Singapore Market Report_022010

8/6/2019 Singapore Market Report_022010

1/38

SINGAPORE MARKET REPORT 2/2010


2/38


2/38

CONTENTS

SINGAPORE MARKETS ........................................................ 5

S'pore consumer confidence hits new high .............................................. 5IMD 2010 World Competitiveness Yearbook rankings Spore comes out ontop .................................................................................................... 5Singapore climbs in global ranking of living costs..................................... 5S'pore slips one notch in digital economy rankings ................................... 6S'pore is Asia's most liveable city .......................................................... 6S'pore tops in business risk ratings ........................................................ 6

ECONOMY ........................................................................... 7

Economy recovers 'lost' output to scale new peak .................................... 7Wholesale Trade Index First Quarter 2010 .............................................. 836,500 jobs added in Q1 ...................................................................... 8Tech sector bucks trend with 8% growth in 2009..................................... 8S'pore may overtake China ................................................................... 9MTI Revises 2010 Growth Forecast to 13.0 to 15.0 Per Cent ..................... 9

TRADE AND INVESTMENTS ............................................... 10

S'pore-EU talks may point way for Asean-EU FTA .................................. 10S'pore Mercantile Exchange to debut in Aug .......................................... 11Economic ties top S'pore-Indonesia talks .............................................. 11Infocomm Industry Revenue Grew 8% In 2009 ..................................... 11S'pore well positioned to export data services ....................................... 11Singapore firms urged to invest in Laos ................................................ 12Trade with EU expected to rise this year ............................................... 12S'pore investors to gain from yuan strength .......................................... 13

RESEARCH AND INNOVATIONS ........................................ 13

Pharmaceutical & biotech companies partner Singapore to accelerateinnovation in Asia .............................................................................. 13Another shot in the arm for S'pore research .......................................... 14New R&D institute opens .................................................................... 14

ENERGY ............................................................................ 15

S$680M Fund to Build Solar Ecosystem In Singapore ............................. 15Jakarta reassures S'pore on gas supply ................................................ 15Singapore to buy natural gas from Qatar .............................................. 15Tuas Power, S'pore LNG looking to hire ................................................ 16


3/38


3/38

ENVIRONMENT ................................................................. 16

NEA seeks expert help to raise recycling rate ........................................ 16Newater to meet half of S'pore's needs ................................................ 17Big splash in the water tech sector ...................................................... 17Making desalinated water cheaper ....................................................... 18

BIOTECH INDUSTRY ......................................................... 18

Singapore draws biomedical companies first-in-Asia manufacturing andheadquarters offices .......................................................................... 18Local innovation needed to boost biotech sector .................................... 19Official Launch of Advanced Environmental Biotechnology Centre (AEBC) . 19Its boom time for Biopolis .................................................................. 19

S'pore to make smallest biosensors in the world .................................... 20

INDUSTRY AND COMPANIES ............................................ 20

Neste Oil starts trials of advanced renewable biodiesel ........................... 20Shell opens $4b chemical complex ....................................................... 20IBM sets up cloud computing laboratory ............................................... 21SMEs to get more training funds, information access.............................. 21Abbott Nutrition opens R&D centre here ............................................... 21Attracting more global SMEs ............................................................... 22

CONSTRUCTION BUSINESS .............................................. 22

Local construction trade urged to go green ........................................... 22S'pore slips to 16th in real estate transparency ranking .......................... 23

TRANSPORT ..................................................................... 23

Pact with Malaysia may ignite Kunming rail link ..................................... 23Singapore expands bilateral air services agreement with Greece ............. 24

Najib: Railway land deal major breakthrough ........................................ 24

TOURISM INDUSTRY ........................................................ 24

Beerfest Asia aims to be event calendar highlight .................................. 24Most locals prefer to visit places in Asia-Pacific region ............................ 25Buzz is back in S'pore convention and expo business ............................. 25Genting S'pore to sell UK operations .................................................... 26

INTERNATIONAL RELATIONS ........................................... 27

S'pore to ratify ILO Convention ........................................................... 27


4/38


4/38

Singapore Concludes Open Skies Agreements with Barbados, Brazil, Jamaicaand Rwanda ...................................................................................... 27

ASIA AND ASEAN MATTERS .............................................. 28

Asean electronic trading link seen going live by Q1 11 ........................... 28ADB forecasts 7.5% growth for Asia this year ....................................... 28Singapore to be base for key Asean research office ................................ 28Asian exports close to pre-crisis peaks ................................................. 29Asean, Gulf nations adopt cooperation plan ........................................... 29Asean+8 best way to engage US, Russia .............................................. 29South-east Asian countries eye nuclear energy...................................... 30

TAXATION AND ACCOUNTING .......................................... 31

Singapore and Saudi Arabia Sign Agreement for Avoidance of DoubleTaxation ........................................................................................... 31Sizeable tax breaks for 'design thinking' ............................................... 31S'pore accountants report better sentiment .......................................... 31S'pore corporate tax still 3rd lowest in Asia-Pac ..................................... 32Tax-deduction scheme for angel investors ............................................ 32

EDUCATION...................................................................... 33

SIA undergrads' top employer choice: survey........................................ 33Help for poor Malay students............................................................... 33

MEDIA AND TECHNOLOGY ................................................ 34

ITs getting very cloudy ...................................................................... 34Singapore to lead South-east Asia in wireless tech: IDC ......................... 34Internet exchange launched ................................................................ 35Singapore gears up for the Future of Media........................................... 35'G' mail: One inbox for all govt e-mail .................................................. 35

Growth seen in entertainment, media market........................................ 35

DEFENCE INDUSTRY ......................................................... 36

Singapore, US reaffirm strong defence ties ........................................... 36S'pore, Jakarta to boost efforts against terrorism .................................. 37Malaysian, S'pore armies train in Johor ................................................ 37Record no. of SAF troops for Afghanistan .............................................. 37


5/38


5/38

SINGAPORE MARKETS

S'pore consumer confidence hits new high

3.5.2010 The Business Times

Consumer confidence in Singapore hit a new high in the first quarter of 2010 - confirmingSingaporeans as the most upbeat consumers in the region. The Consumer Confidence Index,measured by InsightAsia, increased 14 points for a second straight quarter, to 138.

InsightAsia, one of the Asia-Pacific's leading market research groups - specialising inquantitative, qualitative research, brand development, business analytics and consultancy -continuously surveys 10,800 people across six Asian countries on an annual basis. The surgein the Singapore economy is quickly becoming a textbook example of V-shaped recovery. GDPgrowth was above 7 per cent before the global recession but plunged to minus-9.6 per cent inthe first quarter of 2009. Since then, the economy has made a remarkably strong comeback.

Singapore has an advanced economy with well-developed technology and financial serviceindustries, as well as a fast-growing tourism industry. The Singapore economy is built onstrong foundations and the future looks bright - an outlook reflected in the attitude ofSingaporean consumers.

IMD 2010 World Competitiveness Yearbook rankings Spore comesout on top19.5.2010 IMD ( In ternational Institute for Management Development)

For the first time in decades, Singapore (1) and Hong Kong (2) have topped the USA (3) inIMDs World Competitiveness Yearbook rankings. They are so close, however, that it would bebetter to define them as the leading trio. In the first 10 places: Australia (5), Taiwan (8)and Malaysia (10) also benefit from strong demand in Asia. Switzerland (4) maintains anexcellent position characterized by strong economic fundamentals (very low deficit, debt,inflation and unemployment) and a well-defended position on export markets. Sweden (6)and Norway (9) shine for the Nordic model, although Denmark (13) surprisingly loses ground,in particular due to the pessimistic mood expressed in the survey.

Singapore climbs in global ranking of living costs19.6.2010 The Business Times

A STRONGER currency has pushed Singapore to the 67th most expensive city to live in, five

places higher than its 72nd position last year, according to the latest rankings provided byECA International. Among Asian cities, Singapore gained one level to ninth place. This makesSingapore a pricier place to live in as compared with South Korean's Busan and Ulsan, andTaipei in Taiwan. It is, however, still cheaper than Chinese cities Hong Kong and Shanghai, aswell as Japan's Tokyo - which snagged the spot as the world's most expensive place to live in.

Singapore's rise in the cost of living rankings come on the back of a strengthened localcurrency, which 'has been strong relative to other major currencies in the region', said ECA. Itadded that prices of goods and services commonly bought by international assignees havealso risen at much faster rates here, as compared with other developed cities regionally.

On the one hand, companies here will now see lower cost of living allowances when they sendstaff out of Singapore. On the other hand, for companies bringing staff to Singapore,allowances will carry on increasing as Singapore continues to move up the ranking table.


6/38


6/38

S'pore slips one notch in digital economy rankings29.6.2010 The Business Times

SINGAPORE slipped one notch to eighth position in this year's Economist Intelligence Unit

(EIU) global e-readiness rankings, renamed 2010 digital economy rankings. Hong Kongswitched places with Singapore to emerge as the top Asian economy in the rankingsoccupying the seventh spot. Despite falling one spot, Singapore scored highly in digital policyand vision and delivery of online services. According to the EIU, the annual technologybenchmarking study, which enters its second decade, will from now on be known as the'digital economy rankings'.

As in other years, the Nordic countries dominated the rankings. This year Sweden dislodgedthe perennial 'e-readiness' leader, Denmark, by a narrow margin to emerge as the top digitaleconomy. Finland and Norway are also among the top six digital economy countries this year,the former advancing six places mainly on the strength of improved performance in indicatorsmeasuring the use of online services, EIU said.

S'pore is Asia's most liveable city30.6.2010 The Straits Times

SINGAPORE is the most liveable city in Asia and ranks third in the world, according to a newlydeveloped index. Preliminary findings from the Global Liveable Cities Index, developed inSingapore, put the city state behind only Swiss cities Geneva and Zurich globally. It rankedwell ahead of Hong Kong, as well as Japan's Tokyo and Osaka.

While Singapore came in tops in safety, it ranked only 14th out of 64 countries in the area ofenvironmental friendliness and sustainability. It was third in the category of governance andfifth for economic vibrancy and quality of life.

S'pore tops in business risk ratings30.6.2010 The Straits Times

Singapore is the safest place in South-east Asia to do business, regaining the highest possiblerisk rating, according to global credit insurer Coface. France-based Coface announcedyesterday its latest country risk ratings, which assess the average risk of payment defaults bycompanies in a given country. These ratings take into account factors such as a country'seconomic and political prospects, as well as the business climate.

Singapore's rating for this month jumped from A2 to A1, the best possible rating. Otherregional ratings included Malaysia (A2), and China and Thailand (both A3). Singapore - theonly country in Asia besides Japan to get an A1 rating - last scored an A1 in January last year.

Coface chief executive Jerome Cazes said Singapore's A1 rating means that the Republic is'one of the safest places for business'. 'It means that Singapore companies are very strongand pay their debts,' he added. The Coface website explained that Singapore boasts the 'bestgovernance' in Asia, underpinned by 'an effective legal system that facilitates claim collectionand a high level of financial transparency'.


7/38


7/38

ECONOMY

Economy recovers 'lost' output to scale new peak

29.4.2010 The Business Times

Singapore's economy has more than regained ground lost in the downturn, with grossdomestic product (GDP) now close to 3 per cent above its last peak in Q1 2008 And theMonetary Authority of Singapore (MAS) says 'underlying drivers of growth are likely to remainintact', sustaining a high level of activity in the next few quarters, though growth momentumcould slow. However, a tightening labour market may add wage pressures to mountinginflationary ones. Consumer price index (CPI) inflation could thus hit 4 per cent by Q4 thisyear, MAS said in its Macroeconomic Review.

And this year Singapore's growth will be driven by trade-related activity, which comprisesmanufacturing, wholesale trade, and transport and storage, the latest twice-yearly report

said. Recovery of the global IT industry, which has now moved from inventory restocking andthe release of pent-up demand to a 'healthy balance of firm demand and well-managedsupply', is crucial. Rising consumer demand for laptop PCs, notebooks and smartphones(especially in China and the US), and corporate demand, as companies upgrade ageingsystems and servers, will support Singapore's electronic and precision engineering clusters,the report said.

And fresh capacity - such as that from four new biologics facilities by Roche, Lonza andGlaxoSmithKline (GSK); Shell and ExxonMobil's ethylene crackers; Applied Materials'semiconductor equipment plant; and REC's solar manufacturing complex - is also expected tooffset the closure of Seagate's HDD plant and boost local manufacturing.

Asian demand, meanwhile, is expected to spur trade-related services like container activity inthe shipping industry, and lift tourism receipts - all of which will offset residual 'pockets ofweakness' in the chemicals, transport and construction sectors, the report said.

Though growth has been relatively subdued in the financial sector this year, gradual recoverywill continue. Driving 70 per cent of its gains thus far were the core domestic lending andinsurance segments, but recovery in the sentiment-driven cluster of stockmarket, brokerageand treasury, investment banking and fund management activity is now gathering pace too.Also expected to quicken this year is the pace of job creation, although hiring demand willvary across industries, MAS said.

Labour supply constraints, seen in a resident unemployment rate now back down to pre-crisislevels, are likely to push wages up. This means 'industries that are unable to step up

productivity quickly will face higher wage costs', which businesses might then pass on toconsumers.

But about four-fifths of CPI inflation this year will likely stem from higher global oil and foodcommodity prices, and car prices, MAS said. These price pressures could build up to CPIinflation of 4 per cent by year- end. The official inflation forecast for this year is 2.5 to 3.5 percent, and the projected MAS underlying rate (excluding private road transport costs), 2 percent.


8/38


8/38

Wholesale Trade Index First Quarter 201021.5.2010 Singapore department of statistics

Domestic wholesale trade (seasonally adjusted) grew by 1.8% in 1Q2010 compared to4Q2009. The increase was largely attributed to higher sales in industrial & constructionmachinery, general wholesale trade and chemicals & chemical products sectors, butpetroleum & petroleum products registered lower sales. Excluding petroleum, overall domesticsales grew by 9.7%.

Compared to the same period a year ago, domestic wholesale trade in 1Q2010 grew by37.1%, with higher sales reported by all wholesale sectors. Excluding petroleum, domesticwholesale trade increased by 26.9%. After removing price effect, domestic wholesale tradevolume showed a relatively smaller year-on-year increase of 9.4%. Excluding petroleum,domestic wholesale trade volume rose by 17.9%.

Compared to 4Q2009, foreign wholesale trade (seasonally adjusted) increased by 9.8% in1Q2010, with most of the wholesale sectors registering increased sales. Excluding petroleum,foreign wholesale trade grew by 7.4% over the previous quarter. On a year-on-year basis,foreign wholesale trade rose by 37.8%, with strong growths in most wholesale sectors.Excluding petroleum, foreign wholesale trade grew by 23.0%. After adjusting for pricechanges, foreign wholesale trade volume increased by 9.8% from a year ago. Excludingpetroleum, foreign wholesale trade volume increased by 17.4%.

36,500 jobs added in Q115.6.2010 The Straits Times

SINGAPORE employers added 36,500 more jobs in the first quarter, pushing the

unemployment rate to the lowest level in almost two years as robust economic recoveryspurred firms to hire again. The seasonally adjusted jobless rate fell to 2.2 per cent in March,from 2.3 per cent in December, according to figures released by the Ministry of Manpower onTuesday. The job gains - for the third straight quarter - were comparable to the seasonal highof 37,500 in the last quarter of 2009. Employment fell by 6,200 in the first quarter a year agodue to the global economic downturn.

The bulk or 33,400 new jobs came from the services sector - thanks to the opening ofSingapore's two casino resorts early this year, which boosted tourism and fuelledemployment. The gains were higher than 31,500 in the fourth quarter and 7,500 in the firstquarter of 2009. Manufacturing added 3,100 workers, the second consecutive quarter ofincrease after shedding workers from the fourth quarter of 2008 to the third quarter of 2009.

Construction lost 400 workers, after 20 successive quarters of employment gains. Anestimated 63,300 residents were unemployed in March, compared to the the seasonallyadjusted 66,200.

MOM said 1,800 workers were retrenched and 600 workers had their contracts terminatedprematurely. This was comparable to 2,220 in the fourth quarter of 2009 and only one-fifth ofthe record number - 12,760 - laid off in the first quarter of last year.

Tech sector bucks trend with 8% growth in 200916.6.2010 The Business Times

SINGAPORE's economy shrank 1.3 per cent in 2009 but the local technology sector has

somehow managed to ship its way out of the worst recession in local history. According to thelatest statistics released by the Infocomm Development Authority of Singapore (IDA), thelocal IT industry bucked the economic decline by recording an 8 per cent increase in revenue


9/38


9/38

to $62.74 billion last year, up 8 per cent from 2008. The improvement was credited largely toa strong rebound in infocomm exports with sales from this segment soaring some 61 per centto $40.15 billion in 2009. Exports accounted for 64 per cent of total takings for the sector lastyear and domestic demand made up the remainder. The strong overseas showing helpedoffset a marginal 2.3 per cent decline in domestic infocomm sales as most local companiesreined in their technology spending during the downturn.

Technology hardware continues to be the crown jewel of local tech companies, accounting for71 per cent of infocomm export revenue last year. This is followed by software products at 20per cent. IT and telecommunications was responsible for generating 8 per cent of overseassales and content services accounted for the remaining one per cent.

The Asean region and North Asia were the two biggest export destinations for made-in-Singapore technology products, accounting for 23 per cent and 19 per cent of overseastakings last year, the IDA revealed. This is followed by Europe, Americas and South Asia at 16per cent, 15 per cent and 13 per cent respectively.

S'pore may overtake China9.7.2010 Today

The city-state may overtake China as Asia's fastest-growing economy this year, increasing theattractiveness of the Singapore's stocks and putting pressure on policymakers to checkinflation with a stronger currency. Gross domestic product will rise 10.8 per cent this year,according to the median of 13 estimates in a Bloomberg News survey before the second-quarter GDP report due on Wednesday.

An acceleration in pharmaceutical output and the opening of two integrated resorts boostedgrowth in the first half, the result of Singapore's efforts to diversify sources of expansionbeyond electronics. The push to bolster services may sustain the economy and supportinvestment that spurred the Straits Times Index to outperform counterparts in China, Taiwan,Japan and Australia this year.

The central bank uses the Singapore dollar instead of interest rates to manage inflation andon April 14 allowed a revaluation and shifted to a stance of gradual appreciation. The currencyrose as much as 1.2 per cent on the day of the MAS announcement, before slipping thefollowing month as Europe's debt crisis roiled global markets.

MTI Revises 2010 Growth Forecast to 13.0 to 15.0 Per Cent14.7.2010 M inistry of Trade and Investment Singapore

The Ministry of Trade and Industry (MTI) announced that it expects the Singapore economy toexpand by 13.0 to 15.0 per cent in 2010, an upward revision from the earlier forecast of 7.0to 9.0 per cent.

The updated growth forecast reflects three factors:(a) Better economic performance in the first quarter of 2010;(b) Stronger than expected economic growth in the second quarter; and(c) Anticipated slowdown in growth momentum for the rest of the year.

The latest data from the Department of Statistics show that the Singapore economy grew at astronger pace in the first quarter of 2010. The economy expanded by 16.9 per cent on a year-on-year basis, higher than the growth of 15.5 per cent estimated in May. On a seasonally-

adjusted quarter-on-quarter annualised basis, the economy grew by 45.9 per cent, comparedto an earlier estimate of 38.6 per cent. The revision is primarily due to an upward adjustment


10/38


10/38

to the growth estimate for the manufacturing sector (specifically the biomedicalmanufacturing cluster).

Advance estimates for the second quarter of 2010 indicate that the economy has continued toexpand strongly. Compared to the same period last year, real GDP is expected to grow by19.3 per cent. On a sequential basis, the economy grew by 26.0 per cent in the secondquarter.

The manufacturing sector is estimated to have grown by 45.5 per cent year-on-year. Growthwas driven by a surge in the output of the biomedical manufacturing cluster, as well as astrong expansion in the electronics cluster underpinned by healthy worldwide demand forelectronics products. The construction sector is estimated to have grown by 13.5 per cent ona year-on-year basis, compared to 10.2 per cent growth in the first quarter of 2010. This wassupported by an increase in public sector construction activities.

The services producing industries are estimated to have expanded by 11.4 per cent year-on-year, compared to an increase of 11.2 per cent in the preceding quarter. Growth in the trade-

related sectors was bolstered by healthy global trade flows, while the openings of theIntegrated Resorts and higher visitor arrival numbers contributed to the growth in thetourism-related sectors. The financial services sector also grew strongly, supported byincreased foreign exchange trading and domestic bank lending activities.

For the first half of 2010, the Singapore economy is estimated to have expanded by 18.1 percent year-on-year. The exceptionally strong growth experienced by the Singapore economy inthe first half of 2010 is not likely to be sustained into the second half of the year. There willalso be industry-specific factors, such as plant maintenance shutdowns in the biomedicalmanufacturing cluster that will drag down growth. While year-on-year growth rates in thesecond half will be healthy, sequential growth from current levels of economic activity will below. Taking these factors into consideration, MTI is revising the GDP growth forecast for 2010

from 7.0 to 9.0 per cent to 13.0 to 15.0 per cent.

TRADE AND INVESTMENTS

S'pore-EU talks may point way for Asean-EU FTA23.4.2010 The Business Times

With the European Union (EU) looking to begin talks on individual trade deals with Aseancountries such as Thailand and Vietnam, the Singapore government is hoping that its ownfree trade agreement (FTA) negotiations with the EU would act as a good model. The firstround of talks for the EU-Singapore FTA took place over four days in Singapore last month,and both parties view the deal as an 'important pathfinder' that could perhaps eventually leadto a region-to-region agreement, said Singapore chief negotiator Keith Tan.

Negotiations between the EU and Asean - which have a population of about 500 million each were launched in 2007 with full implementation of an FTA expected by 2015, but were stalleddue to inherent difficulties such as solving issues related to cultural differences, gaps ingovernance, transparency and negotiation style.

Singapore is the EU's 15th-largest trading partner and the biggest in South-east Asia, withmore than 9,000 European companies having some presence in Singapore. The head of theDelegation of the European Union to Singapore, Holger Standertskjold, said that while the EU-

Asean deal was on hold, it still remained the bloc's 'ultimate objective'. The EU has alreadyembarked on trade negotiations with South Korea and India and is working towards a dealwith Singapore by mid-2011.


11/38


11/38

S'pore Mercantile Exchange to debut in Aug4.5.2010 The Business Times

THE Singapore Mercantile Exchange (SMX) will usher in its first trade this August afterconcluding a final two-month test of its electronic trading platform. The bourse was initiallyslated for debut in 2009 but this was subsequently pushed back to the first quarter of thisyear.

SMX is the region's first multi-product commodity derivatives exchange. It will offer trading incommodities such as precious and base metals, energy futures contracts, agriculture,currency pairs, and commodity indices. The exchange previously said carbon trading couldalso be incorporated into the mix. Trading will commence upon the completion of a two-month conformance performance testing period for its trading platform from June to July.

Economic ties top S'pore-Indonesia talks

18.5.2010 The Straits Times

SINGAPORE and Indonesia plan to boost their economic cooperation further and are zoomingin on the Riau Islands and high potential areas such as cruise tourism and civil aviation.They have agreed to set up six new working groups so that officials can focus on growingthese areas more intensively.

Indonesia was Singapore's fifth-largest trading partner last year, while Singapore wasIndonesia's largest investor with some US$4.4 billion (S$6.1 billion). Asean already hassought to engage more countries through the East Asia Summit (EAS), which includes Aseanplus the six countries of China, South Korea, Japan, India, Australia and New Zealand.

Infocomm Industry Revenue Grew 8% In 200917.6.2010 Enterprise One Singapore

Firms in Singapores infocomm industry chalked up S$63 billion in revenue last year, anincrease of 8%. This was higher than the S$58 billion in 2008, according to the InfocommDevelopment Agency of Singapore's (IDA) annual survey for 2009.

Export revenue went up by about 15% in 2009, to S$40 billion, and made up 64% of overallrevenue - up from the 61% in 2008. ASEAN was the top export destination at 23%, followedby North Asia at 19%. Malaysia and Indonesia were the 2 biggest consumers of Singaporesinfocomm services, making up over 60% of the ASEAN export revenue.

In contrast, domestic revenue fell slightly to some S$22 billion last year. The hardwaresegment continued to be a key contributor to overall revenue, at 55%. This segment alsorecorded the biggest revenue growth of more than 15% in 2009 from the previous year.

S'pore well positioned to export data services21.6.2010 The Business Times

SINGAPORE may account for only a sliver of Asia-Pacific's data services revenue but it still iswell positioned to export its services to some of the largest markets in the world. MarkWilliams, Asia-Pacific managing director of Acision, told BizIT at CommunicAsia last week:'Singapore can look at how it can develop mobile applications that are supported by the

bandwidth so as to increase productivity and sell these tools to businesses or individualconsumers.


12/38


12/38

According to a Frost & Sullivan report last year, mobile data usage has continued to grow andwill be the main source of revenue for Singapore operators to fight a decline in voice revenue.Revenue contributions from data services will increase to 32 per cent of total revenue by 2014as third generation mobile telephony (3G) services become more commonplace. Voiceaverage revenue per user (ARPU), on the other hand, is expected to decline by 22 per cent inSingapore by 2013.

Mobile data going through the networks will grow 60 to 70 times over the next three to fouryears. But today's infrastructure cannot handle the growth and operators need to learn howto cope with the growth of usage. For example, operators can seek to win customers withsuggestions on how to make intelligent choices. For local operators, increasing the ARPU is'crucial' as presently the market is saturated in Singapore.

Singapore firms urged to invest in Laos26.6.2010 The Straits Times

TRADE with Laos is booming and Singapore firms should invest more in the country to get aslice of the action. Bilateral trade hit $15.8 million in the first four months of this year, upnearly 20 per cent over the same period last year. Investments by local firms totalled US$108million (S$150 million) between 2001 and 2009 - making Singapore the 10th largest foreigninvestor in Laos.

Last year, the Laos economy grew by over 6 per cent - one of the highest growth rates inSouth-east Asia. A total of US$510 million in foreign direct investment poured in in 2008,almost tenfold the amount in 2001. Mr Lee said, that the economic advancements were a'testimony of Laos' pro-business attitude' and a 'mark of confidence by international investorsin Laos' economic potential'. Singapore companies have various interests in Laos, includingreal estate, manufacturing, hospitality and logistics.

Trade with EU expected to rise this year7.7.2010 The Business Times

TRADE between the European Union and Singapore is expected to increase this year despiteworries over the impact of Europe's debt woes, head of the EU Delegation to Singapore HolgerStandertskjold said yesterday. Ambassador also said that negotiations for an EU-Singaporefree trade agreement (FTA), launched in March, are progressing well and could conclude by asearly next year. Mr Standertskjold expects the FTA to improve services and investment flowsbetween EU and Singapore and ensure greater market access on par with competitors whichalready have trade pacts with Singapore, in certain financial services and other servicesectors.

EU remained Singapore's largest trading partner last year, despite a 9 per cent fall in bilateraltrade due to the global downturn. Singapore has already inked FTAs with most of its other keytrading partners, including Malaysia, China, US, Indonesia and Japan.

Negotiations on a bilateral pact with EU - which accounted for 11.6 per cent or $86.8 billion ofSingapore's trade in goods in 2009 - began after talks for an EU-ASEAN FTA ground to a haltlast year. Difficulties negotiating a deal with the heterogeneous ASEAN member economies,led the EU to start talks for a bilateral trade deal with Singapore, Mr Standertskjold said. Akey player within ASEAN, Singapore accounts for about one-third of EU's trade with ASEANand absorbed 60 per cent of EU investments into the ASEAN region.


13/38


13/38

S'pore investors to gain from yuan strength9.7.2010 The Business Times

SINGAPORE investors will reap benefits from China's shift to a more flexible exchange rate inthe second half of this year, and fears of a double-dip recession should be allayed by solidearnings growth in the region, says Credit Suisse's private banking division. In the near term,more liquid Asian currencies, such as the Singapore dollar, South Korean won and Australiandollar, will rally versus the US dollar, and could be used by investors as a proxy for the yuanappreciation theme - resulting in increased fund flows into the region.

The Monetary Authority of Singapore has started to normalise monetary policy by shifting theneutral stance on the Singapore dollar to one of modest and gradual appreciation. With asustained recovery in the regional economy, Credit Suisse expects the normalisation ofmonetary policy to continue throughout Asia into the second half of this year - which will helpto keep inflation under control amid concerns over asset bubbles forming. This upbeat

forecast made by Credit Suisse is largely based on the expectation that Asian economies willbe relatively unaffected by Europe's sovereign debt problems and that a double-dip recessionis unlikely.

In addition, strong foreign exchange reserves provide stability to Asian currencies. Asia'sforex reserves have grown significantly and now stand at US$5.2 trillion, compared with theworld's forex reserves of US$7.7 trillion. Asian equity markets are also expected to out-perform in the next half of the year - with the setback in the first quarter of this year seenmore as a mid-cycle correction than a trend reversal in the recovery cycle. Investors arerecommended to focus on companies exposed to the China and Asian consumption theme.This includes technology, consumer discretionary companies and banks with growthsustainability, earnings visibility and balance sheet strength.

RESEARCH AND INNOVATIONS

Pharmaceutical & biotech companies partner Singapore to accelerateinnovation in Asia4.5.2010 Economic Development Board

Singapores integrated research network that offers multidisciplinary capabilities across basicand translational research has drawn pharmaceutical and biotech companies that seek toimprove R&D decision making and accelerate innovation in Asia. The Biopolis expansion is a

key initiative amongst many to meet companies rising need to capitalise on Asias growthstory.

Abbott, Lilly, GlaxoSmithKline, Merck & Co., Novartis, and Takeda: Recent biotech additions toBiopolis include Inviragen and FORMA Therapeutics. Today, 4,300 researchers carry outbiomedical sciences R&D in more than 50 companies and 30 public-sector research institutes,academic medical centres and hospitals. R&D expenditure in 2008 exceeded US$700 million.

As companies grapple with the complexities of discovery science that is further accentuatedby Asias unique disease biology, Singapores integrated research network presents a strongpartner to optimise the drug and discovery process. Singapore is expanding its resources forbiomedical sciences R&D to accommodate the fast-growing base of companies that seek to

develop therapies to address Asias unmet healthcare needs.


14/38


14/38

Another shot in the arm for S'pore research12.6.2010 The Straits Times

TWO more research centres will be established in Singapore, focusing on areas such as

electric vehicles and biomedical science. They are the two newest additions to the NationalResearch Foundation's (NRF) Campus for Research Excellence and Technological Enterprise(Create) programme, bringing the total number of centres to five.

One new centre will see the Technical University of Munich (TUM) collaborate with NanyangTechnological University (NTU) to focus on electric mobility in megacities. The other centre,set up by the Hebrew University of Jerusalem (HUJ), in collaboration with the NationalUniversity of Singapore (NUS), will be starting a research programme on cellular andmolecular mechanisms of common inflammatory diseases in Asia such as asthma.

Three other centres - set up by the Massachusetts Institute of Technology, the Technion-Israel Institute of Technology and the Swiss Federal Institute of Technology at Zurich -

specialise in areas such as biotechnology, environmental science, engineering andcommunications technology.

New R&D institute opens16.6.2010 The Straits Times, 16.6.2010 The Business Times

SINGAPORE has a new institute that will focus on research into fast-growing and increasinglyimportant areas such as solar power, electric vehicles and smart power grids. Dubbed ERI@N,short for the Energy Research Institute @ Nanyang Technological University (NTU), it will bepowered by $200 million in funds from several agencies, including the Economic DevelopmentBoard (EDB), the National Research Foundation (NRF) and the Agency for Science,Technology and Research (A*Star). Other areas it will conduct research into include energy

materials, wind energy and sustainable buildings.

ERI@N will not go it alone. It will partner six renowned universities - the Austrian Institute ofTechnology, Ecole Polytechnique Federale de Lausanne in Switzerland, Imperial CollegeLondon, Norwegian University of Science and Technology, University of Cambridge, and theTechnical University of Munich. It will also have a seven-member international advisory boardcomprising top academics in various fields. The board will be headed by a Swiss scientist,Professor Michael Gratzel, who won this year's Millennium Technology Prize in Finland for hisinvention and development of dye-sensitised solar cells, a cheap and good alternative tosilicon solar cells.

The institute will advance research aimed at improving efficiency of current energy systems

and maximising synergistic effects of alternative energy sources. ERI@N plans to grow toabout 250 scientists in three years. A strategic growth area, the cleantech industry hasgovernment funding of nearly $700 million over five years. It is expected to contribute $3.4billion to Singapore's gross domestic product with up to 18,000 jobs.

The opening of ERI@N is a key step toward Singapore becoming a smart energy economy asoutlined in the Economic Strategies Committee's recommendations that energy be a keynational R&D priority.


15/38


15/38

ENERGY

S$680M Fund to Build Solar Ecosystem In Singapore21.5.2010 Enterprise One Singapore

The Singapore Economic Development Board (EDB) has set aside some S$680 million to builda solar energy ecosystem over the next 5 years. About half - or S$350 million - of the fundwill go towards developing the clean energy sector and the rest will go into developing waterand waste management solutions.

The move, supported by the Building and Construction Authority (BCA) and funded by theNational Research Foundation (NRF), aims at boosting research capabilities, including thedevelopment of more R&D centers. This will make it more conducive for businesses in thesector to innovate, do research, test-bed products and commercialize them. Existing

businesses in the sector can also tap on the funds to expand their operations. Another use ofthe funds will be in growing manpower capabilities - of which there is a current dearth.

This announcement comes as experts forecast that clean energy investments in Asia coulddouble this year to US$70 billion.

Jakarta reassures S'pore on gas supply18.6.2010 The Straits Times

Indonesia cannot 'unilaterally cut or stop the supply' of natural gas to Singapore but will seeka mutual renegotiation of its contract, a senior minister said yesterday. The comments, fromCoordinating Minister for the Economy Hatta Radjasa, came a day after senior government

officials announced in Parliament a decision to renegotiate Indonesia's natural gas exportcontracts with Singapore. Singapore uses natural gas to generate 80 per cent of its electricity,with the bulk of it coming from Indonesia.

According to Golkar legislator Mr Dito Ganinduto, Singapore receives around 790 millionmetric standard cubic feet per day (MMSCFD) of piped natural gas from several fields in SouthSumatra and the Riau Islands. This is more than the 700 MMSCFD required under contractssigned between state oil and gas firm Pertamina and two Singapore gas importers. The firstdeal was inked with Sembcorp Gas in 1999 for a 22-year term, while the second was signedwith Gas Supply in 2001 for a 20-year tenure. It is not clear if the terms of either deal allowfor renegotiation.

Singapore to buy natural gas from Qatar30.6.2010 The Straits Times

SINGAPORE will be importing liquefied natural gas (LNG) from Qatar and storing it at a facilitycurrently under construction on Jurong Island. Minister Mentor Lee Kuan Yew confirmed thecountry's plans to diversify its gas import sources, currently dominated by Malaysia andIndonesia. The partnership with Qatar, the world's biggest natural gas producer, comes amiduncertainties with the current suppliers, said Mr Lee. 'We are buying gas from our neighbours;they are thinking of upping the price in spite of the contract,' he said.

Earlier this month, Indonesian government officials, citing their country's domestic needs,announced a decision to renegotiate Indonesia's gas export contracts with Singapore.

The contracts in place expire in 2021. It is unclear if their terms allow for a renegotiation inprice.


16/38


16/38

Mr Lee's remarks affirm speculation of a Singapore-Qatar partnership, which began lastNovember when the Gulf emirate's Qatar Petroleum International bought into thePetrochemical Corporation of Singapore. The $1.5 billion LNG terminal on Jurong Island, dueto be completed in 2013, will be able to store more than six million tonnes of LNG per annum.

Tuas Power, S'pore LNG looking to hire2.7.2010 The Business Times

SINGAPORE'S third-biggest generating company, Tuas Power (TP), and Singapore LNGCorporation (SLNG) - both building multi-billion-dollar projects on Jurong Island - haveembarked on major recruitment drives, including for engineers and operators, to run theirnew facilities. China Huaneng-owned Tuas Power, which employs over 200 at its Tuas powerstation and Somerset HQ, will need to boost its manpower by an additional 100 employees torun its $2 billion Tembusu Multi-Utilities Complex (TMUC) currently under construction, LimKong Puay, TP's president and CEO said.

SLNG, which is developing the $1.5 billion liquefied natural gas terminal, is also stepping uprecruitment to bring its staffing to about 70 at peak, its CEO, Neil McGregor told BT in arecent interview. From just 20 staff initially, mainly seconded from PowerGas and the EnergyMarket Authority when it was first set up in June last year, SLNG now employs 43 people.

Last Saturday, it advertised a graduate development programme in The Straits Times. SLNGinvited graduates in business, economics or engineering to take up an 18-month programmeunder which they 'will gain exposure to the terminal's business operations and work oninteresting projects'. Mr McGregor said that the terminal will need about 50 people in the mid-term and about 70 at the peak. 'The reason for the peak is that we need some overlap as weneed to train operational staff, including local staff, to gain the necessary expertise over thenext three to four years.'

ENVIRONMENT

NEA seeks expert help to raise recycling rate4.5.2010 The Straits Times

PEOPLE here do not recycle waste as much as they should and the National EnvironmentAgency (NEA) is asking for expert advice on ways to raise the recycling rate. The NEA said ina tender document made public last week that it wants a consultant to look into whethermeasures such as levies for waste disposal, refund schemes or mandating certain premises to

separate recyclables like food waste and glass, can work to get people to change their habits.The cost-benefit study would help keep the Semakau landfill, now one-eighth full, from fillingup fast, as well as shrink the mountain of rubbish generated here each year.

Consultants studying the issue should recommend a combination of these and other methodsthat provide the most bang for the buck, or the 'highest increase of the overall recycling rateper unit cost'. If any of the proposals are implemented, they will be the first measures forcinga 're-use and reduce' culture here by fiat. Despite the presence of recycling bins in HDBestates and condominiums, households' efforts to fill them have proved abysmal.

Just 57 per cent of the nation's 6 million tonnes of waste was recycled last year. Now, officialtargets are set at 60 per cent by 2012, and 70 per cent by 2030. Going by the tender

documents, it appears that NEA is testing measures already implemented elsewhere - withthe caveat that the measures 'shall be relevant and applicable to Singapore's context'.


17/38


17/38

Newater to meet half of S'pore's needs29.6.2010 The Straits Times

NATIONAL water agency PUB yesterday unveiled its 50-year plan to bring Singapore closer to

self-sufficiency in water. It aims to do this by doubling its reliance on Newater and desalinatedwater. These two forms of water now meet 40 per cent of the country's water needs; by2060, it will be 80 per cent, PUB said on the first day of the Singapore International WaterWeek.

PUB aims to triple Newater capacity so it can meet half of water demand by then, while theuse of desalination will be widened by almost 10 times to meet 30 per cent of demand.To get there, it will expand the Changi Newater plant and open a sixth facility in Tuas by2030, as well as build a second desalination plant. It did not say where the new desalinationplant would sit or when it would be ready.

This dramatic step-up in Singapore's water supply is being timed to dovetail with the expiry of

the water agreement with Malaysia in 2061. By then, the nation's demand for water will bedouble what it is now as a result of a growing population and industrial activity. PUB projectsthe country will need about 3 billion litres a day by 2060, split between domestic use andindustrial use in a 30-70 proportion.

Besides reclaiming used water to produce Newater and purifying sea water, the country willalso continue to rely on its water catchment areas. Such areas now take up about two-thirdsof the island, but with the network of drains and canals, as well as the damming of all riverestuaries to form 17 reservoirs by next year, 90 per cent of the country will become acatchment zone.

But while it shores up supply, PUB will not let up on efforts to get people to waste less water.Each person here now uses 155 litres of water a day on average. PUB aims to get this downto 147 litres a day by 2020. It will encourage the use of water-efficient toilets and taps inhomes, and urge people to take snappier showers. Commercial buildings will also be nudgedinto installing water meters, repairing leaks promptly and tapping on a Water Efficiency Fundfor studies and projects.

Although the supply of sea water is virtually limitless, current desalination technology uses upa lot of energy, and so costs about 100 times more than buying raw water from across theCauseway. This may result in higher water tariffs down the road, Minister for the Environmentand Water Resources Yaacob Ibrahim warned earlier this year. Hope lies in a technologybreakthrough which will lower the amount of energy needed in desalination, said PUB directorof policy and planning Chua Soon Guan. So research to cut desalination's energy consumptionwill be a focus for the years to come.

Big splash in the water tech sector1.7.2010 the Straits Times

International Water Week is making a big splash in the fast-growing water technology sector.Several major initiatives were unveiled, including plans by consumer giant Procter & Gamble(P&G) to build a multi-million-dollar plant here to make water purification packets to helpmillions of needy people worldwide get fresh water.

Also, national water agency PUB put out to tender the building of Singapore's second waterdesalination plant. When completed by 2013, the larger plant will add 318,500 cubic metres

of water a day to the nation's water supply. Another key project is from Global WaterIntelligence (GWI), an information service, which plans to set up a centre in Singapore tokeep the burgeoning global water industry updated with vital data. And five firms have been


18/38


18/38

awarded a total of $6 million in research funds by a government agency to boost Singapore'sstatus as a top water technology centre.

Singapore aims to become a 'global hydro hub', drawing the biggest water companies hereand pumping funds into water research. The environment and water sector is set to add $1.7billion to economic output here and employ 11,000, mostly in skilled jobs, by 2015. PUB saidthe new desalination plant will use a filtration method known as reverse osmosis to removesalt and other impurities from water.

Making desalinated water cheaper5.7.2010 The Straits Times

Desalination, the process of removing salt and other minerals from water to make itdrinkable, is set to play a growing role here. By 2060, Singapore aims to boost itsdesalinated-water capacity 10 times, to meet 30 per cent of water demand, which will doubleto some 760 million gallons (3.5 million cubic m) a day.

National water agency PUB last week put out a tender for the building of Singapore's secondwater desalination plant, which will add 318,500 cubic m of water a day to the nation's watersupply when it is completed in 2013. The Republic's first such plant, the $200 millionSingSpring facility in Tuas, began operations in 2005, and currently produces 136,000 cubicm of fresh water daily.

BIOTECH INDUSTRY

Singapore draws biomedical companies first-in-Asia manufacturingand headquarters offices3.5.2010 Economic Development Board

Global biotechnology and pharmaceutical companies that seek to capitalise on Asias growthstory are locating first-in-Asia manufacturing facilities and headquarters offices in Singapore.Fixed asset investments from biomedical companies exceeded US$800 million in 2009. Asiasgrowth presents tremendous opportunities but its diversity also poses challenges. In globalcompanies foray into Asia, Singapore can help to enhance manufacturing and businessexcellence to strengthen their foothold in Asia, said Mr Beh Kian Teik, Director, BiomedicalSciences, Singapore Economic Development Board (EDB).

While Singapore has established its position as a leading site for biologics manufacturing inAsia, it continues to enhance its strong track record in chemical-based active pharmaceutical

ingredient (API) manufacturing. In October 2009, Singapores Institute of Chemical andEngineering Sciences (ICES), A*STAR, opened a pilot-scale laboratory facility, called the KiloLab, where pharmaceutical companies can carry out evaluation of new recipes and processesbefore going to full-scale manufacturing. The facility also provides a 2 platform to train anddevelop a new generation of engineers and chemists in Singapore.

More than 30 leading biomedical sciences companies that include eight of the top tenpharmaceutical companies have set up regional headquarters in Singapore. Global companiesthat are partnering Singapore and its growing base of local biomedical sciences companiescan also leverage the closer proximity to new markets and partners in Asia.


19/38


19/38

Local innovation needed to boost biotech sector4.5.2010 The Business Times

IF SINGAPORE wants to raise the bar for its biotechnology sector, it will need to shift its focusand resources to stimulating home-grown innovation, according to a report. While Singaporestands out from competitors in areas such as infrastructure, cost competitiveness and strongbacking from the government, it needs to do more. 'Cross-country cost advantages tend to beshort-lived,' the Ernst & Young (E&Y) Beyond borders: global biotechnology report 2010 said.

The report went on to point out that while Singapore's large tax incentives have made itattractive to multi-national corporations, such incentives may not be sustainable in the longerterm. The report also highlighted that Singapore has made significant strides in growing itsresearch and development strengths in recent years. And despite the economic downturn thatdogged most of 2009, Singapore continued to attract investments from major biotech andpharmaceutical companies last year. In addition to boosting capital efficiency and locating

non-traditional sources of funding, companies also need to consider achieving better returnsfor investors and developing unique products, in order to flourish in this new operatingenvironment.

Official Launch of Advanced Environmental Biotechnology Centre(AEBC)10.5.2010 Economic Development Board Singapore

Jointly set up by Nanyang Technological University (NTU) and the University of New SouthWales (UNSW), and supported by the Singapore Economic Development Board (EDB), theS$21m Advanced Environmental Biotechnology Centre is the first-of-its-kind research centrein Singapore focusing on research in environmental microbiology and ecology, bioprocessdevelopment and engineering, and marine processes and health.

Drawing on the technology-based bioprocess expertise of NTU and UNSWs strength inmicrobial ecology, the research will address key issues that Singapore is facing, with a strongfocus on water production, water and wastewater purification, reduced energy usage in theseprocesses, and used water reclamation.

Led by Nanyang Environment and Water Research Institute (NEWRI) Executive DirectorProfessor Ng Wun Jern, and UNSW Professor Peter Steinberg, the Centre will also developmonitoring programmes, sensor systems and management programmes to safeguardSingapores coastal waters as these have impact on desalination, shipping, recreation, andfood resources.

Its boom time for Biopolis29.6.2010 The Business Times

Singapores biomedical sciences sector is booming. And to cater to the growing number ofcompanies that need more space, the nations premier biomedical research hub, Biopolis, willbe expanded again. Industrial developer and landlord JTC said in May that it will spendanother $140 million to provide 495 000 square feet of new space for companies engaged incutting-edge work in creating new drugs and medical equipment. This new phase which willbe the fifth for Biopolis and will be completed by 2013 will bring the total research anddevelopment space at Biopolis to more than 3.3 million square feet.

Biopolis has been purpose-built for public and private biomedical research institutes andorganisations and the expansion comes at a time when multinational biomedical companies


20/38


20/38

are expanding in Singapore. The biomedical sector has been a boost to the overall economyover the first five months this year. For example, Singapores economy grew close to 50 percent year-on-year in April 2010 and 60 per cent year-on-year in May. And for the whole of2009, Singapores biomedical sciences manufacturing output rose 2.5 per cent year-on-yearto $20.7 billion, while total employment climbed 7.2 per cent to 13.174. Singapore aims forthe sector to hit a manufacturing output of $25 billion by 2015.

S'pore to make smallest biosensors in the world5.7.2010 the Business Times

WHAT could be a first for Asia, European semicon giant STMicroelectronics has begunmanufacturing the smallest 'biosensors' in the world at STMicro's cutting-edge facility inSingapore. The Geneva-headquartered giant said it is making about 400,000 biosensors a dayat its Singapore plant to meet global demand. Biosensors are extremely tiny devices (2mm by2mm) that combine a biological, a mechanical and a chemical detector component. Oneexample of a biosensor is a blood glucose analyser - a tiny drop of blood is inserted into a

device in which a tiny biosensor analyses the blood composition rapidly.

INDUSTRY AND COMPANIES

Neste Oil starts trials of advanced renewable biodiesel4.5.2010 The Business Times

NESTE Oil last week started trials of its second-generation (2G) biodiesel produced from 100per cent renewable raw materials and free of any fossil fuel components in cars in Finland -ahead of the targeted start-up of its mega NExBTL renewable diesel plant in Singapore this

fourth quarter.

Construction of the 2G biodiesel plant in Tuas is on budget at 550 million euros (S$997million) and on schedule, Neste said in its Q1 financial report last Friday. Currently over 4,500workers are employed at the Tuas site. 'The next important milestone for us will be achievingmechanical completion of the renewable diesel plant in Singapore this summer, and startingproduction there in the fourth quarter,' said Neste Oil president and CEO Matti Lievonen in itsinterim report. The 800,000 tonnes per annum (tpa) Singapore plant - which will be theworld's biggest 2G biodiesel plant once up and running - is one of two twin projects, thesecond in Rotterdam, which Neste is currently building. 'The plants are 90 per cent and 70 percent complete respectively,' the Finnish group said last week.

Neste's 2G, or NExBTL process, produces an advanced renewable diesel by straight processingof raw materials like vegetable oils, including palm oil from Malaysia and Indonesia andanimal fat from Australia and Europe. The main market for the renewable diesel from theSingapore plant will be Europe initially, with the US expected to become an important marketlater. The Tuas plant will employ over 100 people directly and over 50 indirectly via its serviceproviders.

Shell opens $4b chemical complex5.5.2010 The Straits Times

ENERGY giant Royal Dutch Shell yesterday opened its highly anticipated multi-billion-dollarpetrochemical complex in Singapore, producing chemicals used in almost every consumer

product from clothes to cars.


21/38


21/38

The Shell Eastern Petrochemicals Complex - a sprawling network of plants on Pulau Bukomand Jurong Island connected by sub-sea pipelines - took four years, more than 15,000workers and enough steel to construct three Eiffel Towers. With an estimated cost of US$3billion (S$4.1 billion), the project is Shell's lar-gest-ever petrochemical investment and willgive a huge lift to the vital chemical industry in Singapore, which accounts for a third of totalmanufacturing output here.

IBM sets up cloud computing laboratory5.5.2010 The Business Times

IN a major boost to Singapore's cloud computing ambitions, IBM yesterday announced theopening of its cloud computing laboratory in the Republic. According to Teresa Lim, IBMSingapore's managing director, the laboratory will help businesses, government and researchinstitutions and institutes of higher learning design, adopt and reap benefits of cloudtechnologies; 'for newer, faster, more efficient ways to compete and grow'.

The new lab housed at Changi Business Park is part of IBM's expansion of its cloud computingcapabilities around the world and puts Singapore and the Asean region on the world map asthe 11th cloud computing lab globally - joining the network of labs in Hong Kong, Ireland,Vietnam, China, South Africa, Japan, Brazil, India, Korea and the US.

SMEs to get more training funds, information access1.6.2010 The Business Times

To help them start their 'productivity journeys', small and medium-sized enterprises will gethigher rates of funding for related training and easier access to information resources. SMEsmake up 99 per cent of enterprises in Singapore, employ 60 per cent of the workforce andgenerate about half of all businesses' value-added. But, the average annual value-added from

SMEs of $79,000 per worker, trails behind the overall average of $88,000 per worker.

The SME Productivity Roadmap (SME-PRO) is put together by Spring Singapore and theWorkforce Development Agency (WDA) and lays out three steps to boost productivity: 'BeAware, Get Trained, and Take Action'.With this, WDA is working with industry groups onproductivity programmes to train workers and managers. For some WDA supported schemes,such as courses run by the Singapore Productivity Association, SMEs will enjoy a higherfunding rate of 70 per cent, compared to the 50 per cent offered to large companies.

Abbott Nutrition opens R&D centre here5.6.2010 The Straits Times

ABBOTT Nutrition, the maker of popular baby products such as Grow and Similac, has chosenSingapore for its first ever overseas nutrition research and development (R&D) facility.The US$20 million (S$27.5 million) facility, which was officially opened yesterday, willeventually employ 65 scientists from around the region.

Abbott intends to use the 28,000 sq ft premises at the biomedical sciences hub Biopolis todevelop new nutritional products, improve existing ones and adapt them to the tastes of thegrowing Asian market. The new centre follows from the $450 million powder making plantAbbott opened in Tuas last year.

'Asia is not only growing rapidly in population, but health care is becoming a very importantissue,' said Mr Robert Miller, Abbott's divisional vice-president of research and development

and scientific affairs at a press conference. 'We do believe that by being here andunderstanding their true health care needs, we can be more responsive to the marketplace.'


22/38


22/38

Attracting more global SMEs7.6.2010 The Straits Times

MID-Sized companies, foreign and local alike, are sprouting in Singapore in the nascent but

booming clean technology or 'cleantech' industry. The Economic Development Board (EDB)estimates that such global small and medium-sized enterprises (SMEs) will contribute up tohalf of the total economic output from the cleantech sector by 2015. It expects the industry toadd $3.4 billion to Singapore's economic output and employ 18,000 people by then.

EDB's director for cleantech and urban solutions, Mr Goh Chee Kiong, told The Straits Times ina recent interview that the cleantech industry 'has significant opportunities for newenterprises due to the relatively fast pace of innovation'. In the past year, the EDB haspumped $3.5 million into seven such cleantech firms - a mix of foreign and local companies -under a new 'Quick Start' incentive scheme, said Mr Goh. The scheme supports thecommercialisation of cleantech innovations in early-stage companies, and comes with thecondition that the firms locate their global headquarters and undertake technology-oriented

activities in Singapore.

EDB's pursuit of global SMEs follows a recommendation by the high-level Economic StrategiesCommittee, which recommended in February that Singapore should lure not justmultinationals, but 'hidden champions' among smaller firms that excel in particular niches, aswell as fast-growing Asian enterprises looking to expand outside their home country. Industryassociation Singapore Business Federation said it has seen a 30 per cent increase in thelistings of companies in its sustainable business group, largely driven by the addition of localand foreign SMEs. 'We have seen more Singapore firms starting up or diversifying into theclean energy and environment sector, such as into solar manufacturing or green building andIT solutions,' said the federation's spokesman.

EDB's Mr Goh believes that Singapore's advantage lies in its ability to offer firms 'a homewhich can see them through the innovation continuum' - from the research stages tocommercialisation. Singapore can be a 'living laboratory' for these firms, by adopting thecompanies' new solutions and providing venues for testbedding.

Singapore is currently building a home specifically for such firms: EDB and industrial landlordJTC Corporation recently unveiled a 50ha eco-business park next to Nanyang TechnologicalUniversity, which will be a centre of cleantech research, innovation and commercialisation. Itis expected to draw some $2.5 billion worth of investments in buildings by 2030 when it isfully completed. The Housing and Development Board is also developing Punggol asSingapore's first eco-town, which will offer cleantech firms a location for large-scale test-bedding of new green technologies and urban solutions in areas like energy, waste and watermanagement.

CONSTRUCTION BUSINESS

Local construction trade urged to go green16.6.2010 The Business Times

THE Singapore construction industry was rallied to partner the government in promotingenvironmentally sustainable industry practices during a conference yesterday. Themed'Sustainable Green Practices for ASEAN Contractors', the ASEAN Contractors Conference was

held yesterday in conjunction with the ASEAN Constructors Federation meeting.


23/38


23/38

At the official opening ceremony, the Singapore Environment Council (SEC) and SingaporeContractors Association Limited (SCAL) jointly launched the SEC-SCAL Eco CertificationScheme for Contractors. The scheme aims to guide contractors to adopt green andsustainable practices. It will provide recognition for contractors that contribute to theprotection and sustainability of the environment and provide a framework for contractors tomaintain their green practices.

The 'Green and Gracious Builder Guide' produced by the Building Construction Authority (BCA)and SCAL was also launched at the event. The guide provides information on the bestpractices of builders in addressing environmental concerns and mitigating possibleinconveniences to the public caused by environmental works. These best practices werecompiled from on-site observations of various builders under the Green and Gracious BuildersScheme.

S'pore slips to 16th in real estate transparency ranking24.6.2010 the Business Times

SINGAPOPRE has slipped two places to 16th in a ranking of the transparency of major realestate markets worldwide. The city-state's position in the latest Global Real EstateTransparency Index compiled by Jones Lang LaSalle (JLL) fell as other countries' scoresimproved, while Singapore's remained the same.

Singapore scored 1.73, which placed it 14th in the previous index. But with the same scorethis year, Singapore has taken 16th spot, as several European nations including Sweden,Ireland and France improved their scores. A score of one is the best and five is worst.According to the index, Australia is now the world's most transparent real estate market. Inthe Asia-Pacific, Australia and New Zealand (fourth globally) are the region's most transparentmarkets, followed by Singapore and Hong Kong (18th globally).

Singapore and Hong Kong are classified as 'transparent' but not 'highly transparent' becausethere is room for improvement in two areas for both markets, Dr Murray said. Both countrieslack investment performance indices, for example, she said. Factors such as outstandingbalances, maturities and defaults, as well as how thoroughly real estate debt on banks'balance sheets is monitored, were considered. Singapore did well in this aspect, scoring highfor its regulatory and legal environment.

TRANSPORT

Pact with Malaysia may ignite Kunming rail link4.6.2010 The Business Times

Resolving the Points of Agreement issue between Malaysia and Singapore could potentiallychange the face of railway transportation in the region. The rapid transit system that the twocountries seek to develop may help speed up the Singapore-Kunming Rail Link (SKRL), aconnection that will allow trains to run all the way from here to Kunming in China.

The proposed route for the SKRL, reportedly 5,382 km long, passes through seven Aseancountries: Singapore, Malaysia, Thailand, Myanmar, Laos, Cambodia and Vietnam, beforelinking up with Kunming, and is built upon the common rail connectivity between Singaporeand Bangkok via Kuala Lumpur. It is a flagship project of the Asean-Mekong Basin

Development Cooperation.


24/38


24/38

The POA and rapid transit system will improve the links between Singapore and Malaysia andthus provide a more reliable and efficient base for the SKRL to develop. It will help themovement of goods, services and people across the region. As manufacturers and tradersswitch to rail for the transport of their goods and services, it will result in lower transportcosts for them.

Singapore expands bilateral air services agreement with Greece17.6.2010 M inistry of Transport Singapore

Singapore and Greece agreed to expand the bilateral Air Services Agreement (ASA) betweenboth countries. Under the expanded agreement, carriers from Singapore and Greece areallowed to operate unlimited cargo flights between and beyond the two countries, as well asunlimited hubbing rights1 for cargo operations for carriers of both countries. The expandedagreement further allows carriers from both countries to operate unlimited passenger servicesbetween the two countries, and up to 14 weekly passenger services beyond them to any cityworldwide.

This latest liberal ASA with a European Union (EU) Member State promotes people-to-peopleties, boost tourism and enhance bilateral economic relations not just between Greece andSingapore, but also between the Asia-Pacific region and the EU. At present, Singapore Airlinesoperates twice weekly passenger services between Singapore and the capital city of Greece,Athens.

Najib: Railway land deal major breakthrough29.6.2010 The Straits Times

Malaysian Prime Minister Najib Razak has described the recent agreement reached withSingapore over Malayan Railway land and the Tanjong Pagar train station as a 'major

breakthrough'. He said it was important to resolve the outstanding bilateral issue as soon aspossible, so that relations can be strengthened and both sides can move forward with a senseof confidence and enthusiasm.

The Malayan Railway land negotiations had been a stumbling block in bilateral relations for 20years until the first breakthrough in negotiations was made in Singapore last month whenboth sides agreed to move the existing railway station in Tanjong Pagar to Woodlands by Julynext year. The railway land left behind could then be jointly developed by both countries, or itcould be returned to Singapore and land of equivalent value elsewhere jointly developedinstead.

TOURISM INDUSTRY

Beerfest Asia aims to be event calendar highlight4.6.2010 The Business Times

IN FIVE year's time, Singapore could be counting Beerfest Asia as one of the main highlightsof its event calendar. Conceptualized by Ublues Group, the same company behind popularnightlife hangout Timbre, Beerfest Asia 2010 is in its second year running. Ublues managingdirector Edward Chia said: 'We hope to grow Beerfest Asia year on year to eventually becomepart of the Singapore event calendar.

The business model for Beerfest Asia can best be described as a hybrid between a MICE and aconsumer event, with multiple revenue streams from exhibitors' rental fees, sponsorships andticket sales. 'Beerfest Asia, first and foremost, is a MICE event for distributors to showcase


25/38


25/38

their beers and strike up commercial deals,' said Mr Chia. 'It is also a way of letting brandowners and potential exporters to gauge the tastebuds of Singaporeans.' 'Eventually, we wantto make Singapore a beer hub where foreign beer players can view Singapore as a place toenter Asia.'

Currently, local festival-goers account for 85 to 90 per cent of visitors at Beerfest Asia, withforeigners making up the remaining 10 to 15 per cent. In the years to come, the companyalso hopes to further 'internationalise' the event by attracting more overseas consumers andindustry players through aggressive overseas marketing campaigns. Once the festival hasfully taken off in Singapore, the Ublues Group hopes to export the concept of Beerfest Asia toother locations around the world.

Most locals prefer to visit places in Asia-Pacific region16.6.2010 The Business Times

IF there's one thing that Singaporeans are not willing to give up, it's their holiday abroad.

According to a MasterCard survey, nearly 50 per cent of Singaporeans consider travel apriority over the next six months, a figure that is up from 42 per cent six months ago and 30per cent a year ago. The survey also revealed intra-regional travel remains popular and thatgiven a choice, Singaporeans would choose to travel within the Asia-Pacific.

Malaysia emerged tops for Singaporeans, earning 35 per cent of votes, followed by Thailand(30 per cent), Hong Kong (24 per cent) and Taiwan (24 per cent). In fact, 95 per cent ofrespondents from Singapore plan to travel within the Asia-Pacific in the next six months. Incontrast, 24 per cent of Singaporeans plan to visit Europe in the next six months, while only13 per cent intend to visit North America. The survey polled about 10,500 consumers from 24markets, of which 400 people were from Singapore.

Buzz is back in S'pore convention and expo business23.6.2010 the Business Times

The buzz is back in Singapore's convention and exhibition industry as Asia-Pacific economiesrebound and new casinos attract more visitors to one of the region's favourite meetingdestinations. From telecom and hotel trade shows to Christian prayer meetings and home-decor fairs, conference centres are enjoying robust demand from event organisers along withrising attendance numbers. Convention centres have already sealed contracts for events in2011 and 2012, with Singapore Expo, located close to Changi Airport, hosting a tenth of allbusiness-related events.

Singapore hosts some 6,000 business events annually, accounting for a quarter of such

meetings held in Asia in 2008, according to official figures, but the global recession hit theindustry in 2009. In 2008, Singapore welcomed three million business travellers includingconvention participants, said Melissa Ow, assistant chief executive at the Singapore TourismBoard (STB) in charge of business travel and conventions. The segment contributed $6 billion(US$4.4 billion) or about 40 per cent of total tourism revenues in 2008, she said.

Total visitor arrivals including tourists and business travellers slipped 4.3 per cent to 9.7million in 2009. The target is 17 million arrivals by 2015 - more than three times the currentpopulation of Singapore. Economists expect Singapore's output to expand 9.0 per cent in2010 after contracting 1.3 per cent last year, and the government has been pushing serviceindustries to reduce dependence on manufacturing in the long term.


26/38


26/38

Genting S'pore to sell UK operations2.7.2010 the Straits Times

CASINO firm Genting Singapore yesterday announced it is selling its operations in Britain toits parent company, unlocking $689 million in the process. The move will allow it to focus onResorts World Sentosa (RWS), which it says has first-mover advantage in Singapore. In aSingapore Exchange filing, Genting said it will use the money to enhance the marketing andbrand development for RWS, and for working capital. Genting added that the funds may alsobe used for growth in its core businesses in the leisure, hospitality and gaming sectors, ifopportunities arise. The net proceeds expected from the sale are about $688.8 million, about$103.6 million over the book value of the entities that are being sold.

RWS earlier said it is on track to hit its target of 13 million visitors a year. This works out toover a million visitors a month, or over 3,000 visitors a day. The outlook for Singapore'stourism industry as a whole has been encouraging. Analysts from CIMB have noted that

foreign visitor arrivals went up 20 per cent year-on-year for the first four months of this year,while in March the Singapore Tourism Board forecast 11.5 million to 12.5 million arrivals thisyear, with tourist spending expected to be between $17.5 billion and $18.5 billion. Arrivalscould surpass 2008's all-time high of 10.1 million visitors.


27/38


27/38

INTERNATIONAL RELATIONS

S'pore to ratify ILO Convention15.6.2010 The Straits Times

SINGAPORE will ratify the International Labour Organisation (ILO) Convention on TripartiteConsultation. This announcement was made by Minister for Manpower Gan Kim Yong at theILO in Geneva, Switzerland, on Tuesday.

Convention 144 aims to establish national tripartite consultations in ILO member states topromote the implementation of international labour standards. It requires ratifying ILOmembers to undertake effective consultations on matters pertaining to ILO activities betweenrepresentatives of the government, employers and workers. Mr Gan said ratifying theconvention would mark a 'significant milestone for Singapore, to institutionalise and

strengthen tripartism as a unique competitive advantage contributing to our economic andsocial progress'.

Commenting on the ratification, National Trades Union Congress Secretary-General Lim SweeSay said the ratification of the convention is a recognition of the strong tripartite partnershipin Singapore which has enabled workers to share in the benefits of economic progress anddevelopment.

Singapore Concludes Open Skies Agreements with Barbados, Brazil,Jamaica and Rwanda19.7.2010 Channel News Asia

Singapore has concluded Open Skies Agreements (OSAs) with Barbados, Brazil, Jamaica andRwanda, at the International Civil Aviation Organisation Air Services Negotiation Conference2010 (ICAN 2010), held in early July in Montego Bay, Jamaica. The OSAs with Barbados andJamaica are the first between Singapore and the Caribbean Community. The Singapore-BrazilOSA comes on the back of the Singapore-Peru OSA, which was concluded in 2009 togetherwith the establishment of Air Services Agreements with Colombia and Ecuador. The OSA withRwanda is Singapore's second with an African country, after the Singapore-Zambia OSA thatwas concluded in 2008.

Without restrictions on capacity, frequency or routing, OSAs allow carriers the full flexibility tointroduce services when market opportunities arise. Carriers are also able to tap on trafficfrom and to third countries to improve the commercial viability of their operations. Direct air

links with Singapore will allow businesses in Africa, Latin America, and the Caribbeans toaccess more markets by tapping on Singapore's excellent connectivity to the Asia Pacificregion. This will reinforce the growing people and trade flows between these regions and theAsia Pacific. The establishment of liberal air services frameworks between Singapore andmore countries in Africa, Latin America, and the Caribbeans pave the way for such benefits.

There are currently no direct flight connections between Singapore and Latin America or theCaribbeans. In Africa, Singapore Airlines operates passenger services to Egypt and SouthAfrica, while Singapore Airlines Cargo operates cargo services to Kenya and South Africa.

Apart from sealing OSAs with the four countries at ICAN 2010, Singapore and Fiji alsoconcluded an open skies framework for cargo services and expanded traffic rights

entitlements for passenger operations between and beyond both countries. Singapore nowhas OSAs with over 40 countries, including the four new OSAs.


28/38


28/38

ASIA AND ASEAN MATTERS

Asean electronic trading link seen going live by Q1 11


The Asean electronic trading link - which will consolidate price feeds from six regionalexchanges - is expected to go live by the first quarter of 2011, a senior manager at NYSETechnologies said in a recent interview. NYSE, which has been working with the exchanges forthree years now, sees better cross-selling of products within the region and more trade flows,Asia-Pacific managing director Peter Tierney told BT.

But unlike Euronext, the Asean markets cannot develop a single platform due to thefragmentation of the regional exchanges, a move which could have yielded some costsavings. By contrast, the Euronext was a result of three exchanges merging into a singlelisted company to compete with other exchanges in Europe - a move that is not yet on the

cards for the Asean exchanges. 'For Asean, they are fully aware that it has to includeeveryone. And they've worked very hard to establish a basis that all participants can play,'said Mr Tierney. And it is an uphill task working with the six exchanges from Singapore,Malaysia, the Philippines, Thailand, Indonesia and Vietnam that are growing at vastly differentpaces.

ADB forecasts 7.5% growth for Asia this year20.4.2010 The Straits Times

THE Asian Development Bank (ADB) has predicted that growth in the region will expand by7.5 per cent this year, up sharply from the 5.2 per cent a year ago. But growth is likely tomoderate to 7.3 per cent next year due to the unwinding of government expansionary

measures.

ADB managing director Rajat Nag pointed to the volatility of capital flows as a factor thatcould derail the Asian recovery. With limited investment opportunities elsewhere, Asia's headyrecovery and rising interest rates from monetary policy tightening will make it an attractivedestination for foreign capital. The ADB's latest outlook report also listed other risks to Asia'srecovery, including mistimed stimulus withdrawals, a sharp increase in commodity prices anda slow revival of export demand.

Singapore to be base for key Asean research office3.5.2010 The Business Times

FINANCE ministers from the 10 Asean states plus China, Japan and South Korea meeting onthe sidelines of the Asian Development Bank annual meeting in Tashkent agreed to movesthat will finally enable their US$120 billion multilateral currency swap mechanism to becomeoperational. They agreed to set up an Asean+3 Macroeconomic Research Office (AMRO) inSingapore to provide monitoring and analysis of regional economies to the Chiang MaiInitiative Multilateralisation (CMIM). The move comes at a time of global financial turbulencecaused by the Greek crisis and is seen as timely because of the risks of contagion spreadingfrom the euro zone to Asia and elsewhere.

A network of bilateral currency swaps known originally as the Chiang Mai Initiative (CMI) wasagreed on by the Asean+3 ministers in 1999, two years after Asia was plunged into acurrency crisis, as a buffer against future shocks. It was 'multilateralised' two years ago and

became a centrally-operated pool of regional currencies, but could not operate without aneconomic surveillance function, which it will now have through the AMRO. The ministers alsoannounced the setting up of a US$700 million Credit Guarantee and Investment Facility


29/38


29/38

(CGIF) to support development of local-currency bond markets in Asia, and they established atask force to identify future 'priority areas of financial cooperation' in Asia.

Asian exports close to pre-crisis peaks


ASIA is riding high on an export boom that has put it well ahead of other regions as the worldbounces back from the recent global economic downturn. From Japan to Singapore andTaiwan to Thaila

Documents

Singapore Market Report_022010