SINGAPORE - Singapore’s prime Orchard Road shopping belt will be spruced up in a makeover worth $40 million (US$27.6 million) to enhance its appeal to tourists, the government said on Monday.
Under the makeover, the shopping belt will have improved road and pedestrian mall lighting to complement its tree-lined boulevard, the Singapore Tourism Board (STB) said in a statement.
October 29, 2007, 12.34 pm (Singapore time)
SINGAPORE - Singapore Trade and Industry Minister Lim Hng Kiang on Monday played down risks the fast-growing city-state’s economy would overheat as inflation was expected to fall between the government’s forecast range of 1.5 to 2 per cent this year.
Mr Lim also said he was confident growth prospects would not be hurt by a slowdown in the global economy thanks to demand from within Asia.
‘The economy is growing very strongly. There are some supply constraints, and we are taking steps to relieve the supply constraints with regard to manpower and space. So we don’t see serious overheating problems,’ he said.
His comments came after some economists warned that the US$129 billion economy may overheat as strong wage and employment growth, as well as rising office and residential rents, have helped push inflation to a 12-year high.
Singapore bosses most generous among more advanced economies in the region: poll
By CHUANG PECK MING
(SINGAPORE) Employers across the Asia-Pacific region are anticipating another good year as they budget for bigger pay hikes in the coming year.
And among the region’s more advanced economies, Singapore bosses are the most generous in making allocations for the larger payoffs in the coming year, according to a recent poll by Hong Kong-based HumanResource Business Solutions (HRBS).
‘Pay increase in 2008 is expected to be higher than in 2007 across Asia-Pacific, looking at both median and mean (average) figures,’ says HRBS’ managing partner Elaine Ng.
‘The average figures show all locations having more pay rise,’ she says. ‘The median figures show that most countries will have more pay rise.’
The trend reflects some employers playing catch-up and offering a much bigger raise than the median reference.
The HRBS poll gels with the findings of a compensation report released last week by the Hay Group, which sees real wages in the Asia-Pacific region climbing further next year.
According to Hay, which is a human resources consultancy, real pay hikes in the region - after adjusting for inflation - are projected to range from 3.3 to 5.6 per cent in 2008. Salaries in Singapore are tipped to rise by 3.8 per cent.
HBRS’ poll did not cover inflation. Bosses in Singapore, who gave an increment averaging 4.8 per cent this year, are ready to up it to 5.2 per cent in 2008, according to the poll covering 862 employers in all industries in 18 locations in the region.
‘Singapore’s economy is performing very well this year,’ notes HRBS’ Ms Ng. ‘The growth in labour force is 9.6 per cent in 2006 while job vacancies jumped 54 per cent in that year.’
But employers in Japan, the most developed and biggest economy in the region, indicated they are likely to keep salary hikes in 2008 to just around 3.3 per cent - virtually unchanged from the 3.2 per cent dished out in 2007.
Bosses in Australia, New Zealand and Taiwan are also tipped to be cautious, offering pay hikes hardly better than this year.
Australian employees are likely to see their pay inch up from 4.6 to 4.7 per cent next year, the New Zealanders from 4.2 to 4.3 per cent, and the Taiwanese from 4.8 to 4.9 per cent.
Employers in South Korea, who raised pay by an average 6.9 per cent in 2007, intend to increase pay by 7.4 per cent next year, the poll shows.
‘Singapore’s rival, Hong Kong, is expected to grant average pay increase of 4.6 per cent in 2008, from 4.2 per cent in 2007,’ Ms Ng says. ‘The median is expected to remain stable at 4.1 per cent in 2008 relative to 4.0 per cent in 2007.’
She notes that the Hong Kong economy is performing well, drawing more foreign direct investments than Singapore and benefiting from China’s booming economy.
China, which is pulling in the biggest chunk of foreign investments in the region, continues to face a shortage of talent that is likely to push remuneration up 9.2 per cent in 2008. This would come after an 8.3 per cent hike this year.
Pay is tipped to shoot up even higher in the other emerging giant economy - India. The poll shows employers there planning to offer a raise of 15.1 per cent in the coming year, up from 14.1 per cent in 2007.
Bosses in Vietnam, another rising star economy in the region, are also expected to give a hefty increase in pay next year, upping it from 9.4 per cent in 2007 to 11.2 per cent.
Source: Business Times
Asia’s fundamentals are strong, and S’pore’s links with China, India will offset US slowdown
By CHUANG PECK MING
(SINGAPORE) Singapore’s economy is likely to grow at ‘the higher end’ of the government’s forecast of 7-8 per cent this year, Prime Minister Lee Hsien Loong said in a labour movement speech yesterday.
Painting an upbeat picture of the economy despite the threat of a recession in the United States, as the sub-prime mortgage crisis leads to an overdue correction in the stock markets, he said Singapore remains in a strong position.
‘The economy is doing well,’ Mr Lee said at the National Delegates Conference of the National Trades Union Congress. ‘I think we can achieve the higher end of the (forecast) range.’
Koreans become major players; foreign buying hits record 2,864 units
By KALPANA RASHIWALA
(SINGAPORE) Foreigners, including permanent residents, bought a record 2,864 private homes in Singapore in the second quarter, up 34 per cent from the preceding quarter and more than twice the 1,221 private homes that they invested in during the same period a year ago.
But even this brisk buying was dwarfed by Singaporeans, who accounted for 68 per cent of caveats lodged for private home purchases in Q2 this year, up from 65 per cent in Q1.
In contrast, foreign buyers’ and PRs’ share of total private home purchases slipped to 25 per cent in Q2 2007, from 27 per cent in Q1 2007.
Companies, meanwhile, accounted for the remaining 7 per cent of private home buyers in Q2 2007, reflecting strong collective sales as well as acquisitions by numerous funds investing in residential property, according to DTZ Debenham Tie Leung’s analysis of caveats captured by Urban Redevelopment Authority’s Realis system.
DTZ’s report also showed Koreans are growing in prominence and accounted for 6 per cent of foreign buyers in Q2, their highest share ever. Koreans’ share among foreign buyers has been growing steadily over the past year.
The figure used to be around one to 2 per cent in 2004 and 2005, but rose to 2 to 4 per cent in various quarters last year. Koreans hardly featured as buyers in the 1990s.
The 185 private homes Koreans bought here during April to June 2007 reflected a 76 per cent quarter-on-quarter increase.
Growing purchases by Koreans reflect not only acquisitions by Korean nationals residing here, some drawn to Singapore by their children’s education, but also efforts by major Singapore developers to market their projects in Korea, DTZ executive director Ong Choon Fah observed.
Indonesians and Malaysians continued to be the largest groups of foreign buyers, accounting for 22 and 18 per cent respectively of overall private home purchases by foreigners in April to June 2007. This was followed by buyers from India, United Kingdom and China.
Nearly 96 per cent of the 2,864 private homes foreigners picked up in Q2 were private apartments/ condos, with landed homes making up the remaining 5 per cent.
The 2,743 apartments/ condos foreigners bought in Q2 comprised 2,062 units purchased in the secondary market - up 44 per cent from Q1 and a record quarterly figure - and 681 units acquired from developers in the primary market.
A further split of the secondary market purchases showed that 455 units were acquired in the subsale market and 1,607 units in the resale market. The latter figure was up 37 per cent from the preceding three months and a fresh high.
Resale deals are secondary market deals in developments that have received their Certificates of Statutory Completion, while subsales involve projects that have yet to do so.
DTZ attributed the strong foreign interest in resale properties to the current buoyant leasing market. Given the tight supply of rental properties in the prime districts, many expats are choosing to buy homes. Their preference is for completed properties that they seek to occupy themselves.
The 455 subsale apartments and condos that foreigners bought in Q2 represented a 32 per cent quarter-on-quarter increase and was the second highest quarterly figure ever - trailing only the 485 units snapped up in Q4 1995.
The Sail @ Marina Bay, Sky@eleven and Icon were among the projects popular with foreign buyers in the subsale market in Q2.
In the resale market, the most highly-sought after developments among foreigners included Sanctuary Green, Pebble Bay and Water Place (all in the Tanjong Rhu area), Queens and Valley Park. In the primary market (units purchased directly from developers), Casa Merah, RiverGate, One-north Residences and The Solitaire were among foreign buyers’ favourite projects.
Mrs Ong predicts that foreign buying will continue to be steady in the second half of 2007.
‘Sub-prime has taken some froth out of the market; but this affects more the specuvestors (who buy for capital gains but don’t mind holding on to the property, waiting for its price to rise). Foreign buyers, however, are purchasing more for owner occupation or long-term investment, drawn by Singapore’s success in reinventing itself. Property prices here are higher than two years ago, but then Singapore today is very different. It is a very desirable place to invest and live in,’ she said.
Source: Business Times
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Published September 18, 2007 |
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Fall in subsale deals as sub-prime fallout and Ghost Month cool buying fever
By ARTHUR SIM
(SINGAPORE) In the traditionally quiet ‘Ghost Month’ of August - when property transactions slowed dramatically - two significant trends emerged.
The Urban Redevelopment Authority released its update on private residential properties yesterday, showing that sales by developers actually went up compared to July. But caveats lodged in August showed that there was a sharp drop in subsales, signalling a cooling down of speculative activity.
At the same time, Colliers International pointed out that compared to July, August saw far more activity in the mass market.
The trends emerged against the backdrop of the US sub-prime mortgage shock, which served as a reality check for those gripped by the market frenzy of earlier months. In tandem with the Hungry Ghost month, this reduced the total number of transactions in August to 2,875, compared to 4,492 in July.
Developers launched 1,847 units in August, and sold 1,720.
And Colliers International estimates that about 47 per cent of the units launched and around 40 per cent of those sold were in the mass market segment.
‘This trend differed from that of last month in which the bulk of 45 per cent of the units launched were mid-tier units located in the rest of central region (RCR). Mass market units only accounted for 27 per cent in July 2007,’ said Colliers’ director for research and consultancy, Tay Huey Ying.
Although Ms Tay believes it is still too early to say if developers’ focus has now shifted to the mass market, she added: ‘The high-end and luxury segment has dominated the market since 2005, but from what we are seeing, it does now seem to be more evenly spread.’
Prices growth appeared to be somewhat muted. ‘Median prices of developments with units sold in both July and August rose marginally by an average of 2.7 per cent only,’ Ms Tay said.
The US sub-prime crisis and the lack of high-profile launches could have contributed to the slowdown, she added.
The development which saw the highest growth in median price in August was The Orchard Residences. Its median price rose 25.8 per cent. However, only two units were sold - one at $5,500 psf and another at $4,687 psf. A spokesman for CapitaLand said the $5,500 psf penthouse was bought by a foreigner.
The penthouse, which is expected to have cost between $23 million and $27.5 million, has set the record for the most expensive property in Singapore on a per square foot basis.
Prices for most properties, however, are seen to be stabilising.
Ms Tay expects overall prices to ‘resume with the return of market confidence’, but added that price growth will be more ‘controlled’.
Interestingly, more stable prices have been accompanied by a drop in subsale activity. Colliers’ analysis of caveats lodged in August show that it now stands at 7 per cent of the total volume of property transactions. In July alone, subsale activity was almost twice as high at 13 per cent.
But, overall, market confidence is still intact, noted CB Richard Ellis executive director Li Hiaw Ho, who pointed out that prices still rose in August - albeit more slowly.
‘The very prime projects were marketed at above $3,600 psf while those in the fringe area were sold at above $1,200 psf,’ he said.
Two hot launches - The Parc Condominium and Soleil @ Sinaran - accounted for over 60 per cent of developer sales. Mr Li said median prices of Soleil @ Sinaran, at $1,410 psf, and The Parc Condominium, at $870 psf, were ‘within expectations’.
‘For the rest of the third quarter, price levels are expected to remain stable,’ he said.
Although the mass market prices have been slower to rise, Savills Singapore director of marketing and business development Ku Swee Yong believes the increases on a year-on-year basis are significant.
‘Last year, most buyers’ definition of prices for a mass market development would have been around $600 psf,’ he said. Based on URA’s monthly figures, only 71 units, or about 4 per cent of the units sold in August, cost under $750 psf.
Source: Business Times
By Channel NewsAsia’s US Correspondent Daniel Ryntjes | Posted: 19 September 2007 1311 hrs
WASHINGTON : Stocks rallied on Tuesday after the Federal Reserve slashed US interest rates.
The cut in the federal funds rate by a half a percentage point to 4.75 percent ignited a powerful rally on Wall Street, with stock indexes surging by more than 2.5 percent.
The Federal Open Market Committee headed by Ben Bernanke, in a unanimous decision, also cut its discount rate for direct central bank loans by 50 basis points to 5.25 percent.
Economists say that fears of a recession in the United States may have receded with the decisive action by the central bankers.
The Fed has taken this dramatic step - more than most in Wall Street had expected - because it is worried about the effects of recent credit problems impacting the broader American economy.
Fred Bergsten, Director, Petersen Institute for International Economics, says it is good for the global economy: “Confidence has been shaken by what’s going on in the housing market, and so the fact that the central banks are clearly on the case, and the Federal Reserve shows it can react swiftly and in a major way is nothing but good news for the world economy.”
With inflation in check, the Fed still has room to manoeuvre in order to steer the US economy away from recession.
Source: CNA/ch
Posted: 19 September 2007 0238 hrs
WASHINGTON : The Federal Reserve on Tuesday slashed its base federal funds rate by a half point to 4.75 percent, in what analysts called a bold move to stimulate an economy imperiled by housing and credit market stress.
The Federal Open Market Committee, in a unanimous decision after a one-day meeting, also cut its discount rate for direct central bank loans by 50 basis points to 5.25 percent.
“Today’s action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time,” the FOMC said in a statement.
The statement said that despite “moderate” economic growth in the first half, tighter credit conditions create a “potential to intensify the housing correction and to restrain economic growth more generally.”
The cut in the federal funds rate is likely to lead to a lowering of borrowing costs across the economy, for consumers and businesses alike. The Fed, which has not cut rates since 2003, had held this rate at 5.25 percent since June 2006.
“I think the Fed delivered a healthy dose of monetary medicine to the economy and housing market,” said Scott Anderson, senior economist at Wells Fargo.
“I think it will be viewed as an aggressive move by the Fed to avert an economic recession.”
The policy-setting committee, which was forced to reconsider its tough monetary stand when financial markets were roiled by fears of a wider economic crisis, had been widely expected to cut interest rates.
But analysts had been divided on whether the central bank would move by a quarter point or a bolder 50 basis points. Some economists said a cut might fuel inflation or bring back the easy-money conditions that created the problems.
“Readings on core inflation have improved modestly this year,” the FOMC said.
“However, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully.”
The panel said developments in financial markets since the last regular meeting “have increased the uncertainty surrounding the economic outlook” and that it would “continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.”
The wording suggests the central bank is not promising further rate cuts but would wait to see if economic and credit conditions return to normal, said analysts.
“It’s a signal that they’ll assess the economic risks as the data come in,” said Craig Alexander, deputy chief economist at TD Bank Financial Group.
“It may be the Fed does not want the market to price in a major easing cycle.”
Avery Shenfeld, economist at CIBC World Markets, said that although the Fed is trying to send a message not to count on any more reductions, “I doubt the Fed is done. I think they are right and that the economy is softening.”
Andrew Busch, analyst at BMO Financial Markets, said however that the rate cut is a rescue for those who “made poor credit decisions without the consequences of market discipline.”
“Like a teenager with a car and no curfew, we’ll be having more problems down the road from these actions. But for now, who cares? Everyone’s happy and it keeps the politicians at bay,” Busch added.
The US economy expanded at a robust 4.0 percent pace in the second quarter, but many experts view that as a statistical fluke that belies soft conditions. The loss of 4,000 jobs in August, say some, point to deep problems as the housing slump and credit problems drag on growth.
In August, the Fed announced a half-point cut in its discount rate in an effort to open credit markets and reduce the stigma associated with direct loans from the central bank. - AFP/de
Source: CNA
GDP may rise 1.4% points with 75 basis point cut in Fed rate: Citigroup
By OH BOON PING
SINGAPORE’S economic growth may jump by another 1.4 percentage points, if the key US interest rate is cut by 75 basis points, says Citigroup.
In a report, its economist Chua Hak Bin said he expects the Fed funds and discount rate to be slashed by 50 basis points (bps) to 4.75 per cent and 5.25 per cent respectively at the upcoming Federal Open Market Committee meeting.
Also, he sees another possible cut of some 25 bps before year-end, which will ‘lift Singapore’s gross domestic product growth by 1.4 per cent points’.
Based on Citigroup’s analysis, this is almost double and far higher than the average of 0.8 per cent across Asian economies, because of Singapore’s heavy dependence on external demand and sensitivity of domestic interest rates to US interest rates.
GDP may rise 1.4% points with 75 basis point cut in Fed rate: Citigroup By OH BOON PING SINGAPORE’S economic growth may jump by another 1.4 percentage points, if the key US interest rate is cut by 75 basis points, says Citigroup. In a report, its economist Chua Hak Bin said he expects the Fed funds and discount rate to be slashed by 50 basis points (bps) to 4.75 per cent and 5.25 per cent respectively at the upcoming Federal Open Market Committee meeting. Also, he sees another possible cut of some 25 bps before year-end, which will ‘lift Singapore’s gross domestic product growth by 1.4 per cent points’. Based on Citigroup’s analysis, this is almost double and far higher than the average of 0.8 per cent across Asian economies, because of Singapore’s heavy dependence on external demand and sensitivity of domestic interest rates to US interest rates. Expectations of rate cuts came after the recent financial market troubles, which have affected US consumption outlook. For example, ‘US housing prices have declined by an average of 8 per cent, but elevated levels of unsold homes suggest that further corrections are likely’. Fed rate cuts will thus help cushion and reduce the potential negative impact from slower US growth. The research house also thinks the Singapore economy is less sensitive to any US economic downturn, due to the diversification away from segments more sensitive to US business cycles, such as the electronics and pharmaceutical sectors. In all, Citigroup says a one percentage point fall in US GDP growth cuts Singapore’s GDP growth by about 1.7 per cent point. Indeed, its projected cut in rates may possibly lift Singapore’s GDP growth by more than necessary if US consumer spending does not slow as sharply as expected, aggravating the current pressures arising from supply bottlenecks. Citigroup believes that the rate cut will strengthen the Sing dollar by 0.6 per cent, improve the current account surplus to GDP by 0.3 per cent point, and increase the fiscal balance to GDP by 0.2 per cent point. However, the impact on local interest rates is likely to be modest, thus limiting the impact on mortgage rates and property market. For example, the three-month Singapore Interbank offered rate is expected to shed only about 10 to 20 basis points to about 2.6 per cent in six months’ time, if the US rate cut is realised. ‘This is because short-term interest rates had already fallen sharply in the early part of the year and the ongoing upward adjustment since represents some normalisation.’ Stronger domestic investment growth may also start putting upward pressures on rates early next year. Overall, Citigroup expects mortgage rates to fall by possibly 10 to 20 bps. On the property front, Citigroup’s analyst Wendy Koh sees a supply crunch amid strong employment growth and falling vacancy rates. She expects residential rental rates to rise by 20-30 per cent a year. This came as a record 113,800 jobs were created in the first half of this year, and Citigroup sees residential occupancy rates rising higher next year to over 97 per cent.
Source: Business Times
Published September 18, 2007
Target up from $35b set 3 months ago, with some $12.7b deals done since July
By UMA SHANKARI
PROPERTY investment sales could hit $50 billion by the end of 2007, CB Richard Ellis (CBRE) predicted yesterday - increasing its full-year target from the figure of $35 billion it set just three months ago.
Source: Business Times
By Wong Siew Ying, Channel NewsAsia | Posted: 27 August 2007 2204 hrs
SINGAPORE : A slew of changes to the rules governing en bloc sales has been proposed to improve transparency and protect owners’ interest.
This follows a Law Ministry review of the relevant legislation and consultation with the public and industry players.
The amendments to the Land Titles Strata Act were tabled in Parliament on Monday.
The collective sale of Devonshire Lodge, worth S$37.2 million, is set to go before the Strata Titles Board in the weeks ahead.
Like many other cases, it has not been free from objections.
Some owners were unhappy about its valuation and the performance of the marketing agent handling the deal.
Jeffery Lai, Minority Owner, Devonshire Lodge, says: “Actually the whole team is new and they don’t know what to do about it, how to go about doing the so-called the Collective Sales Agreement, or CSA, and things like that…so it turns out that they’ve never done the DC charge on the units and I think they are very close to the buyers.”
Such complaints will be addressed by the proposed changes to the law.
Sales committees will be required to call for a general meeting to discuss issues like the appointment of a lawyer, property consultant and marketing agent.
The measures also seek to improve transparency in the en bloc sales process by providing regular updates on bids received and how sales proceeds will be divided.
Lawyers say these measures may address some issues, but more can be done.
Philip Fong, Partner, Harry Elias Partnership, says: “There are no regulations as to how much information is actually given to the owners, so they know enough to raise questions. So in that sense, what I think would be worthwhile to consider is for the appropriate authority to come up with a code of best practices and if there are deviations from these practices, then they must be justified by the sales committee.”
Owners will also be more involved in deciding who sits on the sales committee.
Under the new ruling, it must be formed by elected home owners at a general meeting of the management corporation.
And they have to declare any vested interests related to the deal.
Industry watchers say they favour regulations that help owners better understand the legal implications of en bloc sales.
These include having a lawyer present to clarify doubts when the owner signs the Collective Sales Agreement, and for key terms and clauses to be listed upfront in the legal document.
Owners who change their minds after signing the deal can also do so but only once and within a 5-day cooling off period.
The Law Ministry says the proposed amendments aim to provide additional safeguards, without making the en bloc sales process unduly onerous. - CNA/ch
Source: ChannelNewsAsia.com
By Daryl Loo, Channel NewsAsia | Posted: 18 July 2007 1942 hrs
SINGAPORE : The Ministry of National Development has announced that development charge rates will be revised from the current 50 percent of the appreciation in land value to 70 percent.
The revised rates take effect immediately and apply to development applications where provisional permission is issued on or after July 18.
The Ministry said the development charge was lowered from 70 percent to 50 percent in 1985 to avoid eroding the share of value enhancement that accrued to developers in a declining market.
But with the current buoyant property market, the government has decided to reinstate the development charge to its original rate at 70 percent.
Property analysts said the immediate impact of the move will be to slow down the ongoing frenzy in en bloc sales, as it gets more expensive for developers to buy land for redevelopment.
It is also seen as helping to stem the sharp rise in home rentals, as fewer apartments will be lost to the wrecking ball.
See full article…
by Patrick Liew Siow Gian (14/Jul/2007 ST Online Letters)
I REFER to the letter, ‘HDB resale: Sellers’ market or agents’? (ST, July 7), and concur with the writer that you can sell a property without an agent and, therefore, save on commission.
However, to succeed, the seller needs to be competent in real estate marketing, legal, financial aspects, and other knowledge and skills.
This is important because you need to negotiate with increasingly sophisticated buyers. You need to outperform competitors, use latest technologies and stay ahead of the fast changing market.
To achieve the best results, you need to be constantly updated on market conditions, including past data and reliable projections. You need to review and compare similar houses that are currently in the market, especially those that have been sold or not sold in the past six months.
In a technology-driven market, you must use technologies that will provide you with powerful, timely, and accurate information to make better-informed decisions. These expensive tools are absolutely necessary and you need to go through proper training and guidance to use them correctly to enhance the results.
It is important to manage the marketing process correctly. This includes organising the marketing campaign, handling phone calls, qualifying buyers, conducting viewings, organising open houses, negotiating prices, completing the paperwork and closing the sale.
You must be prepared to respond to every phone call, including prank calls and calls from competitors, property sightseers and nasty buyers. In addition, you may have to conduct viewings of your house without advance notice and at your inconvenience.
Negotiation is a sophisticated skill that will contribute to the success of your sale. To do so, you need to suppress your emotions to prevent conflicts, handle unreasonable criticisms and respond to buyers’ whims and fancies.
You must protect yourself against unscrupulous buyers. You need to also protect yourself, your loved ones and personal belongings as you will be serving many strangers in your house.
From the above information, you can see that saving on agents’ commission may not cover the expenses needed to market your house successfully. In addition, you need to invest a lot of time, energy and effort. By taking yourself away from your work and other endeavours, you will also incur unnecessary opportunity costs.
That’s why you need an agent - not just an ordinary agent - you need a professional and competent specialist, equipped with the best tools and working as a part of the largest team in the industry to serve you and lead you to success.
Source: Straits Times - Online Letters
Construction sector swells almost 18%; muted impact from weak electronics sector
By ANNA TEO
(SINGAPORE) Flash estimates of Singapore’s second-quarter economic growth have brought out the superlatives - including the B-word, ‘boom’ - from economists.The 8.2 per cent GDP outperformance surprised not only because it is 1.5 percentage points higher than the market consensus, but also because it’s the highest growth in five quarters.In momentum terms, Q2’s 12.8 per cent seasonally adjusted, annualised pace over the preceding Q1 is, in fact, fastest since Q2 2005.
While the estimates - based only on April and May data - show across-the-board strength, especially construction’s ‘explosive’ near-18 per cent growth, economists are particularly impressed that the robust growth has come even with electronics in the doldrums of late.
Once a growth engine, electronics output was lacklustre in April and May, but total manufacturing activities still grew a more than decent 18 per cent in the period, thanks to the biomedical and transport engineering clusters.
The Ministry of Trade and Industry’s advance estimate of manufacturing growth in Q2 is 10.2 per cent, which suggests a June contraction.
See full article… (Business Times, 11 Jul 2007)
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