Top Story of the Week: US Firms Step Up Services Exports To Singapore
TOP STORIES
- The US Department of Commerce released new figures illustrating that from 2002-2012 the annual flow of US private services to Singapore have more than doubled to US$12.3 billion. The US' surplus in trade in services with Singapore jumped from US$3.5 billion to US$7.3 billion during this period. The news reiterates that the importance of Singapore as a favored destination for US investment in Asia, but also reinforces the strong emphasis the U.S. rebalance to Asia has put on commerce and trade. The strength of the bi-lateral relationship between the U.S. and Singapore was further highlighted by the figures showing a steady rise in the export of Singapore services to the US. On average reverse trade has kept pace with the flow coming in the opposite direction. In October 2013, U.S. Ambassador to Singapore, The Honorable Kirk Wagar, led a delegation of Singaporean business leaders to the Department of Commerce’s International Trade Administration's first ever SelectUSA Investment Summit.
National Affairs
Malaysia Summons Singapore Envoy as Spying Claims Widen Bloomberg 26th Nov 2013
Malaysia summoned Singapore’s high commissioner today to respond to allegations of spying which risk damaging improved political and business ties between the Southeast Asian neighbors. Indonesia and Malaysia have been key targets for Australian and U.S. intelligence cooperation since the 1970s, facilitated in part by Singapore, the Sydney Morning Herald reported yesterday, citing documents leaked by former U.S. intelligence contractor Edward Snowden. Malaysia’s foreign ministry said it was “extremely concerned” and had already acted against earlier claims of espionage by the U.S. and Australia. “It cannot be overemphasized that spying against a good friend and neighbor is unacceptable and goes against the true spirit of and commitment to good neighborly relations,” Anifah Aman, Malaysia’s foreign minister, said in an e-mailed statement before this morning’s meeting. “If those allegations are eventually proven, it is certainly a serious matter.”
Singapore ranks 2nd on INSEAD's Global Talent Competitiveness Index CNA 26th Nov 2013
Singapore has been ranked second on INSEAD's Global Talent Competitiveness Index, which was launched on Tuesday. It is the only Asian country to feature in the Top 20 of the index. The index measures a nation's competitiveness based on the quality of talent it can produce, attract and retain. INSEAD placed Switzerland at the top, followed by Singapore and Denmark in second and third. European nations dominated the ranking. Only two of the Top 10 spots were occupied by non-European countries, with Singapore in second place and the US in the ninth position. In a statement, INSEAD said Singapore ranks very highly under the "Enablers" category, as it is one of the easiest places in the world to do business with a strong and stable political setting. The city-state is also able to attract top foreign students and is strong in higher-level skills and formal education.
US firms step up services exports to Singapore Business Times 25th Nov 2013
American firms appear to have grown more aggressive in exporting services after the Great Recession - and Singapore is one of their major targets, the latest official trade figures from the United States show. At the same time, the steady rise in the export of Singapore services to the US in the past decade has, at least on average, kept pace with, if not exceeded, the flow coming in the opposite direction, according to figures just released by the US Department of Commerce. The US has been more adept at selling services than goods overseas in the past 30 years or so, boosting its exports and keeping the US trade balance in services positive. The annual flow of US private services - mostly business services relating to information technology, management, operational leasing and research and development - to Singapore more than doubled to US$12.3 billion from 2002 to last year, according to the Department of Commerce's figures. The US's surplus in trade in services with Singapore jumped from US$3.5 billion to US$7.3 billion during this period.
Taxing times for Singapore as corporate strategy faces scrutiny Chicago Tribune 24th Nov 2013
Tiny Singapore does not look at first sight like one of Apple Inc's priority markets: it has no official Apple Store and doesn't even rate a mention in the company's latest annual report. Apple South Asia Pte Ltd, however, its Singapore entity, booked $14.9 billion in revenue for the 12 months to September 2012 - more than it would have received had the country's entire 5.3 million population each bought an iPhone 5S, an iPad Air and a MacBook Pro. There is nothing illegal about the accounting practices employed by the computer giant, which, like many multinational companies ranging from Google Inc and Microsoft Corp to BHP Billiton and Huawei Technology Co, uses the city-state as a key hub for its Asia business. Singapore has so far largely stayed out of the debate raging in Europe and the United States about the ways multinationals try to lower their tax bills.
Customs
TPP chiefs ready for Singapore meeting Japan Times 25th Nov 2013
Chief negotiators from the 12 countries of the Trans-Pacific Partnership trade negotiations set the stage Sunday for next month’s ministerial meeting, ending their talks aimed at sifting through as many thorny issues as possible. Details of the talks are not yet clear but negotiators are believed to have made progress in some fields, such as government procurement, while among others, gaps apparently remain over market access for goods and intellectual property. Ministers from the 12 countries, including the U.S., Japan, Australia and Canada, will discuss the pending issues in ministerial talks slated for Dec. 7-10 in Singapore to achieve the goal of signing a deal by the end of this year.
S'pore firms face hurdles in doing business in M'sia The Nation 26th Nov 2013
Singapore businesses have flagged transport and border issues as the biggest obstacles to setting up shop in Malaysia Many Singapore firms are eager to tap into the abundant opportunities across the Causeway, with Iskandar, in particular, a major investment hot spot. But small and medium enterprises (SMEs) on Wednesday raised various concerns at the Malaysia Business Forum 2013. The annual event, organised by the Malaysian Investment Development Authority (Mida), was held at Raffles City Convention Centre. Ministers of both countries were also at the forum. Transport woes and border crossing congestion were raised by a number of Singapore firms. YK Law, business development manager of logistics firm Choon Heng Logistics, said, "For Singapore firms wanting to export to Malaysia, they have to use Malaysian trucks or truckers. Sometimes, they are not on time and the service level is not there." He hopes the Malaysian government will consider allowing approved logistics firms to use Singapore trucks instead.
Defense & Security
Singapore Buys New Class of German Attack Submarines USNI 4th Dec 2013
Singapore has inked a deal with German submarine builder ThyssenKrupp Marine Systems for two new Type 218SGs— a previously unknown type of attack submarine. The Nov. 29 contract for the two diesel electric boats (SSKs) includes training and logistics package for the two new submarines for a package that could be valued as high as $1.36 billion, according a report from Reuters news service. The boats will also feature Singaporean systems, hence the SG designation. The new SSks will field an air independent propulsion system (AIP) and will deliver sometime in 2020. AIP systems allow diesel powered SSKs to operate for longer underwater than traditional diesel electric boats.
EODMU-5 Partners with Singapore Navy for Joint Training CPF 4th Dec 2013
Sailors from Explosive Ordnance Disposal Mobile Unit (EODMU) 5 partnered with members of the Republic of Singapore Navy (RSN) for the biannual Miata exercise that kicked off at U.S. Naval Base Guam Dec. 3. The joint training builds interoperability between the two EOD groups who have a continued working agreement. The exercise will continue through Dec. 14. "This is something we enjoy doing and it enhances our ability to develop and integrate our EOD (Explosive Ordnance Disposal) techniques," said Lt. j.g. Joseph Lynch, EODMU-5. "They're a very reputable force with extremely well-developed capabilities. We hope to exchange our ideas and information so we can see how they operate, and hopefully integrate some of their tactics into our future operations." With the robotics training, EODMU-5 practiced using RSN's PackBot to investigate a bag with a potential threat, while RNS members used EODMU-5's Talon Mark II to maneuver around an obstacle and to pick up and transport batteries into a container.
Arizona air base hosts Idaho, Singapore pilots Fox 4th Dec 2013
Luke Air Force Base is hosting Idaho's 428th Fighter Squadron and a contingent from the Republic of Singapore for nearly two weeks of flying exercises. Flying will take place at the base and the Barry M. Goldwater Range complex through Dec. 15. Base officials say the areas around Luke and the range may experience more noise than usual as a result of the increased air activity and the types of aircraft involved. The aircraft will include F-16 Fighting Falcons, F-15E Strike Eagles, CH-47 Chinooks and AH-64 Apache helicopters. There will also be an increased military presence along Highway 85 south of Gila Bend. Officials say the exercises will provide the Singapore armed forces an opportunity to train their full spectrum of command, control and execution.
Singapore to Acquire Two Submarines from German Firm Defense Studies 2nd Dec 2013
Singapore, which has Southeast Asia’s most modern military, said Monday it was acquiring two new submarines from German defence contractor ThyssenKrupp Marine Systems. In a statement, the defence ministry said it signed a contract to acquire two “Type 218SG” submarines, which are projected to be delivered in 2020. It said the deal included a logistics package and a crew training arrangement in Germany, but did not reveal the total cost. The two new submarines, along with Archer-class submarines purchased from Sweden in 2005 will replace its Challenger-class submarines that were built in the 1960s and acquired by the city-state in the 1990s. “The replacement submarines will have significantly improved capabilities and be equipped with Air Independent Propulsion Systems,” the ministry said in the statement.
MINDEF to get two new submarines CNA 2nd Dec 2013
The Ministry of Defence is acquiring two new Type 218SG submarines from Thyssenkrupp Marine System GmBH. In a statement on Monday, the ministry said the two submarines are scheduled for delivery from 2020. The ministry said it signed a contract with the German manufacturer on November 29, 2013 for the acquisition, which also covers a logistics package and a crew training arrangement in Germany. The two new submarines, together with the Archer-class submarines, will replace the aging Challenger-class submarines that Singapore has. The replacement submarines will have significantly improved capabilities and will be equipped with Air Independent Propulsion systems, said the statement.
Singapore Navy’s Littoral Mission Vehicle will be Powered by Tognum’s MTU Engines Defense Studies 30th Nov 2013
Tognum has been awarded by Singapore Technologies Marine Ltd to power eight Littoral Mission Vessels for the Republic of Singapore Navy (RSN) with MTU Series 4000 diesel engines. The Littoral Mission Vessels will be installed with state of the art, high efficiency MTU 20V 4000 M93L diesel engines, known for their low consumption and long service life, with each unit producing 4300kW (5766bhp). MTU Series 4000 diesel engines offer unrivalled power density in terms of volume-to power ratio and power-to-weight ratio.
Top-secret exposé: Singapore helping US spy on Malaysia Yahoo! 25th Nov 2013
Neighbouring Singapore is a key partner of the “5-Eyes” intelligence group which was revealed to have tapped telephones and monitored communications networks in Kuala Lumpur, according to more top secret documents leaked by intelligence whistleblower Edward Snowden. In a report by Australian media group Fairfax Media today quoting Dutch daily NRC Handelsblad, it was revealed that Singapore is a key “third party” providing the ring — made of the United States, the United Kingdom, Canada, Australia, and New Zealand — access to Malaysia’s communications channel. Singapore was included in a map published by NRC, which showed the US’ stranglehold on trans-Pacific communications channels through interception facilities on the US’ West coast, Hawaii and Guam.
Financial Services
Singapore Regulator Sees Bank Risk From Rising Global Rates Bloomberg 3rd Dec 2013
Singapore’s central bank warned that rising global interest rates could weigh on household and corporate debt and pose risks for banks in the city-state. A 3 percent increase in mortgage rates would boost the share of overly indebted households to as much as 15 percent from 10 percent now, the Monetary Authority of Singapore said in its annual financial stability review today. Banks also need to guard against credit quality deterioration as rates increase after Singaporean companies’ median debt-to-equity ratio rose to 39 percent at the end of June, the authority said. While the city’s banks led by DBS Group Holdings Ltd. (DBS) already conform to international guidelines for risk buffers, MAS said Asian economies could face capital outflows and banking risk when the U.S. begins curbing its $85 billion in monthly bond purchases. Singapore manages monetary policy through its exchange rate, rather than by setting its own interest rates.
Singapore Equity Trading Plummets on Penny-Stock Curbs Bloomberg 2nd Dec 2013
The value of equities traded on Singapore Exchange Ltd. (SGX) sunk to a two-year low last month, threatening to slow the bourse’s earnings growth, as brokerages restricted investments in so-called penny stocks after three commodity companies plunged. The average value of shares transacted daily on Southeast Asia’s biggest exchange fell to S$914 million ($728 million) in November from S$1.3 billion a year earlier, according to data compiled by Bloomberg. That’s the lowest since December 2011. Trading sank 36 percent in the past two months after a slump in Asiasons Capital Ltd., Blumont Group Ltd. and LionGold (LIGO) Corp. erased $6.9 billion in market value over three days in early October, the data show. Singapore’s brokerages are making it harder for clients to invest in dozens of stocks even after SGX removed restrictions on trading Blumont (BLUM), LionGold and Asiasons shares. The nation’s securities regulator is investigating the plunge and all three companies have said they don’t know what precipitated the decline. Interactive Brokers Group Inc. (IBKR) and AmFraser Securities Pte., a unit of Malaysian lender AMMB Holdings Bhd., face combined potential losses of $105.8 million from providing margin loans to affected investors, the brokerages said in separate announcements. “The trading curbs were done to protect brokers’ interests,” Jimmy Ho, president of the Society of Remisiers in Singapore, said by telephone. “However, imposing such restrictions is killing the market. The measures look overdone and SGX should intervene.”
ICT
Govt not trying to curtail online freedom of expression: Shanmugam CNA 30th Nov 2013
The decision to require users to log in before they can leave comments at the government's feedback portal REACH is not meant to curtail freedom of expression. Singapore Minister for Law and Foreign Affairs K Shanmugam made this point on Friday at a forum organised by the Straits Times. From the middle of December, those who want to leave comments on the REACH portal will have to identify themselves. Singapore Prime Minister Lee Hsien Loong had said that the move is aimed at encouraging a responsible online space. Weighing in on the issue, Mr Shanmugam said Singaporeans should not feel uncomfortable identifying themselves online when they want to talk about government policies.
Singapore Blogger Faces Contempt Action for Scandalizing Courts Bloomberg 25th Nov 2013
Singapore blogger Alex Au Wai Pang faces possible contempt of court action for writing and posting articles that the Attorney General’s Chambers said “scandalize” the country’s judiciary. Au’s Oct. 5 article insinuates there was a plan to manipulate the hearing dates on a challenge to the constitutionality of Singapore’s ban on homosexual sex, according to papers filed by the attorney general’s office in the Singapore High Court. A closed hearing is scheduled for today. The attorney general’s office in January warned that public comment on the constitutional challenge could be in contempt. Au apologized last year and deleted a separate article alleging that Singapore’s courts are biased toward the well-connected after he was threatened with prosecution. He didn’t immediately reply to two e-mails seeking comment yesterday.
Need to build secure online space for constructive exchange of views: PM Lee Channel NewsAsia 22nd Nov 2013
Singapore Prime Minister Lee Hsien Loong said there remains a need to continue building a secure and responsible online space to encourage a constructive exchange of views among Singaporeans. And he said the government will work towards this goal. Mr Lee said that from the middle of next month, the government's feedback portal REACH will require users to log-in before they leave comments on the website. He was speaking at a forum to mark the 90th anniversary of Chinese daily Lianhe Zaobao on Friday evening. The media scene in Singapore and the world has seen many changes in recent decades, and this has mirrored new consumption habits among people with social media becoming more prevalent.
Infrastructure
Is Singapore real estate losing its shine? CNBC 5th Dec 2013
Demand for Singapore real estate will fall next year, according to a report from global accountancy firm PricewaterhouseCoopers, which said the market slipped four places in its 2014 ranking of property markets. According to PwC's Emerging Trends in Real Estate Asia Pacific forecast, published in conjunction with the Urban Land Institute, concerns around oversupply in some Singapore property sectors have damped appetite. "Singapore slipped off the top five spots for the first time since the publication first started in 2007," said Choo Eng Beng, real estate leader at PwC.
HDB to start tapering off construction programme from 2014 CNA 2nd Dec 2013
The government will begin to taper off massive construction of public housing from 2014 as supply and demand for public housing return to balance. In a blog post published on Monday evening, National Development Minister Khaw Boon Wan said the last three years of sustained ramp-up have helped to "restore the balance in our housing market". However, Mr Khaw said the tapering will be done in a "measured" way to allow the market to gradually adjust, just like the government had done to cool the property market earlier. Mr Khaw noted in his blog that as the November's Build-to-Order (BTO) and Sale of Balance Flats (SBF) launch - the last exercise for the year, draws to a close on Monday, the average BTO application rate has fallen from a high of 5.3 in 2010, to a low of 2.9 this year. The November exercise saw 8,952 flats in a single launch, making it the largest in HDB's history.