Why Invest In Singapore - December 2018 - platinum-asia
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Why Invest In Singapore
December 2018
00
Table of Contents
1. Macro Overview 11. Digital Economy
2. Singapore: Future City Map 12. Fintech
3. Infrastructure Investment 13. Healthcare
4. Port & Urban Development Investments 14. Singapore’s Future Economy
5. Tourism 15. Industry 4.0
6. Commercial Property Market Outlook 16. Incentives
7. Key Industries and Activities 17. Liveability and Culture
8. Company Highlights 18. Smart Nation
9. Trade Connectivity 19. Singapore Biomedical Science Community
10. Asia’s Wealth Management Hub
1
1
1. Macro Overview
1. Country Profile Exhibit 1: GDP of Singapore
1. Land area: 719.9 sq.km US$b %
2. Population: 5.6 million 500 6
3. GDP in 2017: SGD447.2 billion 5
400
4. 5 years CAGR of GDP (2013-2017): 1.2% 4
300
5. Current Balance (% of GDP in 2017): 18.8 3
6. Unemployment rate in 2018: 2.0% - 2.1% 200
2
7. Exchange rate: US$1 = SGD1.38 100 1
8. Total Trade in 2017: SGD967 billion 0 0
9. Top Five Trading Partners: China, Hong Kong, Malaysia,
Indonesia, United States
GDP GDP Growth Rate YoY
2. Overview
1. Strategically located at the crossroads of international trade routes in Exhibit 2: Foreign Direct Investment in Singapore
the heart of Asia and one of the leading financial institutions in the US$b
world, Singapore offers global investors unparalleled access to global 80 70 70.5 74.2
markets. It is the economic gateway between East and West. 56.1
64.4 63.6
60
2. Singapore remains attractive for businesses due to its tax regime, 49.1
political and macroeconomic stability and pro-business policies 40
coupled with robust and transparent legal framework.
20
3. Singapore’s well diversified economy, well established business
infrastructure and trade connectivity provides an ideal location for 0
investments and business expansion. 2011 2012 2013 2014 2015 2016 2017
4. Singapore is the only country in Asia rated with “AAA” rating. Foreign Direct Investment
Source: Department of Statistics Singapore, World Bank, Ministry of Trade and Industry Singapore, Monetary Authority of Singapore
2
2
2. Singapore: Future City Map
Woodlands Regional Center Punggol Digital District
Singapore’s northern An innovation hub for cyber
Jurong Innovation District Changi Air Hub
gateway, a vibrant live-work- security, IT and digital securities
A next-generation district for play environment hub A vibrant and world class
advanced manufacturing, urban aviation hub
solutions, clean technology and
smart logistics
Jurong Lake District
Singapore’s 2nd CBD
Tuas Mega Port
Consolidating container
operations in one location
Changi Business Park
Jurong Island One – North Orchard Road
The corner stone of A cluster of world class facilities and A vibrant retail and
Singapore’s energy business park spaces for biomedical lifestyle destination
and chemicals sciences, info communication
industry technology and media, physical
sciences and engineering
Source: Ministry of National Development Singapore, Google Map, Business Times 2018, Platinum Research
3
3
3. Infrastructure Investment
1. Airport Exhibit 3: Singapore’s Future MRT Map 2030 and Map of Changi Airport
1. Changi Terminal 5 - Handling capacity of up to 50 million
passengers annually and more than 100 aircraft stands.
Target Completion: 2030
2. Jewel Changi Airport - A mixed-use development features
a hotel, exciting attractions, aviation facilities, retail and
dining offerings. Estimated cost: SGD1.7 billion Future Terminal 5
Target Completion: 2019
2. Transport
1. The East Coast Integrated Depot - A new 36-hectare
SGD3.2 billion depot will be built to house 550 buses and
220 trains for the Thomson-East Coast Line, East-West line
and Downtown line. Target Completion: 2024 Jurong Island
East Coast Integrated
2. Thomson–East Coast Line (TEL) - Spanning 43km, 31 Sentosa Depot
new stations will be added to the existing rail network.
Opening in 5 stages. Target Completion: Phase 1 in 2019 Changi Airport
3. North–South Corridor (NSC) - Spanning 21.5km, NSC is Terminal 1
Singapore's first integrated transport corridor featuring Terminal 2
Terminal 3
cycling trunk routes and continuous bus lanes.
Terminal 4
4. Jurong Region Line (JRL) - A 50km line spanning across Jewel Changi Airport
Singapore. Target Completion: First Phase 2026 Future Terminal 5
5. Circle Line Stage 6 - Spanning 4km, the extension will run
from Marina Bay and ends at Harbour Front.
Target Completion: 2025
Source: Changi Airport Group, Straits Times, Land and Transport Authority, Platinum Research
4
4
4. Port & Urban Development Investments
2022 Jurong Innovation District (JID) 2040 Tuas Mega Port
1. A 6 sq. km innovation district and home Exhibit 4: Future Development Plans In Singapore 1. To be developed in 4 stages.
to several key growth areas which The port will consolidate all port
includes advanced manufacturing, operations in Singapore and
robotics, urban solutions, cleantech and Kranji WRP & NEWater Factory centralize it in Tuas Digital and
art logistics. Cyber-Security Industries
2. Target Completion: 2022
Punggol Digital District Cluster. Tuas, when it’s fully
developed, will be the single
largest fully-automated terminal
Changi in the world* ( according to
North & West Coast East Coast Channel News Asia).
Punggol Digital District
2023 Singapore 2. It will incorporate smart (drones)
1. Size: 0.5 sq. km and green technologies (solar/
2. Digital and Cyber-Security Jurong Innovation DTSS Phase 2 consists of: fully electric vehicles, floating
Industries Cluster District (JID) Jurong Lake District (JLD) Tunnels Link Sewers and platforms) into its operations.
3. Target Completion: 2023 Water Reclamation 3. Potential capacity of about
Pasir Panjang Plant/Outfall
Terminal 65 million TEUs.
Deep Tunnel Sewerage System 4. Target Completion: 2040 (to be
2025 Phase 4 Tanjong Pagar
(Phase 2) Phase 1 Terminal
opened in phases from 2021)
Phase 2
1. Size: 100km of tunnels Phase 3
Exhibit 5: Singapore’s Commercial Port
and sewers Tuas Mega Port
2. Target Completion: 2025
Jurong Lake District (JLD)
2040
1. Set to be Singapore’s 2nd CBD
2. Land Size: 360ha area
3. Target Completion: 2040
Source: Jurong Lake District, Straits Times, Ministry of National Development Singapore, Singapore Budget 2018, Platinum Research 5
5
5. Tourism
Exhibit 6: International Tourist Arrival
1. Overview
1. Almost 80% of Singapore visitors come from Asia.
2.The growth rate has swung between - 4.3% to +20% YoY.
3.10-year (2008-2017) Compounded Annual Growth Rate (CAGR) stood at 5.1%.
2. International Visitor Arrivals (IVA) increased 7.6% YoY to 9.19 million in 1H 2018.
1.Volume from China increased 11.4% to 1.73 million, Indonesia increased 4.8% to
1.54 million and India increased16.5% to 768,620 million*. Combined they
accounted for 44% of total arrivals.
2.In 2017, China, Indonesia and India accounted for the top 3 of IVA and Exhibit 7: Hotel Statistics
contributed 7.5 million visitor arrivals, out of a total of 17.4 million. 10 years ago,
the IVA contribution from these 3 countries stood at 3.8 million.
3. GDP: Direct Contribution - SGD17.7 billion or 4.1% of total GDP in 2017.
Forecast to rise by 3.2% from 2018-2028 to SGD24.9 billion.
4. Total Contribution - SGD43.5 billion or 10.2% of GDP in 2017. It is expected to
increase by 3.6% pa to SGD64.2 billion in 2028.
5. Employment - Total Contribution is forecasted to rise 0.7% in 2018. In 2017- 8.8% of Exhibit 8: Tourism Receipts
total employment or 323,000 jobs in Singapore. SGDb
40
26.8
6. Visitor Export - SGD6.7 billion in Q1 2018. Forecast to grow by 2.2% from 2018-2028. 23.1 23.5 23.6 21.8
24.8
20
7. Investment - 20.9% or SGD20.9 billion of total investment. Forecast to grow by 5%
pa from 2018-2028.
0
2012 2013 2014 2015 2016 2017
Tourism Receipts
* Based on preliminary estimates by Singapore Tourism Board
Source: Singapore Tourism Board, Ministry of Trade and Industry, Platinum Research, World Travel and Tourism Council’s (WTTC)
6
6
6. Commercial Property Market Outlook
Exhibit 9: Indicator of Office Market in Singapore as at Q3 2018
Micro-Market Grade A Office Rent
Inventory Planned &Under
Location Rentals/SF/MO
(sf) Construction (sf)
Marina Bay 9m US$8.31 1,260,000
Raffles Place 7.4m US$7.38 635,000
Shenton Way/Tanjong
4.1m US$7.02 918,000
Pagar
City Hall/Marina Center 4.2m US$6.84 205,000
Orchard 1.9m US$6.81 352,000
Bugis 1.1m US$6.52 566,000
City Fridge* 6.9m US$5.01 306,000
1. Prime rent office rents have risen for 4 consecutive quarters,
since 3Q 2017. Technology, e-commerce, co-working
Suburban* 6.9m US$3.88 534,000
space and relocation to newer office buildings, were the key
Notes: 1) * Refers to all Grades
demand drivers.
2) US$/S$=1.375 as at 18 September 2018
2. The office market was in a down-cycle with market rents
declining by 20% since 2015 on the back of weaker demand.
Exhibit 10: Average Gross Rents of Prime Retail Spaces as of Q3 2018
3. Over the next 12 months, estimated prime office rates will
Location PSF Per Month (US$) see growth of around 8% - 10%, due to sustained demand
Prime Orchard US$25.22 and declining supply. Supply to taper later in 2019, with the
next wave of new supply will only become available in
City Fridge US$15.69
2020/21.
Prime Suburban US$23.04 4. Industries that continue to grow the strongest include IT,
Note: 1) US$/S$=1.375 as at 14 September 2018 fintech, energy, private wealth management and co-working
space operators.
Source: Cushman and Wakefield Q3 2018 Report, Urban Redevelopment Authority
7
7
7. Key Industries and Activities
Industry: Pharmaceuticals & Biotechnology
One - North Biopolis
Occupying 18.5 hectares strategically located near the National University
Hospital, Biopolis hosts the full spectrum of R&D activities pertaining to the life
sciences. Biopolis is home to global leaders like Illumina, Medtronic and
Procter & Gamble. The Asia Medical Technology market is expected to grow
at a CAGR of 8% and is projected to overtake the EU as the second largest
market globally by 2020.
Industry: Chemicals
Jurong Island
Jurong Island, an integrated chemicals hub hosts 100 energy and chemical
companies, with assets totalling over SGD47 billion. Also located on the island
are the Jurong Rock Caverns, Southeast Asia’s first commercial underground
storage facility for liquid hydrocarbons.
Industry: Electronics
Wafer Fab & Advanced Display Parks
There are 4 specialised wafer fabrication parks located in Singapore –
Woodlands, Tampines, Pasir Ris, and North Coast. Collectively, the parks
house some of the world’s top wafer foundries, such as Micron,
GlobalFoundries, UMC, NXP Semiconductors.
Source: Company Data, Platinum Research
8
8
8. Company Highlights
JTC Corporation (JTC) is the lead agency in Singapore to spearhead the planning, promotion and
development of a dynamic industrial landscape
Surbana Jurong Group is a Singapore-based multidisciplinary urban, infrastructure and management
services consultancy firm. With over 50 years of track record in successful project delivery, it is now one of
the largest Asia-based consultancies. Today, it has a workforce of 13,600 employees globally in more than
120 offices across 40 countries.
Ascendas- Singbridge Group, jointly owned by Temasek Holdings and JTC Corporation is a leading
sustainable urban development and business space/ industrial parks solutions provider with a global
portfolio of Assets Under Management exceeding SGD20 billion.
The Group has projects in 42 cities and locations across 11 countries globally, including Australia, China,
India, Indonesia, Singapore, South Korea, United Kingdom and the United States.
Temasek is a global investment company headquartered in Singapore, with SGD308 billion portfolio value
as at March 2018. Its portfolio spans a broad spectrum of industries: financial services,
telecommunications, media & technology, consumer & real estate, transportation & industrials, life
sciences & agribusiness, as well as energy & resources.
GDS is a leading provider of high performance data centre infrastructure and services in key markets
across China. It provides managed IT services, hosting services, and cloud computing infrastructure to
customers with business-critical IT operations.
ST Telemedia is an active investor in the Communications, Media and Technology (CMT) space.
Source: Company Data
9
99. Trade Connectivity
Exhibit 12: Trading Partners
Singapore is a global trading hub for various products across
21 Free Trade Agreement (FTA) / Economic 7 key clusters
Partnership Agreement (EPA) with 32 Trading
Partners 1 MACHINERY & 2 HOUSEHOLD 3 OTHERS
EQUIPTMENT GOODS Metals & Minerals,
Australia Jordan Electronics, Industrial Construction
Pharmaceutical,
China Korea Equipment textiles Materials
Costa Rica New Zealand
4 5 6
TRANSPORT AGRICULTURE
India Panama
EQUIPTMENT MATERIALS GENERAL
Japan Peru Motor Vehicles, Parts Agricultural Raw MERCHANDISE
& Accessories Materials, F&B
United States Taiwan
Corporation Council for Trans-Pacific Strategic 7
the Arab States of the Economic Partnership
Gulf (Bahrain, Kuwait, (Brunei, Chile and New ENERGY
Oman, Qatar, Saudi Zealand) &CHEMICALS
Arabia and UAE)
European Free Trade Association
( Switzerland, Iceland, Liechtenstein and Norway)
Source : Ministry of Trade and Industry
10
1010. Asia’s Wealth Management Hub
1. Singapore is the leading asset management hub for institutional investors to access opportunities across Asia due to its low tax rate, political
and macroeconomic stability.
2. Assets under management (AUM) in Singapore have grown by an average 15% each year over the last five years, reaching US$1.9 trillion
in 2016.
3 International Clients represents 80% of assets under management and administration.
.
Exhibit 14: AUM in Singapore, including discretionary and
2 Sovereign Wealth Funds
advisory assets (in US$ bn) from 2008-2016
US$b
GIC is one of the most active institutional
2000 1783 1815 1898
investors in the alternative space.
1500 1329 1434
1049 1030
AUM: US$390 billion (as at 2017)
1000 860
599
500 Temasek is a key investor in the financial sector. It
holds key stakes in banks including DBS.
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 AUM: US$198 billion (as at 2017)
Source: Monetary Authority of Singapore, Annual Reports, Straits Times 11
1111. Digital Economy
1. Singapore is home to tech giants like Google, Facebook, Linkedln, Lazada and Alibaba Group as well as one of the largest producers of
start-ups in South East Asia.
2. Singapore has many winning factors such as government funding, robust IP environment, infrastructure support and talent, which have
contributed to the growth of digital economy start-ups and attracted the bulk of new capital, bringing the total amount raised since 2015 to
SGD16 billion as at 1H 2018.
3. The digital economy is expected to grow to more than US$200 billion by 2025, based on a study by Temasek and Google.
Exhibit 15: Key Areas In Singapore’s Digital Economy
Internet Of Things (IoT) Artificial Intelligence
Siemens formed a partnership with Singapore government has formed a
Singapore to be the first country to pilot partnership with Microsoft to develop
MindSphere, Siemen’s open-cloud based intelligent chatbots that can deliver a set of
operating system for the IOT. tech based human like customer services.
Dell IoT lab was opened in 2016 in Emma, OCBC Bank’s chatbot for renovation
collaboration with Intel to test proof-of- and home loans, has helped to secure more
concept IoT products. than SGD100 million in home loans.
Data Centers Cybersecurity
Facebook
Group IB, a Russian cyber security firm with
Investment in Singapore: US$1.02 billion
No. of Data Centers: 1 offices in London, New York and Dubai is
opening a global headquarters in Singapore
Google early next year. Its clients includes banks,
Investments In Singapore: US$850 million energy firms and telecom companies.
No. of Data Centers: 3
Source: IMDA, Channel News Asia 12
1212. Fintech
Fintech 4. MAS and the Hong Kong Monetary Authority will jointly develop
1.No. of Fintech Companies in Singapore: 490 the Global Trade Connectivity Network, a cross-border platform
2.Investment in 2017: US$141 million (+68%YoY) for trade finance using blockchain.
3.Key Subsectors: Wealth Management, Alternate Lending, Payments
Growth Target (pa):
4.Most Active Investors: GMO Venture Partners, Wavemaker Partners
4.3% Value Added Growth 2.4% Productivity Growth
Top 3 Highest Funded Fintech Companies in SEA as at May 2018 1,000 net jobs in Fintech
• M-Daq, Singapore – US$98.7 million
• TenX, Singapore – US$80 million Exhibit 16: FinTech Transformation Map Singapore
• KyberNetwork, Singapore – US$60 million FINTECH TALENT BLOCKCHAIN
Upgrade technology skills Pilots for interbank-bank
payments and trade finance
1. The Monetary Authority of Singapore (MAS), has announced robust
incentives for fintech companies which include investments of up to OPEN ARCHITECTURE
INTERNATIONAL
VENTURE CAPITAL
Enhance connectivity through ECOSYSTEM
SGD225 million by end of 2020. APIs FINTECH HUB Deepen and expand Fintech
investment
2. LATTICE80 - Singapore’s first fintech innovation hub (at 100,000 sf). DIGITAL ID &E-KYC ELECTRONIC PAYMENTS
Fintech companies can use for office space, experimentation and Enhance customer experience Improve inter-operability and
and operational efficiency increase adoption
collaboration purposes with VC investors and the financial industry.
3. At the 2018 Budget Singapore Institute of Accredited Tax Professionals
proposed a 10% tax incentive for fintech companies. Upon acceptance of
the pitch, fintech companies will enjoy concessionary tax rates on top of
current support incentives offered by MAS.
Source: Monetary Authority of Singapore, Straits Times, Fintechnews, Platinum Research
13
1313. Healthcare
Pharmaceuticals & Biotechnology Exhibit 18: SGX listed Healthcare - MedTech Companies
1. 8 of the top 10 pharmaceutical companies have facilities in FY17 FY17 FY17
Cur. Cur. FY17
Singapore, manufacturing 4 of the top 10 drugs by global revenue. Total Mkt cap Avg. Avg.
Name Ticker P/E P/B ROE
Assets (SGDm) P/E P/B
2. Over SGD$4 billion in public sector research funding is allocated in (x) (x) (%)
(SGDm) (x) (x)
developing health and biomedical sciences for the next 5 years. Clearbridge Health Ltd CBH SP 69 103 - - 2.48 1.68 (15.03)
3. Singapore is home to more than 60 multinational MedTech Techcomp Holdings Ltd TCH SP 228 0 25.65 - 0.56 - 1.62
companies undertaking a wide range of activities, from product Vicplas International Ltd VPS SP 73 48 18.40 16.07 1.01 0.83 5.51
innovation to manufacturing, research and development. Qt Vascular Ltd QTVC SP 24 23 - 0.55 - 0.59 -
4. SGX currently lists 35 Healthcare stocks and related Trusts with Simple avg 22.02 8.31 1.35 1.03 (2.63)
a combined market cap of over SGD60 billion. Mkt cap wtd avg 18.40 11.04 2.01 1.30 (7.36)
5. Singapore’s government has created some key technology Source: Bloomberg as at 4 December, 2018
initiatives that are directly impacting the medical manufacturing
industry, with programs designed to enhance the state of the art in Exhibit 19: SGX listed IT Stocks Generating Revenue From MedTech
3D printing, robotics (AI), and the industrial internet of things (IoT), FY17 FY17 FY17
FY17
Cur.
to name just a few. Closing Cur. Cur. Avg. FY17
Total Mkt cap Avg. Avg. EV/
Name Ticker price P/E P/B EV/ ROE
6. The Asia Medical Technology market is expected to grow at a Assets (SGDm) P/E P/B EBITDA
(SGD) (x) (x) EBITDA (%)
(SGDm) (x) (x) (x)
CAGR of 8% and is projected to overtake the EU as the second (x)
largest market globally by 2020. Venture Corp VMS SP 3,144 4,421 15.34 11.4 11.7 1.89 1.97 7.18 8.94 18.1
Valuetronics VALUE SP 345 290 0.67 12.3 8.2 1.99 1.53 5.57 3.80 17.2
Memtech Int'l MTEC SP 256 113 0.81 6.6 8.1 0.73 0.68 2.41 3.96 11.9
Cei CEI SP 65 75 0.87 13.6 11.5 2.29 1.91 7.57 5.92 16.5
Trek 2000 Int'l TREK SP 84 27 0.09 7.9 - 1.25 0.46 3.80 - 11.5
Avi-Tech Electronics AVIT SP 55 51 0.30 10.6 12.8 1.54 1.04 6.00 4.46 14.9
Simple avg 10.4 10.5 1.62 1.26 5.42 5.42 15.0
Mkt cap wtd avg 11.3 11.5 1.87 1.89 6.95 8.43 17.8
Source: Bloomberg as at 4 December, 2018
Source: Straits Times, Ministry of Trade and Industry, Economic Development Board Singapore, Economic Development Board Singapore, Platinum Research
14
1414. Singapore’s Future Economy
1. The Singapore Government in February 2017 outlined seven strategies which will shape Singapore’s economic roadmap for the next 5-10
years. To implement and support the growth and transformation of Singapore’s economy for the future, the Future Economy Council
( FEC) has set out 3 key areas of work:
• Grow a vibrant and open economy that is connected to the world, and where Trade Association and Chambers (TACs), unions,
enterprises and individuals come together to harness opportunities.
• Strengthen enterprises through industry-specific transformations to help them grow, innovate and scale up.
• Help Singaporeans acquire and utilise deep skills, seize opportunities in the future economy, and to work towards a resilient and
flexible workforce.
Exhibit 20: The 5 core pillars of Singapore’s future economy
Future Corporate Future Growth Future of Future City Future Jobs
Capabilities and Industries and Connectivity and Skills
Innovation Markets
5 Key Finance Advanced Digital Urban
Healthcare
Sectors Manufacturing Economy Solutions
23 • Energy & Chemicals • Electronics • Security • Land Transport • Professional • Retail
• Precision Engineering • Construction • Logistics • Wholesale Trade Services • Hotels
Industries • Marine & Offshore • Real Estate • Air Transport • Healthcare • ICT and Media • Food
• Cleaning • Sea Transport • Education • Financial Services Manufacturing
• Aerospace
• Food Services
Source: Ministry of Trade and Industry, Singapore Future Economy Council, Platinum Research
15
1515. Industry 4.0
1. Singapore is among the 25 Leading Countries well positioned to benefit from the rise of advanced manufacturing and smart factories Industry
4.0, according to new World Economic Forum Report 2018.
2. The report analysed 100 countries and economies to see how they might benefit from the Fourth Industrial Revolution - or Industry 4.0 - and
the rapid rise of new manufacturing technologies.
3. The government continues to be future-oriented and recently announced the Singapore Smart Industry Readiness Index, a tool to help
industrial companies harness the full potential of the Fourth Industrial Revolution.
Exhibit 21: Map of Readiness Assessment Results 2018 Exhibit 22: Singapore ranked 2nd for Drivers
Drivers of production score (0–10) of Production and 11th for Structure of
Production, and, According to World
Economic Forum Report 2018.
Country Rank
US 1
Singapore 2
Switzerland 3
UK 4
Netherlands 5
Germany 6
Canada 7
Hong Kong 8
Structure of production score (0–10)
Above Image: Credit: Reproduced from World Economic Forum, A.T. Kearney (Figure 2 from the report)
Source: World Economic Forum 2018
16
1616. Incentives
Tax Incentives Double Taxation Agreements Tax Highlights
1.Tax Exemption Scheme for New Start-ups Singapore has over 70 double taxation 1.Capital Gains - Singapore does not tax
2.Productivity and Innovation Credit (PIC) agreements (DTA), including DTA with: capital gains
Scheme 2.GST - 7% on the supply of most goods and
3.Deduction for Charitable Work 1.China services as well as most imports
4.Double Tax Deduction for 2.Australia 3.Corporate Tax - 17% however 75% of the
Internationalization 3.Japan
first SGD10,000 of normal chargeable income
5.Angel Investors Tax Deduction (AITD)
and 50% of the next SGD290,000 of normal
4.India
chargeable income are exempted from tax
6.Fund Management Incentive (FMI) 5.Singapore
4.Inheritance/Estate Tax - No Tax
7.Section 13H Tax Incentive (S13H) 6.USA (limited DTA)
5.Foreign Tax Credit - Some type of foreign-
7.UK source income are exempted from Singapore
8.Saudi Arabia Tax (subject to certain conditions)
Trade Services
Low Cost Trade Financing Banking Services The Singapore Stock Exchange
Singapore offers global businesses low cost Singapore ranks among the top 3 financial SGX is Asia’s most internationalised
trade financing, world class logistics, access centres in the world*, and is the largest exchange, with more than 40% companies
to world class human capital. corporate banking centre in Asia. listed on SGX originating outside of
*according to Straits Time Publication 2016 Singapore.
Source: Monetary Authority of Singapore, Straits Times, Platinum Research
17
1717. Liveability and Culture
Singapore Tops Asia’s Most Liveable City And 25th in The World LARGE POPULATION, LOW DENSITY
Exhibit 23: Top Cities in Asia 2017 Exhibit 24: Best City Infrastructure
according to Mercer’s 2018 Quality 2017 in The World according to
of Living Survey Mercer’s 2018 Quality of Living Survey
HEALTHCARE
14 Public Hospitals
Asia Ranking Global City Global Ranking Global City
More than 4,000 private healthcare
1 Singapore 1 Singapore operators, including GPs, hospitals, dental
2 Tokyo 2 Frankurt clinics and hospices
3 Kobe, Japan 3 Munich
DIGITAL POPULATION 2018
4 Yokohama, Japan 4 Copenhagen
Internet Users - 84%
5 Osaka, Japan 5 Dusseldorf
Mobile Users: 82%
6 Nagoya, Japan 6 Hong Kong
Active Social Media Users - 83%
7 Hong Kong 7 London Average Internet Speed via Mobile - 54.00 MBPS
8 Seoul 8 Sydney
9 Taipei 9 Hamburg SCHOOLS
10 Kuala Lumpur 10 Vancouver Catering to Various Nationalities
> 30 International Schools in Singapore
Source: Mercer’s, Straits Times, Digital in 2018 Singapore, Platinum Research 18
1818. Smart Nation
Smart Nation initiative was launched in 2014 as part of Singapore’s
transformation plan across the economy, government and society.
This came with a focus of having its residents live fulfilled lives
enabled by technology, allowing people and businesses to thrive.
Exhibit 25: The 5 Singapore Smart Nation Projects which has been identified as key enablers in Singapore’s Smart Nation drive:
Smart Urban Mobility
National Digital Identity
Innovating smart mobility through data
Allow citizens and businesses to transact
and technology and intuitive apps to
digitally in a seamless secured manner.
enhance transport.
E-Payments Moments of Life
Seamless and secure cashless payments Offering integrated and seamless
for goods and services through cards, government service for the citizens at
mobile phone or the internet. any stage of life.
Smart Nation Sensor Platform
Deployment of sensors and IoT devices
within smart street lighting to make
Singapore more liveable and secure place
to live in.
Source: Channel News Asia 19
1919. Singapore Biomedical Science Community
Source: Economic Development Board Singapore, Platinum Research
20
20Appendix – Top 10 Listed Companies In Singapore
Top 10 Listed Companies by Market Cap
Market Avg Daily
Cap Turnover Return
Ticker Short Name (US$ m) (US$) Last Price P/E YTD (%) Sector
1 JM SP EQUITY JARDINE MATHESON 49,235 13,167,941 US$ 66.83 9.55 12.87 Industrials
2 DBS SP EQUITY DBS GROUP HLDGS 46,713 87,152,974 S$ 24.96 11.72 6.62 Financials
3 JS SP EQUITY JARDINE STRAT 42,767 8,297,311 US$ 38.60 7.72 -1.64 Industrials
4 ST SP EQUITY SINGAPORE TELECO 36,769 47,010,980 S$ 3.07 15.82 -11.12 Communication Services
5 OCBC SP EQUITY OCBC BANK 36,014 46,401,279 S$ 11.55 10.62 -3.75 Financials
6 UOB SP EQUITY UNITED OVERSEAS 31,514 47,504,440 S$ 25.78 10.93 1.46 Financials
7 HKL SP EQUITY HONGKONG LAND 15,246 10,291,187 US$ 6.48 4.25 -5.26 Real Estate
8 WIL SP EQUITY WILMAR INTERNATI 14,572 12,976,196 S$ 3.14 10.38 4.98 Consumer Staples
9 DFI SP EQUITY DAIRY FARM-900 12,039 4,652,279 US$ 8.90 28.95 16.15 Consumer Staples
10 THBEV SP EQUITY THAI BEVERAGE 11,513 11,300,848 S$ 0.63 20.25 -30.00 Consumer Staples
Top 10 Listed Companies by Avg Daily Turnover
Market Avg Daily
Cap Turnover Return
Ticker Short Name (US$ m) (US$) Last Price P/E YTD (%) Sector
1 DBS SP EQUITY DBS GROUP HLDGS 46,720 87,152,974 S$ 24.96 11.72 6.62 Financials
2 UOB SP EQUITY UNITED OVERSEAS 31,518 47,504,440 S$ 25.78 10.93 1.46 Financials
3 ST SP EQUITY SINGAPORE TELECO 36,774 47,010,980 S$ 3.07 15.82 -11.12 Communication Services
4 OCBC SP EQUITY OCBC BANK 36,017 46,401,279 S$ 11.55 10.62 -3.75 Financials
5 GENS SP EQUITY GENTING SINGAPOR 9,013 28,707,971 S$ 1.02 16.67 -19.69 Consumer Discretionary
6 VMS SP EQUITY VENTURE CORP LTD 3,294 23,217,562 S$ 15.58 11.93 -20.77 Information Technology
7 YZJSGD SP EQUITY YANGZIJIANG SHIP 3,589 21,361,108 S$ 1.24 8.05 -12.07 Industrials
8 CAPL SP EQUITY CAPITALAND LTD 9,833 21,292,282 S$ 3.22 8.73 -5.79 Real Estate
9 AREIT SP EQUITY ASCENDAS REAL ES 5,792 19,101,690 S$ 2.54 16.08 -0.87 Real Estate
10 KEP SP EQUITY KEPPEL CORP LTD 8,456 18,965,666 S$ 6.36 36.76 -10.06 Industrials
Source: Bloomberg as at 4 December 2018
21
21Who Have We Worked With in Singapore?
THE KUOK GROUP
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22Disclaimer
DISCLOSURE OF INTERESTS
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covered in this report.
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prepared this report does not have any financial interests in the common class of securities of the companies covered in this report.
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Affiliation and Employment Relationship: On the date of publication of this report, no director or employee of this firm is serving as a director, consultant or an employee of the companies
covered in this report.
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