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Weekly News Select
                                                                                                Jun 19, 2020 / Issue 25

Top News for the Week
        •   May new home sales rebound with more local buyers drawn to lower quantums
        •   Showflat reopening a relief for developers, but new launches unlikely till July
        •   New commercial project planned in Changi
        •   Malls, shops gear up to ensure safety measures and crowd control
        •   Restaurant bookings surge, but capacity slashed
        •   Businesses warned of rough road ahead despite Phase Two
        •   Testing for all entering Singapore; more long-term pass holders can return
        •   Singapore must not despair, but stay cohesive: Tharman
        •   Investor confidence to tide Singapore over Covid-19 crisis: Chan Chun Sing
        •   Coronavirus: More clarity on rent relief for tenants soon
        •   Singapore retains top spot in global competitiveness ranking
        •   Singapore's non-oil exports fall 4.5% in May, first drop in 2020
        •   Q1 total employment dives a record 25,600, Q2 likely to be worse
        •   OCBC, DBS to hire over 5,000 this year, with emphasis on tech roles
        •   Covid-19 puts the brakes on this year's F1 Singapore Grand Prix
        •   Building of Changi T5 put on hold for at least two years

Residential
May new home sales rebound with more local buyers drawn to lower quantums
More locals braved the circuit breaker last month to buy their dream homes though most were
prudent in their decision.
Developers in Singapore sold 486 new private homes in May, a sharp 75.5 per cent rebound from
277 in April, as stay-at-home buyers became more confident of committing to a purchase during
the circuit breaker.
The 486 transactions in May was about half of the 952 units sold in May 2019.
A total of 615 units were launched in May compared with 640 in April, data from the Urban
Redevelopment Authority (URA) showed. The last time transactions fell below the number of
units launched was in September.
Surprisingly, developers launched a similar volume of units for sale in May compared to April’s
640 units despite the closure of sales galleries, said Lee Sze Teck, Huttons Asia director (research).
“The unexpected surge in demand probably was one factor in the release of more units for sale.
That being said, prices in May were at a similar level to April’s,” he said.

Links to the story:
https://www.businesstimes.com.sg/real-estate/may-new-home-sales-rebound-with-more-local-buyers-drawn-to-
lower-quantums
https://www.straitstimes.com/business/new-home-sales-rebound-in-may-but-surge-not-broad-based

               Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C
              3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
                                             www.huttonsgroup.com

Weekly News Select
Jun 19, 2020 / Issue 25

Showflat reopening a relief for developers, but new launches unlikely till July
Developers will get some reprieve this week after getting the green light to reopen sales galleries
for residential projects starting 19 June, although new launches aren't expected to make their debut
just yet.
Launches are more likely to take place from July as developers will need time to roll out marketing
activities while others may take a wait-and-see approach given the weak economic climate,
consultants say.
Huttons Asia research director Lee Sze Teck highlighted that developers may time their launch
depending on a variety of factors such as sentiment, the readiness of their showflats and competing
projects. "The extension of the ABSD by six months gives developers some leeway to launch their
project," he added.

Link to the story:
https://www.businesstimes.com.sg/real-estate/showflat-reopening-a-relief-for-developers-but-new-launches-
unlikely-till-july

Several recent GCB deals had viewings before circuit breaker
There have been several bungalow transactions in Good Class Bungalow (GCB) Areas recently -
though viewings by the respective buyers had been done before the onset of the "circuit breaker"
partial lockdown on April 7.
These include a bungalow in Windsor Park Road that is being sold for S$21.25 million. The price
works out to S$1,063 per square foot on the land area of nearly 20,000 sq ft.
An analyst says the sales momentum in the GCB market in the first five months of this year is
similar to that in the same period of last year.
"Generally, a bungalow purchase in a GCB Area is a big-ticket item and not easy to be done solely
relying on virtual tours, unlike condo units or apartments in the lower price range," said a market
expert.
Bungalows in the 39 gazetted GCB Areas are the most prestigious form of landed housing in
Singapore, with strict planning conditions stipulated by the Urban Redevelopment Authority to
preserve their exclusivity and low-rise character.

Link to the story:
https://www.businesstimes.com.sg/real-estate/several-recent-gcb-deals-had-viewings-before-circuit-breaker

Bukit Sembawang's price cut at 8 St Thomas has some agents in a tizzy
Amid slow sales of new homes, an unlikely discounter has emerged, with price cuts of up
S$500,000.
Bukit Sembawang Estate, a developer of premium homes and controlled by the Lee clan of OCBC
fame, has been promoting its discounts discreetly for 8 St Thomas, a freehold development with
250 units in District 9. The Lee family owns over 40 per cent of listed Bukit Sembawang.
But agents advertised the discounts as "fire sales" despite attempts to rein in their exuberance.
Twelve units were sold during the offer limited to June 6 and 7, including bulk purchases where
more than two units were sold, said a Bukit Sembawang spokesman.
The offer saw prices slashed by S$200,000 to S$500,000 or S$2,600 per sq ft (psf) to S$2,700 psf.

Weekly News Select
Jun 19, 2020 / Issue 25

"The discounts we have heard about were offered during a limited one-time period," said the
spokesman.

Link to the story:
https://www.businesstimes.com.sg/real-estate/bukit-sembawangs-price-cut-at-8-st-thomas-has-some-agents-in-a-
tizzy

Commercial
Co-working firms dangle perks as they brace for post-pandemic pressures
Co-working operators have ramped up safe-distancing measures and monetary incentives in a bid
to attract new members and retain existing ones amid Singapore's phased re-opening.
But industry watchers cautioned that these operators must re-invent themselves for the long haul.
In particular, the model of taking on long-term lease obligations may need a rethink, while the
companies may need to find other ways of building community beyond shared physical space.
The discounts and safe-distancing measures may help co-working operators stay afloat in the short
term, but they must evolve further for the long haul, industry watchers told BT. In particular, the
prevailing business model where they take on long-term lease obligations and dole out flexible
leases, is a notable risk.

Link to the story:
https://www.businesstimes.com.sg/garage/co-working-firms-dangle-perks-as-they-brace-for-post-pandemic-
pressures

New commercial project planned in Changi
After opening Jewel last year, Changi Airport Group (CAG) has begun planning for another
commercial project, although it may be some time before plans come to fruition.
CAG secured provisional permission from the Urban Redevelopment Authority late last year to
develop a retail, office and hotel project along Tanah Merah Coast Road. The approval is for
respective gross floor areas of 413,011 sq ft of offices, 621,938 sq ft for retail and 120,879 sq ft
for the hotel component (which will have 251 rooms) - totalling nearly 1.16 million sq ft.
CAG declined to comment when contacted by The Business Times.
However, market watchers expect the proposed project to be part of the Changi East Urban District
highlighted in URA's Master Plan 2019.
This new lifestyle and business district will be located at the doorstep of the future Terminal 5,
which was originally slated for completion in the 2030s.

Link to the story:
https://www.businesstimes.com.sg/real-estate/new-commercial-project-planned-in-changi

4 properties put up for collective sale amid soft market
Some building owners here are trying their luck for a collective sale despite the battering that the
commercial property investment market has taken in recent months.

Weekly News Select
                                                                                                 Jun 19, 2020 / Issue 25

At least four buildings that have garnered the requisite 80 per cent backing of owners for a sale en
bloc have gone on the market since the circuit breaker was partially lifted on June 2.
The Arcade in Raffles Place has been relaunched at a reserve price of $780 million, while mixed-
use tower High Street Centre at 1 North Bridge Road hit the market with a reserve price of $800
million.
Another mixed-use development - at 101 Beach Road - and the GSM Building at 141 Middle Road
are also up for grabs at slightly less than $100 million each.
In February, Singapore Shopping Centre in Clemenceau Avenue relaunched for sale at an
unchanged reserve price of $255 million, with provisional approval to re-zone it for hotel use.

Link to the story:
https://www.straitstimes.com/business/4-properties-put-up-for-collective-sale-amid-soft-market

Retail
Malls, shops gear up to ensure safety measures and crowd control
While many shoppers may be cautious about heading out on 19 June - the first day of phase two
of the economy's re-opening - shopping malls and their operators are going all out to ensure
everything is safe and ready.
At CapitaLand malls, such as Ion Orchard and Bukit Panjang Plaza, directional signs for shoppers
coming from train stations are up while floor markings and poles for queues are being set up at
entrances to manage human traffic and space out the queues.
At Nex mall, more employees will be deployed at entrances to manage the anticipated increase in
shoppers and ensure those in line to enter the mall stay at least 1m apart.
It will open just five of its 28 entrances but is prepared to open more if needed, said its spokesman.
Shopping mall Paragon will have regular public announcements reminding shoppers to maintain
a safe distance.
These measures are on top of other safe distancing steps retail establishments have to implement,
including limiting customer numbers, using the SafeEntry check-in system and making sure
common areas are cleaned regularly.
A spokesman for mall operator Frasers Property Retail said it is looking into opening additional
entry and exit points for "a smoother and more efficient flow of traffic if and where necessary".

Link to the story:
https://www.straitstimes.com/singapore/malls-shops-gear-up-to-ensure-safety-measures-and-crowd-control

Businesses scramble to meet earlier reopening date
The earlier-than-expected Phase Two of Singapore's reopening, though a pleasant surprise, may
see some frontline businesses scramble to prepare to reopen.
Some of them had expected this to come around the last week of June, given the indication from
the multi-ministry task force on Covid-19 last month. But on 15 June, it announced that Singapore
will move into the second phase of its circuit break exit on 19 June, albeit with safe-management

                Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C
               3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
                                              www.huttonsgroup.com

Weekly News Select
Jun 19, 2020 / Issue 25

measures, group size and capacity limits. It means frontline businesses now have as little as three
days to prepare.
But after those initial weeks, businesses may once again have to think of how to sustain activity.
Businesses BT spoke to cited the inconvenience of safe-distancing rules, the weak economy and
worries over virus cases resurfacing as factors that could dampen consumer sentiment.

Link to the story:
https://www.businesstimes.com.sg/sme/businesses-scramble-to-meet-earlier-reopening-date

F&B serves up new business recipes for a vastly changed setting
Dining in is set to resume 19 June, but it is unlikely to be business as usual for the food and
beverage (F&B) industry in Singapore.
For one, competition may heat up among restaurants trying to capture some of the pent-up
consumer demand. This is especially as a five-people cap on social gatherings is likely to limit
dine-in operations.
Uncertainty over how long the initial spike in demand will last, and expectations of changes in
consumer behaviour as a result of the novel coronavirus crisis, will also put the heat on food
establishments to develop more permanent and profitable strategies for takeaways and deliveries.
Some local food operators are turning to cloud kitchens and virtual restaurants as low-cost means
of testing out a new model.

Link to the story:
https://www.businesstimes.com.sg/consumer/fb-serves-up-new-business-recipes-for-a-vastly-changed-setting

Restaurant bookings surge, but capacity slashed
Some popular restaurants were overwhelmed by more requests to reserve tables than their reduced
seating could accommodate, ahead of the resumption of dining in on 19 June and Father's Day this
weekend.
Most of the reservations are for this weekend, according to restaurant booking platforms and
restaurateurs. Some extend to the next week, and as far as next month.

Links to the story:
https://www.businesstimes.com.sg/consumer/restaurant-bookings-surge-but-capacity-slashed
https://www.straitstimes.com/lifestyle/food/many-eateries-ready-for-dine-in-but-some-caught-unawares

For watch boutiques and car showrooms, premium also now means safe
With Phase 2 of reopening the Singapore economy kicking in from 19 June, the weekend is set to
come early for shopaholics and potential car buyers as retail stores in malls and car showrooms
prepare to resume business in the next 48 hours.
The shopping experience, however, is likely to be a different one as safe-distancing measures are
expected to be tightly enforced to curb the spread of Covid-19.
Luxury retailers like high-end watch boutiques which The Business Times spoke to, especially,
are aware that they are still expected to deliver customer service with a personal touch just like in

Weekly News Select
Jun 19, 2020 / Issue 25

the old days - even if that means disposable gloves and hand sanitisers will become a common
sight in-store.
Car dealerships around the island will also open their doors on 19 June and, likewise, automotive
companies here are taking decisive steps to implement a series of safe management measures.

Link to the story:
https://www.businesstimes.com.sg/consumer/for-watch-boutiques-and-car-showrooms-premium-also-now-means-
safe

Zouk to set up eatery, rent out club for live streaming
What was once one of the most crowded nightspots in Singapore has sat empty for more than two
months with no end to the shutdown in sight.
The closure has prompted Zouk's management team to get creative to prevent layoffs.
For a start, it is inking a deal with Lazada to rent out its 31,000 sq ft Clarke Quay club as a live-
streaming venue during the day and to host monthly bazaars for e-commerce vendors once
restrictions allow for this.
Capital, a lounge within the Zouk complex, will be transformed into a dine-in eatery when
Singapore enters phase two of its reopening, if its application for a food shop licence is approved.

Link to the story:
https://www.straitstimes.com/singapore/zouk-to-set-up-eatery-rent-out-club-for-live-streaming

Fashion retailer FJ Benjamin launching online-only labels
When the coronavirus pandemic forced fashion retailer FJ Benjamin to temporarily shut its nearly
300 stores in Singapore, Malaysia and Indonesia, falling back on online sales was not an option.
Brand owners traditionally grant bricks-and-mortar rights to distributors, so of the 18 brands in FJ
Benjamin's portfolio, it only ran an e-commerce store for one - Superdry - then.
But the challenges posed by the pandemic have made brand owners more receptive to giving online
rights as well, FJ Benjamin's chief executive Nash Benjamin told The Straits Times.
Over the last two months, the brand management firm has launched e-commerce stores for Guess,
Casio and Pretty Ballerina.
It has even introduced a new entrant, Anti Social Social Club, an American streetwear label making
its Singapore debut online.
Plans are in the works to roll out online stores for at least seven more fashion and luxury brands,
including Rebecca Minkoff and Lancel, in the three countries it operates in.
More brands without physical stores here - such as Swedish footwear retailer Axel Arigato and
skincare line Dr Barbara Sturm - will also be launched online.

Link to the story:
https://www.straitstimes.com/singapore/fashion-retailer-fj-benjamin-launching-online-only-labels

Ikea reopens its doors tomorrow, but food operations to remain closed
While those looking to furnish their homes will be able to visit Swedish retailer Ikea from 19 June,
fans of the store's meatballs will have to wait a little longer to taste the popular signature dish.

Weekly News Select
Jun 19, 2020 / Issue 25

The two Ikea stores in Alexandra and Tampines will reopen when phase two of the post-circuit
breaker period begins, said Ikea Singapore in a statement.
However, its food operations, including its restaurants, bistros and food market, will remain closed
until further notice. In addition to implementing safety precautions such as limiting the number of
customers, both stores will have shorter opening hours.
Following guidelines from the authorities, the stores will have to limit the number of customers to
one person per 10 sq m of gross floor area. The children's play area at the stores will remain closed
as well.

Link to the story:
https://www.straitstimes.com/singapore/ikea-reopens-its-doors-tomorrow-but-food-operations-to-remain-closed

Grange Road carpark to make way for event space with cinema
An independent cinema, hawker stalls and multiple event spaces are set to take over the 48,200 sq
ft open-air carpark in Grange Road as part of major efforts to rejuvenate the Orchard Road area.
Mainboard-listed Lendlease Global Commercial Reit (LReit) announced its plans after winning
the tender to redevelop the site at the junction of Grange Road and Somerset Road into a multi-
functional event space.
The event space is set to be operational in the second quarter of 2022.

Link to the story:
https://www.straitstimes.com/singapore/grange-rd-carpark-to-make-way-for-event-space-with-cinema

Government
Businesses warned of rough road ahead despite Phase Two
Even as economists agree that Singapore's moving into Phase Two of reopening from 19 Jun is a
welcome confirmation that the worst is over and the economy can start recovering, they warn that
the going will still be tough and businesses need to be mentally prepared.
The taskforce announced on 15 June that dining in F&B outlets will be permitted from 19 June,
subject to liquor sales and consumption ceasing at 10.30 pm. Live music and television and video
screenings will not be allowed in all F&B outlets at this stage. In addition, mask-wearing remains
mandatory, except when eating.
Larger public venues with high human traffic will be subject to capacity limits, and operators will
be required to prevent crowds or long queues from building up.
Separately, personal health and wellness, and home-based services will also be allowed to resume.
Registered clubs and societies, as well as tuition and other private enrichment classes can resume
(with the exception of singing or voice training classes). All other healthcare services, including
eldercare services in the community, individual health screening and aesthetic services, will also
resume. Face-to-face visitations at residential facilities for the elderly will also resume.
While the vast majority of activities will be allowed to resume at the start of Phase Two, the
resumption of a small number of activities will take some time. These include religious services
and congregations; large cultural venues such as libraries and museums; large-scale events and

Weekly News Select
                                                                                                 Jun 19, 2020 / Issue 25

venues such as conferences, exhibitions, concerts and trade fairs; and entertainment venues such
as bars, nightclubs, karaoke outlets, cinemas, theatres, as well as indoor and outdoor attractions.
Meanwhile, the taskforce stressed that while Phase Two will see the resumption of most activities,
they are subject to numerous safe distancing principles, including ensuring that individuals - or
where it is not feasible or practical, groups - maintain safe distancing of at least one metre at all
times. Small-group social gatherings of up to five persons can also resume.

Links to the story:
https://www.businesstimes.com.sg/government-economy/businesses-warned-of-rough-road-ahead-despite-phase-
two
https://www.straitstimes.com/singapore/phase-two-starts-on-friday-shops-can-reopen-dining-in-allowed
https://www.straitstimes.com/singapore/safe-distancing-measures-will-still-be-enforced
https://www.straitstimes.com/singapore/health/ban-on-live-music-tv-screenings-at-eateries-among-restrictions
https://www.straitstimes.com/singapore/health/further-easing-of-curbs-not-signal-to-let-guard-down-minister

Testing for all entering Singapore; more long-term pass holders can return
Singapore will make changes to its border measures this week, which will require testing of all
incoming travellers and will see the return of more long-term pass holders in the coming weeks.
Since March 21, all incoming travellers - including Singaporeans, permanent residents (PRs) and
long term pass holders - have had to serve a two week stay-home notice (SHN). From 11.59 pm
on June 17, incoming travellers will also have to take a swab test a few days before the end of their
SHN period. The swab test will take place at a community testing facility at a designated venue
and time slot.
Meanwhile, all travellers who are entering Singapore after two consecutive weeks in Australia,
Brunei, Hong Kong, Japan, Macao, China, New Zealand, Taiwan, Vietnam or Korea will be able
to carry out their SHN at home or a hotel at their own cost. Aside from these countries, all other
travellers entering Singapore will continue to serve their two-week SHN at dedicated SHN
facilities. They will also have to cover the S$2,000 cost of their two-week stay at the SHN facility,
unless they are Singaporeans or PRs.
All inbound and outbound travellers who enter Singapore from 11.59 pm on June 17 will also have
to cover the cost of their own Covid-19 test, which can cost up to S$200.
Short-term visitors, which include tourists, are not allowed to enter Singapore yet, aside from those
who are under the fast-lane arrangement or have special approvals.

Links to the story:
https://www.businesstimes.com.sg/government-economy/testing-for-all-entering-singapore-more-long-term-pass-
holders-can-return
https://www.straitstimes.com/singapore/inbound-travellers-will-have-to-pay-for-compulsory-testing
https://www.straitstimes.com/singapore/more-long-term-pass-holders-can-return-but-need-prior-approval

Months before phase 3 can begin: Lawrence Wong
It could be months before Singapore reaches the third and final stage of its phased reopening, said
National Development Minister Lawrence Wong yesterday.

                Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C
               3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
                                              www.huttonsgroup.com

Weekly News Select
Jun 19, 2020 / Issue 25

He noted that some restrictions - like the limit of five people for social gatherings - could be further
eased during phase two. However, he also cautioned that "along the way, we might have to slow
down or even tighten some restrictions" if necessary.
Phase two of the country's reopening begins on 19 June, nearly three weeks after the two-month
circuit breaker ended on June 1.

Link to the story:
https://www.straitstimes.com/singapore/months-before-phase-3-can-begin-wong

Singapore must not despair, but stay cohesive: Tharman
While Singapore cannot escape the global economic downturn, it must absolutely defy the loss of
social cohesion, polarisation and despair that are taking hold in other countries, Senior Minister
Tharman Shanmugaratnam said.
He said the government will redouble efforts to strengthen Singapore's social compact.
This means giving everyone full opportunity to do well for themselves, whether through education,
skills or jobs. For those who "start life at a disadvantage", he said the government will boost
support for them so that social mobility can be kept alive in Singapore with inequalities lessened
over time. In strengthening Singapore's culture of solidarity, he called on every individual to put
in the effort to achieve their fullest potential and to also help others bounce back from setbacks so
that no Singaporean is left behind.
Saving jobs is the government's first priority, and this is not just an economic issue but a social
priority, Mr Tharman said.
However, given the uncertainty in the global economy, unemployment is likely to "rise
significantly" over the next year, if it is simply left to market forces, he pointed out.
Hence, the government is working with companies to take on Singaporeans through temporary
assignments, attachments and traineeships during this down period, while waiting for permanent
jobs to open up.
The National Jobs Council, which Mr Tharman chairs, is moving at full speed to secure 100,000
jobs and training places targeted by the SGUnited Jobs and Skills package. The government is
heavily subsidising these opportunities, he said.
While Singapore's economy is far more diversified and skilled today, the labour force is also much
older, he said. In those times, less than 30 per cent of the labour force was 40 years or older, but
the proportion has now doubled to 60 per cent.
This is why the government is making a concerted effort to help middle-aged and mature
Singaporean workers and will spare no effort to help them carry on with their careers in the most
productive jobs they can do, Mr Tharman said. He added that the government will give employers
extra support when hiring these older Singaporeans. It will also scale up the new Mid-Career
Pathways programme in the coming months.
However, he said this needs to be a national effort as employers too need to reorient their thinking
and management philosophies to give such workers a fair chance to prove themselves.
At the same time, reskilling and upskilling continue to be important for the majority of
Singaporeans, given that Covid-19 has accelerated digital transformation at the workplace, he said.
Meanwhile, good schools are critical to social mobility too, and Mr Tharman said the government
is investing a lot more into equalising opportunities when children are young.

Weekly News Select
                                                                                                 Jun 19, 2020 / Issue 25

These social strategies are what will strengthen Singapore's social compact, Mr Tharman said, and
these go much deeper than government policies.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-must-not-despair-but-stay-cohesive-tharman
https://www.straitstimes.com/politics/spore-to-strengthen-social-compact-to-keep-society-united
https://www.straitstimes.com/politics/national-jobs-council-moving-full-speed-ahead
https://www.straitstimes.com/politics/national-effort-to-help-older-workers-find-jobs-tharman

Investor confidence to tide Singapore over Covid-19 crisis: Chan Chun Sing
Minister for Trade and Industry Chan Chun Sing says that investor confidence in Singapore
remains strong due to its open economy, infrastructure and stability, and this will enable the
country to ride through uncertain times.
In his national broadcast, he said that is why in the first four months of this year, the Economic
Development Board has already captured S$13 billion of investment commitments from
companies such as ExxonMobil, Micron, and ST Microelectronics, while some companies
continue to hire and grow their businesses, such as Innosparks, Secretlab, and Shopee.
Speaking at the PSA terminal, which he described as "the heart of our trade connections to the
world", he said that even though the outlook for the next few years is uncertain - with many
Singaporeans having lost their jobs, and more job losses expected in the coming months while
others have seen pay cuts - investors remain confident to base their new projects in Singapore.
Investor confidence is strong because of the intangible strengths that Singapore has built up over
the years, he said. Investors have chosen to site and expand their businesses here because of the
city-state's connectedness with the world, as well as its stable society and skilled workforce.
Mr Chan said the government is also building a network of digital economy partnerships that will
help local firms grow their overseas markets. Coupled with the anticipated signing of the Regional
Comprehensive Economic Partnership agreement this year, this is expected to lower the cost of
imports for consumers and exports for producers, and make Singapore a more attractive base for
investments.
At the same time, Singapore will also focus on building the next generation of infrastructure to
reinforce its position as a choice hub for business, finance, trade and data flows. Long-term plans
for projects such as Changi T5, Tuas Mega Port, and submarine cable hubs remain.

Links to the story:
https://www.businesstimes.com.sg/government-economy/investor-confidence-to-tide-singapore-over-covid-19-
crisis-chan-chun-sing
https://www.straitstimes.com/business/economy/opportunities-for-singapore-even-in-a-more-uncertain-world-chan
https://www.straitstimes.com/politics/spores-intangible-strengths-like-trust-cannot-be-easily-replicated-chan
https://www.straitstimes.com/singapore/sporeans-will-be-able-to-improve-their-lives-at-every-career-stage
https://www.straitstimes.com/politics/timelines-may-shift-but-long-term-infrastructure-plans-remain

14 digital bank applicants to move to next stage of assessment: MAS
The Monetary Authority of Singapore (MAS) said that 14 out of the 21 digital bank applications
will progress to the next stage of assessment. This was after they had met the eligibility criteria.

                Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C
               3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
                                              www.huttonsgroup.com

Weekly News Select
Jun 19, 2020 / Issue 25

Five of the 14 left standing are digital full bank applicants, while nine are digital wholesale bank
applicants. The MAS did not name the shortlisted applicants. The central bank and regulator had
received 21 digital bank applications in January 2020. This means that two out of the seven
applicants for the digital full bank licences are out, while five applicants for the digital wholesale
bank licences failed to make the cut.
In the next stage of assessment, the 14 applicants will be invited to present their proposals via
virtual meetings. They will then be shortlisted based on their value proposition and business model
which incorporates the innovative use of technology, as well as their ability to manage a prudent
and sustainable digital banking business.
The MAS will also look at the applicant's growth prospects and other contributions to Singapore's
financial centre.

Links to the story:
https://www.businesstimes.com.sg/banking-finance/14-digital-bank-applicants-to-move-to-next-stage-of-
assessment-mas
https://www.straitstimes.com/singapore/14-digital-bank-hopefuls-move-to-next-stage-of-assessment

More to be tested for Covid-19 as phase two begins
Singapore will carry out more Covid-19 tests as the country enters phase two of its reopening
today, allowing a long list of social and economic activities to resume.
Starting next week, those aged 45 and older who are diagnosed with acute respiratory infection
when they first visit a doctor will be tested, the Ministry of Health (MOH) said.
Close contacts of confirmed cases are being tested too. Previously, they were just quarantined.
Now, they will be tested before they start their quarantine.

Link to the story:
https://www.straitstimes.com/singapore/health/more-to-be-tested-for-covid-19-as-phase-two-begins

S'pore MOUs with Shenzhen a lift for Smart City Initiative
Singapore and Shenzhen have inked eight memorandums of understanding (MOUs) in support of
the Singapore-China (Shenzhen) Smart City Initiative (SCI) that was first agreed upon last year, a
move that will deepen technological cooperation between both cities.
Aimed at connecting business ecosystems and strengthening links between Singapore and China's
tech capital, it will allow both peoples to tap into the opportunities available in Guangdong-Hong
Kong-Macau Greater Bay Area and South-east Asia.
The MOUs were signed virtually on the sidelines of the first Joint Implementation Committee
(JIC) meeting co-chaired by Ministry of Communication and Information (MCI) Permanent
Secretary Yong Ying-I and Shenzhen Mayor Chen Rugui.
The MOUs include the setting up of the Asia SME Hub, which would go live next month. This
would connect some four million Chinese businesses on the YiQiYe ecosystem with 50
Singaporean small and medium-sized enterprises on eezee.sg, a platform specialising in protective
equipment and office supplies.

Link to the story:
https://www.straitstimes.com/asia/east-asia/spore-mous-with-shenzhen-a-lift-for-smart-city-initiative

Weekly News Select
                                                                                                 Jun 19, 2020 / Issue 25

Retail outlets must adhere to strict safety measures
Retail establishments, which are being allowed to open physical stores on 19 June, will have to
adhere to strict safety measures including occupancy limits, frequent cleaning of common areas,
and implementation of the Government's visitor check-in system SafeEntry.
Enterprise Singapore (ESG), the Housing Board, Singapore Tourism Board (STB) and Urban
Redevelopment Authority (URA) released a joint advisory for retail establishments and lifestyle-
related services yesterday, detailing the guidelines and rules that businesses will have to follow.
Establishments required to comply with these measures include shopping malls, supermarkets and
standalone stores such as Ikea and Decathlon.
For example, malls and large standalone stores that have a gross floor area (GFA) larger than 930
sq m must comply with the occupancy limit of one person per 10 sq m of GFA.
While other stores, including shops within malls and those at HDB residential blocks, do not need
to keep to the same occupancy limits, they have to ensure that individual customers or groups of
up to five customers remain at least 1m apart.

Links to the story:
https://www.straitstimes.com/singapore/retail-outlets-must-adhere-to-strict-safety-measures
https://www.straitstimes.com/singapore/environment/seats-tables-at-hawker-centres-to-be-marked-for-different-
sized-groups

Self-service buffet lines suspended even as dining-in set to resume
Self-service buffet lines will stay suspended even as dining-in resumes 19 June, as Singapore
moves into Phase Two of reopening, the authorities have said.
This also applies to catering companies providing meals on other premises. They must not offer
meals served through self-service buffet lines, but may offer individually-packed options instead,
said the advisory issued by Enterprise Singapore, the Housing & Development Board, Singapore
Food Agency, Singapore Tourism Board and Urban Redevelopment Authority.

Links to the story:
https://www.businesstimes.com.sg/government-economy/self-service-buffet-lines-suspended-even-as-dining-in-set-
to-resume

Building design standards could be changed post-Covid: BCA
Design standards for new buildings could change as the Building and Construction Authority
(BCA) looks into whether rules on air-conditioning and mechanical ventilation need to be revised
in light of the Covid-19 pandemic.
The aim of any such move is to boost ventilation in crowded spaces and improve air quality for
situations like public health emergencies, the regulator's spokesman told The Straits Times.
It has started discussions with other agencies and industry experts on whether new rules are
necessary, the spokesman said.

Links to the story:
https://www.businesstimes.com.sg/real-estate/building-design-standards-could-be-changed-post-covid-bca

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Panel to guide digital push to create jobs, help businesses
A high-level committee has been set up to create jobs for Singaporeans in the digital economy,
help small businesses go online and ensure no citizen is left behind by technology.
The Ministerial Committee for Digital Transformation will guide efforts to accelerate Singapore's
adoption of digital technology, which has taken on greater urgency as Covid-19 forces huge
changes in how people work and live and how businesses operate.
Its key focus is to work with companies and the labour movement to create jobs in the information
and communications technology (ICT) sector and to place Singaporeans in these jobs,
Communications and Information Minister S. Iswaran said in an interview.
The Government has set a goal of creating 5,500 ICT jobs over the next two to three years through
its TechSkills Accelerator programmes, which train workers and match them to ICT jobs.

Link to the story:
https://www.straitstimes.com/politics/panel-to-guide-digital-push-to-create-jobs-help-businesses

Coronavirus: More clarity on rent relief for tenants soon
More details on rent relief for tenants and the criteria that financially strapped landlords must meet
to be exempt from giving the full rental waiver will be announced in the next few weeks, Senior
Minister of State for Law Edwin Tong said.
Guidelines are being worked out for the subsidiary legislation that is expected to give more clarity
to parties on the new rent relief framework. This comes after Parliament passed a landmark law
on June 5 to help 260,000 small and medium-sized enterprises (SMEs) cope with issues of rent,
among other things, as the economic outlook worsens.
Under the enhanced Covid-19 (Temporary Measures) (Amendment) Act, eligible tenants and sub-
tenants in the food and beverage and commercial sectors will enjoy four months of rental waiver
from April to next month - two months each from the Government and the landlord.
Those in the office and industrial sectors will get two months of rent waived for April and May -
one month each from the Government and the landlord. This is as long as their leases are in force
on April 1.

Link to the story:
https://www.straitstimes.com/business/more-clarity-on-rent-relief-for-tenants-soon

Singapore, Chile, NZ ink deal to boost digital economy cooperation
Singapore, Chile and New Zealand have signed an agreement that will bolster cooperation on
issues in the digital economy.
Businesses here will find it easier to conduct trade activity digitally, which will improve efficiency
and lower costs, Trade and Industry Minister Chan Chun Sing said after yesterday's signing, which
was done electronically.
His counterparts were New Zealand Trade and Export Growth Minister David Parker and Chile's
Minister of Foreign Affairs, Mr Teodoro Ribera Neumann.

Weekly News Select
                                                                                                 Jun 19, 2020 / Issue 25

Negotiations for the Digital Economy Partnership Agreement (Depa), as it is called, began in May
last year.
It is the first digital economy pact Singapore has signed and is also its first international treaty to
be electronically inked, noted Mr Chan.

Link to the story:
https://www.straitstimes.com/business/economy/singapore-chile-nz-ink-deal-to-boost-digital-economy-cooperation

Local electronics firm PCI to make Singapore's virus-tracing device
Singapore-based electronics maker PCI has won a bid to supply 300,000 dongles for a government
project that could eventually see everyone in the city-state given the wearable device to help
identify people who have interacted with Covid-19 carriers.
The S$6 million tender, equivalent to S$20 a unit for the bluetooth-enabled TraceTogether Tokens,
was awarded by Singapore's Government Technology Agency (GovTech) to the firm on May 14,
according to a government notice.

Links to the story:
https://www.businesstimes.com.sg/technology/local-electronics-firm-pci-to-make-singapores-virus-tracing-device
https://www.straitstimes.com/singapore/local-firm-wins-6m-bid-to-supply-first-300000-tracetogether-tokens

Up to 400,000 lower-income households to receive vouchers under S$20m CDC
scheme
Up to 400,000 lower-income Singaporean households will be able to collect S$50 in vouchers later
this month, as part of a S$20 million scheme.
The Community Development Council (CDC) Vouchers Scheme was launched by Deputy Prime
Minister and Finance Minister Heng Swee Keat, together with Singapore's five mayors - Low Yen
Ling, Maliki Osman, Teo Ho Pin, Denise Phua and Desmond Choo.
Aimed at helping Singaporean households with their daily expenses while supporting local
merchants and hawkers, the vouchers are redeemable for food, essential goods and services at
participating hawkers and local merchants island-wide from June 25.
The vouchers are redeemable at shops and hawker stalls that display the CDC Voucher decal.

Links to the story:
https://www.businesstimes.com.sg/government-economy/up-to-400000-lower-income-households-to-receive-
vouchers-under-s20m-cdc-scheme
https://www.straitstimes.com/singapore/400000-households-to-get-50-vouchers-to-spend-at-local-businesses

Economy
Singapore retains top spot in global competitiveness ranking
Singapore has once again come up tops as the most competitive among 63 global economies.
According to the 2020 Institute for Management Development (IMD) World Competitiveness
Ranking, Singapore's win came on the back of its strong economic performance. This in turn stems

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Weekly News Select
                                                                                                 Jun 19, 2020 / Issue 25

from the country's robust international trade and investment, employment, and labour market
measures.
Stable performances in both its education system and technological infrastructure - comprising
telecommunications, Internet bandwidth speed, and high-tech exports - also played key roles, IMD
said.
Making up the top five after Singapore are, in order, Denmark, Switzerland, the Netherlands, and
Hong Kong.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-retains-top-spot-in-global-competitiveness-
ranking-0
https://www.straitstimes.com/business/economy/singapore-retains-top-spot-as-worlds-most-competitive-economy-0

Singapore ranks 2nd in Asia, 18th globally for ease of doing business
Singapore has come in second in Asia and 18th worldwide on a ranking of the simplest places to
do business, beating countries such as India, China and Korea.
The Republic lost out to Hong Kong for the top Asia spot on this year's Global Business
Complexity Index, released as part of a report by business administration support services firm
TMF Group.
The index ranked 77 jurisdictions across the world in three areas - accounting and tax standards,
human resources and payroll matters, and rules, regulations and penalties.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-ranks-2nd-in-asia-18th-globally-for-ease-of-
doing-business
https://www.straitstimes.com/business/economy/spore-is-second-easiest-place-in-asia-to-do-business-study

Singapore's non-oil exports fall 4.5% in May, first drop in 2020
Domestic electronics exports were usually the culprit but this time the knock-out punch came from
non-electronic shipments, which brought Singapore's key non-oil domestic exports down 4.5 per
cent in May - the NODX's first monthly drop this year.
Month on month, the NODX also fell by a seasonally-adjusted 4.5 per cent last month, according
to the latest trade figures released by trade promotion agency Enterprise Singapore.
After four straight months of year-on-year growth, up 9.7 per cent in April alone, the NODX has
finally succumbed to the fallout of the Covid-19 pandemic, which has virtually shut down the
global economy and movement of people and goods.
Still, things may not worsen for the NODX going forward, as the lockdowns imposed to stop the
virus from spreading are eased in the coming months, according to private-sector economists.
NODX exports to Singapore's top 10 markets increased as a whole in May, according to Enterprise
Singapore, with strong strong shipments to the US (+50.6 per cent), Japan (+52.9 per cent) and
Taiwan (+27.2 per cent).

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapores-non-oil-exports-fall-45-in-may-first-drop-in-
2020

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https://www.straitstimes.com/business/economy/non-oil-exports-down-45-in-may-after-3-months-of-growth

Private-sector economists see 5.8% GDP fall in 2020
Private-sector economists expect Singapore's full-year gross domestic product (GDP) to decline
by 5.8 per cent in 2020, with an 11.8 per cent year-on-year contraction in the second quarter,
according to the latest Monetary Authority of Singapore (MAS) survey of professional forecasters.
The Covid-19 pandemic has sent expectations south since the previous quarterly survey, when the
median forecast by respondents was for full-year GDP growth of 0.6 per cent. But respondents
foresee recovery in 2021, with the economy projected to expand 4.8 per cent next year.
Expectations did improve for manufacturing - with a median full-year forecast of 2.2 per cent
growth, up from -0.3 per cent in the last survey - and for finance and insurance, with growth
forecast at 3.1 per cent, up from 2.6 per cent.
But other forecasts worsened, most drastically for accommodation and food services where a fall
of 26 per cent is now expected, compared to the previous 1.6 per cent fall.
Wholesale and retail trade is expected to shrink by 12.8 per cent, worsening from the previously-
predicted 0.7 per cent fall, while respondents foresee construction declining by 11.4 per cent,
versus the previously-predicted growth of 2.4 per cent.
Private consumption is forecast to fall 5.2 per cent this year, down from the previous forecast of
1.9 per cent growth. Non-oil domestic exports are predicted to be flat, as opposed to the 0.2 per
cent growth earlier predicted.
The unemployment outlook has also grown gloomier, with the unemployment rate forecast to be
3.6 per cent by this year-end, up from 2.4 per cent in the previous survey.
Core and headline inflation are expected to come in at -0.3 per cent and -0.7 per cent respectively,
within the official forecast range of -1 to 0 per cent for both indicators.

Links to the story:
https://www.businesstimes.com.sg/government-economy/private-sector-economists-see-58-gdp-fall-in-2020
https://www.straitstimes.com/business/economy/local-economy-could-shrink-58-this-year-private-forecasters-say

Q1 total employment dives a record 25,600, Q2 likely to be worse
Singapore’s employment in the first quarter of 2020 performed worse than expected, registering
the largest quarterly contraction in total employment on record due to the pandemic, and analysts
believe the labour market could weaken further in the second quarter.
Total employment shrank by 25,600 in Q1, according to the Ministry of Manpower (MOM). This
is higher than the 19,000 cited in the ministry's preliminary data released on April 29. It also
exceeds the 24,000 contraction seen in Q2 2003 during the peak of the severe acute respiratory
syndrome (Sars) outbreak.
MOM attributed Q1's contraction to a "significant fall" in foreign employment. Local employment
also contracted "slightly" due to sharper-than-expected declines in trade and tourism-related
sectors, MOM said, although the ministry previously estimated it to have grown at a modest pace
based on advanced estimates.
The sharpest decline in employment was seen in the food and beverage services, construction and
retail trade sectors, and this was only partially offset by the smaller growth in employment in the
public administration and education, professional services and financial services sector.

Weekly News Select
                                                                                                 Jun 19, 2020 / Issue 25

Links to the story:
https://www.businesstimes.com.sg/government-economy/q1-total-employment-dives-a-record-25600-q2-likely-to-
be-worse-0
https://www.straitstimes.com/singapore/manpower/spores-total-employment-figures-see-biggest-quarterly-drop
https://www.straitstimes.com/singapore/manpower/many-low-wage-earners-continue-to-work-and-get-paid-
josephine-teo
https://www.straitstimes.com/singapore/manpower/traineeships-to-help-mid-career-job-seekers-when-recovery-
kicks-in
https://www.straitstimes.com/business/employment-takes-big-hit-in-q1-as-pandemic-batters-economy

More aid for job loss, low income can bolster Singapore's social safety net
Singapore has in place many safety nets that have been enhanced over the years but those related
to loss of work could still be strengthened, observers say.
Their comments come in the wake of Prime Minister Lee Hsien Loong's speech on June 7, in
which he highlighted the need to strengthen the social compact. While the country has taken
emergency measures to help everyone come through the Covid-19 crisis, Singapore has to think
carefully how to improve its social safety nets, Mr Lee said. At the same time, it is important for
everyone to have the incentive to be self-reliant and to progress through their own efforts.
Economists and academics told BT that basic income support for those who are unable to work or
who have jobs which pay relatively low wages, or some form of unemployment insurance, are
potential options for Singapore.

Link to the story:
https://www.businesstimes.com.sg/government-economy/more-aid-for-job-loss-low-income-can-bolster-singapores-
social-safety-net

Cargo ship arrivals in Singapore plunge to 27-year low in May
Cargo ship arrivals in Singapore, the world's top transshipment and bunkering hub, plummeted to
their lowest in nearly three decades last month, while dragging sales of marine fuels to a three-
month low, official data showed.
As the coronavirus pandemic hit global trade, the number of cargo ships calling at the Republic's
ports fell last month to 3,059, the lowest since at least January 1993, the oldest available figure,
data from the Maritime and Port Authority of Singapore (MPA) showed.
Shipping activity may stay sluggish as container ship activity and bunkering demand remain weak
this month, analysts and traders said.

Link to the story:
https://www.straitstimes.com/business/economy/cargo-ship-arrivals-in-spore-plunge-to-27-year-low-in-may

OCBC, DBS to hire over 5,000 this year, with emphasis on tech roles
With their respective pledges to create new jobs amid economic uncertainty, Singapore's two
largest banks have committed to 5,000 new hires this year, with an emphasis on tech-related roles,
as the Covid-19 crisis continues to expedite digitalisation in the sector.

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OCBC said that it plans to hire over 3,000 people in Singapore this year, and is on the lookout for
tech personnel to facilitate its roll-out of digital solutions for customers and employees, which
have seen a significant increase in uptake driven by the pandemic.
About seven in 10 of these new jobs are full-time roles across various entities of the banking group,
in areas such as wealth management, corporate banking, risk management, data analytics,
operations and technology. These 2,100 positions will make up about 19 per cent of the group's
current workforce of some 11,000 employees in Singapore.
The remaining new roles at OCBC include 500 traineeships offered to university and polytechnic
graduates in areas such as corporate banking, data and technology, under the nationwide SGUnited
Traineeships Programme introduced in March. Another 400 internships will be offered to varsity
and polytechnic students.
DBS, which currently has a 12,000-strong workforce in Singapore, has committed to hiring more
than 2,000 in the country this year. This includes over 1,000 new positions for fresh graduate
trainees and more specialised roles for seasoned professionals.
UOB was unable to share its hiring estimates for the year by press time. It said, however, that it
has taken on the "highest number of trainees" within the industry for the current TFIP intake.

Links to the story:
https://www.businesstimes.com.sg/banking-finance/ocbc-dbs-to-hire-over-5000-this-year-with-emphasis-on-tech-
roles
https://www.straitstimes.com/business/banking/ocbc-to-hire-3000-this-year-in-full-time-traineeship-positions

Grab layoffs highlight cost burden when startups grow heavier
Amid the economic downturn, homegrown tech firm Grab has cut 5 per cent of its workforce, but
will "double down" on the delivery segment by redeploying more talent there, chief executive
Anthony Tan announced to staff.
Besides the layoffs, Grab will axe non-core projects and consolidate certain functions. It has also
redeployed employees to the delivery vertical to meet increased demand. Earlier this month, the
startup had expanded its grocery delivery service, GrabMart, from two countries to all eight of its
markets.

Links to the story:
https://www.businesstimes.com.sg/garage/grab-layoffs-highlight-cost-burden-when-startups-grow-heavier
https://www.straitstimes.com/singapore/manpower/grab-cuts-headcount-by-5-amid-covid-19-economic-fallout

HSBC Singapore spared bank's global layoffs this year
HSBC Singapore will not be affected this year by the bank's global redundancy plan that would
impact 35,000 staff in the medium term, The Business Times understands, with minimal cuts in
headcount expected here over the next few years.
A spokesperson from HSBC Singapore said that the Republic remains a growth market for the
bank and that its earlier plans to add more than 400 retail and private banking front-end staff by
2023 remain on track.

Links to the story:
https://www.businesstimes.com.sg/banking-finance/hsbc-singapore-spared-banks-global-layoffs-this-year

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