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Weekly News Select
                                                                                              Aug 13, 2021 / Issue 32

Top News for the Week
       •   Covid-19 provides boost to Sentosa private residential market
       •   Fewer BTO bookings cancelled last year but higher proportion of appeals for penalty
           waivers
       •   Over 4,900 HDB BTO flats launched, including in Queenstown, Jurong East for the
           first time in about a decade
       •   'Real progress' for lower-wage workers is essential part of inclusive growth: PM Lee
       •   Singapore in 'more resilient position' due to higher vaccination rate, says PM Lee
       •   A day after National Day, Singapore begins road to normalcy with 'vaccination
           differentiated' approach
       •   Fully vaccinated travellers from 8 more countries can serve SHN at home from Aug
           20: MOH
       •   Economists' forecasts for Singapore's 2021 growth fall within upgraded official range
       •   Looming high base not expected to deter rebound in Singapore's exports in 2021
       •   Singapore secured S$3.6b in fixed asset investment commitments in Q2

Residential
Covid-19 provides boost to Sentosa private residential market
Covid-19 may have provided a boost to luxury properties on Sentosa Island after a relatively
subdued market before the pandemic.
Data from several property consultancies showed that the number of sales transactions for landed
and non-landed properties on the island have jumped from 2019 to 2020, with transactions
doubling for landed properties. Prices have been on an uptick as well.
This uptrend has continued in the first half of 2021.
Despite more foreigners leaving Singapore than entering since the pandemic started due to border
restrictions, rental contracts have remained stable. They had increased in 2020, compared to 2019.
Analysts said that the rising demand for Sentosa properties is in tandem with the recovery of the
broader residential market on mainland Singapore, especially among luxury residences.
Analysts said that the delay in completion of new residential projects and the need for more space
due to work-from-home arrangements could have led some people to take up rental housing at
Sentosa Cove.
This includes buyers’ long-term confidence in the country's residential market and low interest
rates.
Reports of fund flows into the country could have also boosted the property market.
Mr Mark Yip, chief executive officer of real estate agency Huttons Asia, said that the number of
single-family offices is estimated to have doubled from 200 in 2019 to about 400 at the end of last
year.
Family offices are private wealth management advisory firms that serve ultra-high-net-worth
investors (UHNWI).

              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
Aug 13, 2021 / Issue 32

“Some of these UHNWI were already residing in Singapore before the pandemic struck and have
decided to buy a property as Singapore emerges as one of the best places to be during this
pandemic,” Mr Yip said.

Link to the story:
https://www.todayonline.com/singapore/covid-19-provides-boost-sentosa-private-residential-market

Higher share of loss-making deals in resale homes in June after heightened curbs
disrupt market
The proportion of loss-making residential transactions in the secondary market declined month-
on-month in April and May before rising again in June as a spike in the number of Covid-19 cases
prompted the introduction of heightened restrictions.
And with tighter curbs disrupting property viewings, sellers could turn more accommodating on
pricing to close the deal quicker.
The proportion of loss-making transactions (landed and non-landed) in the resale market this year,
the share eased from 12.2 per cent in April to a record low of 10.5 per cent in May before climbing
back up to 13.8 per cent in June. In March, the figure stood at 14 per cent.
On a quarterly basis, however, the share of loss-making transactions in the second quarter clocked
12 per cent, improving from 14.6 per cent in the first quarter.
For H1 2021, the proportion of loss-making transactions for landed and non-landed properties
worked out to over 13 per cent, which was lower than the 17 per cent and 14 per cent notched in
2020 and 2019 respectively.
However, the performance varies by market segment, with transactions in the Core Central Region
(CCR) experiencing greater volatility in 2020 and H1 2021 than the OCR.

Link to the story:
https://www.businesstimes.com.sg/real-estate/higher-share-of-loss-making-deals-in-resale-homes-in-june-after-
heightened-curbs-disrupt

Good timing separates winners from losers in property deals
Fortune might favour the bold, but good timing doesn't hurt either.
Entering the property market at an opportune time in the cycle can play a key role in deciding
whether fortunes are made or lost - as does location.
In Q2 2021, the top profit- and loss-making transactions related overwhelmingly to properties
located in the Core Central Region (CCR), with profitable sales coming predominantly from
District 10.
Of the five most profitable deals in Q2 by percentage, the holding period was a minimum 15 years.
Four of the five were located in the CCR, and the fifth, Outside the Central Region (OCR).
Similarly, the biggest profit-making deals by quantum in Q2 were all in the Core Central Region
(CCR). The sellers also held onto these units for a good length of time - over 15 years - during
which the prices of these properties roughly doubled or, in some cases, more than doubled.
All of them are freehold.

Weekly News Select
Aug 13, 2021 / Issue 32

All top five loss-making deals by percentage "were purchased unfavourably from a timing point
of view in 2007, 2012 and 2013, at a near property cycle peak". They are all in the CCR, with three
of the five on Sentosa.
Looking at the leading five loss-making deals by quantum, four of the five transactions in Q2 were
located in the CCR; the fifth was in the Rest of Central Region (RCR).

Link to the story:
https://www.businesstimes.com.sg/real-estate/good-timing-separates-winners-from-losers-in-property-deals

Fewer BTO bookings cancelled last year but higher proportion of appeals for penalty
waivers
Typically, buyers who cancel their BTO flat bookings must either forfeit their option fee or 5 per
cent of the flat purchase price, and wait for a year before they can apply for subsidised housing
again.
These measures are in place to ensure that buyers are serious about their purchase, said the Housing
and Development Board (HDB).
But HDB announced earlier this year that it would consider waiving these penalties,
acknowledging that the delays in construction may have “caused inconvenience and disrupted the
life plans of flat buyers”.
In response to CNA’s queries, HDB said that around 1,700 home buyers cancelled their BTO flat
bookings in 2020.
This was lower than the annual average of 2,500 cancellations in 2018 and 2019, or 2,300
cancellations a year between 2010 and 2019, it noted.
The main reasons for cancellations included “a break-up of their fiance-fiancee relationship, a
change in housing plans, or a change in financial circumstances which affected the flat purchase”,
it said.
Huttons Asia’s senior director of research Lee Sze Teck noted HDB did not provide information
on when the cancelled flats were originally booked.
But he suggested that there could have been fewer cancellations last year as those affected by
construction delays could have booked their flats from as early as 2016.
“These BTO projects in 2016 and 2017 are likely to be in advanced stages of construction and
most contractors tend to deliver earlier than the stipulated delivery date. Hence these groups of
buyers are affected to a lesser extent,” he said.
He added that HDB tapered the supply of BTO flats in 2018 and 2019, which could also have
accounted for fewer cancellations in 2020.
Views were mixed on whether these cancellations would have a substantial impact on the resale
market.
Mr Mark Yip, Huttons Asia’s CEO, said that “in normal circumstances”, the numbers may not
have an impact, given that they are a small percentage of the entire year’s transaction volume.
“However, during this period where the construction delay-induced shift in demand is high, every
single buyer who switches to the resale market adds to the competition.
“The HDB resale volume in 2021 is estimated to be between 27,000 and 29,000 units, the highest
yearly transaction level since 2010,” he said.
At the same time, Mr Yip said "it is reasonable to expect more buyers to appeal in the coming
months".

Weekly News Select
Aug 13, 2021 / Issue 32

This is due to HDB’s recent public announcements that it may consider waiving cancellation
penalties, coupled with the larger supply of BTO flats in 2020, he said.

Link to the story:
https://www.channelnewsasia.com/singapore/bto-cancel-hdb-appeal-penalty-fee-waiver-flat-2096571

Over 4,900 HDB BTO flats launched, including in Queenstown, Jurong East for the
first time in about a decade
A total of 4,989 Build-To-Order (BTO) flats across seven housing projects in five estates were
launched for sale by the Housing Board (HDB) on Aug 11.
This was the third sales exercise for the year, with a median waiting time of just over four years
for flats to be completed.
A highly anticipated BTO project is Queen's Arc in Queenstown - one of the most sought-after
mature housing estates in Singapore's oldest town - where 610 three-room and four-room flats are
on offer across two blocks.
For the first time in 10 years, the non-mature estate of Jurong East will get its first new flats.
A total of 569 two-room flexi, three-room and four-room flats are on offer at Toh Guan Grove,
which sits near the upcoming Toh Guan MRT station on the Jurong Region Line.
In the current August launch, there are two BTO projects in the mature estate of Tampines.
The bigger project is Tampines GreenQuartz, where 1,613 two-room flexi, three-room, four-room
and five-room units are on offer on a site close to Tampines West MRT station on the Downtown
Line.
The smaller project is Tampines GreenJade, where 546 four- and five-room units are on offer, on
a land parcel next to Bedok canal that overlooks Bedok Reservoir.
The smallest BTO project in this launch is Towner Residences in the mature estate of
Kallang/Whampoa.
A total of 316 three- and four-room flats are on offer on a site along Towner Road, next to the
Central Expressway.
The project includes a block of rental flats.
There are two BTO projects available in the non-mature estate of Hougang.
The smaller project is Kovan Wellspring with 586 two-room flexi, three-room and four-room units
on offer. It will be integrated with the new Paya Lebar Kovan Community Club.
It is located on a site next to Heartland Mall and Kovan MRT station on the North-East Line.
In November, 4,400 flats will be offered in towns such as Choa Chu Kang, Hougang, Jurong West,
Kallang/Whampoa and Tengah.
Another 2,000 to 3,000 flats will be offered in towns such as Geylang, Tengah and Yishun in
February next year.

Links to the story:
https://www.straitstimes.com/singapore/housing/over-4900-hdb-bto-flats-launched-including-in-queenstown-jurong-
east-for-the-first
https://www.businesstimes.com.sg/real-estate/over-4900-hdb-bto-flats-launched-across-five-estates

Weekly News Select
Aug 13, 2021 / Issue 32

Singapore condo resale volumes rebound in July, up 22.5%
Singapore condominium resale volumes rebounded in July after falling for two consecutive
months. Overall prices, meanwhile, continued to climb, according to flash figures from a real estate
portal.
Gains in overall resale volumes and prices were driven by demand for condos in the suburban or
outside of central region (OCR). The OCR had contributed to more than half (58 per cent) of
volumes; prices meanwhile, were up 1.6 per cent, the highest increase among the different regions.
The other regions are the rest of central region (RCR) and core central region (CCR), which rose
0.3 per cent and 0.1 per cent, respectively. Year on year, the OCR, RCR and CCR advanced 7.7
per cent, 8.3 per cent and 8.2 per cent, respectively.
Year on year, resale volumes were 68.2 per cent higher, and 83 per cent higher than the five-year
average volumes for the month of July. By region, 24 per cent of resale volume was from the RCR
and 17.9 per cent was from the CCR.
The bump in volumes may also be due to buyers rushing to complete deals before tighter
restrictions kick in, said Huttons Asia chief executive Mark Yip. He added that more buyers are
also seeking more affordable options in the market.

Links to the story:
https://www.businesstimes.com.sg/real-estate/singapore-condo-resale-volumes-rebound-in-july-up-225-srx-0
https://www.straitstimes.com/business/property/condo-resale-prices-up-1-volume-up-by-225-in-july-srx?login=true

HDB rents rise for 13th straight month in July; condo rents unchanged
Rents for private apartments remained flat last month compared with June, while those for Housing
Board flats continued to climb, according to flash data from a real estate portal.
More condominium units and HDB flats were leased last month compared with June.
Condo rents were unchanged last month after rising for six consecutive months. Year on year,
rents were up 7.6 per cent from July last year, although still down 10.9 per cent from their peak in
January 2013.
On the other hand, rents for HDB flats rose for the 13th consecutive month in July, up by 0.6 per
cent over June.
Huttons Asia chief executive Mark Yip said tenants may have chosen to shift to non-mature estates,
where rents are more affordable, to lower costs while waiting for their flats to be completed.
Analysts said the private and HDB rental markets are expected to grow in the coming months as
Singapore gradually eases Covid-19 restrictions in line with the high vaccination coverage within
the population.

Link to the story:
https://www.straitstimes.com/business/property/hdb-rents-rise-for-13th-straight-month-in-july-condo-rents-
unchanged-srx

Weekly News Select
                                                                                                Aug 13, 2021 / Issue 32

Commercial
UK scale-up platform Tech Nation sets foot in South-east Asia
Tech Nation has spent a decade helping startups such as Deliveroo and Skyscanner expand their
operations across the UK.
But as the need for companies to go international grows, the UK-based organisation has chosen
Singapore to base its first overseas office and be a springboard into South-east Asia.
This comes hot on the heels of the UK government's £8 million (S$15.1 million) Digital Trade
Network initiative in the Asia-Pacific, aimed at turning the UK into a global tech powerhouse.

Link to the story:
https://www.businesstimes.com.sg/garage/uk-scale-up-platform-tech-nation-sets-foot-in-south-east-asia

Retail
Italy's Pineider 1774 pens writing resurgence with its first Asia store in the little red
dot
Italian heritage brand Pineider 1774 is witnessing a resurgence in handwritten letter-writing during
the Covid-19 pandemic as people reconnect with loved ones and friends through the more intimate
form of communication, and it is ready to embark on a global expansion, starting with Asia and a
new boutique in Singapore.
The made-in-Italy luxury lifestyle brand, which specialises in fine bespoke stationery, writing
instruments and leather goods, has opened its first Asia store in Singapore at Marina Bay Sands
on July 28.
The company has also launched a local e-commerce shop to complement and fully integrate with
its physical store in Singapore, where customers include collectors and people who appreciate the
craftsmanship and artisanal creations.
Pineider will carry a special limited edition of fine paper designed exclusively for MBS, featuring
some of the distinctive landmarks of Singapore.
It will also be bringing in a limited edition set of three pens - there are only 300 sets globally -
inspired by French-born American artist Arman.

Link to the story:
https://www.businesstimes.com.sg/consumer/italys-pineider-1774-pens-writing-resurgence-with-its-first-asia-store-
in-the-little-red

Government
'Real progress' for lower-wage workers is essential part of inclusive growth: PM Lee
The ongoing Covid-19 pandemic has strained a number of fault lines in Singapore society, as well
as brought up "difficult issues" that need to be dealt with, said Prime Minister Lee Hsien Loong.

                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
                                                                                               Aug 13, 2021 / Issue 32

In his annual National Day Message, taped at the Botanic Gardens and broadcast on Aug 8 evening,
he cited three of these issues - the need to support lower-wage workers, how to address anxieties
over foreign work-pass holders, and managing issues of race and religion carefully.
On the first point, Mr Lee said that "real progress" for lower-wage workers is an essential part of
inclusive growth in the country.
He noted that lower-wage workers, like all Singaporeans and their families, have "good and
affordable" healthcare, housing and education.
The government has given them more help in this crisis, given that they have found it harder to
cope with reduced incomes and unexpected job losses, as they have less savings to serve as a
buffer.
Turning to the issue of foreigners, Mr Lee reiterated that work-pass holders help expand the
economy and create more opportunities for Singaporean workers. When the local workforce is
complemented with skills from around the world, more companies will invest in Singapore and
this, in turn, creates more jobs for Singaporeans, said Mr Lee.
While work-pass holders can reinforce a team in a company, they may also compete directly with
their local colleagues, said Mr Lee, noting that locals may at times feel unfairly treated when they
lose out on getting a job or a promotion.
Outside of work, Mr Lee said that there are occasional social frictions as some work-pass holders
and their families have not fully adapted to our social norms, nor fully integrated into Singapore's
society.
On the issue of race and religion, Mr Lee recalled how a number of racist incidents in Singapore
in recent months gained wide publicity and were amplified by social media.
Mr Lee said it is useful to air and acknowledge such sensitive issues, and to do this in a candid and
respectful manner, given that it took several generations of sustained effort to bring Singapore's
races and religions together.
He said this harmony was the fruit of mutual understanding and compromise by all parties, and
that Singapore must not lightly give up this hard-won and delicate balance.
He rounded off his message with the point that while new crises will test Singapore’s resolve and
unity from time to time, Covid-19 has shown that the nation can face them with grit and
determination.

Link to the story:
https://www.businesstimes.com.sg/government-economy/real-progress-for-lower-wage-workers-is-essential-part-of-
inclusive-growth-pm-lee
https://www.straitstimes.com/singapore/politics/spore-preparing-to-reopen-economy-but-cannot-take-social-
cohesion-for-granted-pm
https://www.straitstimes.com/singapore/politics/anxieties-over-foreign-work-pass-holders-being-addressed-
singapore-cannot-turn

Singapore in 'more resilient position' due to higher vaccination rate, says PM Lee
There are some areas where the Singapore government "could have done better" when dealing
with the Covid-19 pandemic, said Prime Minister Lee Hsien Loong in his annual National Day
Message.
He noted how many Singaporeans were "disappointed" when the authorities had to tighten
restrictions again last month, after the discovery of a major cluster of cases at the Jurong Fishery
Port.

               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
Aug 13, 2021 / Issue 32

"Many Singaporeans were disappointed at this turn of events. It felt like a setback after all the
progress we had made. But our goal was always to protect both lives and livelihoods."
The prime minister stressed that the government has tried its best to strike this difficult balance
through a combination of public health measures, social discipline, and financial support for
families, workers and businesses.
Among the elderly, more than 85 per cent have received at least one dose, and Mr Lee said a higher
proportion of the population is now better protected.
"We are in a more resilient position. We can now look forward to a careful, step-by-step re-opening
of our economy. This is how we can move into the new normal," he said.

Link to the story:
https://www.businesstimes.com.sg/government-economy/singapore-in-more-resilient-position-due-to-higher-
vaccination-rate-says-pm-lee

A day after National Day, Singapore begins road to normalcy with 'vaccination
differentiated' approach
Singapore starts down the road to normalcy with a "vaccination differentiated" strategy from Aug
10 when activities such as dining-in will be allowed for vaccinated people in up to groups of five,
the government's multi-ministry taskforce on Covid-19 announced.
The start date is more than a week ahead of the original plan to resume dining-in and other higher-
risk activities on Aug 19, after the end of the current Phase 2 (Heightened Alert).
Unvaccinated children aged 12 and below can be included in a group of five if they are from the
same household. Everyone, regardless of vaccination status, can dine in at hawker centres and
coffee shops from Aug 10, but only in groups of two.
Several other restrictions will also be eased on Aug 10 - the cap on group sizes for social gatherings
increased from two to five, while households will be allowed to receive up to five distinct visitors
per day.
As of Aug 10, the government's definition of a vaccinated person refers to anyone who has taken
Covid-19 vaccines under the World Health Organization's emergency use list.
This means that all those who have taken both doses of the Sinovac, Sinopharm and AstraZeneca
vaccines will also be eligible for the vaccination-differentiated safe management measures, after
two weeks have passed from their second jab.
As of Aug 5, 78 per cent of Singapore's population have received at least one dose of a vaccine
under the national inoculation programme. Two-thirds have received two doses.
Meanwhile, restrictions relating to higher-risk activities including high-intensity sports with masks
off, personal care services, and larger events like marriage and solemnisation and worship services,
will also be eased for vaccinated persons.
Unvaccinated individuals with a valid negative pre-event test result or recovered individuals may
also join in such groups of five.
The above measures are part of the first of a four-step transition to becoming a Covid-19 resilient
nation.
This first stage should last for about a month until early September, at which point 80 per cent of
the population is expected to be fully vaccinated.

Weekly News Select
                                                                                                Aug 13, 2021 / Issue 32

Assuming the situation remains under control, limits will be further increased from Aug 19. These
include increasing the capacities for worship services, cinemas, Mice events and live
performances, as well as easing of work-from home requirements.

Link to the story:
https://www.businesstimes.com.sg/government-economy/a-day-after-national-day-singapore-begins-road-to-
normalcy-with-vaccination
https://www.straitstimes.com/singapore/health/spore-to-allow-dining-in-from-aug-10-group-size-cap-eased-to-5-for-
those-fully
https://www.straitstimes.com/singapore/those-vaccinated-with-sinovac-sinopharm-astrazeneca-covishield-and-jj-
shots-will-be
https://www.straitstimes.com/singapore/health/work-pass-holders-dependants-from-higher-risk-places-allowed-to-
enter-spore-from
https://www.straitstimes.com/singapore/workers-in-healthcare-fb-public-sector-must-be-vaccinated-or-do-covid-19-
self-test-from
https://www.straitstimes.com/singapore/health/up-to-half-of-employees-can-return-to-their-workplace-from-aug-19-
moh
https://www.straitstimes.com/singapore/capacity-limits-to-go-up-for-events-such-as-live-performances-cinemas-
and-worship-services
https://www.straitstimes.com/singapore/health/singapore-must-be-prepared-for-more-covid-19-infections-deaths-
with-reopening
https://www.straitstimes.com/singapore/health/healthcare-protocols-will-change-as-spore-shifts-to-living-with-
covid-19-ong-ye

Unvaccinated workers in construction sites must be clearly identified from Aug 16:
BCA
People who have not been vaccinated against Covid-19 will have to wear visual identifiers when
they are at construction worksites from Aug 16, as part of new measures to contain the virus.
The Building and Construction Authority (BCA) said that this requirement will also apply to those
who have not completed their vaccination regime, as well as those whose vaccinations have not
taken effect.
These persons will have to wear a "unique visual identifier" at all times when they are at the
worksite, said BCA in a circular sent to industry associations.
Officers in charge of safety at construction sites will also have to ensure that they check the
vaccination status of a person before they enter the worksite.
They will also have to closely supervise unvaccinated persons at all times when they are on-site,
and ensure they comply with safe management measures.

Links to the story:
https://www.businesstimes.com.sg/government-economy/unvaccinated-workers-in-construction-sites-must-be-
clearly-identified-from-aug-16
https://www.straitstimes.com/singapore/unvaccinated-workers-in-construction-sites-must-be-clearly-identified-
from-aug-16-bca

                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
Aug 13, 2021 / Issue 32

Fully vaccinated travellers from 8 more countries can serve SHN at home from Aug
20: MOH
Fully vaccinated travellers from Australia, Austria, Canada, Germany, Italy, Norway, South Korea
and Switzerland will be allowed to serve their 14-day stay-home notice (SHN) at their own places
of residence instead of a dedicated facility from 11.59pm on Aug 20.
This list will be updated from time to time depending on the public health risk assessment, the
Ministry of Health (MOH) said on Aug 6.
The differentiated measures for vaccinated travellers are part of a review of Singapore's border
restrictions in the light of a high local vaccination rate.

Link to the story:
https://www.straitstimes.com/singapore/health/fully-vaccinated-travellers-from-eight-more-countries-can-serve-shn-
at-home-from

Economy
Economists' forecasts for Singapore's 2021 growth fall within upgraded official range
Economists were unsurprised by the upward revision of Singapore's official full-year growth
forecast, with most of their own maintained forecasts falling within the new 6 to 7 per cent range
announced by the Ministry of Trade and Industry (MTI), up from 4 to 6 per cent previously.
While manufacturing is expected to remain the key driver of growth the rest of this year, the further
easing of domestic controls and selected border reopenings will support sequential recovery too,
said economists. But with the recovery still stabilising, monetary policy is expected to remain on
hold at the next meeting in October.
Gross domestic product (GDP) grew 14.7 per cent year on year in the second quarter, better than
flash estimates of 14.3 per cent and improving upon Q1's 1.5 per cent growth, based on the low
base in the year-ago period.
In absolute terms, however, GDP remained 0.6 per cent below the pre-pandemic level of Q2 2019.
And on a quarter-on-quarter seasonally-adjusted basis, the economy contracted 1.8 per cent in Q2,
reversing from the growth of 3.3 per cent in Q1.
With the latest figures, the economy grew by a better-than-expected 7.7 per cent year on year in
the first half of 2021. The upward revision in Q2 growth, compared to flash estimates, was due to
improved performance by services and construction.
Manufacturing contributed the most to Q2 growth, accounting for 3.7 percentage points or more
than a third of the total rise. The sector's output was up 17.7 per cent year on year, extending the
previous quarter's 11.4 per cent growth, with the largest increases in transport engineering and
precision engineering.
Construction sector output more than doubled on a low base, as most domestic construction
activities had been suspended in the "circuit-breaker" period a year ago. But in absolute terms, the
sector's value-added remained 29 per cent below the Q2 2019 pre-pandemic level.
The low-base effect also allowed for strong growth in retail trade, food and beverage services, real
estate, and transportation and storage. All other sectors saw growth apart from administrative and
support services.

Weekly News Select
                                                                                                Aug 13, 2021 / Issue 32

The upgraded official full-year forecast takes into account the better-than-expected first-half
performance, as well as the latest external and domestic economic developments, said the MTI.
On balance, the recovery in external demand for the rest of the year remains largely on track.
Vaccination rates have picked up in the United States and the eurozone, though South-east Asian
growth is likely to be slower than earlier projected, due to tightened pandemic curbs.

Links to the story:
https://www.businesstimes.com.sg/government-economy/economists-forecasts-for-singapores-2021-growth-fall-
within-upgraded-official
https://www.businesstimes.com.sg/companies-markets/construction-recovery-uneven-amid-manpower-supply-
constraints
https://www.straitstimes.com/business/economy/better-than-expected-q2-gdp-lifts-hopes-of-faster-singapore-
growth-though-delta

Looming high base not expected to deter rebound in Singapore's exports in 2021
Singapore’s export sector handily beat official estimates in the first half of 2021, sparking forecast
upgrades by trade agency Enterprise Singapore (ESG).
With non-oil domestic exports (NODX) now expected to grow by 7 per cent to 8 per cent year on
year for the full year, Singapore is tipped to turn in its best showing since 2017.
The rosy outlook - a significant bump up from the 1 per cent to 3 per cent growth projected for
NODX in May - came as trade forecasts were upgraded for the third time this year, in tandem with
higher full-year gross domestic product (GDP) estimates.
Granted, exports should moderate in the second half of the year, after NODX notched decade-high
growth of 9.9 per cent in the first six months.
Second-quarter trade data showed NODX coming in higher by 10.1 per cent year on year in the
April-to-June period - a pick-up from the 9.7 per cent rise in the first three months.
Exports were lifted by an 8.5 per cent increase in shipments of non-electronics, such as specialised
machinery for semiconductors, petrochemicals and primary chemicals. The electronics cluster,
which made up nearly one-quarter of NODX, posted a fifth straight quarter of growth with a 15.7
per cent increase.
Non-oil re-exports (NORX) - a proxy for the wholesale trade sector - grew by 26.6 per cent year
on year in the second quarter, up from 13.7 per cent in the three months prior.
Overall, merchandise trade jumped by 27.3 per cent year on year - picking up from 4.9 per cent in
the quarter before - as the oil trade returned to growth on higher prices.

Links to the story:
https://www.businesstimes.com.sg/government-economy/looming-high-base-not-expected-to-deter-rebound-in-
singapores-exports-in-2021
https://www.straitstimes.com/business/economy/singapore-ups-trade-forecasts-again-as-q2-non-oil-exports-surge-
by-101

Singapore secured S$3.6b in fixed asset investment commitments in Q2
Investment commitments secured for Singapore in the second quarter of 2021 amounted to S$3.6
billion in fixed asset investment (FAI) and S$1.4 billion in total business expenditure (TBE),
according to the latest Economic Survey of Singapore released.

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Weekly News Select
Aug 13, 2021 / Issue 32

The figures refer to investment commitments garnered by the Singapore Economic Development
Board. When these projects are fully implemented, they are expected to generate S$3.6 billion of
value-added and create more than 5,900 jobs in the coming years.
Manufacturing investments accounted for the largest share of FAI, at S$2.5 billion. Of this,
electronics accounted for S$1.3 billion or 36 per cent of overall FAI, while biomedical
manufacturing accounted for S$603 million or 17 per cent.
Services accounted for 30 per cent of FAI. Within this sector, the research and development cluster
attracted the most, at S$594 million.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-secured-s36b-in-fixed-asset-investment-
commitments-in-q2
https://www.straitstimes.com/business/economy/fixed-asset-investment-commitments-in-singapore-rise-to-36-
billion-in-q2-mti

Singapore is fourth-most expensive market to build in Asia due to skills shortage, high
materials costs: survey
Singapore is the fourth-most expensive Asian construction market to build in, as the industry deals
with a shortage of skilled labour and high materials costs.
Against this backdrop, tender prices here are expected to remain volatile for the rest of 2021, the
latest Construction Market Survey 2021 showed. Tender prices could rise within a range of 10 to
15 per cent, which is higher than its earlier forecast range of 6 to 10 per cent.
In Asia, Singapore ranks behind Tokyo, Hong Kong and Macau in terms of costs to build, with an
average cost of US$2,079 per square metre (sq m) to undertake construction.
Singapore's construction market is the 37th most expensive globally. Tokyo ranks top as the
costliest city to build globally, with an average cost of US$4,001 per sq m to build. This is followed
by Hong Kong at US$3,894 per sq m, and San Francisco at US$3,720 per sq m.

Links to the story:
https://www.businesstimes.com.sg/real-estate/singapore-is-fourth-most-expensive-market-to-build-in-asia-due-to-
skills-shortage-high
https://www.straitstimes.com/business/economy/singapore-is-fourth-most-expensive-market-to-build-in-asia-due-to-
skills-shortage

Business optimism began to dip even before Phase 2 Heightened Alert: survey
The mood among businesses here appears to have been dialled down a notch, even before
Singapore recently implemented tighter Covid-19 measures to control a third wave of infections,
according to a quarterly business climate survey.
In the second quarter, business optimism over business prospects in the next six months dimmed
slightly from the prior quarter, with the net balance in business prospects slipping two points to 27
per cent, the Business Times-Singapore University of Social Sciences (BT-SUSS) Business
Climate Survey has showed.
Still, the net balance in sales saw a 23-point increase to 9 per cent in Q2, following a contraction
in the previous quarter. All firms, except small ones, enjoyed sales growth, the report noted.

Weekly News Select
Aug 13, 2021 / Issue 32

The net balance in profits fell eight points to -14 per cent, and foreign firms were the only group
with profit expansion.
For orders and new business, the net balance saw an increase of 17 points to 3 per cent from the
previous quarter, reflecting a slight expansion from the contraction a quarter ago. Those that posted
an expansion were foreign and large firms.

Link to the story:
https://www.businesstimes.com.sg/government-economy/business-optimism-began-to-dip-even-before-phase-2-
heightened-alert-survey

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

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