, where 44 percent of Singaporeans surveyed believed that the economy will improve in the coming year. Now, only 24 percent of Singaporeans have the same view.

This wary economic assessment has driven consumers to save; around 37 percent of the respondents believe that it is more vital to consolidate their finances, rather than try to acquire more.

Now, only 39 percent are willing to face a higher level of risk for a higher potential yield compared to 43 percent a year ago. This implies that consumers are becoming more adverse to risk, which is predictable, given the volatile economy.

“The shift in Singaporeans' sentiment within the space of just six months is definitely surprising, especially as Singapore is yet to be heavily impacted by the decline in the global economy or the Eurozone debt crisis. The findings of the CAS study suggest that Singaporeans are finely attuned to global economic affairs and are actively responding by revising their approach to savings and investment,” explained Simon Newman, CEO of Aviva Singapore.

Singapore has world's fourth financial system

S'pore the 6th most expensive Asian city

Economic growth to exceed govt forecast

Thu, 15 Dec 2011 00:00:00 +0800

PropertyGuru.com.sg :

Europe's debt crisis may be affecting global markets, but private sector economists expect Singapore's 2011 growth to be higher than the government’s forecast, according to The Straits Times.

A poll by the Monetary Authority of Singapore (MAS) revealed that the economy will grow 5.2 percent this year, slightly above the government’s estimate of 5.0 percent.

This is attributed to the stronger-than-expected performance in the manufacturing sector.

According to data from the Economic Development Board (EDB), manufacturing output surged 24.4 percent in October, far exceeding the 8.6 percent forecast, while industrial output in October climbed 14.2 percent month-on-month.

Meanwhile, economists downgraded Singapore’s 2012 growth forecast to three percent, the top end of the government forecast range.

A group of 21 analysts and economists surveyed by the MAS offered this subdued outlook, as Europe faces an impasse in dealing with its debt crisis. Another major concern is that China may also record weaker growth.

The survey also showed that next year’s median forecast for the country’s growth is three percent, down from 4.9 percent in September. The government anticipates the 2012 economy to expand between one and three percent.

S'pore the 6th most expensive Asian city

Global crisis to slow Singapore's growth: PM Lee

S'pore the 6th most expensive Asian city

Wed, 07 Dec 2011 00:00:00 +0800

PropertyGuru.com.sg :

Singapore has jumped two notches this year to become the sixth most expensive city in Asia, according to the latest Cost of Living Survey by ECA International.

The survey also showed that Singapore, for the first time in at least 10 years, is deemed more expensive than Hong Kong, which slipped from sixth to ninth place last year.

“When we look at the overall cost of ECA’s basket of goods and services in Singapore a year ago, these items were 1.7 percent less expensive in Singapore than when purchased in Hong Kong,” said Lee Quane, Regional Director of ECA International Asia.

“Now those same items are 8.5 percent more expensive in Singapore than Hong Kong.”

Lee noted that rising prices in Singapore might erode some of the cost advantages the country used to have over other cities in the region.

Meanwhile, Japan dominated the top 10 list for Asia, with Tokyo, Nagoya, Yokohama and Kobe being four of the most expensive cities in Asia. They were followed by Seoul in fifth spot while Beijing, Shanghai, Hong Kong and Busan trailed behind Singapore.

Globally, Tokyo led the top 10, followed by Oslo, Geneva, Nagoya, Zurich and Yokohama. Other cities included in the top 10 are the Swiss capital of Bern, Stavanger in Norway, Basel in Switzerland and Japan’s Kobe. Singapore rose to 31st place, while Hong Kong dropped 26 places to 58th in the global ranking.

Conducted in September, the annual Cost of Living Survey used indicators comprising day-to-day goods and services like prices of clothing, groceries and electrical goods. It measured the cost of living in over 400 cities worldwide.

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MOF is looking for public feedback

Singapore is world’s 8th safest city

Inflation up 5.4% in October

Global crisis to slow Singapore's growth: PM Lee

Wed, 07 Dec 2011 00:00:00 +0800

PropertyGuru.com.sg :

Prime Minister Lee Hsien Loong has outlined how Singapore intends to create jobs and augment incomes as it enters a period of slower economic growth.

Speaking at the NTUC’s National Delegates’ Conference yesterday, PM Lee said the tripartite partnership among the government, employers and unions is even more important as Singapore enters a new phase of growth, which is expected to be slower in the coming years.

According to forecasts, Singapore’s gross domestic product (GDP) will grow between one and three percent next year.

Mr Lee said such low growth “will not be too uncommon” in the coming years, due to a troubled global economy, as well as internal factors such as Singapore's maturing economy, reduced intake of foreign workers and size constraints.

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MOF is looking for public feedback

Singapore is world’s 8th safest city

Inflation up 5.4% in October

MOF is looking for public feedback

Fri, 02 Dec 2011 00:00:00 +0800

PropertyGuru.com.sg :

The Ministry of Finance (MOF) has launched the Budget 2012 website with a feedback exercise encouraging suggestions on issues regarding taxes and public spending for next year’s budget.

The MOF exercise, in partnership with Reach, welcomes comments through new media platforms such as Facebook and Twitter, as well as discussion forums on Reach’s budget microsite. From 6 to 7 December, a Reach roving exhibition will also gather public views at the National Library Building, Victoria Street.

The MOF will also hold an online Budget Quiz every Wednesday, beginning 4 January 2012 on the Budget 2012 website. Each week, participants will be given the chance to win prizes if they can correctly answer all the questions.

The Budget Challenge 2012 will be open to polytechnic, junior college and university students, and those in the last two years of their integrated programmes at Millennia Institute. The top three teams will receive attractive prizes.

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Singapore is world’s 8th safest city

Inflation up 5.4% in October

S’pore households more resilient to economic crisis

Singapore is world's 8th safest city

Wed, 30 Nov 2011 00:00:00 +0800

PropertyGuru.com.sg :

Singapore has been ranked the world’s eighth safest city according to the Mercer 2011 Quality of Living Survey, also making it onto the list of the top 25 cities with the highest quality of living.

Luxembourg was ranked the world’s safest city, while Vienna ranked first for quality of living. Baghdad, on the other hand, had the lowest ranking in both categories.

“The top-ranking cities for personal safety and security are in politically stable countries with good international relations and relatively sustainable economic growth. Most of the low-scoring cities are in countries with, civil unrest, high crime levels and little law enforcement,” said Slagin Parakatil, Senior Researcher at Mercer.

European cities account for over half of the top 25 cities, with London, the highest-ranking UK city, in 38th place.

Globally, the cities with the lowest quality of living include Khartoum in Sudan (217), Port-au-Prince in Haiti (218), N’Djamena in Chad (219) and Bangui in Central African Republic (220).

Auckland ranked third for quality of living (the highest in the Asia Pacific region), followed by Sydney (11), Wellington (13), Melbourne (18) and Perth (21). Meanwhile, Tokyo ranked 46th for quality of living, while Hong Kong and Kuala Lumpur took the 70th and 76th spot respectively.

Mercer’s Quality of Living index list covers 221 cities, ranked against New York as the base city. The firm conducts the survey to help governments and multi-national companies compensate employees fairly when sending them on international assignments.

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Inflation up 5.4% in October

Thu, 24 Nov 2011 00:00:00 +0800
PropertyGuru.com.sg :
Inflation slowed down slightly in October, registering a year-on-year increase of 5.4 percent last month.

However, it continues to remain at a high level, attributed mainly to higher accommodation, private road transport and food costs.

According to the Department of Statistics, transport costs grew 10.5 percent year-on-year in October, while housing climbed 9.9 percent.

It added that food was 3.5 percent more expensive.

On a month-on-month basis, however, the Consumer Price Index (CPI) climbed only 0.4 percent in October, indicating that inflation had already peaked and therefore the pace of price increases are winding down.
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S'pore households more resilient to economic crisis

Tue, 22 Nov 2011 00:00:00 +0800
PropertyGuru.com.sg :
Singaporean households are more resilient and can weather the uncertain global economy.

The Monetary Authority of Singapore (MAS), in its Financial Stability Review for November, revealed that household capital was driven by rising property prices.

The “broad-based growth of the Singapore economy has underpinned the recovery of the property market in the past three years, as household net wealth continued to improve from its trough” in Q1 2009, it said.

Household net wealth, which refers to household assets less household debt, hit S$1,247 billion in Q2, around 27 percent higher compared with Q2 2008. Meanwhile, property holdings climbed 13.4 percent to S$738 billion in Q3 this year.

The increase was “largely due to the higher value of property holdings as the property market continued on an upward trend”, said the MAS.

For the latest property news, trends, resources and expert opinions, visit our property news section. Home buyers, sellers or property renters looking for a Singapore property may like to visit http://www.propertyguru.com.sg today.