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EUROCHAM’S 1st ANNUAL MAGAZIN

EuroCham announces the publication of the 1st EuroCham Annual Magazine. In this issue, Eurocham looks back at our most defining events in 2011 and the activities that have shaped and continue to shape EuroCham’s advocay and lobbying work. It also gives a first overview on what to expect in the year 2012.
EUROCHAM MAGAZINE 2011-2012.pdf

El sector turístico de Singapur revela unas cifras espectaculares en 2011

Según el Singapore Tourism Board (STB), el país registró en 2011 un notable incremento tanto en el número de visitantes como en el gasto por turista. Sin embargo, debido a la incertidumbre económica global se espera para 2012 una ralentización en el sector.
En el transcurso del pasado ejercicio, los ingresos por turismo alcanzaron los 22.200 millones de dólares de Singapur (13.325 millones de euros), cifra que representa un aumento del 17% en relación a 2010. Por su parte, el número de visitantes superó el objetivo previsto a principio de año con un total de 13,2 millones de turistas, un 75% de los cuales provino del continente asiático. Los principales países emisores fueron, por este orden, Indonesia, China, Malasia, Australia e India.
A pesar del crecimiento de la oferta hotelera en 2011, los ingresos por alojamiento se incrementaron un 27,8% respecto a 2010, alcanzando un precio medio por habitación de 245 dólares singapurenses (147 euros). Además, cabe destacar que el rubro de conferencias, convenciones y reuniones creció cerca de un 50%, con más de 2.000 eventos celebrados en el país. Por su parte, el ligero descenso de pasajeros en el turismo de cruceros es la única nota negativa del informe.

EuroCham contributes to another round of EU-Singapore

EuroCham contributes to another round of EU-Singapore Free Trade Negotiations
While the EU Chief Negotiator for the EU-Singapore Free Trade Agreement, Mr. Rupert Schlegelmilch, and his negotiating team are in town, EuroCham continues to represent European business interests in the negotiations through its contributions on ICT and automotives, and a private meeting with the Life Sciences Committee.

EuroCham study ‘Market Potential in Energy Efficiency in Southeast Asia’

Market Potential in Energy Efficiency in Southeast Asia

The study, conducted by the Sustainability Committee of the European Chamber of Commerce, Singapore in collaboration with Roland Berger Strategy Consultants, examines the market potential and business environment in the energy efficiency (EE) product and service industry in Southeast Asia. To narrow the focus of the study, five major countries were covered, namely Indonesia, Malaysia, Singapore, Thailand and Vietnam. Together, these five countries accounted for 86% of ASEAN’s total GDP in 2010 and thus serve as a good representative subset of the region as a whole. The main part of the study is based on interviews with a wide range of players and stakeholders in the EE eco-system including companies with high energy consumption, EE product and technology suppliers, energy service companies (ESCOs), government agencies and research institutes. More information

Hollandse Club

The Hollandse Club, the international family club in Singapore, is offering all Spaniards who live in Singapore a free one month trial during our Spanish month in December 2011.  Try the wide variety of sports, events and food (including our special Spanish dishes) and beverages the Club has to offer.  Should you decide to join, you will receive the special deal of 15% off all our membership packages.  Check out http://www.hollandseclub.org.sg for more information about the Club. Contact Bridget van Akkooi at .(JavaScript must be enabled to view this email address) or phone 6461 1111 for more information about this offer.

El Exportador magazine talks about Singapore

Líder en la protección de la propiedad intelectual, con una burocracia mínima, considerado el país más transparente del mundo, el mejor para hacer negocios según el Banco Mundial, ofrece una inmejorable puerta de entrada al Sudeste Asiático, a China y a la India. Leer el articulo

“Market Potential in Energy Efficiency in South East Asia”

The study, conducted by the Sustainability Committee of the European Chamber of Commerce, Singapore in collaboration with Roland Berger Strategy Consultants, examines the market potential and the business environment in the energy efficiency sector in Southeast Asia. While progress has been made in energy efficiency, there are still certain areas which remain to be addressed in order to fully exploit the untapped potential in Southeast Asia. The bar needs to be raised for energy efficiency standards and barriers, such as energy subsidies, need to be removed. While there is no “one-size-fits all’ panacea, such initiatives can unlock the EE market potential to achieve efficiency gains between 12 to 30% by 2020 and could be translated into power savings ranging between USD 15 billion and USD 43 billion.

Slowdown in Singapore

El país asiático reduce sus previsiones de crecimiento por el parón de la economía mundial

Singapur es uno de los mejores barómetros del estado actual del comercio internacional. El mejor país del mundo para hacer negocios, según el último ranking del Banco Mundial, vio reducirse un 6,5% su PIB en el segundo trimestre respecto al primero, coincidiendo con la crisis de la deuda europea y la nueva ralentización de la economía de Estados Unidos. En el primer trimestre, Singapur tuvo un espectacular crecimiento del 27,2% comparado con octubre- diciembre de 2010. El año pasado registró la tercera subida más alta del PIB en el mundo con un 14,5%.

El repentino parón del crecimiento de Singapur refleja, como pocos indicadores, la caída de la demanda mundial y el frenazo económico de dos de sus principales socios comerciales: EE UU y Japón. Singapur es una de las economías más abiertas del mundo —según el Índice de Libertad Económica 2011, ocupa el puesto número dos en el ranking de libertad económica—, lo que también la convierte en una de las más vulnerables a las turbulencias financieras globales. El valor de sus exportaciones —maquinaria, equipamiento electrónico, productos químicos y farmacéuticos— supera largamente su PIB anual, por lo que cualquier variación en la demanda de sus socios puede tener importantes efectos en el aparato productivo.

EE UU —que compra el 9% de sus exportaciones— no termina de solucionar sus problemas de déficit fiscal y comercial, mientras que Japón —el destino del 5% de sus exportaciones— debe destinar todos sus esfuerzos a reconstruir el país después del tsunami y el terremoto de marzo pasado. Adicional- mente, la inestabilidad europea genera incertidumbres en otros compradores y vecinos como Malasia, Indonesia y China, que en total representan un tercio de las ventas al exterior de la pequeña economía asiática.

Este nuevo panorama internacional ha obligado a las autoridades a reducir sus previsiones de crecimiento anual de las exportaciones hasta el 6%-7% desde el 8%-10% inicial. Esto se ha traducido inmediatamente en una rebaja de las previsiones oficiales de crecimiento en 2011 del 7% hasta el 5% o 6%. Incluso algunos analistas creen que es- te trimestre puede saldarse con un nuevo frenazo y prevén un crecimiento inferior al 5%. Algunos bancos como Credit Suisse incluso han rebajado sus previsiones para 2012 hasta el 4,8% desde el 5% anterior.

No obstante, nadie duda que Singapur esté en condiciones de seguir siendo uno de los países que mejor aguantan los efectos de la crisis internacional. Los datos de los envíos al exterior invitan a un cierto optimismo: el índice de precios de las exportaciones experimentó un 1,1% de crecimiento en relación con junio del año pasado, con un alza del 3,7% en bienes de manufactura.

Singapur es además el único país asiático que tiene calificaciones de crédito triple A de las tres principales agencias de calificación, Standard & Poor’s, Moody’s y Fitch. Algo de lo que en estos momentos no pueden presumir ni siquiera muchas de las economías más desarrolla- das del mundo. El nivel de desempleo también es mínimo en Singapur. Con un 2,1% de paro, se garantiza el consumo priva- do en niveles altos, lo que permite dinamizar la economía en momentos en los que las exportaciones se ralenticen.

How Singapore punches above its weight

SINGAPORE has been able to punch above its own weight and have a vibrant economy because it has remained open to foreign talent to add to the pool which can be developed locally, Mr Lee Kuan Yew reiterated on Friday.
Speaking at the closing session of the two-day South Asian Diaspora convention, he acknowledged that the influx of foreigners had been discomforting for some Singaporeans, but reminded that the alternative would be slower growth for the country.
The former Prime Minister was responding to a question at a dialogue with more than 600 participants on how a fundamental tenet of Singapore’s economic model - being open to foreign talent - also caused angst among Singaporeans and had been an issue at the recent General Election.
Mr Lee made clear that he firmly believed that the more talent a society had, the better it will be able to grow.
‘If Singapore depends on the talent it can produce out of three million people, it’s not going to punch above its weight. It is because we’ve drawn talent from across the globe that we have a vibrant economy which is way beyond what three million Singaporeans and the talent they produce can do…
‘So you’ve got to accept the discomfort which the local citizens feel that they are competing unequally for jobs; cannot be helped,’ he said in response to the question from DBS chief executive Piyush Gupta.

Singapore economy to grow steadily: DPM Teo

DEPUTY Prime Minister Teo Chee Hean said he expected the Singapore economy to grow steadily in the coming year, but warned of uncertainties in the other countries that could affect Singapore.
Addressing Pasir Ris residents at a racial harmony event on Sunday, he singled out problems in places like the United States, Europe and Japan that could affect the world economy.
He noted that in the United States, for instance, a budget has not been agreed upon to allow the government to continue paying for services for its people. This will cause some uncertainties to the greenback and interest rates, which can affect the United States as well as the global economy.
In Europe, crisis in countries like Portugal and Greece are not resolved, and going ahead, there are still many serious concerns, he said. Over in Japan, it is still recovering from an earthquake and tsunami that hit the country in March.
Citing the recent Norway attack, where a gunman killed 76 people, Mr Teo reminded residents the need to remain a united community.
‘You can see the way the Norwegian people worked together to unite and overcome this crisis. We can learn something from them so that first of all, to prevent any crisis from happening, remain united,’ the MP for Pasir-Punggol GRC said. ‘Secondly, if anything does happen, we must also be able to overcome it with a positive spirit, so that society does not break apart and continue to remain together.’

Dialogue with Singaporean Government

EuroCham President Mr Micheal Collins will represent the interests of European businesses at a meeting of the SBF Council with Trade and Industry Minister Lim Hng Kiang on 2 September. You are invited to send EuroCham your input or “wish-list” by 31 Aug (strictly treated confidentially). Contact: .(JavaScript must be enabled to view this email address)

Spain gets Singapore boost with MoU

Singapore Airlines and Spain Tourism Board have signed a memorandum of understanding (MoU), with the two parties promising to work closely together to boost tourist traffic to Spain.

With the carrier now operating seven flights weekly from Singapore to Barcelona, Spain is becoming an increasingly important market for the airline and the Asia Pacific region, according to Singapore Airlines marketing senior vice president Tan Chik Quee. “This agreement underscores our confidence in the potential and allure of Spain, as well as our commitment to developing and promoting tourism from Southeast Asia and other parts of the Asia Pacific to Spain,” Mr Tan said. “With its rich culture and heritage, world-renowned cuisine, and the warmth and friendliness of its people, Spain is a very attractive destination for both business and leisure travellers.”

Australia, New Zealand, Indonesia, the Philippines and Singapore are considered key markets under the agreement, which has promised to commit funds to marketing and advertising campaigns, as well as familiarisation programmes. “The signing of this MOU means a lot to us since it’s the first of its kind signed by Singapore Airlines with a European destination to cover several target markets,” Spain Tourism Board director Angela Castano said. “We hope that it will encourage people from Southeast Asia and other parts of the Asia Pacific to travel to a destination where they can enjoy what they love most, culture, food and shopping.” As well as providing access to the Spanish cities of Bilbao, Madrid and Palma de Mallorca, Barcelona became Singapore Airlines’ gateway to its first South American destination, Brazil’s Sao Paulo.

Singapore shares boosted by US economic data

Singapore share prices closed 0.8% higher on Friday, in line with global markets.

Global equities were boosted by upbeat private sector employment and retail sales data in the US, raising optimism about the health of the global economy. Singapore’s blue-chip Straits Times Index closed 25.41 points higher at 3,151.28. Overall volume traded was 1.67 billion shares valued at S$1.45 billion, with gainers overwhelming losers 366 to 141. Among the gainers, Golden Agri-Resources jumped 3.7% to end at S$0.705 while Wilmar International gained 1.3% to close at S$5.57. Among the property stocks, CapitaLand rose 4.1% to close at S$3.07, CapitaMalls Asia gained 1.7% to end at S$1.505 and City Developments ended 1.0% higher at S$10.94.

Analysts said Friday’s rally may be a knee-jerk reaction to US data, but they expect the STI to trend higher going into the second half of the year as concerns over a US economic slowdown subside. “The market is now reacting positively to the numbers that have actually come out, because (the numbers) are now indicating that it was just a temporary soft patch, it was not an indication of weakness in the US economy,” said Kelvin Tay, Chief Investment Strategist, Wealth Management Research, UBS. Some analysts expect the STI to be trading as high as 3,600 points by the end of the year.

They also said that Singapore stocks look cheap, and this could present buying opportunities for investors. Wong Sui Jau, GM of Fundsupermart, said: “Singapore is trading this year (at) 12.7x PE. Singapore actually can easily trade in the high 15-16x times on an average basis, and if it goes into bull run territory, actually 17-19x PE is very achievable.” While certain sectors like electronics are more dependent on local economic data such as industrial output figures, economic data from abroad, especially the US, becomes more important in the absence of local catalysts.

And analysts said Singapore investors should be looking at key economic data from the US and China to gauge the broad trading trend on the STI. “I think they should be looking at the PMI (Purchasing Managers Index) numbers, the ISM (Institute of Supply Management) numbers where the US economy is concerned. They should be looking at inflation numbers where China is concerned - whether inflation is moderating or inflation shows signs of being stickier than earlier expected,” said Tay. Upcoming indicators of interest to investors will be US non-farm payroll data due late Friday in the US and China’s Consumer Price Index (CPI), which is due out Saturday.

Singapore to become top wealth centre

Singapore is set to take over as the world’s top wealth management centre by 2013, a new report has claimed.

PwC’s latest report on the private banking and wealth management sector said current centres, including Switzerland and London, would come under increasing pressure from Singapore and Hong Kong as new rules governing the financial sectors are brought in.
“Participants believe the centre of gravity for wealth management is moving, and established centres are under pressure from emerging markets,” said Justin Ong, PwC global private banking and wealth management, Asia Pacific leader, said.
“In response to increased regulatory pressures, our respondents see Switzerland, London and, to a lesser extent, New York, all being challenged by the rise of Singapore and Hong Kong in the coming two years.”

The report found the current status quo in the private banking and wealth management industry is changing, with the industry’s focus shifting to client service and value delivery. The changes are being forced partly by new competition in the market, more demanding client expectations, and new regulations.
“Private clients have traditionally been relatively easy to manage, but the financial crisis and recent scandals have awakened the sleeping giant,” said Jeremy Jensen, PwC’s EMEA leader for global private banking and wealth management.
“With clients taking a much more active interest, wealth managers now have to work harder to earn their long-term loyalty and trust. Delivering the clear value that clients want is contingent on understanding and anticipating their changing needs, circumstances and perceptions.”
Regulation has also caused costs to rise for firms, and companies need greater operational efficiency and effectiveness to survive. The survey found that increased regulation, along with these associated costs, was considered the top challenge to business growth.
According to the report, the average cost-to-income ratio remains high, with only 28 per cent of respondents saying cost-to-income ratios were less than 60 per cent.
Some 30 per cent said the regulatory environment would significantly impact their operating costs. A similar number said they expected “significant consolidation” in the next two years.

However, despite these challenges, the report said wealth management is still a lucrative business “with untapped potential for significant growth.
The report surveyed 275 institutions from 67 countries between December 2010 and April 2011. About 62 per cent of responses were from Europe, 24 per cent from the Americas and 14 per cent from the Asia-Pacific region.

Public Consultation on Proposed Licensing Scheme for Independent Counsels

the Ministry of Law currently consults interested parties on a new Licensing Scheme for Independent Counsels, open to foreign lawyers. The consultation closes on 31 July 2011: http://app2.mlaw.gov.sg/News/tabid/204/Default.aspx?ItemId=557

Companies eye Singapore as HK space is squeezed

Singapore is benefiting from a shortage of office space in Hong Kong as multinational companies expanding in Asia turn increasingly to the Southeast Asian city-state for their regional bases, property developers and consultants said. They said that while rents are soaring in both cities, there is a much larger supply of new office developments coming up in Singapore to cater to the growing demand. In contrast, firms wishing to expand in Hong Kong will either have to outbid other prospective tenants or move out of the city center.

“Unlike Singapore, Hong Kong has not managed its land supply well. Vacancies are very low in Hong Kong and rents are rising,” Simon Treacy, Group Chief Executive of property fund manager MGPA, told the Thomson Reuters Real Estate and Infrastructure Summit.
“Some international banks will more actively consider Singapore as the area where they’ll expand so on a net-net basis, Singapore’s growth will outpace Hong Kong,” he added.

Office rents in Hong Kong rose 37 percent to $90 per square foot a year in the first quarter of 2011 from a year ago, outpacing the 28 percent rise in Singapore where rents now stand at S$82 per square foot, according to property services firm CB Richard Ellis.
Rents in Hong Kong’s core Central area jumped 40 percent to $186 per square foot, making the area far costlier than inner Tokyo’s $124 per square foot, CBRE added.
And unlike in Singapore where over 3 million square feet of office space is expected to come onto the market this year, Hong Kong’s supply will rise by a much smaller 1.3 million square feet with virtually no new space in the Central area.
Justin Chiu, executive director at Hong Kong property giant Cheung Kong (0001.HK), said office rents are likely to rise much faster in Hong Kong given the shortage of office space.

“The Singapore government has better planning so even before, in the last two years, several pieces of commercial land have been released,” he said.
Frank Marriott, senior director of Asia Pacific real estate capital markets at Savills (SVS.L), said that while the short-term outlook favors landlords in Hong Kong, Singapore could see larger rent increases in the medium term.
“It is becoming very expensive and businesses in Hong Kong will only survive if they have a strong business in China,” he said.
Savills, however, also noted that complaints about rents in Hong Kong’s core business district have obscured the fact that Hong Kong has a mature and diverse market. Prospective tenants had cheaper options such as the nearby Island East and Kowloon East districts which also offered Grade A office space and were near Central.

Singapore, with its more interventionist government, reclaimed land near its central business district more than a decade ago in anticipation of future demand.
The Marina Bay area, with its large modern office buildings, has already attracted the likes of Standard Chartered (STAN.L) and will soon be home to the likes of Citigroup (C.N), Julius Baer (BAER.VX) and Google (GOOG.O).

S’pore economy set to grow 6.2% in 2011

SINGAPORE: Private sector economists have upgraded their outlook for Singapore’s economic growth to 6.2 per cent for the full-year 2011.

This is an upgrade from the 5.7 per cent forecast in the previous poll of economists by the Monetary Authority of Singapore, released in March. But while the numbers may be looking up, experts said with looming challenges at the horizon, it is not the time to get distracted by headline figures.
Singapore’s economy in the first quarter got a shot in the arm from sectors such as pharmaceutical, lifting economists’ forecast for the year ahead. But experts said the revision is based on past results and this does not stop Singapore from catching a cold from challenges that lie in the external market.

Action Economics asian economic forecasting director David Cohen said: “I think you could say that it looks pretty optimistic but Singapore, as always, is dependent on global demand - so anything that would threaten the global recovery would be a concern to Singapore. “We saw a couple years ago that Singapore is not immune to the global downturn, and just as a couple years ago, a potential trigger for a crisis could be some kind of financial shock. “On the one hand, you have Europe and problems with sovereign debt of countries like Greece and Portugal, and even in the US, there are worries over their fiscal problems “And if that got out of hand, (it) could threaten the global financial crisis. “We are confident that we are not going to revisit that”.

Private sector economists have downgraded their forecast for construction which experts said could be on the back of tightening measures aimed at the property market, and wholesale and retail trade. However, forecasts have been upgraded for the manufacturing, financial services and hotels & restaurants sectors for this year. For the second quarter of 2011, analysts said they expect the economy to expand by two per cent in comparison to 3.4 per cent in the previous survey. Experts said while slowdown from Japan plays a part, it is the on-year base effect which is the main factor. Capital Economics asia economist Vishnu Varathan said: “The thing to bear in mind is the second quarter last year was phenomenally strong, and as a corollary, that means that Q2 this year, base effects are going to come in (and) you will see weaker numbers. “In fact, along that growth trajectory we would see a smart rebound in second half growth numbers so to sum it up, I think we need to gain some perspective on the bumpy numbers we see along the way”. Looking ahead into 2012, the respondents forecast GDP growth to be at 5.5 per cent, while CPI inflation is expected to come in at 2.5 per cent.

-CNA/wk

Singapore Boosts Growth Outlook

Singapore raised its economic-growth forecast for 2011 Thursday, given a healthy domestic outlook and anticipating a strengthening global economy, but a government official warned the debt crisis in Europe and rising oil prices pose risks.

The Ministry of Trade and Industry said this year’s gross domestic product is expected to be up 5% to 7% from last year’s, a bump from its previous estimate of 4% to 6%, and building on last year’s 14.5% growth, the largest in the city-state’s 45-year history.

The prospect for consumer price inflation, which surged with Singapore’s recovery from the global financial crisis, also appears more benign, with officials saying inflation is likely peaked in the first quarter and will ease over the course of the year.

However, the small, trade-dependent economy faces challenges. The sovereign-debt problems in the euro zone, where officials are trying to head off a fiscal crisis in Greece, as well as rising oil prices and disruptions caused by the March 11 earthquake that have hit Japan’s economy hard, may pose risks to Singapore’s economy, said MTI’s deputy secretary Kwek Mean Luck.

“Some sort of restructuring (of euro-zone debt) may have to occur in the medium term,” he said. “If and when that materializes, there could be significant negative spillover effects on the rest of the world via the impact on cross-border bank and trade flows.”

MTI also revised its first-quarter growth estimate down slightly. It said GDP was up a seasonally adjusted, annualized 22.5% from the prior quarter and up 8.3% from a year earlier. The revised estimates were a tad below the 23.5% and 8.5% preliminary estimates released last month.

“On account of the better-than-expected and broad-based expansion in the first quarter, as well as the expected boost to growth from industry-specific factors in the rest of the year, the Ministry of Trade and Industry has upgraded the GDP growth forecast for 2011,” the statement said.

The city-state’s central bank said that the current policy stance remains appropriate and that inflation will ease to come in at 3% by the end of the year.

Singapore’s inflation averaged 5.2% for the first quarter, including a two-year high of 5.5% in January. It was 5% in March.

The Monetary Authority of Singapore, which uses exchange rates rather than interest rates to check inflation, has been tightening its policy by guiding the Singapore dollar higher since April 2010. It has said that these tightening measures have helped to keep a lid on prices.

“We have only just adjusted our monetary policy in April,” Ong Chong Tee, the deputy managing director of MAS, said at the briefing. “The adjustments remain appropriate given the balance of growth and inflation factors that have been highlighted.”

Output in the manufacturing sector was up 13.1% from a year earlier in the first quarter, slightly weaker than previously the estimated 13.9%. Services-sector output was up 7.3%, compared with the earlier estimate of 7.2%, while construction activity was up 2.4% rather than 2.6%.

Write to P.R. Venkat at .(JavaScript must be enabled to view this email address) and Gaurav Raghuvanshi at .(JavaScript must be enabled to view this email address)

Singapore crams in the wealth

NEW YORK: The number of million-dollar households in the world expanded by 12 per cent last year, led by Singapore, the Boston Consulting Group has said.
The number of million-dollar households had increased to about 12.5 million, the Boston firm said.
The number of such households in Singapore increased by almost 33 per cent after jumping about 40 per cent a year earlier. The US had the most $US1 million-plus households, with 5.2 million, followed by Japan and China.’‘But the growth from 2008 to 2010 was driven by the recovery of equity markets and much less by the generation of new wealth,’’ said Peter Damisch, the head of the group’s wealth-management practice, in Zurich.
Despite the growth, there are still fewer than 1 per cent of global households considered million-dollar, defined as having investable assets worth more than $US1 million, excluding real estate and property such as art.
Wealth remained highly concentrated, with million-dollar households controlling 39 per cent of the world’s assets, up from 37 per cent a year earlier, the study said.
Global assets under management by financial organisations also rose by 8 per cent to $US121.8 trillion last year, beating the study’s previous peak of $US111.8 trillion in 2007. The US and Canada had the greatest absolute gain, climbing $US3.6 trillion to $US38.2 trillion and replacing Europe as the richest region. Assets in the Asia-Pacific, excluding Japan, rose 17 per cent, the fastest among regions.
The study looked at 62 countries representing more than 98 per cent of global gross domestic product.
Singapore had the highest proportion of million-dollar households at 15.5 per cent, followed by Switzerland and Qatar. Saudi Arabia had the highest concentration of ultra-high-net-worth households, which are those with more than $US100 million in assets, at 18 for every 100,000 people. Switzerland was second and Hong Kong was third.

Singapore visitor arrivals in Q1 rises 15.7% year-on-year

SINGAPORE - INTERNATIONAL visitor arrivals to Singapore in the first quarter rose 15.7 per cent from the year-ago period, helped by stronger arrivals from Hong Kong, the Philippines and Thailand, the city-state’s tourism authority said on Thursday.
Singapore’s tourist arrivals in January-March totalled 3.12 million, up from 2.69 million in the same period last year, the Singapore Tourism Board (STB) said in a statement.
Indonesia contributed the largest number of visitors with 577,000 in the first quarter, while Hong Kong was the fastest-growing market for Singapore’s tourism industry, with visitor arrivals jumping 42 per cent to 100,000.
STB said average occupancy rate at Singapore hotels in January-March was 85 per cent, compared to 83.7 per cent last year.—REUTERS

Singapore’s consumer confidence 7th highest globally: survey

SINGAPORE : The spending power of Singapore consumers has remained one of the highest in the world, according to the latest Nielsen Consumer Confidence Index.

It ranked Singapore at number 7 globally for the first quarter of this year. The survey, however, also showed that rising food prices and work-life balance were top concerns among Singaporeans. Coming in at 109 points, which was the same level as the previous quarter’s figure, Singapore’s consumer confidence ranked fifth in the Asia Pacific region. The index was part of the Nielsen Global Online Survey, which was conducted between March 23 and April 12, covering more than 28,000 consumers around the world. Garments, gadgets and getaways were the top three consumer items Singaporeans spent their extra cash on.

With unemployment at a three-year low, Singaporeans were more confident about their spending abilities. More Singaporeans were also saving or investing their money. Joan Koh, managing director of The Nielsen Company, said: “Global events such as the political unrest in the Middle East and the recent disasters in the region, and the fiscal uncertainties in Europe - all these would have cast doubts over the momentum of recovery from the global recession. As a result, consumers are more prudent and put their money into savings.” According to the findings of the survey, a healthy work-life balance remained the top concern in the first quarter of this year.

Rising food prices came in second, jumping two spots from fourth place in the previous quarter. In fact, rising food prices were the biggest concern for the Asia Pacific, said Nielsen. The market research company said retailers need to get creative to retain customers. Ms Koh said: “We found that household spending on groceries has reached an all-time low. I think this really indicates that consumers are value conscious and more price sensitive compared to before, so they tend to buy only the essentials and they seek value when it comes to purchases.

Analysts said Singapore’s consumer confidence should remain stable going forward, despite risks from the European debt crisis and slowing employment in the United States. Song Seng Wun, a regional economist at CIMB Research, said: “As long as we continue to see growth in economic activity, we should be able to see a fairly decent reading on the consumer confidence survey.” Analysts said consumer confidence might grow slightly from the fourth quarter onwards as the year-end festive spending nears.

- CNA/al

Singapore economy to remain robust in Q1

SINGAPORE : Singapore’s economy is expected to maintain robust growth at 5.9 per cent on-year in the first quarter of 2011.

Economists polled by Channel NewsAsia said GDP growth could hit around 11.7 per cent on-quarter.

Most experts also expect the Monetary Authority of Singapore (MAS) to further tighten its policy stance.

The views came a day before the government releases its advanced GDP estimates together with the semi-annual monetary policy review by the central bank.

The services sector will likely be the star performer when the Ministry of Trade & Industry (MTI) releases its advanced growth estimates for the first quarter on Thursday.

Economists said strong tourist arrivals have likely boosted retail, tourism and other related sectors during the first three months of 2011.

DBS Bank said services will likely pick up some of the slack in the manufacturing sector.

The lender expects the Singapore economy to have grown 6 per cent from last year and 12.5 per cent on quarter from January to March. This is much lower than the 12 per cent on-year growth in the fourth quarter of 2010.

“Services will be in the driver’s seat for this year. In fact, we expect services to be the key driver of growth and out of the 6 per cent GDP growth, about 4.5 percentage points should actually come from the services sector,” said Irvin Seah, an economist at DBS.

DBS said positive impact from the full opening of the two integrated resorts (IRs) will also spill over into the retail and F&B sectors.

Seah said: “If you look at the sequential numbers, the 12.5 percent growth is still very strong. It essentially reflects the underlying growth momentum which is still considered robust, despite the downside risks in the near term - we are referring to the high oil prices and also the possible threat coming from Japan.

“But it will have limited impact on the Singapore economy and likely to be temporary.”

The government is forecasting 4 to 6 per cent growth for 2011.

But higher oil prices and food inflation could affect sentiment.

Some economists believe inflation could breach the central bank’s 3 to 4 per cent target and could hit 4.2 per cent for 2011. They said inflation will likely peak in the first half before stabilising in the second half.

While some economists believe the central bank will maintain its current stance and keep its policy unchanged, many said a further tightening could be on the cards.

Selena Ling, head of Treasury Research & Strategy at OCBC Bank said: “We are still trading on the stronger side of the parity band. So I think if they do tighten monetary policy in April, for instance, by recentering higher to current levels, that affords them a little bit more headroom for Sing (dollar) appreciation to combat rising inflation.”

Economists said unrest in the Middle East and some speculation in commodities could also feed higher inflation expectations.

And if oil prices were to reach above US$120 to US$130 a barrel, the man on the street may likely feel the pinch.

DBS believes a further monetary tightening may likely see the Singapore dollar trade at $1.19 against the greenback.

While a stronger currency may impact the competitiveness of exporters, it will be a boon for importers and individuals as this could mean lower import costs and higher spending power for them.

- CNA /ls

Singapore vessel arrivals in March surge to record highhttp://www.sbasg.sg/secret/index.php?S=0&C=ed

SINGAPORE (Reuters) – Vessel arrivals by tonnage to Singapore’s port rose nearly 14 percent to a record monthly high of 181.78 million tonnes in March, helping to spur a rebound in marine fuel sales in the city-state last month, official data showed.
Bunker sales in Singapore, the world’s largest bunker port by volume, rose nearly 8 percent to 3.52 million tonnes in March from the preceding month.
The pick-up in activity last month followed the traditional post-Chinese New year lull in February and was boosted by some tankers being diverted to Singapore after an earthquake and tsunami devastated Japan on March 11.
‘‘It was in part due to the earthquake in Japan, you saw a lot of tankers carrying naphtha who had to divert from Japan because the situation there was unclear, so alternative port of call was Singapore,’’ said a Singapore-based ship broker.
The tanker segment showed the biggest increase, rising 13.5 percent to an all-time monthly peak of 58.3 million tonnes, the data showed.
Lower bunker prices in March and versus other rival ports also helped attract marine fuel buyers here, although demand may be dampened this month by record high prices, traders said.
Bunker premiums last month eased to an average of $7.22 a tonne, down from $17.18 a tonne in February, as heavier inflows of Western arbitrage cargoes eased a tight market, Reuters data showed.
However premiums might start to widen again as arbitrage arrivals tighten from next week and into the first half of May.
‘‘Business got the usual boost in March after the Chinese new year break. The question is whether the high prices will affect sales in April,’’ said a Singapore-based bunker trader.
Singapore’s benchmark 380-centistoke (cst) bunker price hit a 2-1/2 year high of $690 a tonne on Monday on surging crude prices, Reuters data showed.
Maritime companies that trade more of their vessels on the spot freight market and on shorter intra-Asia trade routes are most likely to feel the heat from soaring bunker costs, industry executives said.
Bunker prices can make up between 10 to 70 percent of operating costs depending on the type of vessel.
Last year, the city-state’s bunker sales hit a record high of 40.9 million tonnes, or a monthly average of 3.4 million tonnes, up 12.3 percent from 2009.

Singapore’s exports up by 10% in March

SINGAPORE’S exports grew by a better-than-expected 10 per cent in March, beating the forecasts of private sector economists.

Growth in non-oil domestic exports was driven by exports in the non-electronic sector, which expanded 18.3 per cent, led by chemicals, compared to March last year.

But electronic exports were surprisingly weak, given that the Government was upbeat about the manufacturing sector in its first quarter economic report.

Electronic exports fell 12.8 per cent, mostly due to disk drive exports, which plunged 57.2 per cent, and integrated circuits, which fell 50.7 per cent.

The Japan crisis also seemed to have had an impact on exports.

Singapore’s electronic exports to Japan fell 28 per cent in March, compared to the 6.7 per cent growth in February.

How foreign workers have helped Singapore

SINGAPORE - With the influx of foreign workers likely to emerge as a hot-button issue in the coming polls, Prime Minister Lee Hsien Loong yesterday cited the opening of a US$3-billion (S$3.7-billion) wafer fabrication plant as an example of why their presence has actually helped to create more jobs for Singaporeans.

The IM Flash Singapore Nand Flash Wafer Fab - a joint venture between chip-makers Intel and Micron - is one of the largest electronic investments here. It currently employs 1,200 workers, of which six in 10 are Singaporeans and permanent residents (PRs), while four in 10 are foreigners.

“Without the foreign workers, we would not have attracted this US$3-billion investment, and Intel and Micron would have built its wafer fab elsewhere,” Mr Lee said in a speech to mark the facility’s opening.

“But, by allowing in a controlled number of foreign workers, far from disadvantaging Singaporean workers, we have created more good jobs for Singaporeans and more opportunities in our economy.

“... For every one foreign worker, we have created 1.5 local jobs in this project,” Mr Lee said.

The plant, which manufactures NAND flash memory chips using the 25-nanometre process technology used in smartphones and tablets, is also expected to bring significant spin-offs to supporting industries.

So far, Singaporeans and PRs take up about two-thirds of the managerial and professional positions in the facility, while two-thirds of technician and manufacturing jobs are done by foreigners.

“By putting Singaporeans and foreign workers together, we have put together a first-class labour force which has been able to meet the needs of demanding first-class multinationals so we can produce a first-class plant in Singapore,” Mr Lee added.

He noted that the semiconductor industry here, as a whole, employs 40,000 workers.

“Last year, 3,300 new jobs were created, many of them skilled, high paying with good opportunities for advancement, jobs which Singaporeans will take up ... We would like to see semiconductors and advanced wafer fab as key areas which should grow and develop over time in our economy.”

Mr Lee noted that, in 2008, construction of the IM Flash plant had to be put on hold because of the global financial crisis, which led to a downturn in the demand for memory chips.

However, due to active cooperation between the Economic Development Board and Intel and Micron, the project was restarted and completed ahead of time.

“Our ability to ride these ups and downs is a key survival trait for a small country. You can be sure we will face new crises in future. Don’t know where don’t know when, but it will come, and therefore we need to stay nimble, resilient and cohesive to ride through the storms.”

Since Singapore can expect to face more competition in the future, there is a need to ensure that it remains “a compelling business location”.

This includes having “an attractive business and regulatory regime, harmonious labour relations, stable government, rational and consistent policies year after year and a strong commitment to work through the problems, and challenges with investors”, Mr Lee said.

The issue of foreign workers in Singapore - such as whether they are taking away jobs from Singaporeans - has been a subject of much debate in recent years, especially in cyberspace. For the May 7 General Election, Opposition parties such as the Singapore People’s Party, Workers’ Party and the Reform Party have said that they will raise the issue during the hustings.

Singapore voted best seaport in Asia

SINGAPORE - Singapore won the ‘Best Seaport in Asia’ award for the 23rd time at the 25th Asian Freight and Supply Chain Awards (AFSCA).
The Maritime and Port Authority of Singapore (MPA) received the prestigious award this evening on behalf of the Port of Singapore.
Singapore beat 12 other nominees from Hong Kong, Shanghai Yangshan, Busan, Klang, Kaohsiung, Laem Chabang, Tanjung Pelepas, Manila, Ningbo, Shenzhen, Tianjin and Dalian to receive the award. The Port of Singapore garnered the highest number of votes from terminal operators, freight forwarders, shipping lines and shippers from across Asia.
Singapore’s cost competitiveness, container shipping-friendly fee regime, provision of suitable container shipping-related infrastructure, timely and adequate investment in new infrastructure to meet future demand and the facilitation of ancillary services, including logistics and freight forwarding facilities led to the victory.
MPA Chief Executive, Mr Lam Yi Young believes that the award proves that the maritime community continues to have confidence in Singapore amidst growing competition in Asia.
He continued to add: “We will continue to work in close partnerships with the industry and stakeholders to develop Singapore as the port of choice in Asia, a premier global hub port and an international maritime centre.”
At end December 2010 the Port of Singapore recorded a total shipping tonnage of 48.8 million gross tons, once again placing Singapore amongst the top 10 ship registries in the world.

Premio Leonés en el extranjero del Colegio de Economistas de León-España

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Female expatriates prefer to work in Singapore

SINGAPORE has been ranked among the most popular global destination to relocate to, with 100 per cent of professional women surveyed saying they would recommend working here to others. Women are increasingly considering Singapore because of the low crime rate, tax incentives, excellent lifestyle, and opportunities for personal development in the region. The Global Professionals on the Move Report 2011, commissioned by the Hydrogen Group and conducted by a consultancy project team from ESCP Europe, analyses responses from 2,637 professionals from 85 different countries with qualifications of a bachelor degree or above.

Simon Walker, Hydrogen Asia Regional Managing Director, said he’s ‘noticed an increase in the number of women from overseas taking advantage of the career opportunities offered here. Banking sectors in particular are looking to source experienced female professionals from a global talent pool.’ Mr Walker explained that many global firms were setting up headquarters in Singapore, or expanding their operations to include branch offices in South-East Asia.With 42 per cent of Singapore’s population made up of expats and overseas students, it’s not surprising that 80 per cent of the professionals surveyed found it easy to settle in and make new friends.—THE STAR/ANN

Singapore economy seen growing 5.7 percent in 2011

Singapore’s central bank says a survey of analysts shows economic growth will likely slow to 5.7 percent this year from last year’s record pace. The survey of 20 analysts conducted by the central bank revealed Wednesday that growth of manufacturing, financial services and construction will all likely slow this year after gross domestic product jumped 14.5 percent in 2010. Analysts had expected the economy would grow 5.1 percent this year in the previous survey in December. The inflation rate will probably rise to 4.0 percent this year, the unemployment rate will be 2.0 percent and the exchange rate will end 2011 at 1.23 Singapore dollars per U.S. dollar.

Why paying taxes in Singapore is a breeze

TAX policy plays an integral role in Singapore’s strategy to become a major global business hub.
And the republic ranks consistently as one of the world’s top 10 competitive tax regimes, according to the World Bank-PwC Paying Taxes study, a study which evaluates the efficiency of tax systems around the globe and which was launched five years ago.
In the 2011 study, Singapore nudged up to fourth place in 2009 from fifth in 2008. The Paying Taxes study is broadly modelled on a total tax contribution (TTC) framework, which looks at more than just corporate tax - which in its own right tells little about how much a company’s economic activity contributes to the fiscal coffers overall. TTC is thus a comprehensive approach which takes into account:
• the total tax rate (the total tax cost borne by the company as a percentage of its commercial profits)
• the number of tax payments it has to make each year; and
• the time it takes the company to comply with its filing and payment obligations.
These are then used to measure and compare the efficiency of tax systems in 183 economies, using as a benchmark a ‘model’ small enterprise located in each country. The 2011 study analyses actual cash tax burdens for calendar year 2009.
Singapore beat notable competitors such as Ireland and Switzerland into seventh and 16th places respectively. However on closer examination, it actually did better than its fourth ranking. As will be noted from the table, it was beaten only by those well-known international business centres of . . . the Maldives, Qatar and (well, okay) Hong Kong. Without wishing to take anything away from the elegant simplicity of the Maldavian or Qatari tax systems, it has to be said that they don’t really have one. So let’s call Singapore second.
Singapore’s total tax rate this year reduced from 27.8 per cent to 25.4 per cent, which may be due to reforms introduced in the 2009 Budget. While this rate may appear high in the context of a 17 per cent corporate tax rate, it should be remembered that the study includes all taxes and not just corporate tax. Interestingly, nearly 60 per cent of Singapore’s total tax rate arises from the employer component of Central Provident Fund (CPF) contributions, captured under the methodology as Singapore’s labour tax. Arguably it is not. Without it, the total tax rate drops to a very competitive 10.5 per cent.
Compared to the global average of 30 payments, Singapore’s five tax payments (corporate tax, Goods and Services Tax or GST, property tax, road tax and CPF) are regarded as best practice. While you might wonder about the accuracy of these numbers as you submit your fourth quarterly GST return and 12th CPF form, it should be mentioned that credit is given for the use of electronic filing, which is almost, if not completely, universal now in Singapore. As a result, the methodology lumps the annual filing obligation together as a single tax payment.
Nonetheless, Singapore’s time to comply may still seem high at 84 hours per annum compared to that of Hong Kong, where only 80 hours are required. What needs to be realised is that 40 hours of Singapore’s compliance time is very kindly contributed by GST, a tax which Hong Kong has studiously avoided so far. It thus takes only a comparative 44 hours in Singapore to comply with our remaining tax obligations, propelling us ahead of all competition. While none of Singapore’s total tax rate is contributed by GST, due to its flow-through nature, GST’s administrative and cash-flow burdens cannot be overlooked.

Nevertheless, against a global average of 35 days to comply (or 282 hours), Singapore’s performance looks decidedly healthy. It does bring a slightly smug smile to one’s face to read that the time to comply in Brazil is 2,600 hours (that is, 325 out of 365 days in a year), and that five African countries have total tax rates of over 100 per cent topped by the Congo Democratic Republic of 339.7 per cent. It’s not clear where they find the time, or will, to make money.
When governments consider tax reform therefore, it is crucial that they look beyond the obvious corporate income tax. The most popular measure of tax reform is to reduce profit tax rates (as it wins votes). However, tax authorities need to use creative ways to facilitate tax revenue collection and administration by considering businesses’ total tax contributions as a whole, while promoting economic activity.
Worldwide, economies that make paying taxes easy typically offer electronic systems for tax filing and payment, and have one tax per tax base. They also focus on lower tax rates across a wider tax base. These strategies are generally consistent with Singapore’s existing tax policy principles. So how then can Singapore possibly improve?
Well firstly, there is a bit of work that can still be done to facilitate return preparation. The claiming of capital allowances, for example, currently requires tracking asset by asset, which in large, capital-intensive businesses can require almost a full-time job. A pooling approach for categories of assets may thus save taxpayers both time and money, and end up costing the government little (capital allowances are, when you think about it, only timing differences).
There are other areas where a little less detail would produce similar increases in efficiency. Secondly, while the study shows the time taken to fulfil the initial filing obligations, it does not show how long it takes to get one’s tax position agreed - a different matter entirely. In this context, revisions to tax legislation can perhaps better take into account commercial realities and be clearer, as tax disputes are time-consuming and create undue uncertainty to taxpayers. The biggest culprit in this area is the annual tennis match between taxpayer and tax officer with the ‘capital vs revenue’ argument as the ball. (It’s capital and tax free, no it’s revenue and taxable. Oh no, it isn’t, oh yes it is. . .). So it might only take 30 hours to prepare the computation, but it can take (no kidding) 10 years to get it agreed. Time for a break.
So even though we can celebrate Singapore’s outstanding results in Paying Taxes 2011, we should not rest on our laurels. The pace of streamlining tax cost and administration in Singapore must not slow down while the world races to catch up. Change, after all, is the only constant in life - apart from death and taxes, that is (which in Brazil are more or less the same thing)!
David Sandison is a tax partner and Lim Kexin is a senior tax consultant, PricewaterhouseCoopers Services LLP.
Note: A copy of the World Bank-PwC Paying Taxes 2011 report may be downloaded for free at http://www.pwc.com/gx/en/ paying-taxes
This article was first published in The Business Times.

Better chance seen for SGX-ASX merger after changes

Stock markets are now more optimistic that the proposed merger of the Singapore Exchange (SGX) and the Australian Securities Exchange (ASX) will go through. This comes after SGX and ASX on Tuesday announced changes to the proposed board structure of the merged entity. The new arrangements include an equal number of 5 Australian and 5 Singaporean directors on the board as well as a smaller board, comprising 13 members, down from 15 proposed previously. There will be 3 international directors, including current SGX CEO, Magnus Bocker. Under the original agreement, ASX would have only had 4 board seats on a 15-member board. Meanwhile, ASX and all of its licensed subsidiaries will maintain boards with a majority of Australian directors and an Australian citizen as Chair.

According to market analysts, before Tuesday’s development, the stock market was assigning a 42 per cent probability to the merger overcoming political opposition in Australia. After a jump in ASX’s shares on Tuesday, the odds have improved to around 50 per cent. SGX also said it will approach the Australian Foreign Investment Review Board (FIRB) in coming weeks, seeking the authority’s approval for the merger. After FIRB okays the deal, Australia’s Treasurer will have to approve the transaction. Analysts said the proposed amendments will make the deal more politically acceptable to those Australian lawmakers who have threatened to block it in parliament. But some analysts remain sceptical - both of the price SGX is paying for ASX and the value it will get in return. “There are still some further hurdles to get past, but I think today’s announcement is significant given how pessimistic the market has been. I still think that the other hurdle to get past is the dilutionary impact on SGX shareholders. And it’s hard to squeeze synergies out of a union of stock exchanges,” said Todd Martin, Asia equity strategist, Societe Generale.

Singapore job vacancies surge to record high on economic rebound

The number of job vacancies rose 36 percent over the year to 50,200 in September 2010, the highest number of job vacancies since comparable records began in March 2006, statistics released Friday by the Ministry of Manpower showed. The ministry attributed the high number of vacancies to the rapid and robust economic recovery. One in three vacancies was unfilled for at least six months. The number of openings for at least six months rose from 10,140 in 2009 to a five-year high of 15,360 in 2010, the ministry said, adding that non-professional vacancies accounted for 81 percent of the total. The highest number of vacancies was in the services and sales sector, which took up about 22 percent of the total. Vacancies for professionals accounted for 18 percent, roughly the same as associate professional and technicians. Positions requiring at least a university degree qualification made up 23 percent of the total vacancies.

About 44 percent of the vacancies were for professionals, managers, executives and technicians, followed by clerical, service and sales workers, which took up 29 percent of the total. Production and transport operators, cleaners and laborers accounted for 23 percent. In a different breakdown, the services sector contributed 75 percent of the vacancies last year, up from 68 percent in 2006, whereas manufacturing contributed 17 percent, down from 26 percent in 2006. Five in eight vacancies required working experience, comparable with a year ago.

Singapore-China trade up 25% to S$95.3b

Singapore-China economic relations continue to grow with two-way trade in 2010 rising more than 25 percent to S$95.3 billion.

Trade and Industry Minister Lim Hng Kiang said this at a Lunar New Year reception organised by the Singapore Business Federation and Singapore Chamber of Commerce and Industry (SingCham). He said China is currently Singapore’s third largest trading partner, the second largest source of tourist arrivals, and top investment destination. Mr Lim said many Singapore firms are aware of China’s immense potential as the world’s largest consumer market and have, over the years, made inroads into the Chinese market.

In November last year, IE Singapore opened its newest Overseas Centre in Wuhan in Hubei Province. Mr Lim said Singapore companies can also leverage on the seven business councils, co-chaired by Singapore and China, to further their interests. These councils help to promote economic cooperation and facilitate networking between the business communities of both countries.

Singapore ranking first in flexibility and use of talents in labour market

According to the ranking produced by the Forum of Davos, attending to the flexibility and the use of talent in a total of 135 countries, Singapore tops the table while Spain is in the post 115.

Singapore is Asia’s fastest growing economy in 2010

Singapore’s economy grew 12.5 percent in the fourth quarter of 2010, a record year in which the city state was Asia’s strongest economic performer, government figures showed Monday. Singapore grew 14.7 percent for the year as a whole, the figures confirmed, bounding back from a 1.3 percent contraction in 2009 in part thanks to the biomedical sector. “At 14.7 percent, Singapore is the fastest growing Asian economy in 2010,” said Alvin Liew, an economist with Standard Chartered Bank based in the city.

Globally, only Qatar is thought to have grown faster, with growth in the energy-rich Gulf economy projected at 16 percent for 2010, according to the International Monetary Fund. Within Asia, economic powerhouse China is forecast to grow by around 10 percent this year.

Last year’s growth was Singapore’s best ever economic performance, surpassing the previous record of 13.8 percent set in 1970 and within the government’s projected range of 13-15 percent. Growth in the October-December quarter was powered largely by the manufacturing sector, which expanded 28.2 percent from a year ago, the Ministry of Trade and Industry said in a statement. Strength in manufacturing, which accounts for a quarter of gross domestic product (GDP), cushioned the impact of a 1.2 percent decline in construction activity. Manufacturing growth “was led by the biomedical manufacturing cluster, which saw a strong rebound in pharmaceutical output,” the ministry said. For the service sector, which accounts for 65 percent of Singapore’s GDP, output surged 8.8 percent in the fourth quarter. “We continue to expect the economy to grow by seven percent in 2011, with the services sector being the key driver of growth as well as job creation,” analysts from Singapore’s DBS bank said in market commentary.

Prime Minister Lee Hsien Loong, who announced the full-year growth figure in his New Year speech on Friday, called for caution after last year’s exceptional showing. “The outlook for the world economy is mixed,” Lee said in his message. “We should rejoice in this exceptional performance, but please remember that it is also the result of special circumstances, and so is unlikely to be repeated soon. “There are significant concerns: the US economy is still weak. Europe faces serious debt crises in Greece, Ireland and a few other countries.” The prime minister said growth in 2011 would likely moderate to 4.0-6.0 percent. Singapore’s GDP, valued at S$247.33 billion (US$191 billion) in 2009, is highly dependent on external trade and any slip-up in the global economy would affect the city-state’s economy. Its GDP shrank 1.3 percent in 2009 because of the global downturn when demand from the United States and other developed economies collapsed.

“Singapore has had a truly remarkable recovery from the global financial crisis and has record growth numbers to prove it,” said Leif Eskesen, a chief regional economist with Hongkong and Shanghai Banking Corporation. “However, we are now going to enter more ‘normal’ times,” said Eskesen, who is predicting growth of 5.2 percent for this year. The ministry said in the statement it would provide more details of the economy’s performance for the fourth quarter and 2010 next month.

Singapore: Growth in tourists by 15%

Inbound tourism sets up records in Singapore. October 2010 was a record October for one of the “Asian tigers”. In total, Singapore in October was attended by 980,000 people, which is 15.8% higher than the same period last year. Australia, China, India, Indonesia and Malaysia - that’s five main suppliers of tourist traffic to Singapore. These countries account for more than half of all registered visitors in October 2010.

Also October 2010 was marked by a sharp increase in the number of tourists to Singapore from such countries as South Korea, Thailand and the Philippines. The growth of tourist traffic from South Korea increased in comparison with the previous year by 80%, from Thailand – by 60%. October – is the time of exhibitions in Singapore. This partly explains the sharp increase in tourist numbers.

It is worth noting that Singapore has increased not only the number of tourists, but also the number of overnight stays in the hotels. The total number of overnight stays was amounted to 3.7 million, which is a 13% increase compared with last year, according to asiatraveltips.com. After three quarters of 2010, Singapore has demonstrated also growth of tourist revenues, which include revenues from shopping, sightseeing and recreation. Here the main role is played by Indonesia, India and China, which citizens are account for the biggest travel expenses. Their expenses have increased by one third compared with last year. Among the most active European tourists in Singapore were British. Despite the fact that the number of tourists from the UK fell by 1% according to the first three quarters, their travel expenses increased by 19%.

Singapore gets top marks in global law survey

SINGAPORE was rated No.1 in the civil justice systems in the Rule of Law Index 2010 of the World Justice Project.
It is a project to rank the quality of legal systems in the context of the rule of law. The accolade drew the notice of Chief Justice Chan Sek Keong who raised the point in his address at the official opening of the Legal Year ceremony, to underline the star quality of the legal system here. Law Minister K. Shanmugam weighed in on the issue explaining how this had been achieved and said the system here protects the independence of the judiciary, and extremely high-quality judges are appointed from the legal service as well as from the profession.
Asked about some people still mocking the justice system, he said the ‘more they mock, the better we do, so let them keep mocking, we will become better and better as a financial centre, as a city state and as a legal services centre.’

Separately , Singapore’s fight against financial crimes has been beefed up and taken to the next level. Attorney-General Sundaresh Menon in his speech, said a new Economic Crimes and Governance Division has been created, in addition to the current Criminal Justice Division and the State Prosecution Division. ’ Its officers will focus on and specialise in the prosecution of even the most sophisticated financial crimes, and regulatory offences.’ More than 500 guests and members of the legal fraternity were present including Senior Minister S. Jayakumar, High Court judges and law officials from Hong Kong, Malaysia and Brunei.

New professional employment service for Spanish people

The Spanish Business Association in Singapore will launch in January 2011, a professional employment service ( in cooperation with a leading human resources company in Singapore) to channel the growing need for expertise in labor issues for the growing Spanish colony in Singapore and the Spanish people finding employment in Singapore. For more information .(JavaScript must be enabled to view this email address)

Singapore’s manufacturing output up

Singapore’s manufacturing output rose 39.8 per cent on a year-on-year basis in November 2010. On a month-on-month basis, November figures registered a 1.1 per cent increase. For the first eleven months of 2010, manufacturing output expanded 31.8 per cent. On a three-month moving average basis, manufacturing output in November 2010 increased 31.7 per cent compared to the same period last year.

The biggest performer was the biomedical manufacturing cluster, which expanded 166.7 per cent yearon- year in November, led by a 189.0 per cent jump in the pharmaceuticals . Pharmaceuticals’ strong performance was attributed to the low base last year as a result of a different mix of active pharmaceutical ingredients produced.

Output of the precision engineering cluster grew 33.9 per cent year-on-year in November 2010, which was attributed to the machinery & systems segment which expanded 71.4 per cent. This is a result ofhealthy export orders for semiconductor related equipment and the ramp-up of production from new plants.
Output of the electronics cluster increased 23.1 per cent in November 2010 from a year ago, with strong demand for consumer electronics continuing to boost output in the semiconductor segment.

The chemicals cluster’s output grew 9.7 per cent year-on-year in November 2010, underpinned by higher output in all segments within the cluster. In particular, the petrochemicals and petroleum segments saw output gains of 12.0 per cent and 11.1 per cent respectively. The transport engineering cluster’s output inched up 0.5 per cent in November 2010 on a year-on-year basis. The land transport segment recorded the largest output growth of 44.2 per cent with higher production of automotive parts. The marine & offshore engineering segment, on the other hand, declined 11.3 per cent, with lower per centage of completion in shipbuilding and oil rigs projects.

Output of the general manufacturing cluster dipped 0.3 per cent year-on-year in November 2010. The food, beverages & tobacco segment’s output increased 6.7 per cent as a result of higher production of confectionery and beverage products to meet the festive demand. On the other hand, the miscellaneous industries segment shrank 3.7 per cent with lower production of garments, structural metal products and metal storage tanks.

SGX to expand membership to foreign brokers

The Singapore Exchange (SGX) is proposing to expand membership on the securities market to include foreign brokers that are operating abroad. These brokers, regarded as “Remote Trading Members”, will observe their home rules and deal only for foreign investors.

SGX said that with the introduction of the remote trading members, foreign investors can be served by a wider pool of traders that have access to the Singapore market. It hopes that the initiative will extend the reach of SGX into the international market, and also increase liquidity in the Singapore market. SGX added that presently, some foreign investors transact through multiple intermediaries in order to access the Singapore markets. This may cause a lack of visibility over the identity of overseas-based customers who access the Singapore markets and SGX said this will inhibit its ability to supervise market access in an optimal manner.

However, remote trading members will have direct links with these foreign investors and this will help SGX to supervise these market participants effectively. Remote trading members will also be observing regulatory requirements which are on par with those in Singapore. Such requirements include proper internal controls and risk management systems, amongst others. SGX added that all trades will continue to be cleared via a Singapore-based SGX clearing member.

These proposals are set out in a consultation paper, which is open to feedback from market participants and members of the public until January 24.

Valencianos por el mundo

“Valencian around the world”, produced by Television Valenciana is coming next week (16 to 22 December) to Singapore. If you are or know anyone from Valencia (and are interested in participating), please contact María Lahuerta .(JavaScript must be enabled to view this email address)

Interuniversity Master in Diplomacy and International Relations at the Diplomatic Academy

The Spanish Official Gazette has published the basis of the Interuniversity Master in Diplomacy and International Relations at the Diplomatic. More information

Singapore trumps Shanghai as top property investment city in Asia

Singapore has overtaken Shanghai as the most attractive city for real estate investment in Asia, according to the “Emerging Trends in Real Estate Asia Pacific 2011” released by Price Waterhouse Cooper and the Urban Land Institute in December.
The report said that Singapore was continuing to attract investors due to its booming financial and high-tech markets and that the city’s GDP growth was expected to be in the double digits in 2011. “This growth is mainly attributed to foreign awareness of the prospects that Singapore has to offer; however, domestic capital involvement seems to have increased…It’s a mature market and carries less political risk than others,” the report concluded.
Shanghai fell to second place from its top spot in 2011 due to the sharp increases in property prices there which may have dampened investors outlook. But the survey predicted that Chinese city will remain an attractive investment target amid strong demand for luxury properties.
Rounding out the top five cities in the survey in order were Mumbai, Hong Kong, and New Delhi. The survey said that Asia Pacific real estate markets were the most promising in the world, ahead of Europe and America. “Many, if not most, Asian economies have rebounded to pre-crisis levels, and real estate markets, although mostly slower, are headed toward some semblance of normalcy,” said ULI Asia Pacific Chairman C.Y. Leung, chairman of Asia Pacific, DTZ. “The distress that was so widely predicted a year ago for most of the region’s largest markets has by and large failed to materialize.”
The report was based on the opinions of more than 280 real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants.

Singapore to host World Entrepreneurship Forum in 2011

Singapore will host Asia’s first World Entrepreneurship Forum (WEF) in November next year. This annual gathering of thought leaders has been held since 2008 in France. Singapore has become a hotbed for new businesses. From retail and wholesale trade to financial services and consulting, the number of start-ups here grew to over 50,000 last year from 37,000 in 2000.

In October alone, a total of 4,643 businesses were registered in Singapore - a growth of 1.8 per cent from September, according to Janus Corporate Solutions, an agency that tracks business registrations here. Easy access to finance, coupled with the government’s efforts to slash red tape, is making it easier for entrepreneurs to set up operations in Singapore, industry experts said.

Inderjit Singh, Deputy Chairman, Action Community for Entrepreneurship, said: “For us to have many great companies, global companies will take us some time. Through mindset changes among many Singaporeans, we have created an environment where people are willing to try to test out their ideas, to create companies. “Even last year when many countries saw a decline in companies creation, in Singapore we saw the creation of many more new companies compared to the past year.

This model for fostering entrepreneurship will be put under the spotlight as Singapore hosts the World Entrepreneurship Forum next year. The event gathers participants from 50 countries to exchange strategies for building successful businesses.

Singapore exports doing well

SINGAPORE’S exports defied expectations, growing 34.5 per cent in October, as exports to all the top markets including the United States, Europe and China rose. The hot start to the fourth quarter has also significantly reduced the chances of a technical recession, economists said. The rise in non-oil domestic exports last month from a year ago, was more than the 26.6 per cent economists had forecast.

Compared to September, exports rose 5.8 per cent, beating economists’ forecasts for a 3.3 per cent contraction, and reversing a 4.7 per cent decline from August to September.

Economists are hopeful that the strong export figures will translate to increased manufacturing activity and therefore higher economic growth. The biggest surprise came from electronics, which had shown signs of slowing after surging in the first half of the year. But October electronics exports grew 34 per cent from a year ago, building on a 21 per cent expansion in September. Shipments of pharmaceuticals, which tend to be volatile, were also 26.2 per cent higher in October compare to last year, after a 16 per cent rise in September.

Surprise growth in Singapore factory output

Singapore´s manufacturing sector beat expectations and a regional downward trend to log a surprise expansion last month. The Singapore Purchasing Manager´s Index (PMI), an early indicator or factory output, expanded for the first time in three months. It rose 1.2 points to 50.7, according to Singapore Institute of Purchasing and Materials Management (SIPMM).

It is still easiest to do business in Singapore

Singapore has been ranked the world´s easiest place to do business - for the fith year running.
It pipped Hong Kong, New Zealand, Britain and the United States to take top spot in the latest World Bank “Doing Business” report. Singapore´s strong performance was attributed to the efficiency of its processes and the transparency of its rules, especially in areas involving technology.

Singapore stock exchange bids $8.3bn for Australian ASX

The Singapore stock exchange (SGX) has unveiled a multi-billion dollar bid for the company that owns the Australian Stock Exchange (ASX) in Sydney. If approved, the $8.3bn takeover would mark the first stock exchange merger in the Asia Pacific region.

The deal would enhance Singapore as a major financial hub in the region and benefit Australian investors by giving them greater access to Asian markets. A merged exchange would hope to compete more effectively with Hong Kong. ASX shares soared more than 20% to A$43.49 ($43.17) after the announcement, while SGX shares fell back 4.35% to S$9.13 ($7.05). SGX’s Magnus Bocker (left) and ASX’s Robert Elstone have agreed the deal A merger would create the second-largest exchange in the region by number of companies listed with 2,700 quoted firms. However, in terms of market value of the companies listed, the new exchange would still lag behind Hong Kong, Tokyo and Shanghai.

Exports beat forecasts

Singapore´s exports grew by a healthy 22.7 per cent last month compared with the figure a year earlier, as shipments to all top 10 markets continued to expand. The performance was better than economist´s consensus estimate of an 18.1 per cent expansion year-on-year, according to figures released by IE Singapore.

Global competitiveness ranking: Singapore retains Nº 3 spot

Singapore has held on to third place in a global competitiveness ranking to remain true to form as the fastest recovering economy post-recession. It lost out only to Switzerland, wich retained top spot, and Sweden, the new nº 2 in the latest World Economic Forum annual Global Competitiveness Report.
At nº 3 Singapore remains the highest ranked Asian economy, and came in tops for both the lack of corruption in the country and governemnt efficiency. In other separate categories and sub-indices, Singapore also came in tops for the efficiency of its goods an labour markets, second for its financial market sohistication and fifth for infrastructure. “The Straits Times”.

Singapore economy grows at record pace

The city state economy grew 18.1 per cent compared with the same period last year, according to the Singaporean government. In the second quarter, it posted growth of 19.3 per cent year-on-year, the biggest expansion since records began in 1975.

While the US and Europe are concerned about the potential of a double-dip recession and job creation, many Asian countries are more worried about rising prices as their economies steam ahead.
The strong growth in Singapore was supported by increased tourism and a continuing expansion in financial services.“Tourism is booming due to the strong regional recovery and the opening of two large casino complexes, while in finance it is the rapid expansion of asset management and investment banking as well as the rise in domestic lending (largely to households) which is driving growth,” Capital Economics wrote in a research note. Growth in the second quarter was helped by non-oil exports to Europe, which surged 75 per cent in June from a year before.

On the back of the latest figures, Singapore increased its forecast for economic growth for this year to 13-15 per cent from a projection of 7-9 per cent. But the government warned growth would be more subdued for Singapore’s trade-dependent economy in the second half.

Yuan Flexibility does not affect Singapore

China’s move to allow greater yuan flexibility won’t affect Singapore’s exchange rate, said The Monetary Authority of Singapore. Policy of modest, gradual appreciation of Singapore Dollar remains ‘appropriate’. “The Strait Times”.

Unemployment falls in Singapore

Singapore’s overall unemployment rate fell to 2.2% in March from 2.3% in Dec, with 36,500 jobs added in the first quarter of 2010, mainly from services. 2,400 workers were made redundant. “The Strait Times”.

Singapore adds new millionaires

Singapore added millionaires at a faster rate than anywhere in the world last year despite the recession. The group grew by 35%, ahead of Malasya at 33%. “The Strait Times”

ICEX Internship

The ICEX Foreign Trade Institute has just released the new edition of the Business Internship Program 2010-2011. The registration period is open until late July. Enrollment to the program will be implemented through the ICEX website attached, being the information in PDF format.
If your company is interested in participating in this program, you must inform your headquarters in Spain about the type of profile or even the name of the intern that you are interested in, to coordinate from Spain the demands. Only the headquarters in Spain can apply, even if they are intending to post the intern(s) to a position abroad.
ICEX
Programa Ejecutivo
Programa empresas

Economists forecast 9% growth for Singapore this year

Economists now expect Singapore to grow a stronger 9 per cent this year, predicting larger jumps in manufacturing, exports and wholesale & retail trade than they had forecast earlier. This median GDP (gross domestic product) growth forecast from the latest Monetary Authority of Singapore (MAS) survey of 19 professional forecasters hits the upper limit of the government’s 2010 forecast range of 7 to 9 per cent growth. MAS polled the economists late last month, after a flurry of forecast upgrades followed Singapore’s sterling Q1 GDP report of 15.1 per cent growth, far surpassing the March survey’s median growth forecast of 9.5 per cent. In recent weeks, risks emanating from the European sovereign debt crisis have caused much uncertainty and market turmoil worldwide. But David Cohen of Action Economics pointed out that recent data releases in this region - Singapore’s manufacturing numbers, Taiwan’s exports value and South Korea’s job growth - have all shown positive turns. “The Strait Times”

Singapore will improve his financial connectivity

Singapore Exchange said it will invest $250m in new trading engine to improve connectivity between SGX and financial centers around the world.“The Strait Times”

Bilbao wins Lee Kuan Yew World City Prize

The northern Spanish city of Bilbao, once a waning European industrial power riven by pollution and economic decline, has reinvigorated itself as a modern metropolis in the making today. For its efforts in urbanising as well as eradicating its environmental problems, the port city’s provincial government was awarded the inaugural Lee Kuan Yew World City Prize on Tuesday. The keenly contested award saw 78 nominations from across the world, including the cities of Melbourne and New Delhi, which received a special mention from the prize’s nomination committee.The winner pockets a $300,000 cash award sponsored by Keppel Corporation.

This is the second award - the other being the LKY Water Prize - named after Singapore’s Minister Mentor, whose policies have been widely credited with Singapore’s own transformation into a modern metropolis.The award will be presented by MM Lee at a ceremony to be held on the sidelines of the World Cities Summit at the end of June. “The Strait Times”

Singapore, Asian city with best quality of life

Singapore retained ranking as Asian city with best quality of life, ranks 28 amongs 221 global cities. Tokyo is at 40, Hong Kong 71 on the list compiled by Mercer. “The Strait Times”

Singapore heads list for competitiveness

Singapore has emerged first in the latest world competitiveness rankings, narrowly overtaking Hong Kong and the US, wich fell to third place after 16 years at the top. The top three economies are better seen as the leading trio that weathered last year´s financial and economic crisis well. Singapore´s swift response to the crisis, with measures like Jobs Credit and the Special Risk-Sharing Iniative, helped. “The Strait Times”

Invitation to join the Parade of Flag: The Great Eastern International Kids Performing Festival 2010

The 2nd Great Eastern International Kids Performing Festival (GEIKPF) will be held in Singapore from 29th May to 26th June 2010,organised in Uniquely Singapore to focus on showcasing the best of young talents in performing arts from all over the world.

In line with this, the organisation wants to invite to participate in the “Parade of Flags” during the Opening Ceremony by sending in youths as the representatives of our country’s flag at ION Square Orchard, Singapore on 29 MAY 2010.
More information

Singapore to be base for key Asean research office

Finance ministers from the 10 Asean states plus China, Japan and South Korea meeting on the Asian Development Bank annual meeting in Tashkent agreed to moves that will finally enable their US$ 120 billion multilateral currency swap mechanism to become operational.

They agreed to set up an Asean+3 Macroeconomic Research Office (AMRO) in Singapore to provide monitoring and analysis of regional economies to the Chiang Mai Initiative Multilateralisation (CMIM). This has been the missing link in the CMIM process up to now.

Singapore is seizing the opportunity to position itself as a Home for Talent to drive business

Helping to spearhead this towards becoming a global talent hub is the new Human Capital Leadership Institute (HCLI). The new institute’s governing body is chaired by entrepreneur Sunny Verghese. “The economy is recovering but the war is not over. The battle now is for the best talent to grow the business pie·, said Singapore’s Manpower Minister Gan Kim Yong.

Launching the new Human Capital Leadership Institute with its chairman Sunny Verghese, Mr Gan stressed this means ensuring that Singapore has the hardware and software to grow “talent centres of excellence”. Mr Gan said: “This will then encourage more innovation for businesses in Singapore and across Asia. We will also provide companies with a supportive and holistic environment to nurture these talents into future leaders. Top local talents will want to remain in Singapore and global talents will want to come here because we have the best educational infrastructures to help them develop their leadership competencies and further their careers. Global companies will also invest and set up operations in Singapore because of the availability of a deep talent pool. Together with our strategic geographical location, unique multi-cultural attributes and world-class infrastructure, we believe Singapore is well-positioned to become this Home for Talent in the heart of Asia”.

“Employers will hire only the best candidates with the right skills and attributes. The workforce needs to upgrade its skills and knowledge in order to remain competitive and marketable. Therefore, a key thrust of Singapore’s economic growth strategy going forward is to enhance workforce capabilities by focusing on skills, innovation and productivity. To achieve this, we need to help companies develop progressive talent management and leadership capabilities.”

That’s where the Human Capital Leadership Institute will play a pivotal role. It will offer the best-in-class executive education. One is the Singapore Business Leaders Programme which covers topics like Asian leadership attributes and the characterestics of an Asian workforce.

Mr Sunny Verghese said: “We aim to connect in their respective fields with the most promising business leaders. Over time, HCLI aims to bring in other programmes from global institutions such as the one-week Human Resources Startegies for Transforming Organisations from the London Business School.”

Almodovar´s film premiere invitation

On Thursday May 6 is the opening of the European Film Week, with the premiere in Singapore of “Broken Embraces” by Almodovar. The members of the SBA SG who wish to attend, need only send a mail to the Embassy of Spain in Singapore (.(JavaScript must be enabled to view this email address)) to give their names and those of persons accompanying them. On the edge of Golden Village, VivoCity there will be a table of this embassy to deliver the invitations. At 19:45 there will be a cocktail reception and the screening of the film at 21:00.

Launch of the new website www.spaintechnology.com

This website is intended to be a showcase for Spanish technology in foreign markets, with informative and useful content that places special emphasis on high-tech sectors.

More information

Embassy of Spain in Singapore: New position open for Administrative Assistant

The Embassy of Spain in Singapore has published the bases for a new position as Administrative Assistant. Deadline for submissions: May 4.
Call bases: Convocatoria_Auxiliar_Administrativo

New benefits for our members

The SBA SG has signed an agreement with the Raffles Hospital, through which members of our association will enjoy a discounted corporate rate and benefits on published fares and conditions.
More information in Member´s Benefits

SBA SG Tea Celebration 27 March

On March 27 we held a tea hosted by the SBA in the St. Regis Hotel, attended by 30 members and friends. The photos of the event are in the Gallery (member´s section).

   

Seminar “Doing Business in South East Asia”

Last 5th March, during the Business Study Mission of the Instituto de Empresa students in Singapore, the Nanyang MBA EXCO with the support of the Nanyang MBA Office organized a seminar about “Doing Business in South East Asia, in particular Singapore”.

The seminar was offered by Mr. Juan María Portillo Puertas (Counselor of the Economic and Commercial Office of the Spanish Embassy in Singapore), and, Mr. Edward De Marta Hid (Managing Director of Ulma Formwork Singapore Pte Ltd and Commissioner of the SBA SG).
   

New benefits for our members

The SBA SG has signed agreements with the Carlton Hotel Singapore, St. Regis Hotel Singapore and the Crowne Plaza Changi Airport, through which members of our association will enjoy a discounted corporate rate of up to 50% on published fares.
More information in Members´ benefits

Participation SBA .SG in the Eurocham

The Spanish Business Association in Singapore (SBA. SG) takes part, for the first time since January 2010,  in the European Chamber of Commerce in Singapore, known as Eurocham. SBA. SG will be the official representative of the Spanish community in the Eurocham.

The Eurocham aims to represent the common business interests of the European community by promoting bilateral trade, investment and services between Europe, Singapore and Southeast Asian countries. (http://www.eurocham.org.sg). It is composed of all European national business groups in Singapore as well as direct corporate members.

The Eurocham provides its members with a forum for information exchange and lobbying channel for economic and political issues in Singapore and Europe. The Eurocham is the only European representative on the Council of the Singapore Business Federation (SBF). Its objectives are: 1. To provide its members a channel of communication between policy makers in Europe and Singapore and business associations. 2. Being a partner for the Singapore government. 3. Create a forum for solving common problems, get information and exchange best practices at Pan-European. 4. Create networking opportunities for European executives. 5. To lobby in favor of free trade between the EU-ASEAN-FTA

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