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Weekly News Select
                                                                                                  Mar 6, 2020 / Issue 10

Top News for the Week
        •    Sales at 2 property projects buck cautious sentiment from virus outbreak
        •    Development charge rates mostly unchanged in latest review
        •    Tenants say some landlords dragging feet on rent rebate help
        •    Govt has resources and will to act if more support needed to mitigate Covid-19: Heng
        •    HDB to do away with reoffer of balance flats exercise
        •    $60billion to expand and renew rail network over the next 10 years

Residential
Sales at 2 property projects buck cautious sentiment from virus outbreak
Property buyers in Singapore continue to plonk down serious money for new private homes despite
worries over the ongoing Covid-19 outbreak.
Luxus Hills announced over the weekend that it was completely sold out, while buyers also
snapped up a total of 75 per cent or 392 units at the 522-unit condominium, over the past two
weekends.
Consultants said the two projects have done well for specific reasons like incentives offered and
competitive pricing; it also reflects confidence in Singapore's fundamentals, and should not be
seen as the private residential market heating up.

Links to the story:
https://www.businesstimes.com.sg/real-estate/sales-at-2-property-projects-buck-cautious-sentiment-from-virus-
outbreak
https://www.businesstimes.com.sg/real-estate/the-m-moves-another-32-units
https://www.businesstimes.com.sg/real-estate/all-units-of-luxus-hills-final-phase-sold

Development charge rates mostly unchanged in latest review
The government has left development charge (DC) rates largely unchanged for the next half year
amid a generally stable property market over the past six months and thin transaction evidence.
The only use group with a change in DC rates in the latest revision, effective for the March 1 to
Aug 31 period, is non-landed residential use, with a 0.2 per cent average decrease.
This is the third consecutive decline, following reductions of 0.3 per cent in September 2019 and
5.5 per cent in March 2019.

Links to the story:
https://www.businesstimes.com.sg/real-estate/development-charge-rates-mostly-unchanged-in-latest-review
https://www.straitstimes.com/business/development-charge-cuts-could-help-developers

Tenders for three housing sites close
State tenders for three 99-year leasehold housing sites comprising two adjoining private housing
sites in Canberra Drive in Singapore's north and an executive condominium or EC site along
Fernvale Lane in the Sengkang area closed on 3 Mar.

                Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C
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Weekly News Select
Mar 6, 2020 / Issue 10

Analysts noted that bidding participation was decent although the top bids for the three sites were
in somewhat conservative territory.
Canberra Drive (Parcel A) drew five bids, with the highest offer of nearly $129.20 million or about
$644 per square foot per plot ratio (psf ppr) from Oasis Development, controlled by boutique
developer JBE Holdings Group. The site can yield about 220 homes.
The Canberra Drive (Parcel B) site next door drew four bids, the highest from United Venture
Development (2020), controlled by UOL Group, United Industrial Corporation and Kheng Leong
Company. Their bid of $270.2 million works out to around $650 psf ppr. This site can yield about
455 homes.
Meanwhile, the Fernvale Lane EC site fetched seven bids.
Frasers Property unit FCL Lodge was the highest bidder, at $286.54 million or about $555 psf ppr.
The second-highest bid of $285.1 million or $552 psf ppr came from a partnership between Sing
Holdings Residential and MCC Land (Singapore). The lowest bid of about $500 psf ppr was by a
consortium led by Evia Real Estate.

Links to the story:
https://www.straitstimes.com/business/property/tenders-for-three-housing-sites-close
https://www.businesstimes.com.sg/real-estate/top-bids-for-canberra-private-housing-sites-below-expectations

Fragrance Group boss selling Sentosa Cove villa for S$24m
Frafrance Group boss Koh Wee Meng is understood to be in the early stages of selling a sea-
fronting bungalow in Sentosa Cove for S$24 million.
The price works out to S$2,464 per sq ft based on the land area of 9,740 sq ft. The property, along
Cove Grove and with views of the Southern Islands, is on a site with 99-year leasehold tenure
starting late-June 2008, leaving a balance of about 87 years. The buyer is an Indonesian who is a
Singapore permanent resident (PR).

Links to the story:
https://www.businesstimes.com.sg/real-estate/fragrance-group-boss-selling-sentosa-cove-villa-for-s24m

HDB to do away with re-offer of balance flats exercises
The Housing & Development Board (HDB) is doing away with the re-offer of balance flats (ROF)
exercises, so that most of the unselected flats from the sale of balance flats (SBF) exercises can be
offered directly for open booking.
Other measures Minister for National Development Lawrence Wong announced at the Committee
of Supply debate include support for unwed parents who will now either be allowed to buy a new
two-room or three-room flat in a non-mature estate if they have stable employment and can afford
to, or will be considered for public rental flats if they have insufficient finances and need a place
to stay.
Also, the Silver Housing Bonus (SHB) will be simplified and enhanced in three ways. First, the
requirement that seniors must sell a larger flat and buy a smaller one will be removed. Regardless
of the flat type they sell, seniors can apply for the SHB as long as they buy a three-room or smaller
flat, and get some proceeds from the move.

Weekly News Select
                                                                                                  Mar 6, 2020 / Issue 10

Minister also announced that Bukit Merah, Queenstown, Choa Chu Kang and Ang Mo Kio have
been selected as the fourth batch of towns and estates to be rejuvenated under the Remaking Our
Heartland Programme.

Links to the story:
https://www.businesstimes.com.sg/real-estate/singapore-budget-2020/hdb-to-do-away-with-re-offer-of-balance-
flats-exercises
https://www.straitstimes.com/singapore/housing/more-balance-flats-to-be-offered-for-open-booking-earlier
https://www.straitstimes.com/politics/10-year-plan-to-make-hdb-estates-more-sustainable
https://www.straitstimes.com/politics/assisted-living-public-flats-for-seniors-launching-in-may

HDB resale market 'resilient' in February
The Housing and Development Board's (HDB) resale market remained robust in February despite
experiencing a seasonal dip from January. Fewer flats changed hands in February than in January,
as prices inched up by 0.7 per cent.
In all, 1,668 HDB resale flats were sold last month, 13.1 per cent fewer than in January, flash
estimates from a real estate portal showed.
The figure reversed the 3.3 per cent increase in January from the preceding month. It was, however,
26.9 per cent more than the 1,314 units sold in February last year.
Compared with February 2019, however, prices were 1 per cent higher last month.
The prices of flats in non-mature estates fell by 0.3 per cent; those of flats in mature estates rose
by 1.3 per cent from January.

Links to the story:
https://www.businesstimes.com.sg/real-estate/hdb-resale-market-resilient-in-february
https://www.straitstimes.com/singapore/housing/hdb-resale-flat-prices-edge-up-07-in-feb-srx

Commercial
ADB opens Singapore office
Asian Development Bank (ADB) opened its new office in Singapore, marking deepening efforts
with the Republic to collaborate on some of the most pressing development challenges facing Asia
and the Pacific.
The office, opened by the organisation's president Masatsugu Asakawa and Singapore's Deputy
Prime Minister and Minister for Finance Heng Swee Keat, will look into more avenues to enhance
cooperation between ADB and Singapore across the region. Measures include tackling climate
change, financing and building quality infrastructure, pioneering innovation in development
operations, and managing urbanisation.

Links to the story:
https://www.businesstimes.com.sg/government-economy/adb-opens-singapore-office
https://www.straitstimes.com/business/asian-development-bank-opens-office-at-marina-bay

                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
Mar 6, 2020 / Issue 10

Arcc Spaces to open flagship project at One Marina Boulevard
Singapore-based flexible workspace operator Arcc Spaces will open its flagship project at One
Marina Boulevard next month.
This is the company's fourth project in Singapore, adding to its regional footprint that now includes
Kuala Lumpur, Yangon, Beijing, Shanghai and Hong Kong.
The One Marina Boulevard project will take up 19,000 sq ft of space on the 20th floor, and offer
private office rooms, meeting rooms and a convertible multi-functional event space.

Link to the story:
https://www.businesstimes.com.sg/real-estate/arcc-spaces-to-open-flagship-project-at-one-marina-boulevard

Haidilao billionaire opens family office in Singapore
The billionaire behind Haidilao International Holding, the world's biggest chain of hotpot
restaurants, has opened a family office in Singapore to help manage her wealth.
Shu Ping was appointed the sole shareholder and director of Sunrise Capital Management last July,
according to filings lodged with Singapore's national regulator of business entities. She co-founded
Hong Kong-listed Haidilao with her husband Zhang Yong and two others.
Ms Shu is one of Singapore's richest people with a net worth of around US$7.7 billion, according
to the Bloomberg Billionaires Index. Her husband is also worth US$7.7 billion.

Links to the story:
https://www.businesstimes.com.sg/banking-finance/haidilao-billionaire-opens-family-office-in-singapore
https://www.straitstimes.com/business/companies-markets/haidilao-billionaire-opens-spore-office-to-manage-wealth

Retail
Wing Tai retrenches 20 staff in retail restructuring
Wing Tai Retail has retrenched 20 employees, following a review of its business operations which
began late last year.
The 20 staff - who account for less than one per cent of its retail headcount - received a
compensation package and a one-time grant to upgrade their skills for future opportunities, the
company said.

Links to the story:
https://www.businesstimes.com.sg/companies-markets/wing-tai-retrenches-20-staff-in-retail-restructuring
https://www.straitstimes.com/business/wing-tai-millennium-hotels-and-resorts-axe-staff

More Ministry Of Food outlets shut down
Home-grown restaurant chain Ministry Of Food is in trouble, hit by a double whammy of the
coronavirus outbreak and a Mareva injunction freezing the owner's assets.
At its height, Ministry Of Food owned a slate of restaurant chains including MOF, Hanssik,
DaeSsikSin and Ju Hao, with 80 restaurants across the island, but it is now whittled down to 26,
after five more outlets shut this weekend.

Weekly News Select
Mar 6, 2020 / Issue 10

Tomorrow, 11 stalls at SingPost Centre Platform M could potentially be repossessed by the
landlord if Ministry Of Food chief executive Lena Sim is unable to pay the rent.

Link to the story:
https://www.straitstimes.com/business/economy/more-ministry-of-food-outlets-shut-down

Covid-19: Tenants say some landlords dragging feet on rent rebate help
Commercial landlords and their tenants are at odds over the property tax rebate intended for
landlords to pass on to renters.
The Restaurant Association of Singapore (RAS) fired the first salvo, calling out landlords for not
delivering on their publicly announced rental rebates for food and beverage (F&B) operators,
adding that it was "deeply disappointed".
The association singled out CapitaLand, Singapore's largest mall operator, accusing it of not
delivering on a promise of 50 per cent rental rebates for restaurant tenants. Instead, RAS said
restaurateurs operating in CapitaLand's suburban malls, which form the bulk of its portfolio, have
not been granted rental rebates at all. Those in urban malls have only been offered a 10 to 15 per
cent rebate.
Sources tell BT the unhappiness extends to retailers as well. Tenants say there seems to be a lack
of clarity on the support measures landlords will provide to help tenants weather the coronavirus
situation. BT understands that different malls have implemented varying relief measures, ranging
up to a 40 per cent rental rebate for a month to qualifying tenants. Other landlords are allowing
tenants to use part of their security deposits to offset base rents; but some tenants bemoaned that
while these may temporarily ease cash flow, they do not constitute rebates as the security deposits
come from their own pockets.
But part of the hold-up may also be due to the landlords waiting for more clarity on how they
qualify for the property tax rebate, even as they reiterate their commitment to passing on the
savings to tenants.
One uncertainty lies in whether properties with mixed office and retail use qualify, as the Inland
Revenue Authority of Singapore's (IRAS) e-tax guide states that no rebates shall be given to "any
premises or a part of any premises used... as an office, a business or science park...".
In response to BT queries, IRAS said it is still "finalising the details" on the property tax rebate,
which will be ready later this month.

Links to the story:
https://www.businesstimes.com.sg/companies-markets/covid-19-tenants-say-some-landlords-dragging-feet-on-rent-
rebate-help
https://www.straitstimes.com/singapore/fb-outlets-still-waiting-for-promised-rental-rebates

1,000 CapitaLand tenants get rental rebates
Singapore’s largest mall operator CapitaLand has laid down more specifics to its rental rebates for
tenants amid pressure from various fronts, including a group of retailers that has banded together
to seek more help from landlords.
CapitaLand will be giving rental rebates to some 1,000 of its tenants as a start, while it reviews the
rest of its 3,500 leases, a move industry associations urged other landlords to follow. After

Weekly News Select
Mar 6, 2020 / Issue 10

reviewing February sales and footfall data, CapitaLand issued letters to tenants at both its urban
and suburban malls about their relief packages. Some were informed of a 25 per cent rebate each
in April and May, on the fixed components of their one-month gross rent. This is in addition to the
release of tenants' one-month security deposit to offset their rent for March.
The move comes after the Restaurant Association of Singapore (RAS) accused landlords of not
delivering on their publicly announced rental rebates for food and beverage (F&B) operators,
singling out CapitaLand for promising 50 per cent rental rebates to restaurant tenants, but giving
less than that. In response, CapitaLand said it was "unfortunate" that its relief package - to have
included flexible rent payments and a one-time rebate of up to half-a-month on a selected basis -
was not comprehended by RAS despite ongoing engagements between the two.

Links to the story:
https://www.businesstimes.com.sg/companies-markets/1000-capitaland-tenants-get-rental-rebates
https://www.straitstimes.com/singapore/capitaland-to-give-1000-tenants-rental-rebates

Government
Govt has resources and will to act if more support needed to mitigate Covid-19: Heng
Replying to calls for more help amid the Covid-19 outbreak, Deputy Prime Minister and Finance
Minister Heng Swee Keat said that Budget 2020 is calibrated to the current situation. But more
details of measures are on the way, and some aid will be disbursed ahead of original targets.
As for calls to do more and for a longer duration, Mr Heng said that if that becomes necessary, the
government has both the resources and the will to act. "But for now, let's go forth and make the
fullest use of the support available out there, before we review what more needs to be done."
Beyond this crisis, Singapore must tackle longer-term issues such as fiscal sustainability and
economic transformation, he said in his round-up speech in Parliament.
Mr Heng spoke on Singapore's fiscal approach and the need for the goods and services tax (GST)
hike, noting that recurrent spending needs to be funded by recurrent revenues, "not one-off
surpluses . . . which arose from an unexpected rally in global financial markets, and the unexpected
buoyancy in the property market".
Among long-term concerns, he highlighted efforts to tackle climate change. Measures go beyond
protecting the coastline to reducing carbon emissions, boosting local food production and
developing greener towns.
As for economic transformation, the journey has begun bearing fruit but efforts must continue, he
said. This includes addressing structural changes in the labour force and supporting mid-career
workers.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-budget-2020/govt-has-resources-and-will-to-
act-if-more-support-needed
https://www.straitstimes.com/politics/gst-hike-cant-be-scrapped-money-required-for-critical-needs-dpm
https://www.straitstimes.com/politics/more-than-60-of-net-gst-borne-by-high-earners-foreigners
https://www.straitstimes.com/politics/6b-assurance-package-will-delay-impact-of-gst-hike-for-at-least-five-years

Weekly News Select
                                                                                                 Mar 6, 2020 / Issue 10

Singapore aims to halve 2030 peak emissions by 2050
Singapore will enhance its climate pledge and long-term strategy this year, with a view to halve
its emissions by 2050 after they peak in 2030, Senior Minister Teo Chee Hean said in Parliament.
The new targets will be submitted to the United Nations Framework Convention on Climate
Change later this year.
Singapore will commit to an absolute peak emission level of 65 million tonnes of carbon dioxide
equivalent (MtCO2e) around 2030, said Mr Teo, who is Co-ordinating Minister for National
Security and Chairman of the Inter-Ministerial Committee on Climate Change, as he spoke on the
first day of the Committee of Supply (COS) debate.
Going a step further, Singapore is including a seventh greenhouse gas - nitrogen trifluoride - within
this peak emissions ceiling, even though the Kyoto Protocol only covered six. In addition,
Singapore's Long-Term Low Emissions Development Strategy (LEDS) aspires to halve the
emissions from its 2030 peak, to 33 MtCO2e by 2050, with a view to achieving net-zero emissions
as soon as viable in the second half of the century, Mr Teo said.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-budget-2020/singapore-aims-to-halve-2030-
peak-emissions-by-2050
https://www.straitstimes.com/singapore/environment/spores-2050-target-halve-emissions-from-2030-peak

Streamlining govt e-services, expanding digital MC scheme among Smart Nation
efforts unveiled
A single touchpoint for common government services and expanded use of digital Medical
Certificates (MCs) were among a slew of digitalisation efforts unveiled by Minister-in-Charge of
the Smart Nation Initiative Vivian Balakrishnan in Parliament, during the debate on the budget of
the Prime Minister's Office.
The government's existing Moments of Life (MOL) app, which currently serves young parents and
seniors, will be enhanced to house commonly-used government services on a single site. The app
will also be personalised for each user.
In addition, the government also plans to roll out DigiMC, an initiative involving the digitalisation
of MCs, to the private healthcare sector in the first half of 2020, starting with Raffles Medical
Group and Mount Alvernia Hospital.
The government plans to expand its GoBusiness licensing portal, which is currently targeted at the
F&B sector, to benefit other industries such as retail, said the Smart Nation and Digital
Government Office (SNDGO) in a factsheet. It will also roll out more digital services to help
businesses save on costs.
The government also plans to add more features to the National Digital Identity (NDI)
infrastructure. It will continue to expand use cases for the SingPass Mobile app, a key element of
the NDI. The app, which now has close to one million users, allows easy access to online
government services.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-budget-2020/streamlining-govt-e-services-
expanding-digital-mc-scheme
https://www.straitstimes.com/singapore/health/digital-mcs-to-be-rolled-out-in-private-health-sector

               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
                                                                                                  Mar 6, 2020 / Issue 10

https://www.straitstimes.com/singapore/more-personalised-services-in-updated-moments-of-life-app

Jobs Support payouts to struggling firms will start early
The disbursement of payouts to firms for the recently announced Jobs Support Scheme will be
moved up by two months to provide speedier relief to those struggling to stay afloat, Deputy Prime
Minister Heng Swee Keat said.
This comes after several MPs, including Mr Seah Kian Peng (Marine Parade GRC), asked whether
the 8 per cent wage offset for local workers, which will cover three months ending last December,
could be paid earlier than July.
In his reply, Mr Heng said that while the disbursement of payouts for this scheme is operationally
complex, the agencies involved have redoubled their efforts and are now aiming to bring forward
payment to end-May.

Link to the story:
https://www.straitstimes.com/politics/jobs-support-payouts-to-struggling-firms-will-start-early

Govt to seek public ideas on rejuvenating Old Kallang Airport
Singaporeans will be able to chip in with their ideas on how to rejuvenate the Old Kallang Airport,
as the Singapore Land Authority (SLA) ramps up efforts to collaborate with the public on the
interim use of vacant state land and properties.
The initiative, named Reinventing Spaces into Vibrant Places, aims to transform state land and
properties into vibrant places that enhance the character of the precincts they are in.

Link to the story:
https://www.straitstimes.com/singapore/govt-to-seek-public-ideas-on-rejuvenating-old-kallang-airport

Singapore air transport sector gets help to reskill amid virus outbreak
Companies in Singapore's air transport sector will receive an enhanced training and support
package to help defray business costs and protect workers' jobs amid the Covid-19 virus outbreak.
The package is expected to benefit more than 8,000 workers in the sector, by providing affected
companies with funding support for salaries and course fees when they send their workers for
retraining and reskilling, in preparation for business demand to return.
The initiative is part of the Stabilisation and Support Package announced by Deputy Prime
Minister Heng Swee Keat during Budget 2020. It was put together with the efforts of the nine
unions in the NTUC Aerospace and Aviation Cluster, which had been working to identify needed
areas of training in the sector prior to the outbreak, in partnership with SkillsFuture Singapore
(SSG), Workforce Singapore (WSG) and the Civil Aviation Authority of Singapore (CAAS).
SSG's support will be in the form of enhanced absentee payroll support at 90 per cent of hourly
basic salary capped at S$10 per hour, and enhanced course fee support at 90 per cent of course
fees, up from a baseline rate of 50 per cent. Companies that send workers for selected sector-
specific training programmes under SSG will be eligible for this funding.
WSG has rolled out a new Place-and-Train programme for air transport coordinators to prepare
workers for newly created, redesigned and enhanced roles, and employers will receive up to six

                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
                                                                                                  Mar 6, 2020 / Issue 10

months of salary support under the package to reskill rank-and-file workers with such new or
expanded competencies.
On top of this package, NTUC's Employment and Employability Institute (e2i) will provide an
additional S$500,000 to help unionised companies in the air transport sector send workers for
training. e2i is prepared to extend further funding support if the utilisation rate of training
increases.

Links to the story:
https://www.businesstimes.com.sg/transport/singapore-air-transport-sector-gets-help-to-reskill-amid-virus-outbreak
https://www.straitstimes.com/singapore/over-8000-aviation-sector-workers-to-benefit-from-support-package

Singapore bars visitors from Iran, northern Italy, S Korea over Covid-19 fears
New visitors with recent travel history to Iran, northern Italy, or South Korea within the last 14
days will not be allowed to enter or transit through Singapore, from 11.59pm on March 4.
This is part of additional precautionary measures - including swab testing of symptomatic
travellers - amid a global surge in Covid-19 cases.
From the same timing onwards, returning Singapore citizens and permanent residents (PRs), as
well as long-term pass holders - including those on work passes, student passes, dependant's pass
and long-term visit pass - with travel history to those areas in the last 14 days will be issued with
a stay-home notice. They will have to remain in their place of residence at all times for 14 days
after returning to Singapore.
All work pass holders, including dependants, with such travel history will also need the Ministry
of Manpower's approval before commencing their journey to Singapore, in an extension of existing
requirements for workers with recent travel history to mainland China. This applies both to existing
work pass holders who are now overseas, and in-principle approval holders who have yet to enter.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-bars-visitors-from-iran-northern-italy-s-korea-
over-covid-19-fears
https://www.straitstimes.com/singapore/health/singapore-to-bar-visitors-from-south-korea-north-italy-and-iran

Firms that hire and train mid-career and older workers to get S$2 billion in govt help
A lot is asked of employers in hiring and training more mid-career and older workers in Budget
2020, but they will receive fair support - to the tune of around S$2.0 billion in total, Manpower
Minister Josephine Teo has announced.
The Senior Worker Support Package (SWSP), a major initiative in this year's government budget,
provides up to S$1.3 billion in support over three years from 2020 to 2022, she said.
And then the SkillsFuture Mid-Career Support Package, another big new expenditure item, will
entail investing close to S$750 million in reskilling and placement of workers in their 40s to 50s
in the next five years.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-budget-2020/firms-that-hire-and-train-mid-
career-and-older-workers-to
https://www.straitstimes.com/politics/measures-to-boost-careers-of-sporeans-in-their-40s-and-50s

                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
                                                                                                  Mar 6, 2020 / Issue 10

https://www.straitstimes.com/politics/grants-for-companies-that-support-employment-of-seniors

EP minimum salary goes up to S$3,900 from May 1 this year
From May 1, the monthly minimum salary for the Employment Pass (EP) will rise from S$3,600
to S$3,900 to keep up with the improving pay of fresh graduates from local autonomous
universities.
Explaining the regular update of the EP salary criteria, Manpower Minister Josephine Teo said on
Tuesday the criteria "take reference from salaries of locals with similar experience and seniority
to ensure that EP holders are of good calibre and do not undercut wages of our local PMETs
(professionals, managers, executives and technicians)".
That's why older and more experienced EP candidates need to command higher salaries in order
to qualify for the pass, Mrs Teo said. "It keeps the competition fair."

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-budget-2020/ep-minimum-salary-goes-up-to-
s3900-from-may-1-this-year
https://www.straitstimes.com/politics/minimum-monthly-ep-salary-up-300-to-3900-to-ensure-level-field
https://www.straitstimes.com/politics/govt-acts-to-protect-jobs-and-wages-for-singaporeans
https://www.straitstimes.com/politics/new-workfare-scheme-to-uplift-low-wage-workers

More support for SMEs to transform themselves
Businesses, including small and medium-sized enterprises (SMEs), will have more support to take
the next leap in their transformation journey with a slew of initiatives outlined by Senior Minister
of State for Trade and Industry Chee Hong Tat in Parliament.
Chief among them is the SkillsFuture Enterprise Credit, which provides each eligible employer
$10,000 in credits, valid for three years from April 1 this year, to cover up to 90 per cent of out-
of-pocket expenses for enterprise and workforce transformation programmes.
Companies can use the credits for transformation projects, to redesign jobs and redeploy workers
to more productive roles, as well as to send workers for approved training courses, said Mr Chee
during the debate on his ministry's budget.
This will benefit more than 35,000 enterprises, which hire more than 1.5 million local workers.

Link to the story:
https://www.straitstimes.com/politics/more-support-for-smes-to-transform-themselves

NEWSand, NEWOil part of efforts to be circular economy
The Singapore government is looking to work with the industry on the possibility of producing
NEWSand on a commercial scale, as part of plans to support Singapore's transition into a circular
economy, Senior Minister of State for Environment and Water Resources Amy Khor said.
NEWSand comes in different forms and can be made by treating incineration bottom ash (IBA) or
developed from slag, the by-product of the gasification of municipal solid waste, according to a
joint statement by the Ministry of Environment and Water Resources and the National
Environment Agency (NEA).

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                                                                                                  Mar 6, 2020 / Issue 10

Meanwhile, the government has also set its sights on NEWOil, which could be created through
chemical recycling.
NEWOil can help to strengthen Singapore's resource resilience, similar to NEWater and
NEWSand.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-budget-2020/newsand-newoil-part-of-efforts-to-
be-circular-economy
https://www.straitstimes.com/politics/after-newater-look-out-for-newoil-newsand

ABSD: Govt to take case-by-case approach for troubled projects
In response to requests by the construction industry to consider extending the additional buyer's
stamp duty (ABSD) timeline from five years to six, Minister of State for National Development
and Manpower Zaqy Mohamad said that the government will adopt a case-by-case approach for
projects that need help, and does not think it necessary to pro-rate the ABSD penalty because "we
don't have to shift the whole mechanism or the whole system" to solve the problem.
In his Committee of Supply speech, he said the government was "monitoring the construction
industry and the property market closely" and will adjust its policies as necessary "to ensure a
stable and sustainable property market".

Links to the story:
https://www.businesstimes.com.sg/real-estate/singapore-budget-2020/absd-govt-to-take-case-by-case-approach-for-
troubled-projects
https://www.straitstimes.com/politics/help-for-construction-firms-facing-delays-due-to-virus-outbreak

$60b to expand, renew rail network over next decade
More than $60 billion will be invested to expand and renew the rail network over the next 10 years,
said Transport Minister Khaw Boon Wan.
The sum will fund upcoming projects such as the Thomson-East Coast Line (TEL), the Jurong
Region Line (JRL) and extensions to the North East Line and Downtown Line, he told the House
during the debate on his ministry's budget.
As for renewal projects, he noted that the renewal of the oldest North-South and East-West lines
will be completed by around 2023.
Singapore's current rail network stands at about 230km. The Transport Ministry has said that it
aims to expand the network to about 360km by 2030. Should all plans come to fruition, the total
length of Singapore's rail network will extend to almost 400km by 2040.

Links to the story:
https://www.straitstimes.com/politics/60b-to-expand-renew-rail-network-over-next-decade
https://www.businesstimes.com.sg/government-economy/singapore-budget-2020/outbreak-could-hit-major-
transport-projects-khaw
https://www.straitstimes.com/politics/major-transport-projects-could-be-delayed

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               3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
                                              www.huttonsgroup.com

Weekly News Select
Mar 6, 2020 / Issue 10

Economy
Feb electronics PMI sinks to seven-year low on Covid-19 fears
The coronavirus outbreak has cast a pall on Singapore's manufacturing and electronics sentiment
in February, even though both were on the brink of recovery just a month ago, a development that
was no surprise to economists.
The Purchasing Managers' Index (PMI) for the electronics sector sank 2.5 points to record a
contraction of 47.6 in February, reversing January's optimism and ending the brief one-month
reprieve that came after 14 straight months in the dumps, according to the Singapore Institute of
Purchasing and Materials Management (SIPMM).
February's electronics PMI is the worst showing since December 2012, when the reading was 46.6.
It is also the biggest drop in a month since October 2012.
Meanwhile, February's manufacturing PMI lost 1.6 points from January's positive reading to
record a contraction of 48.7, according to SIPMM.

Links to the story:
https://www.businesstimes.com.sg/government-economy/feb-electronics-pmi-sinks-to-seven-year-low-on-covid-19-
fears
https://www.straitstimes.com/business/economy/manufacturing-shrinks-at-fastest-pace-since-2014-on-virus-
outbreak

Cars drag January retail sales down 5.3%
Retail remains in the doldrums, with takings at the till falling in January - the 12th consecutive
month of decline.
Sales were down 5.3 per cent on the same month last year, driven in part by sliding auto sales.
Take vehicles out of the equation and takings edged up 0.6 per cent.
The motor trade has been feeling the pinch - turnover plunged 33.6 per cent in January because of
a lower certificate of entitlement quota. That followed a 24.1 per cent drop in December.
Other sectors felt the pain as well. Household equipment and furniture sales declined 16 per cent,
while optical goods and books were down 9.4 per cent, the Department of Statistics noted.
It was not all grim news: Chinese New Year festivities boosted supermarkets and hypermarkets,
and lifted sales of food, alcohol, apparel and footwear.

Links to the story:
https://www.straitstimes.com/business/economy/cars-drag-january-retail-sales-down-53
https://www.businesstimes.com.sg/infographics/singapore-retail-sales-keep-weakening-in-january

Weekly News Select
Mar 6, 2020 / Issue 10

Overseas Market
Australian home prices red-hot last month
Australia’s housing market ran red-hot last month as prices in no fewer than five cities reached
record highs, a positive for consumer wealth and confidence in the face of the spreading novel
coronavirus crisis.
Data showed home prices across the nation rose 1.1 per cent in February from January, when they
added 0.9 per cent.
That brought gains for the 12 months to February to 6.1 per cent, a world away from the punishing
declines seen early last year.
The revival was again led by the major cities, with values in Sydney jumping 1.7 per cent in the
month and 10.9 per cent for the year. Melbourne boasted gains of 1.2 per cent and 10.7 per cent
respectively.

Link to the story:
https://www.businesstimes.com.sg/real-estate/australian-home-prices-red-hot-last-month

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

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