MTI Revises 2010 Growth Forecast to (13 - 15%)

The Ministry of Trade and Industry (MTI) announced today that it expects the Singapore economy to expand by 13.0 to 15.0 per cent in 2010, an upward revision from the earlier forecast of 7.0 to 9.0 per cent.

The updated growth forecast reflects three factors:

(a) Better economic performance in the first quarter of 2010;

(b) Stronger than expected economic growth in the second quarter; and

(c) Anticipated slowdown in growth momentum for the rest of the year

- Ministry of Trade and Industry (MTI)

Biggest collective sale of the year clinched
A collective sale is said to have been sealed for Meng Garden Apartments off Killiney Road for $137 million or about $1,380 per square foot per plot ratio, including an estimated development charge of $681,000. This is the biggest collective sale transacted this year and the first in a prime district. It also takes the year-to- date tally to 16 deals at about $786 million. The 35,639 sq ft freehold site is zoned for residential use with a 2.8 plot ratio and a 10-storey height control. The site can potentially accommodate a new development with about 95 apartments averaging 1,000 sq ft each.
- The Business Times, P1

People’s Mansion in Geylang sold for S$42.7m in collective sale
People’s Mansion at Lorong 31 Geylang has been sold en bloc to Tomlinson Investment for S$42.68 million. That translates to about S$421 per square foot per plot ratio. Urban Front Real Estate closed the tender for the site on July 2 after receiving three bids and one expression of interest. The next highest bid was S$42.1 million. The collective sale is subject to approval from the Strata Titles Board. The site, which now houses a 32-unit development, has a land area of about 37,000 square feet and is designated for residential use with a plot ratio of 2.8. Urban Front says the site can be redeveloped into a project with 115 apartments of 900 square feet on average with basement carparks.
- Channel NewsAsia

CDL sells stake in Chinatown Point for $250m
City Developments Ltd (CDL) has sold the retail mall of Chinatown Point as well as four office units for $250 million to a consortium of investors, which includes German fund manager SEB. The consortium was put together by Pua Seck Guan's Perennial Real Estate group. The transaction price reflects $1,403 per square foot based on the total strata area of 178,187 sq ft. The asset comprises 283 strata-titled retail units and four office units. Chinatown Point's mall spans six levels - including part of Basement 1. It is part of a mixed development that also includes a 25-storey strata titled office block. The development is built on a site with a 99-year leasehold tenure starting November 1980.
- The Business Times, P4
- Also quoted in The Straits Times, B18, “Perennial to pay CDL for slice of Chinatown Point”.

18 buyers vie for each 5-room flat at waterfront project
Premium flats at the Housing Board's (HDB) upcoming Punggol waterfront estate has drawn strong interest, with as many as 18 buyers chasing each flat. Applications for Waterway Terraces, which features premium flats, closed yesterday with a thumping 13,688 applications for just 1,072 homes. Property experts said the project's waterfront location is the biggest draw. The five-roomers were hugely popular, attracting 5,594 applicants for the 306 flats available, which makes them 18 times oversubscribed. The 588 four-room flats in the build-to-order (BTO) project were hot as well with 7,084 applications lodged or 12 times oversubscribed. Almost 50 per cent of the applicants have not applied for any BTO flats in the past 12 months, said HDB.  Indicative prices range from $374,000 to $458,000 for the five-room flats, $300,000 to $376,000 for four-roomers and $186,000 to $237,000 for three-room flats. Waterway Terraces will be premium flats, which means they come with fittings such as timber strip flooring in the bedrooms. The project also has roof gardens, a relatively rare feature in HDB projects, and direct lift access from all blocks to the basement carpark.
- The Straits Times, P1

Building of JTC aerospace factories begins
JTC has started construction of components manufacturing and maintenance, repair and overhaul (MRO) facilities (CMMF) at Seletar Aerospace Park (SAP). The project, which comprises seven standard factory buildings, will occupy a three hectare site at the southern tip of the park. The $30 million CMMF is strategically located near the future facility of aircraft engine and power systems giant Rolls-Royce, JTC said. 'The CMMF is ideal for companies that will support the operations of Rolls-Royce,' it said. 'It is also intended for companies engaged in maintenance, repair and overhaul activities and those that manufacture aerospace components.' Response from industry players has been encouraging, JTC said. The CMMF is slated to be completed in mid-2011. The 300 ha SAP is a strategic national project to anchor major aerospace activities in Singapore. When completed in 2018, SAP is expected to elevate Singapore's status as an aviation hub, contribute $3.3 billion a year, or one per cent of GDP, and create employment for 10,000 people.
- The Business Times, P27

Affluent S'poreans are cautious investors
Affluent Singaporeans are significantly more conservative investors than their Asian counterparts, and their caution has paid off, revealed an HSBC survey yesterday. The HSBC Affluent Asian Tracker queried people in the top 10 percentile of the population by liquid assets or mortgage value, across seven Asian markets. In Singapore, this meant individuals with liquid assets of more than $150,000 or a mortgage value greater than $700,000. The survey showed that only 19 per cent of the 233 Singaporean respondents intended to increase their investments in equities and bonds. Singapore also showed the largest drop in risk appetite among the seven Asian markets surveyed, tying Hong Kong for the most cautious investment mentality on a risk index calculated by the survey. Nevertheless, 91 per cent of the respondents from Singapore either maintained or increased their total net worth, the highest percentage among the Asian markets surveyed. In addition, 52 per cent of affluent Singaporeans increased their total net worth, a figure just behind China (69 per cent) and Malaysia (58 per cent). Affluence in Singapore also appears to come with age - the average age of an affluent Singaporean is 44, while China's average age is just 36, the survey said.
- The Business Times, P7

Changi Motorsports Hub ready by 2012
The $330 million Changi Motorsports Hub (CMH) will be up and running by March 2012, in time for the year's racing season, said developer SG Changi at the ground-breaking ceremony yesterday. Located along Aviation Park Road, the 41 hectare sea-facing site will include a Federation Internationale de l'Automobile (FIA) Grade-2 certified four kilometre (km) racetrack, a 1.2 km karting track, a drift track, a bonded warehouse and seating capacity for some 20,000 spectators plus a 10,000-seat temporary grandstand. With the aim of promoting motorsports in the region, SG Changi is also setting up a racing academy at CMH to groom talent.
- The Business Times, P2
- Also quoted in The Straits Times, A3, “Motorsports hub to serve non-racers too”.

Chemical industry R&D key to future
Research and development in the chemicals industry is essential to Singapore's push into higher-value activities, Trade and Industry Minister Lim Hng Kiang said yesterday. Mr Lim, who was speaking at the opening ceremony for a new plant, said: 'A technology or R&D engine for the chemicals cluster is essential for us to remain competitive, as it will allow us to move from being a fast implementer of technology to being the first, and eventually, the creator.

'Focusing on innovation is in line with our commitment to grow the overall R&D spending in Singapore to 3.5 per cent of our GDP by 2015.'
- The Straits Times, B18

Johor’s Iskandar wooing Singapore investors
Malaysia’s southern economic region Iskandar expects strong investment flow from neighbouring Singapore, despite an expected economic slowdown in the second half of the year. Spanning over 2,200 square kilometres, the Iskandar economic region located in southern Johor is three times the size of Singapore. Since its inception at the end of 2006, Iskandar has attracted more than 60 billion ringgit worth of investment from both local and foreign investors, surpassing its own target of 47 billion. Singapore is currently the third largest investor in Iskandar, with 3.03 billion ringgit worth of investments committed so far. They are mainly in electrical and electronics, manufacturing and education. But according to the CEO of the economic region, Iskandar offers plenty of synergistic opportunities especially in leisure tourism. To boost tourism, Iskandar is opening up two more hotels, a marina, retail malls, an indoor family theme park including Asia’s first Legoland in 2012. It also plans to add another 5.5 million square feet of commercial and residential space later this year. Malaysia expects its tourist arrivals to exceed 18 million this year while Singapore is forecasting 12 million. Combined, analysts say, both countries stand to reap more from an increased number of tourists who stay longer and spend more.
- Channel NewsAsia

KL MRT plan picking up speed. Or is it?
A proposal to build a RM36 billion (S$15.5 billion) mass rapid transit (MRT) system in Kuala Lumpur could materialise faster than expected, according to some analysts. Others believe it's a train ride too far. Putrajaya has identified public transport as a priority or what it calls a national key result area. It has targeted public transport usage in the Klang Valley to reach 25 per cent by the end of 2012 from about 15 per cent currently and hence needs to ensure the infrastructure is set up. The 'Greater Kuala Lumpur' plan envisages redeveloping specific land banks around the city so that their values can be better enhanced for greater multiplier effect. This would include far better public transport linkages than currently exist, including an efficient MRT.
- The Business Times, P13

BCA raises forecast for loan growth to 20%
(Jakarta) Indonesia's PT Bank Central Asia has raised its expectations for loan growth in 2010 to at least 20 per cent as the domestic economy picks up, and is planning to expand in motorcycle financing and life insurance.  The comments by Indonesia's biggest lender by market value underline the growing strength of Southeast Asia's biggest economy, which is being driven by increasing consumer demand and is attracting strong inflows to its stocks, bonds and currency.
- The Business Times, P13

Shanghai may pip S'pore as world's busiest port
Singapore could lose its crown as the world's busiest container port to Shanghai this year. The Chinese port moved more containers than Singapore did from April to last month, and may clinch the leader's status by year end. 'Shanghai could beat Singapore this year, but it will be a close match,' said Mr Divay Goel, head of Asia operations at Drewry Shipping Consultants. Last month's data from the Maritime and Port Authority of Singapore (MPA) yesterday showed that Shanghai moved 2.44 million 20-foot equivalent units (TEUs) - standard-sized container boxes - to Singapore's 2.39 million.  For the six months to June 30, Singapore moved 14.05 million TEUs compared with Shanghai's 13.85 million, 200,000 container boxes more, or a difference of about 40 average-sized container ships.
- The Straits Times, B20