Singapore's economy remains weak

Quoted from Yahoo!

SINGAPORE, Oct 28, 2008 (AFP) - Singapore's economy, which is already in a technical recession, will remain weak in 2009 on projections the global economic outlook will deteriorate further, the central bank said Tuesday.

As a financial crisis evolves to impact economic activity worldwide, the city-state is likely to be hammered given its heavy exposure to external demand, the Monetary Authority (MAS) said in its Macro Economic Review.

"Looking ahead, the outlook for the global economy has deteriorated amidst heightened risk aversion and deleveraging in the financial sector," MAS said.

As a small and open trading economy, Singapore is vulnerable to any downturn in its major export markets such as the United States, Europe, China, India and Japan.

"The risks to external demand conditions continue to be on the downside, and a more severe global slowdown cannot be discounted," the MAS warned.

"Taking all these factors into account GDP growth is expected to be around 3.0 percent in 2008, and the economy will continue to grow below its potential rate into 2009," the MAS said.

Prospects for a recovery late next year hinge on the performance of key global economies, it said.

Singapore this month cut its economic growth forecast for 2008 to 3.0 percent from between 4.0 and 5.0 percent after the economy slipped into a technical recession, described as two consecutive quarters of negative growth.

Real gross domestic product (GDP) declined by 6.3 percent in the third quarter after contracting 5.7 percent in the previous quarter, according to preliminary government data.

The MAS said Singapore's financial sector will suffer from a direct impact, while weakening consumer sentiment will affect retail trade and the property market.

Other segments of the econonomy like manufacturing and tourism will suffer from falling external demand, it said.

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Quoted from Yahoo!

SINGAPORE, Oct 28 - Singapore's economy will grow below a potential rate of 4-6 percent in 2009 as the impact from a global financial crisis spreads across the whole economy and drags on previously resilient sectors such as manufacturing, the central bank said.

The Monetary Authority of Singapore said in its twice-yearly macroeconomic review report on Tuesday that the risks faced by Singapore's trade-dependent economy had shifted to slowing growth from rising prices, because the economic downturn has helped tame inflation.

It said it was ready to dampen excess volatility in Singapore's nominal effective exchange rate band, which it uses to set monetary policy by adjusting the strength of the Singapore dollar against a basket of currencies.

It said it had also temporarily increased the level of liquidity in the banking system.

"Growth will likely remain below trend in 2009," the central bank said on Tuesday. "Concomitantly, external and domestic inflationary pressures are likely to ease."

The government has said previously that the potential trend growth in the medium term is between 4 to 6 percent.

The central bank said prospects of Singapore's economy recovering in the latter half of 2009 will depend significantly on growth in the United States, Europe, Japan, and other regional economies.

Singapore's economy fell into a recession in the July-to-September period, the country's first recession since 2002, as manufacturing activity and exports slumped.

The central bank said Singapore's economy is expected to grow about 3 percent this year, with inflation hitting 6-7 percent in 2008 before easing to between 2.5-3.5 percent in 2009.

However, the central bank warned it will take time for the decline in prices to be reflected in the consumer price index.

"Headline inflation rates could be sticky downwards for a while as the prices of some goods and services continue to react to past increases," it said.

The central bank said Singapore's economy appeared to be experiencing the "second phase of the impact from global shocks".

"There are emerging signs that the adverse effects had spread from the vulnerable industries to segments that had previously been considered relatively resilient."

The recession prompted Singapore's central bank to ease monetary policy in October for the first time since 2003.

The central bank said on Tuesday it loosened policy in October because of "dissipating inflationary pressures and increased downside risks to growth".

Temasek's Mapletree to build Vietnam business park

Temasek's Mapletree to build Vietnam business park

SINGAPORE, Oct 14 - Mapletree, the real estate arm of Singapore sovereign wealth fund Temasek Holdings [TEM.UL], said on Tuesday it has signed an agreement to develop a $400 million business park in Vietnam.
The 75-hectare business park, in Vietnam's Binh Duong province, will be built in phases starting from 2009, Mapletree said in a statement.
The deal brings its total investments in the Southeast Asian country to $700 million, it added.
Mapletree said a 68-hectare logistics park it is also building in Binh Duong, near Ho Chi Minh City, has already signed up six customers ahead of its completion in November 2008.

Quoted from Yahoo. news

The province of Binh Duong in Vietnam is one of the faster developing province is southern Vietnam which had attracted a US$1 billion investment in healthcare and education.

Singapore Property Weekly Market Wrap: Week 42 - Oct 14, 2008

Quoted from: "Singapore Property Weekly Market Wrap: Week 42 - Oct 14, 2008 "

Gomes Candice Armindo

URA and DTZ Data Capture Trend in Decreasing Private Property Prices
Real estate adviser DTZ has reported that prices of non-landed private residential properties have dropped as suggested by data collected in the 3Q 2008. Areas worst hit have been said to be prime districts that have been struck by a 4.2% quarter on quarter price drop. ( Yap 2008 )
URA data has captured similar trends but of differing magnitudes. URA has estimated that Core Central residential properties have slipped by 2%. The Rest of Central regions similarly reflected price reductions of 2.1%. However not all property segments have exprienced drops as prices of property situated in the Outside Central Region residential have increased by a marginal 0.1%. ( Yap 2008 )
Further reductions in the private residential market are expected to ensue as the US financial crisis reverberates throughout the Asian region. Its impacts have already been felt with regards to private residential launches. The 3Q of 2008 only saw the launch of small boutique projects and the sale of 320 units in August. ( Yap 2008 )
Tenants Face Five Year Ban Buying/Renting HDB Flats if Caught Illegal-Subletting
2008 hit a new record for the number of tenants caught illegal-subletting their rental flats. 147 rental flats were discovered to have been illegally sublet this year, which is a stark comparison to the meager 20 that were indentified in 2005 and 2006. Many of the flats have been let out to foreign workers or students from Malaysia, China and India. ( Cheam 2008 )
HDB has reiterated that tenants caught illegally renting out their flats will be liable to losing them. Tenants will also be slapped with a five year ban on renting or buying HDB property. ( Cheam 2008 )
HDB Launches 683 New Flats, Application Deadline Thursday 16th October
HDB had recently launched 683 flats for sale of which 288 are in Sengkang, 153 in Punggol, 77 in Jurong West and the rest spread across various other estates. The number of applications for the 683 flats was once again overwhelming; The HDB website registering a total number of 2,626 applications for the three room premium to executive type flats by 5pm, the day of the launch. Prices for the units have been said to range from $160,000 for a four room flat in Woodlands to $565,000 for five room flats in Bukit Merah. ( Straits Times 2008 )
Households with gross monthly incomes of up to $8,000 are eligible to apply for HDB flats. Applications are to be submitted by the HDB website, www. hdb.gov.sg by Thursday 16th of October. ( Straits Times 2008 )
HDB also plans to launch an additional 8,400 Built-To-Order flats later this year. ( Straits Times 2008 )
Experts Advice Home Owners to Opt for Fixed Rate Home Loans
Market volatilities have made home buyers think twice about the type of home loans they wish to take up. Sibor-linked loans entail paying interest rates in relation to the Interbank Offering Rate. This implies that monthly mortgage installments can be high or low, depending on Sibor rates moving upward or downward respectively. Fixed rate home loans on the other hand entail paying a fixed monthly mortgage installment. However, consumers opting for the convenience of fixed rate loans have to pay hefty premiums. ( Teo 2008 )
As of this year, Sibor has fluctuated significantly. In August, it stood at 1%, in September it took on a value of 2.23% and has now dropped to 1.5521%. Such fluctuations are serving as an impetus for many home owners to eschew variable rate loans. Experts too are suggesting that risk-adverse consumers refrain from opting for short-term variable rate loans as the market is highly unstable and unpredictable at this point in time. ( Teo 2008 )
There are of course individuals who contest such advice. Mr Leong Sze Hian, president of the Society of Financial Service Professionals has expressed his belief that interest rates tend to drop amid a recession. Expressing a converse sentiment is Alvin Liew, economist at Standard Chartered. He supports the argument that Sibor will rise amid the recession. Morgan Stanley Research on the other hand has indicated that Sibor rates will stay at 2% and reach almost 3% by next year end. ( Teo 2008 )
Consumers facing indecision on Sibor linked mortgages can also choose to look at CPF Ordinary Account (OA) rate pegged home loans. CPF OA rates have remained at 2.5% since July 1999.
References
Cheam, J 2008, Five times more rental flats recovered - 147 units seized from tenants who made profit from illegal sub-letting, Straits Times, The ( Singapore ), October 6
Straits Times 2008, HDB offers 683 new flats, Straits Times, The ( Singapore ), October 11
Teo, J 2008, Finding best home loan as rates see-saw - Home owners may want to lock in longer-term interest rate to avoid any volatility ahead, say experts , Sunday Times, The ( Singapore ) - October 12, 2008
Yap, E 2008, Prime non-landed home prices fall 4.2% in Q3, Business Times, The ( Singapore ), October 8

Europe leaders to unveil half-trillion-euro bank rescue

Europe leaders to unveil half-trillion-euro bank rescue
BERLIN (AFP) - Governments in Berlin, Paris and Rome were Monday to announce more than half a trillion euros in rescue funds for Europe's stumbling banking sector, as each puts a price tag on a joint bail-out plan.
Leaders of the 15-country eurozone single currency bloc, following the lead of Europe's financial giant Britain, agreed Sunday on a high-stakes joint bid to pull the world financial system back from the brink of collapse.
Stock markets in London, Paris, Amsterdam, Milan and Frankfurt, reeling from their blackest week since the crash of 1929, rebounded sharply even before full details of the rescue were unveiled, soaring by more than 5.0 percent.
Meeting in Paris, the leaders agreed to plough funds into struggling banks and guarantee inter-bank lending, which all but dried up in the panicked four weeks since the collapse of US bank Lehman Brothers, threatening the health of the wider economy.
No global price tag was announced for the enterprise -- modelled on a similar scheme adopted by London last week -- but the German package alone was set to reach 470 billion euros (640 billion dollars), government sources said.
In Berlin, Chancellor Angela Merkel's cabinet was to meet and at 3:00pm (1300 GMT) announce the rescue, set to include around 70 billion euros in fresh capital and 400 billion euros in loan guarantees, according to officials.
In France, whose major banks have so far pulled through the crisis relatively unscathed, President Nicolas Sarkozy will address the nation at 3:00 pm (1300 GMT), after an emergency cabinet meeting.
At the same time in Austria, the government was to announce a bail-out, which Chancellor Alfred Gusenbauer has said could involve part-nationalisation of the worst-hit banks.
Portugal has already offered a 20-billion-euro guarantee for endangered banks, while Italy's cabinet was to meet Monday to "update" bail-out measures already taken.
All 15 eurozone members are to release full details before a summit Wednesday of the 27 European Union members in Brussels, where more non-euro-spending states are expected to sign on.
The European plan, coming two days after the Group of Seven richest economies pledged similar action to shore up the financial sector, won plaudits from International Monetary Fund (IMF) chief Dominique Strauss-Kahn.
"Guarantees have been given, there is complete political determination," he told French radio Europe 1. "There is no reason today, for either depositors, market actors or businesses to have anything to fear."
Strauss-Kahn said the plan "should provide the elements to reassure, in a situation that is highly irrational," reaffirming the need for "massive," "global and coordinated" action.
The head of the eurogroup, Luxembourg prime minister Jean-Claude Juncker, said the bail-out was "essential" to prevent a global financial meltdown.
"This is not about handing out gifts to bankers," he told RTL radio. "The banks we help will have to pay. This is about ensuring that consumers and investors can keep on functioning in a rational way."
"If we just stand back and do nothing, everything will collapse."
European leaders took example from a 500-billion-pound (630-billion-euro, 850-billion-dollar) British rescue plan.
London on Monday ploughed 37 billion pounds into a trio of banks, Royal Bank of Scotland, HBOS and Lloyds TSB, the first to benefit from the scheme.
And European central banks moved to free up frozen lending by providing commercial banks with unlimited amounts of dollars in a joint operation that might be reinforced by Japan.
The Bank of England, European Central Bank and Swiss National Bank will loan dollars to commercial banks for periods of seven, 28 and 84 days "at fixed interest rates for full allotment," an ECB statement said.
Banks worldwide need dollars to finance operations, but the market on which they would normally borrow them has seized up following the collapse in the US subprime mortgage market.
The European Union also said it was ready to help Hungary's government after its currency, the forint, slumped last week.


So much $
The Package:
Bristain: Total 500 b pound (630 b euro/850 b dollars)
200 b pound (short term)250 b pound ( guarantee loan between bannks)
Germany
70 b euros (fresh capital)400 b euros (loan guarantee)
France

Austria
Portugal 20 b euro (guarantee)

DBS says Indian JV to close branches, layoff staff

DBS says Indian JV to close branches, layoff staff

SINGAPORE, Oct 14 - DBS Group , Singapore's biggest bank, said on Tuesday that its Indian joint venture Cholamandalam DBS Finance is closing 75 branches in India.
"The business has to adapt to prevailing conditions in India," a DBS spokesman said, confirming an earlier report in the Times of India newspaper that its subsidiary will close 75 of its 260 branches and 200 people will lose their jobs.
DBS, which is Southeast Asia's biggest lender, has a 37.5 percent stake in Cholamandalam DBS Finance.
DBS and Cholamandalam Investments and Finance Company agreed to form the joint venture in the middle of 2005.

Quoted from yahoo news


Why closing these at this time? To take advantage of the current crisis to cut and streamline processes ? Or they are really losing grounds in India?

Interesting Articles

This is a summary of articles that may be of interest to you


Global Economy
1. US Senate approves economic bailout plan

2. UBS cuts 2000 more jobs in investment bank unit

3. Central banks unleash rate cut offensive against finance turmoil AFP

About Singapore
1. Singapore being top meeting place
2. Recession looms for Singapore: economists AFP


Singapore's property market

1. URA releases 3rd quarter 2008 private residentail property price index
2. Singapore home prices see first drop in 4 years

3. MRT guide to home prices
4. Tharman says global economic crunch could impact job market

Central banks unleash rate cut offensive against finance turmoil AFP

Central banks unleash rate cut offensive against finance turmoil AFP -

LONDON (AFP) - - Major central banks launched coordinated interest rate cuts on Wednesday in a new gamble to counter the global financial crisis but failed to quell panic on global stock markets.
The rate cuts and Britain's move to pump 87 billion dollars into stricken banks were designed to underpin shaky confidence in the financial system.
But while the move brought temporary respite, London's main index soon fell back again and US stocks endured another rollercoaster ride, while Tokyo saw its biggest one-day fall in two decades.
The US Federal Reserve, the European Central Bank , Bank of England and central banks in Sweden and Switzerland all joined the new interest rate offensive, cutting rates by half a percentage point. China joined in cutting 27 basis points off its key rate.
The central banks highlighted in a joint statement that they had cooperated in "unprecedented joint actions such as the provision of liquidity to reduce strains in financial markets" during the crisis.
They said inflationary pressures were easing as oil and other commodity prices fall due to the credit crunch cutting demand and so "some easing of global monetary conditions is therefore warranted."
Political leaders welcomed the cuts. "It is important and helpful that central banks are working in a coordinated way to deal with stress in the financial system," White House spokesman Tony Fratto said.
German Chancellor Angela Merkel said it would "help build confidence" in the global economy and French President Nicolas Sarkozy, current EU president, called it a "very important decision."
Neither the rate cut nor Britain's costly initiative to hold up the banking system could halt another market freefall.
Panic selling hit Asian stock exchanges and a drop of 9.38 percent in Tokyo prompted Japanese Prime Minister Taro Aso to voice "huge fears" for the future of the world's second biggest economy. Hong Kong fell 8.2 percent and Sydney 5.0 percent.
While the initial impact of the central banks' move was to breathe some life back into the main European markets, the relief was only temporary.
The London stock market plunged 5.38 percent, with dealers saying investors were unconvinced that the rate cuts would stop the rot.
Wall Street also remained volatile, rebounding from an opening plunge. The Dow Jones Industrial Average was trading 89.28 points (0.95 percent) higher at 9,536.39 around 1350 GMT, after initially plummeting 149.34 points.
"The central banks have to cut their rates further ... we have lost too much time," Robert Halver, a strategist at Baader Bank in Frankfurt told AFP.
Unveiling a package which will see Britain's eight main banks part-nationalised, Prime Minister Gordon Brown said "the global financial market has ceased to function" and needed "bold and far-reaching solutions."
The government said it would use 50 billion pounds (64 billion euros, 87 billion dollars) to buy stakes in HSBC, Royal Bank of Scotland, Barclays, HBOS, Lloyds TSB, Standard Chartered, Abbey and Nationwide Building Society.
It would also make available 200 billion pounds in short-term loans and issue 250 billion pounds to guarantee loans between banks.
Royal Bank of Scotland and HBOS, whose shares have suffered heavy recent losses, said they would take part in the recapitalisation part of the scheme but other banks including HSBC and Standard Chartered said they would not.
It hoped the measures will overcome the banks' reluctance to lend to each other -- the root of the financial crisis.
Brown also called for a "European-wide funding plan" to help ease the global financial crisis and said proposals had been made to other nations.
Britain's initiative followed desperate efforts by other governments and institutions.
The European Central Bank said it would pump 70 billion dollars into interbank money markets in one-day loans Wednesday, raising the daily amount by 20 billion dollars.
The US Federal Reserve said Tuesday it would buy up short-term corporate debt -- sharply extending its role in the economy -- and central bank chairman Ben Bernanke strongly hinted that a US interest rate cut was on the cards.
President George W. Bush discussed the economic meltdown with leaders of Britain, France and Italy, seeking a common strategy ahead of crisis talks between the Group of Seven major economies in Washington on Friday

Recession looms for Singapore: economists AFP

Recession looms for Singapore: economists AFP - Wednesday, October 8

SINGAPORE, Oct 8, 2008 (AFP) - Singapore appears headed for its first recession since 2002 as the city-state suffers from a US economy wilting under its worst financial crisis since the Great Depression, economists say. Southeast Asia's wealthiest economy in terms of GDP per capita is heavily dependent on trade, which makes it sensitive to hiccups in developed economies, particularly key export markets the US and Europe.
The crisis that began last year in the US subprime, or higher-risk, mortgage sector is now infecting European shores, and Singapore may very likely find itself in an extended downturn, economists said.
They expect this Friday's release of preliminary economic data for the third quarter to confirm Singapore is in a technical recession, generally defined as two consecutive quarters of quarter-on-quarter contractions in economic output.
"We are pencilling in the worst for Singapore.... We might see two straight years of (economic) contractions (from 2009 to 2010)," said Song Seng Wun, a regional economist with CIMB-GK Research.
While the last technical recession came six years ago, the most recent full-scale recession was in 2001 when the economy contracted 2.4 percent during the year.
After years of growth, signs of a slowdown emerged with recent disappointing trade data and contractions in the important manufacturing sector, which includes the country's export-dependent electronic and pharmaceutical industries.
In August, key non-oil domestic exports fell for the fourth straight month, with electronic shipments continuing a decline begun in February 2007, and manufacturing dropped by 12.2 percent.
The August fall in output followed a 21.5 percent decline the previous month.
In the second quarter to June, Singapore's economy contracted 6.0 percent on an annualised, quarter-on-quarter basis and the negative trend likely extended into the third quarter, said economists.
"Things are bad globally," said Kit Wei Zheng, Citigroup's vice president for regional economics and market analysis.
"There are a lot of downside risks and in such a scenario, one cannot hope for a quick recovery," he said in Singapore.
Kit is optimistically forecasting a fourth-quarter recovery, with full-year growth at 2.8 percent.
Song said his revised 2009 forecast would likely be for negative growth.
He said that given the rarity of the global crisis, "the numbers we may be looking at may be once in a century for Singapore."
According to economists' calculations, more than two-thirds of the country's economy, valued at 243.17 billion Singapore dollars in 2007 (166.46 billion US), is driven by external demand.
The island nation has no significant domestic economic drivers to lean on because its market of almost five million is simply too small, said economists.
"If the world is in a recession, there is little that we can boost," said Song. "Our plan B is really to try to make the local population bigger."
Economists from Credit Suisse also see Singapore's economy slowing further next year.
"Signs that growth will be lower in 2009 than in 2008 are everywhere... lower job and income growth, falling asset prices, and flat to negative export growth," they said in a report.
"By sector, the global financial turmoil could hit financial services growth hard, exports are likely to drag down manufacturing, and the biomedical sector is expected to remain under pressure from competition from generic drugs."
In early August Singapore's government cut its forecast for economic growth this year to between four and five percent.
But Finance Minister Tharman Shanmugaratnam warned this week that the country could be stuck in an economic downturn that may last "several quarters" as the global crisis evolves.
"It is now an economic crisis," he was quoted as saying Monday in The Straits Times.
"So globally the economy is slowing down. This is a fact that we cannot escape."

Tharman says global economic crunch could impact job market

Tharman says global economic crunch could impact job market

Channel NewsAsia - Monday, October 6

SINGAPORE: Finance Minister Tharman Shanmugaratnam said on Sunday that the global economic crunch could impact Singapore’s job market, but he is confident that the country has the right fundamentals to sail through the rough patch.
Even as American lawmakers gave their approval for the US$700 billion bailout programme to save the country’s financial institutions, Mr Tharman said US needs to do more to solve the lingering crisis.
After visiting the Toa Payoh East neighbourhood on Sunday, the finance minister sat down for a discussion about the global economic crisis with residents.
He said: "Our confidence in Singapore is very high. Across the board, manufacturing, services, people are confident about Singapore. Our property market is not as overvalued as many other countries, including some others in Asia.
"We have a strong fiscal system. It’s just as well we didn’t spend all our surplus last year. We were conservative. We preserved some for the future and that’s the right approach."
Residents were also concerned about the failure of US banks, insurance companies and money matters — big and small. They questioned the integrity of Singapore’s banking system and insurance companies’ ability to honour their obligations.
Mr Tharman said: "I can assure you that our Singapore banks are well regulated and there is no risk and no reason whatsoever to have a run on our banks. More importantly, the banks themselves have good risk management.
"So frankly, you need not worry about how solid our banks are, your money is safe. We are not in the same situation as the US, we need not panic.
"Our regulations are stricter compared to Ireland, the United States, in fact compared to many developed countries. We have always been old—fashioned in our regulatory approach."
The minister added that Singaporeans can have the same confidence in insurance companies, which also have to abide by strict regulations.
As for Singapore’s full—year economic growth forecast, Mr Tharman said the Trade and Industry Ministry will reveal the numbers on October 10. Singapore’s monetary policy update would also be out by then.

----------------------
We have so many big company "streamlining" their local operations in Singapore and globally, it will definitely create a massive number of unemployment

Private Properties Update

This is a summary of what is private apartments and condominiums are available for you.

For Rent:
Adam Park


For Sale:
District 15/16
Breeze by the East
The Tropic Gardens
Axis @ Siglap

District 12/13
The Callista
One St Michael's
One Leicester

URA releases flash 3rd quarter 2008 private residential property price index

2 October 2008

URA releases flash 3rd quarter 2008 private residential property price index

The Urban Redevelopment Authority (URA) released today the flash estimate of the price index of private residential property for 3rd Quarter 2008.

Based on the estimated price index of private residential property, prices fell from 177.5 points in the 2nd Quarter 2008 to 174.3 points in the 3rd Quarter 2008. This represents a decline of 1.8%, compared with the 0.2% increase in the previous quarter (see Annex A).

URA also released today the flash estimates of the price changes in the 3 geographical regions for 3rd Quarter 2008. Prices of non-landed private residential properties decreased by 2.0% in Core Central Region and 2.1% in Rest of Central Region while prices of non-landed properties rose 0.1% in Outside Central Region in the quarter (see Annex B). In comparison, for 2nd Quarter 2008, prices of non-landed private residential properties decreased by 0.1% in Core Central Region and increased by 0.7% in Rest of Central Region and 0.9% in Outside Central Region.

The flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter supplemented by information on the number of new units sold. The statistics will be updated 4 weeks later when URA releases the full 3rd Quarter 2008 real estate statistics, when more data on the caveats lodged and the take-up of new projects are captured. Past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small. The public is advised to interpret the flash estimates with caution.

URA will continue to release relevant price sensitive information in a timely manner to allow the public to make informed decisions. On the supply side, the statistics on private residential units in the pipeline, which were last released in Jul 08, will be updated in the 3rd Quarter 2008 Real Estate Statistics to be released on 24 Oct 2008.
Extracted From URA Singapore

UBS to cut 2,000 jobs in investment bank unit

UBS to cut 2,000 jobs in investment bank unit

ZURICH (AFP) - - Switzerland's biggest bank UBS said it would cut 2,000 more jobs as it revamps its investment bank which had been battered by the US subprime crisis.

The latest lay-offs would bring the staff levels in the investment bank unit to approximately 17,000 by the year-end, 6,000 less than the peak level in the third quarter of 2007, the bank said in a statement.
"Reductions will be predominantly targeted to businesses being exited or downsized in order to protect and sustain our core client franchises," it added.
UBS had been forced to write down over 42.5 billion dollars worth of assets and post successive losses when the United States subprime mortgage market soured.
On Thursday, UBS said however that it has turned a corner, with its third quarter expected to yield small profits.
The Swiss bank said its investment unit would cease dealing in commodities as well as "substantially downsize" real estate and securitization trading.
Chairman and chief executive officer of UBS Investment Bank Jerker Johansson explained that the ongoing financial crisis "require us to recalibrate our business.
"While the revenue outlook is uncertain, these measures will allow us to focus on our strengths, reduce the cost base to a more sustainable level and position our core businesses for growth once fundamentals improve," he said.

Extracted from yahoo sg news

ST701 Property Vertical > Highlight


The MRT guide to home prices
Buyers increasingly keen on units near stations, which can command up to a 20% premium
By Fiona Chan, Property Reporter
Published: October 2 2008,
The Straits Times
.....................................................................................

HOME seeker Wan Kum Wai is hunting for a flat that is well-located - specifically, within walking distance of an MRT station.



For this convenience, the multimedia designer and his wife Jessie are willing to pay 10 to 20 per cent more than they would for a home a few bus stops away from a station.

'We don't drive, and the cost of living is running high,' he said. 'We don't mind paying more because we think this will help us save on transportation costs and other expenses in the long run.'

In an era of sky-high petrol prices, multiplying Electronic Road Pricing gantries and increasing worries over environmental degradation, the all-important 'location, location, location' element of a home purchase has taken on a new slant.

While the classic prime districts of 9, 10, 11 are still sought after, home buyers are also increasingly keen on properties near MRT stations.

Apart from non-drivers, MRT-accessible homes also attract buyers with school-going children as well as investors who want to rent the units to expatriates, many of whom rely heavily on public transport, say property agents.

Ms Mylene Kwan, a PropNex agent who is helping Mr Wan find a home, said some of her clients have only one priority: to be near an MRT station.

'Many of them don't drive, so it's very important to these buyers,' she said.

But such proximity comes at a price.

Ms Kwan estimated that HDB flats with this privilege have their valuations alone jacked up by at least $20,000 or $30,000, and buyers often pay even more in cash on top of that.

The most popular HDB flats near MRT stations are those close to town, such as in the Tiong Bahru, Redhill and Queenstown areas, she said.

But even in the suburbs, a nearby station can give a big boost to prices.

In Woodlands, owners of flats near the MRT station are asking $40,000 to $50,000 above valuation just because of the location, said Ms Rohaizah Ramjan, another PropNex agent.

Whenever these flats come on the market, they get snapped up within two or three weeks, she added. For 'normal ones' further from the station, it can take a few months for a sale to be closed.

'Flats near MRT stations are harder to come by, because owners are comfortable there and don't want to sell,' she said. 'So if a buyer has the budget and they see a well-located flat for sale, they just grab.'

The same principle applies to private property. Condominiums near MRT stations can command a premium of up to 20 per cent over similar units a bit further away, said Mr Eric Cheng, executive director of HSR Property Group.

The price difference stems partly from the convenience of these homes, but is also due to their limited supply, he added.

'If you look at the whole map of Singapore, I dare say only about half the MRT stations have condos right next door. Of course, they command a premium, a good 10 to 20 per cent above neighbouring properties 10 minutes' walk away.'

At Tiong Bahru MRT station, for instance, new condos that are at the doorstep of the station - such as Twin Regency and Regency Heights in Kim Tian Road - fetch $1,240 per sq ft (psf) on average.

About five to 10 minutes away, prices average $1,072 psf, or about 15 per cent less, at the equally new The Regency at Tiong Bahru on Chay Yan Street.

'Most of these units are rarely on the market,' said Mr Cheng. 'Even if the owners are not staying in them, they might not want to sell because they can get very high rental returns.'

Still, not all MRT stations are equal. Property values can differ widely between two consecutive stops, such as in the case of Novena and Toa Payoh, where condos around the former are almost double the price of those around the latter, according to an extensive analysis done by property firm Savills Singapore.

Even stations within a few kilometres of each other can see significantly different prices.

Savills' data showed that condos around the Dhoby Ghaut station, for instance, fetched an average of around $1,600 psf in the first six months of the year. Less than 2km away, condos near the Little India station cost only two-thirds that on average, or $1,071 psf.

'Apart from the proximity to an MRT station, buyers do look at other factors,' said Mr Ku Swee Yong, Savills' director of marketing and business development.

'Equally important is the quality, age and tenure of the project and its facilities, how much the unit can fetch in rentals and what amenities are nearby.'

Mr Ku cited Lavender and Farrer Park MRT stations, separated by just 1.5km in distance but about $200 psf in price.

At Lavender, well-equipped condos such as Citylights boosted prices in the vicinity to an average of $1,104 psf in the first six months of the year. But Farrer Park is surrounded by several smaller condos with minimal facilities, so rents and prices tend to be lower, said Mr Ku.

Singapore home prices see first drop in 4 yrs

Singapore home prices see first drop in 4 yrs Reuters - Thursday, October 2By Daryl Loo

SINGAPORE, Oct 2 - Singapore private home prices fell 1.8 percent between July and September, snapping four straight years of growth and sending property stocks plunging to near three-year lows.
The Urban Redevelopment Authority said on Thursday early estimates showed the price index for private residential properties dropped to 174.3 points for the three months ended September from 177.5 in the previous three-month period.
This is the first decline in the index since the first quarter of 2004, as concerns over global financial turmoil caused home sales to slump.
"Bad news in the global markets deflated investor sentiments. We expect home prices to decline for at least the next 12 months," said Nicholas Mak, head of research for property consultancy Knight Frank.
Shares of developers such as CapitaLand , City Developments and Keppel Land extended earlier losses after the noon trading break, underperforming the Straits Times index which lost 1.1 percent.
CapitaLand fell as much as 4.6 percent, CityDev lost 7.8 percent, while KepLand dropped nearly 4.6 percent, taking the city-state's top three homebuilders down to near three year intraday lows hit on Tuesday.
"Developers that have unlaunched projects may want to do so soon while it is still profitable for them. Otherwise it could be a long wait for the market to recover," Mak said.
Private home sales in Singapore plummeted 81 percent in August from a year ago, to the lowest level since March as a combination of global financial turmoil and the traditionally "unlucky" Hungry Ghost month spooked buyers. [ID:nSIN276583]
Poor demand and a looming housing glut are threatening to plunge the property market into a prolonged downturn, which could deal a blow to Singapore's top developers.
The advance estimates are compiled from transaction prices lodged during the first 10 weeks of the quarter as well as data from new apartments that have been booked. The URA will release the official price index in four weeks.

US Senate approves economic bailout plan

Quoted from Yahoo.com

WASHINGTON (AFP) - - The US Senate on Wednesday approved a 700-billion-dollar Wall Street bailout package by a vote of 74-25 amid a widening global crisis sparked by the collapse of the US housing market.
The bill next moves to the House of Representatives, where it faces an uncertain future after lawmakers rejected an earlier version on Monday, sending world markets into freefall.
The Senate nod raised hopes that the amended plan could be on President George W. Bush's desk for final approval by the weekend and eased the panic sparked by Monday's rejection of the plan by the House.
The amended bill raises the ceiling on federal insurance for bank deposits from 100,000 dollars to 250,000 dollars, a move aimed at reassuring savers that their money is safe in banks and avoiding mas withdrawals.
It retains most facets of the original plan which gives Treasury Secretary Henry Paulson the power to buy up tainted mortgage-related assets in troubled banks and includes restrictions on "golden parachute" payoffs for executives.
Opponents of the bill have balked at handing that much power to one man, and reject the notion of using taxpayer money to bailout out disgraced Wall Street firms.
The proposal has run into fierce grass-roots resistance by voters who see it as a reward for imprudent Wall Street money spinners.
Wednesday's surprise Senate vote was called after Democratic and Republican negotiators agreed on the terms of the reframed deal.
New talks were underway in the House meanwhile on tweaking the package to ensure it gets through on a second vote, after lawmakers sensationally killed off the original bill on Monday by 228 to 205 votes.
Earlier in the day, Democratic House Majority leader Steny Hoyer sounded a note of caution, appearing to indicate the bill would only be brought to a vote if it looked certain to pass.
"If there is bipartisan, majority support for the Senate package, we will likely bring it to the floor on Friday," he said in a statement.
Hoyer raised concerns that some of his fellow Democrats who originally voted for the bailout might reject it over the Senate's extension of expired tax breaks for businesses.
"There's no doubt the tax package is very controversial. The Senate, in my opinion, is adding that on because they think that's the only way they can get it passed," Hoyer told NBC ahead of the vote.
Conservative Democrats previously rejected extending such tax breaks unless they can be offset in other areas of the budget in an attempt to curtail the growth of the deficit.
The bailout bill had been expected to encounter less resistance in the Senate than the House, partly because only a third of the chamber's lawmakers are up for re-election on November 4.
Every House member faces voters, and many lawmakers in tight reelection fights opposed the package on Monday.