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Weekly News Select
Aug 6, 2021 / Issue 31

Top News for the Week
• What is the housing stock needed to maintain stability? 27,000 units, says Huttons
• Property agents tap buyers' FOMO, claim price hikes at slew of condo, EC projects
• Buying activity ticks up at some condo projects ahead of repricing
• Demand for Sentosa Cove bungalows mirrors buzz in luxury housing market
• Singapore property executives flag rising construction costs as top risk
• HDB resale prices rise for 13th straight month in July, though growth pace slows
• MOH bars visits to hospital wards from Aug 5 to Aug 18; some exemptions,
including for new mothers
• S$216m in rent support to be disbursed to over 38,000 tenants, owner-occupiers
• Economists upbeat on Q3 labour outlook despite Q2 setback
• Singapore Purchasing Managers' Index picks up to 51.0 in July on rosy factory
sentiment, but Delta variant hammers regional sector
• Encouraging signs of recovery for Singapore's retail in H2 2021: economists

Residential
What is the housing stock needed to maintain stability? 27,000 units, says Huttons
This topical paper by Huttons analyses the current unsold inventory in the private homes market
and land supply.
Breaking down the unsold inventory by market segment, there were 6,861 unsold units in the Core
Central Region (CCR), 6,708 unsold units in the Rest of Central Region (RCR), and 5,840 unsold
units in the Outside Central Region (OCR).
If the annual new home sales rate from July 2020 to June 2021 is assumed to be the sales rate for
the next 12 months, it will take 1.5 years to sell out the unsold inventory of 19,409 units. The CCR
has seen a strong pick-up in demand since 2019 and needs only 3.5 years to clear out the existing
inventory. The situation is dire in the RCR and OCR where it only needs 1.2 years to sell out all.
Over the period from 2010 to 2020, it has taken between 1.5 and 4.3 years to clear the inventory
of unsold units. On average, it has been around 2.7 years.
At the present moment, the market is not seeing sufficient injection of new supply to maintain a
healthy balance. In 2H2021, an estimated 2,967 units or 495 units per month will be launched for
sale. The average monthly demand in 1H2021 is 1,077 units. Even if sales were to slow to the pre-
circuit breaker level of 700 to 900 units per month for 2H2021, the new supply of 495 units per
month is not enough and the unsold inventory will go down further.
In 2022 and beyond, the estimated new supply is around 6,611 units. This is on a par with the new
home sales in 1H2021, but way below the annual new home sales from 2018 to 2020. Unsold
inventory will be whittled down even more in 2022.
It is evident that the market needs more supply of land. The current level of supply under the GLS
Programme is not sufficient. Interest in the en-bloc market has been lukewarm despite the varied
options available.

Weekly News Select
Aug 6, 2021 / Issue 31

It takes considerably more time to launch a collective sale site as it is not an easy task to persuade
owners to sell. The Government announces a new slate of land parcels for sale once every six
months. In normal circumstances, that will suffice, but not now.
The Government can consider launching a supplementary GLS supply now. It has not been done
this before but it should not be ruled out. After all, supplementary budgets have been announced
during the pandemic.
The RCR and OCR need more attention because the unsold inventory in these two regions will be
totally wiped out in 1.2 years based on the past 12 months’ new home sales rate. For the en bloc
market, more efforts should be channelled towards these two regions as well.
Past experience indicates that it takes an average of 2.7 years to sell out. The average annual new
home sales over the period of 2010 to 2020 was around 12,000 units. The past two years have seen
demand hovering around 10,000 units. Using 10,000 units and 2.7 years, a comfortable buffer of
27,000 units is proposed to maintain price stability in the market.

Link to the story:
https://www.edgeprop.sg/property-news/what-housing-stock-needed-maintain-stability-27000-units-says-huttons#

Property agents tap buyers' FOMO, claim price hikes at slew of condo, EC projects
Real estate salespersons in Singapore have been riding on Pasir Ris 8's wave this week to advertise
increased prices of units at multiple private residential projects, mostly situated in the suburbs and
city fringe.
In social media posts and WhatsApp messages seen by The Business Times (BT), agents are urging
buyers to snap up units before developers move on their apparent plans to raise prices by about 1
to 5 per cent.
But some industry watchers have advised restraint, warning that any resultant "fear of missing out"
(FOMO) among purchasers could easily create froth in the market and potentially even trigger the
need for fresh cooling measures.
Moreover, a few of the developers are simply stopping their early-bird discounts without imposing
outright price hikes; where there have been increases, they are not necessarily significant.
One analyst told BT that he found some of the circulating messages containing details of upcoming
price increases "incredible".
"They are adding to the FOMO among buyers. Homebuyers need to keep a cool and level-headed
approach, as purchasing a home is a long-term commitment," he said.
Huttons Asia chief executive officer (CEO) Mark Yip noted that some of the price increases taking
place now are "normal", as they are for projects that are either at the tail end of their sales phases
or have reached certain milestones, such as the units being 50 per cent or 90 per cent sold.
He described the increases that are averaging 1 to 2 per cent as "mild" and "well within the price
gains seen so far in H1 2021".
Another analyst agreed that developers who had priced their suburban or city-fringe projects
"sensitively" and sold at least half the units are now eyeing 1 to 5 per cent price hikes "on the back
of homebuyer demand".
However, he thinks that the chances of a "mass panic buying" will be low despite the potential
price hikes. "Current measures such as the total debt servicing ratio and additional buyer's stamp
duty are adequate to rein in buying sentiments. We believe buyers who enter the market will do so
sensibly, with a mid- to long-term view and investment horizon," he told BT.

Weekly News Select
                                                                                                  Aug 6, 2021 / Issue 31

Link to the story:
https://www.businesstimes.com.sg/real-estate/property-agents-tap-buyers-fomo-claim-price-hikes-at-slew-of-condo-
ec-projects

Buying activity ticks up at some condo projects ahead of repricing
Market watchers have reported an increase in new sales at some private residential projects over
the past fortnight, before developers implemented their planned price hikes.
When approached by The Business Times (BT), numerous developers declined to comment on the
price increases, while others did not respond as at press time.
Rising land bids, the depleting supply of private homes, and robust interest at Pasir Ris 8's (PR8)
launch on July 24-25 were among the reasons for the higher unit prices.
Huttons Asia CEO Mark Yip told BT: "There was an increase in new home sales in the market last
week with close to 500 units sold."
More than half of those transactions were in the Outside Central Region (OCR). This was driven
by HDB upgraders, due to the large volume of flats that have passed the five-year Minimum
Occupation Period as well as the buoyant HDB resale market, he noted. "This upgrader demand
will drive transactions in the market in H2 2021 and 2022," Mr Yip added.

Link to the story:
https://www.businesstimes.com.sg/real-estate/buying-activity-ticks-up-at-some-condo-projects-ahead-of-repricing

Demand for Sentosa Cove bungalows mirrors buzz in luxury housing market
The buzz in the luxury housing market on mainland Singapore seems to be extending to the Sentosa
Cove bungalow market.
A total of 14 villas have been sold year to date in the waterfront housing district, exceeding the 13
deals for the whole of last year.
The total transacted value so far this year amounts to S$256.4 million, which is 31 per cent higher
than the nearly S$196 million in 2020.
Market watchers note that prices of sea-facing bungalows in Sentosa bought for redevelopment
have appreciated from about S$1,900-plus per square foot on land area for deals entered into late
last year/early this year, to about S$2,500 psf currently.
The buyers in most of these transactions have not lodged caveats and hence the sales are not
captured in the URA Realis caveats data.

Link to the story:
https://www.businesstimes.com.sg/real-estate/demand-for-sentosa-cove-bungalows-mirrors-buzz-in-luxury-housing-
market

Siglap Shopping Centre relaunched for collective sale; price unchanged at S$120m
Siglap Shopping Centre is relaunched for collective sale in view of recent trends of aggressive
bidding for government land sites.
As with its previous effort in late October last year at putting the freehold site up for sale, its guide
price for the 39,635 sq foot land parcel remains at S$120 million - translating to S$1,235 per sq ft

                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 6, 2021 / Issue 31

per plot ratio (psf ppr), factoring in a 7 per cent bonus residential gross floor area for private
outdoor spaces.
The tender for the site, located at 883-903A East Coast Road, will open on Aug 5, and close at
3pm on Sept 1.

Link to the story:
https://www.businesstimes.com.sg/real-estate/siglap-shopping-centre-relaunched-for-collective-sale-price-
unchanged-at-s120m

International Plaza snags 80 per cent mandate to launch biggest mixed-use en bloc
sale bid
International Plaza in Tanjong Pagar is set to embark on its first mixed-use collective sale attempt
that could potentially smash records in terms of unit numbers and value.
The 50-storey leasehold commercial-cum-residential building - one of Singapore's biggest
integrated developments - hit the 80 per cent threshold in July to start the launch of its first
collective sale attempt.
The block built in the 1970s comprises 209 residential apartments, 559 office units, 192 strata
shops, a privately held carpark and a swimming pool on the 36th floor. The property, which is
zoned for commercial use, has a land area of about 0.7ha and 48 years left on the lease.

Link to the story:
https://www.straitstimes.com/business/property/international-plaza-snags-80-per-cent-mandate-to-launch-biggest-
mixed-use-en-bloc

Incentives needed to spur developers, buyers to go for greener homes: NUS poll
Building residential properties that are more environmentally friendly is expected to deliver paltry
returns for real estate developers in Singapore, according to the findings of a survey.
This will make it difficult to incentivise the private sector to strive for higher tiers of the Green
Mark certification, if the costs are not lowered and property buyers remain reluctant to pay higher
prices.
Only 28 per cent of the senior executives saw the upper tiers as "strong" selling points and 2 per
cent viewed them as "very strong" selling points.
About 14 per cent noted that higher Green Mark ratings would be "weak" or "quite weak" selling
points for a residential project. More than half responded with "neutral".
An overwhelming majority of the respondents - 91 per cent - said prospective buyers would only
be willing to pay a meagre 0-5 per cent premium for residential projects awarded Green Mark Gold
or higher, compared with those with just the minimum certification.
However, it would cost 11-20 per cent more to build a Green Mark Gold or higher-rated
development based on current rates, according to more than half of those surveyed.
Tax and monetary incentives could help offset the greater outlay in making homes greener, a
quarter of the respondents suggested.
About four in 10 also recommended that developments with better ratings could be awarded bonus
GFAs or higher plot ratios, as an indirect incentive.

Weekly News Select
Aug 6, 2021 / Issue 31

Link to the story:
https://www.businesstimes.com.sg/real-estate/incentives-needed-to-spur-developers-buyers-to-go-for-greener-
homes-nus-poll

Singapore property executives flag rising construction costs as top risk
Rising costs of construction is the top potential risk factor that may temper sentiment in the next
six months, a poll among senior executives of real-estate firms has found.
The study's composite sentiment index, a derived indicator for overall real-estate market sentiment,
fell for the first time in Q2 after four consecutive quarters of upward movement.
On a 10-point scale, the composite sentiment index came in at 6.7 for Q2 from 6.8 in Q1. Despite
the slight drop, the index stayed above 5, which shows that overall sentiment on both current and
future conditions remained positive.
Increasing construction costs were flagged by 87 per cent of respondents as the biggest potential
risk to adversely impact market sentiment in the next six months. Next was rising inflation and
interest rates, which was highlighted by 63 per cent of respondents.
Concerns of possible government intervention to cool the market remained a concern for 62.5 per
cent of those polled, although there were fewer executives who felt it would be a potential risk for
the six months ahead.
When it comes to future launches and sales, more than half (54 per cent) of developers surveyed
in Q2 expect "moderately or substantially" more units to be launched in the next six months.
Nearly two-thirds (63 per cent) project prices of new launches to be moderately or substantially
higher in the next six months.
More than two-thirds (69.6 per cent) of those surveyed also expect interest in government land
sales and en bloc exercises to rise.

Link to the story:
https://www.businesstimes.com.sg/real-estate/singapore-property-executives-flag-rising-construction-costs-as-top-
risk

42 firms granted reprieve from Qualifying Certificate rules since February last year
Forty two companies have been exempted from the Qualifying Certificate (QC) regime since the
new framework was first introduced in February last year, while the latest refinements to the
criteria for exemption could allow for some additional firms to qualify as well.
Companies exempted (as at June 28, 2021) include listed developers such as CapitaLand, Oxley
Holdings, Roxy-Pacific Holdings, Heeton Holdings and Koh Brothers.
Meanwhile, following feedback, further tweaks to the criteria for exemption were announced on
June 29, 2021, by the Ministry of Law (MinLaw) and the Singapore Land Authority (SLA).
In response to queries from The Business Times, a spokesperson for MinLaw said that the Ministry
and SLA are processing applications under the adjusted exemption criteria.

Link to the story:
https://www.businesstimes.com.sg/real-estate/42-firms-granted-reprieve-from-qualifying-certificate-rules-since-
february-last-year

Weekly News Select
Aug 6, 2021 / Issue 31

HDB resale prices rise for 13th straight month in July, though growth pace slows
Demand for Housing Board resale flats remained strong in July, with prices continuing to climb
and more flats changing hands despite tightened Covid-19 measures in the second half of the
month.
HDB resale prices rose for the 13th straight month, advancing 0.5 per cent in July compared with
June, according to flash data from a real estate portal.
However, the pace of price gains slowed for the second month, which could be an indication of
price resistance from buyers, said Huttons Asia's senior director of research, Lee Sze Teck.
Year on year, resale prices increased 13.2 per cent from July last year and are just 1.2 per cent off
their peak in April 2013.
Huttons' Mr Lee noted that the number of flats older than 45 years transacted last month was
around 51 per cent higher than a year ago.
Additionally, about 75 per cent of the transactions last month - or 144 units - were three-room
flats, he added.
"It could be empty nesters rightsizing to suit their retirement needs," said Mr Lee.

Links to the story:
https://www.businesstimes.com.sg/real-estate/hdb-resale-prices-rise-for-13th-straight-month-in-july-though-growth-
pace-slows
https://www.straitstimes.com/singapore/housing/hdb-resale-prices-rise-for-13th-straight-month-in-july-though-
growth-pace-slows
https://www.todayonline.com/singapore/hdb-resale-prices-rose-05-cent-july-lowest-monthly-rise-12-months-srx-
data

Top property agents bag lion's share of HDB resale transactions
New entrants in Singapore's real estate agency scene may face "significant barriers" in improving
their sales, especially in mature HDB towns, as a small proportion of the industry dominates the
market.
Last year's highest ranked agents, based on sales volume, closed disproportionately more deals
than their peers, going by data from the Council for Estate Agencies (CEA).
This comes partly as buyers and sellers tend to favour salespersons with established track records,
compared to untested newcomers starting with a blank slate.
The top 1,000 salespersons in the HDB resale market brokered nearly half of the 32,394
transactions that were facilitated by agents last year.
Moreover, about 57 per cent of the resale transactions involved brokers who closed at least six
sales during the year. The top six agents closed more than 100 deals each in 2020.

Link to the story:
https://www.businesstimes.com.sg/real-estate/top-property-agents-bag-lions-share-of-hdb-resale-transactions

Five-room Bishan HDB flat sold for record $1.295 million
A five-room Housing Board flat in Bishan has changed hands for a record $1.295 million this
month, smashing the previous high of $1.268 million lodged just last month.

Weekly News Select
Aug 6, 2021 / Issue 31

The 120 sq m unit at Block 273A Bishan Street 24 in a Design, Build and Sell Scheme (DBSS)
project called Natura Loft was sold just three weeks after it was put up for sale.
The unit, which is in a 40-storey block, is now the most expensive HDB resale unit to change
hands. The unit sits above level 35 - sellers declined to share exact floor - and has about 89 years
left on its lease.

Link to the story:
https://www.straitstimes.com/singapore/housing/five-room-hdb-dbss-flat-in-bishan-sold-for-record-1295-million-
three-weeks-after

My first BTO flat — a home to sink roots and build a family or a money spinner
Recent conversations with friends have made TODAY correspondent Ng Jun Sen question
whether he is being too dewy-eyed about his Build-To-Order flat and if he should instead view it
as nothing more than a financial investment.
Many of my peers who are also applying for a BTO unit or have already booked one seem to have
this more dispassionate view: They believe it is a no-brainer that one should sell a BTO unit as
soon as possible, while it is still relatively new, so as to reap sizable profits.
Mr Lee Sze Teck, senior director and head of research at real estate group Huttons, said that unlike
in the private housing market, where newer units are generally more expensive than older ones,
HDB flats work in the opposite way because they are heavily subsidised at launch.
A new BTO flat could be priced roughly 20 per cent lower than similar resale flats nearby, he said,
citing his agency’s data.
In the most recent BTO launch last November, for example, a new four-room unit in Toa Payoh
excluding grants cost S$466,000. The median price of a four-room flat in Toa Payoh on the resale
market during that same period was S$566,000.
Proponents of the BTO-and-flip strategy argue that it is rational for citizens to take a proverbial
bite of the cherry. Doing otherwise would mean leaving money on the table that could be used to
upgrade to a bigger and better home.
There are, of course, practical reasons to sell a flat. For example, the arrival of a new child that
necessitates a move to a bigger space or the need to live near an ageing parent.
Statistically, there is some evidence to show that younger people are changing addresses more
often than past generations, too.
A paper published by the Department of Statistics in 2006 found that between 1995 and 2005, 69
per cent of younger households changed their residence, compared with fewer than 40 per cent
among those aged 50 and above.
One analyst warned that the profit-seeking mindset, if it becomes prevalent, could have long-term
repercussions. If most HDB owners look to flip their first homes as soon as possible, and there are
too few long-term owner-occupiers, it could throw the whole market off balance and prices could
come crashing down.
Such housing bubbles could also pose a threat to the overall economy, as the world has learnt from
the financial crises of the past two decades.
Another possible long-term effect, analysts said, is that housing prices keep climbing because of
speculative behaviour, which means people would have to spend bigger proportions of their
savings on their homes, leaving less for everything else, especially if incomes do not keep pace.

Weekly News Select
Aug 6, 2021 / Issue 31

One key lesson I’ve taken away from talking to the analysts is that the housing market may seem
very rosy now for resellers, but as with all markets, prices can and do fluctuate.
Mr Lee from Huttons said the truth is that no one really knows how the HDB resale market will
perform in the future.
“The free market is not within anyone’s control, though sometimes the invisible hand of
government policies does affect prices. But by and large, the market will come to an equilibrium
and decide how much assets should be priced,” he said.

Link to the story:
https://www.todayonline.com/singapore/adulting-101-my-first-bto-flat-home-to-sink-roots-build-family-or-money-
spinner

800 more interim rental flats under HDB scheme but qualifying household income
capped at $7,000
An additional 800 interim rental Housing Board flats will be set aside for families waiting for their
Build-To-Order (BTO) flats to be completed, including those facing construction delays, but there
will be stricter eligibility criteria for those wishing to apply for these units.
To apply for a unit under the Parenthood Provisional Housing Scheme (PPHS) from Aug 4
onwards, the household combined monthly income cannot be more than $7,000, said the HDB.
The income reflected at the point of sale application for the BTO flat will be the basis for
consideration, said HDB. Households whose incomes have fallen to $7,000 and below since their
sales application may contact HDB directly.
The household income ceiling is to ensure that the flats, which are highly subsidised, are allocated
to those who are less able to afford renting a flat on the open market, said HDB.

Link to the story:
https://www.straitstimes.com/singapore/housing/800-more-interim-rental-flats-under-hdb-scheme-but-qualifying-
household-income

Commercial
Three strata units in GB Building sold for S$52m
Three strata-titled commercial units in GB Building at 143 Cecil Street have been transacted for a
total of S$52.06 million.
The transaction involves a total strata area of 31,086 sq ft comprising the retail podium on the first
and second levels (13,067 sq ft) and two full-floor office units: the third level (12,594 sq ft) and
eighth level (5,425 sq ft)
GB Building is on a site with 99-year leasehold tenure starting October 1982, leaving a balance
term of slightly over 60 years.
The space on the first and second levels is being sold for S$25.48 million or S$1,950 per sq ft on
strata area. The third level office space is changing hands at S$18 million or S$1,429 psf and the
eighth floor office space, at S$8.58 million or S$1,582 psf.

Weekly News Select
Aug 6, 2021 / Issue 31

All the above space is being sold by a company in receivership; its sole shareholder is Singapore
citizen Rajesh Bothra.
The space is being bought by three entities whose sole shareholder is Dia-Globe (Singapore),
whose principal business is the wholesale of jewellery made from precious metals and stones.

Link to the story:
https://www.businesstimes.com.sg/real-estate/three-strata-units-in-gb-building-sold-for-s52m

Government
MOH bars visits to hospital wards from Aug 5 to Aug 18; some exemptions, including
for new mothers
Visits to hospital wards will not be allowed from Aug 5 to Aug 18, to reduce potential transmission
of Covid-19 there.
The move comes after the Ministry of Health (MOH) detected more community cases recently,
including staff and patients of hospitals. Covid-19 clusters have emerged at Changi General
Hospital and Yishun Community Hospital.
In a statement, MOH said four patient groups will be exempted from this rule on a conditional and
case-by-case basis.
They include patients who are very ill, patients who are babies or children, as well as mothers who
are due to give birth or have delivered.
Patients requiring additional care support from caregivers will be exempted as well from the no-
visit rule.

Link to the story:
https://www.straitstimes.com/singapore/moh-bars-visits-to-hospital-wards-from-aug-5-to-aug-18-some-exemptions-
including-for-new

S$216m in rent support to be disbursed to over 38,000 tenants, owner-occupiers
Over 38,400 tenants and owner-occupiers will get their first Rental Support Scheme (RSS) payouts
directly from the government, without going through landlords, from Aug 6.
The first round of payouts totals S$216 million and comes ahead of schedule by two weeks, the
Inland Revenue Authority of Singapore (Iras) and Ministry of Finance (MOF) said in a joint press
statement.
Eligible tenants and owner-occupiers with PayNow or existing GIRO arrangements with Iras can
expect to receive the RSS cash payouts from Aug 6. Those without will receive their cheques by
Aug 20.
A second disbursement of RSS cash payouts of half a month's rent for qualifying tenants and
owner-occupiers of privately-owned commercial properties will take place in October 2021.

Links to the story:
https://www.businesstimes.com.sg/government-economy/s216m-in-rent-support-to-be-disbursed-to-over-38000-
tenants-owner-occupiers

Weekly News Select
                                                                                                  Aug 6, 2021 / Issue 31

https://www.straitstimes.com/singapore/over-38400-tenants-and-owner-occupiers-to-get-direct-rental-payout-from-
friday

Ensuring accessibility to all key to keeping public housing inclusive: Indranee
With the housing market reflecting growing income inequality here, Singapore needs to think more
deeply about how to keep public housing inclusive and accessible to all, said Second Minister for
National Development Indranee Rajah on Aug 5.
She also said that the Ethnic Integration Policy (EIP) remains important for ensuring that
neighbourhoods remain diverse, another aspect of inclusivity and diversity in public housing that
she touched on.
Addressing property agents at the Huttons Annual Congress at Huttons’ office in Bishan, she said
the issue of growing income inequality and its impact on housing will become even more pertinent
when public housing in prime locations is launched.
"With economic development, we have seen strong economic and social forces that lead to people
concentrating in certain estates based on socio-economic status," she observed.
Ms Indranee, who is also Minister in the Prime Minister's Office, said the Government is looking
at measures to ensure that public housing estates in prime locations - such as those being built in
the Greater Southern Waterfront area - stay inclusive over time.
Today, nearly one out of every three Housing Board blocks has reached at least one of the EIP
limits, she said. This is seen across all ethnic groups, in both mature and younger estates. "What
this tells us is that integration is still a work in progress, although we have done well so far."
Even so, the Government is not blind to its costs - such as the difficulties that members of minority
races may face when selling their flats. That is why the HDB has exercised flexibility to waive the
EIP limit in exceptional circumstances, she said, adding that work is ongoing to see how the
adverse impacts of this policy can be resolved.
She also urged Singaporeans looking to buy property to exercise financial prudence, especially
given the uncertain economic climate, and urged property agents to provide balanced and sound
advice so that clients can make informed decisions and buy within their means.

Link to the story:
https://www.straitstimes.com/singapore/housing/eip-ensuring-accessibility-to-all-key-to-keeping-public-housing-
inclusive-indranee

Travellers from Taiwan need not serve SHN from Aug 7 if they test negative for
Covid-19 on arrival: MOH
Travellers entering Singapore from Taiwan will not have to serve stay-home notice (SHN) from
11.59pm on Aug 7, provided they test negative for Covid-19 upon arrival.
Those who were in Taiwan for at least 21 days before leaving for Singapore will take a polymerase
chain reaction (PCR) test when they arrive, the Ministry of Health (MOH) said. They can go about
their activities if they test negative.
This includes short-term visitors, who can now also apply for an Air Travel Pass for entry into
Singapore on or after Aug 12.

                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 6, 2021 / Issue 31

Link to the story:
https://www.straitstimes.com/singapore/health/travellers-from-taiwan-need-not-serve-shn-from-aug-7-if-they-test-
negative-on

MOH apologises for slow conveyance in quarantine orders
The Ministry of Health (MOH) has ramped up quarantine operations to handle the increased load
brought about by the outbreak of the KTV and Jurong Fishery Port with most of the backlog
cleared over the weekend, a spokesperson told The Business Times (BT).
"This surge has led to slower conveyance to government quarantine facilities and communications
gaps for some persons under quarantine," said a MOH spokesperson. "We apologise to these
individuals and their families for delays and lapses."
As of July, the mean time to issue the quarantine order from notification of case was two days and
the longest time interval was 14 days, said the ministry in a written response to parliament
questions. The fortnight period was for a "small number" of individuals, where it was particularly
difficult to trace the contacts of the infected, it said.
As of Aug 1, over 10,000 persons under quarantine are quarantined at home. MOH added that
individuals allowed to serve home quarantine can also request to go to a government quarantine
facility if this fits their circumstances better.

Links to the story:
https://www.businesstimes.com.sg/government-economy/moh-apologises-for-slow-conveyance-in-quarantine-orders
https://www.straitstimes.com/singapore/health/moh-apologises-for-delays-lapses-in-issuing-of-quarantine-orders

Lower-income S'pore households affected by Covid-19 to get more financial support
Lower-income households that have been directly affected by Covid-19 can now get additional
financial support from a fund to help them cope with the protracted pandemic which has impacted
many livelihoods.
More households are also expected to qualify for payouts, with the easing of the eligibility criteria
to assess their current income instead of the income prior to being affected by Covid-19.
These changes to The Courage Fund took effect on Aug 1, said the Ministry of Social and Family
Development (MSF) and the National Council of Social Service (NCSS).

Link to the story:
https://www.straitstimes.com/singapore/lower-income-households-affected-by-covid-19-to-get-more-financial-
support

Economy
Economists upbeat on Q3 labour outlook despite Q2 setback
Though tighter Covid-19 curbs took a toll on Singapore's total employment in the second quarter,
the labour situation is expected to improve in Q3, said economists, who were responding to
Ministry of Manpower (MOM) flash figures.

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Weekly News Select
Aug 6, 2021 / Issue 31

However, this assumes that heightened measures and border controls are eased in the coming
months.
Total employment rose in Q1 after a year of decline in 2020, but fell in Q2 by 15,700, as a slower
rise in resident employment only partly offset a continued fall in non-resident employment.
MOM attributed the slower resident employment growth to declines in domestically-oriented
sectors hit by Phase 2 (Heightened Alert) measures, such as food and beverage services and retail
trade.
In contrast, resident employment continued to grow steadily in outward-oriented sectors such as
information and communications; professional services; and community, social and personal
services.
Non-resident employment declined more sharply across most sectors, as departing workers were
not replaced due to border restrictions. Employment levels in the construction industry, which has
been notably affected by entry curbs, fell by 5,200.
Though employment was down, unemployment rates continued to improve. Overall
unemployment fell to 2.7 per cent, from 2.8 per cent before.
Resident unemployment fell to 3.7 per cent, from 3.8 per cent before, while citizen unemployment
fell to 3.8 per cent, from 4 per cent before.
In June, there were 86,600 unemployed residents, down from 95,500 in March.
While retrenchments rose in Q2, the incidence was comparable to pre-Covid levels. About 2,500
retrenchments are expected to have happened in Q2, up from 2,270 in Q1.

Links to the story:
https://www.businesstimes.com.sg/government-economy/economists-upbeat-on-q3-labour-outlook-despite-q2-
setback
https://www.straitstimes.com/singapore/jobs/singapores-overall-employment-down-in-q2-due-to-heightened-
restrictions-but
https://www.straitstimes.com/singapore/jobs/labour-market-recovery-in-spore-could-be-hit-by-heightened-
restrictions-delta-variant

Singapore Purchasing Managers' Index picks up to 51.0 in July on rosy factory
sentiment, but Delta variant hammers regional sector
Singapore’s factory sector is at its most positive level in two and a half years, as a monthly
sentiment gauge reflected faster growth in July.
The Purchasing Managers' Index (PMI) reading picked up to 51.0 points for the month, from 50.8
in June, the Singapore Institute of Purchasing and Materials Management (SIPMM) announced.
This is the highest overall score since December 2018.
Meanwhile, the PMI for Singapore's linchpin electronics industry rose by 0.2 point to 50.8, for its
12th straight month of growth. Readings above 50 indicate an expansion, while those below 50
represent a contraction.
Headline PMI was buoyed by faster expansion in new orders, new exports, factory output,
inventory, and employment, though the finished goods index shrank for a fourth month.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-purchasing-managers-index-picks-up-to-510-in-
july-on-rosy-factory

Weekly News Select
                                                                                                  Aug 6, 2021 / Issue 31

https://www.straitstimes.com/business/economy/singapore-manufacturing-activity-beats-expectations-to-expand-
for-13th-straight

Optimism for next six months cools for Singapore's manufacturing sector
Optimism in Singapore's manufacturing sector for the next six months has cooled, while positive
sentiment for the services sector has plateaued, according to quarterly surveys.
In the manufacturing sector, a net weighted balance of 20 per cent of firms anticipate a favourable
business situation for the July to December 2021 period. This was down from 38 per cent in the
previous quarter's survey.
The net weighted balance is the difference between the weighted percentages of positive and
negative responses - 26 per cent and 6 per cent respectively in the survey by the Singapore
Economic Development Board.
The services sector held steady in terms of optimism compared with the previous quarter. Just like
in the second quarter, 20 per cent of firms expect better business conditions in the next six months
while 9 per cent foresee slower business conditions - translating into a net weighted balance of 11
per cent being optimistic, the Department of Statistics survey showed.

Links to the story:
https://www.businesstimes.com.sg/government-economy/optimism-for-next-six-months-cools-for-singapores-
manufacturing-sector
https://www.straitstimes.com/business/economy/singapore-services-manufacturing-firms-stay-optimistic-on-
outlook-surveys-show

June bank lending sees fastest monthly growth since 2018
Singapore bank lending in June logged the fastest monthly growth since March 2018, up 1.5 per
cent to S$703.92 billion as business loans gain further momentum.
Data from the Monetary Authority of Singapore showed that business loans grew at a faster pace
in June, up 1.9 per cent to S$436.76 billion as compared to the 0.2 per cent increase seen in May
and a flattish performance in April.
Consumer loans held steady in June, up 0.7 per cent month on month to S$267.17 billion, and up
5 per cent year on year.
Housing loans, which make up three-quarters of consumer lending, maintained its growth streak
for the 10th straight month, up 0.6 per cent to S$206.29 billion in June. This was faster than the
0.2 per cent growth seen in May.

Links to the story:
https://www.businesstimes.com.sg/banking-finance/june-bank-lending-sees-fastest-monthly-growth-since-2018
https://www.straitstimes.com/business/economy/singapore-bank-lending-sees-fastest-growth-since-2018-up-15-in-
june-mas-data

Singapore ranked joint 4th best economy for how fast start-ups become unicorns
Singapore came in joint fourth in the world for how fast its start-ups turned into unicorns,
according to a global ranking by British price comparison website Money.co.uk.

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Singapore's six unicorns took an average of six years and 11 months to cross US$1 billion (S$1.35
billion) in valuation, according them that status. They include ride-hailing giant Grab and image
recognition technology firm Trax.
China topped the ranking. Its 155 unicorns took an average of just five years and 10 months to
reach the US$1 billion mark.
The second fastest economy for start-ups turning into unicorns is Hong Kong, where they took an
average of six years and one month, followed by Japan with six years and three months.
Singapore shares the fourth spot for fastest time with the United States, which has 378 unicorn
companies, and Australia, with six.

Link to the story:
https://www.straitstimes.com/business/companies-markets/singapore-ranked-4th-among-best-countries-for-unicorn-
start-ups

Encouraging signs of recovery for Singapore's retail in H2 2021: economists
Singapore’s retail sales in June continued to rebound from last year's "circuit breaker", albeit at a
slower pace, but economists see encouraging signs.
Total sales grew 25.8 per cent year on year in June, easing from the 79.9 per cent surge in the
previous month, attributed to base effects from Singapore's partial lockdown last year, said the
Department of Statistics Singapore (SingStat).
The "circuit-breaker" period, which lasted two months in 2020, was in place for the whole of May.
Restrictions began lifting in late June.
On a seasonally-adjusted month-on-month basis, retail sales rose 1.8 per cent in June.
Even so, retail sales value, estimated to be about S$3.3 billion in June, continued to be below pre-
Covid-19 levels, SingStat said.

Links to the story:
https://www.businesstimes.com.sg/government-economy/encouraging-signs-of-recovery-for-singapores-retail-in-h2-
2021-economists
https://www.straitstimes.com/business/economy/singapore-retail-sales-rise-258-in-june-aided-by-low-base-a-year-
ago

Hospitality
Singapore visitor arrivals, hotel takings fall further in June
Singapore’s visitor arrivals continued to fall in June, with hotel performance also declining,
according to Singapore Tourism Board (STB) figures.
There were 10,030 arrivals, down from 14,190 in May - though this was still more than four times
the mere 2,170 visitors a year ago, during even stricter Covid-19 curbs.
With fewer available room nights, hotel room revenue fell to S$64.3 million, down from S$67.9
million in May.
Average occupancy inched up to 53 per cent, from 50 per cent before.

Weekly News Select
                                                                                                                    Aug 6, 2021 / Issue 31

Link to the story:
https://www.businesstimes.com.sg/government-economy/singapore-visitor-arrivals-hotel-takings-fall-further-in-june

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

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