Singapore Update: Foreign Minister Pushes For U.S. Trade Pact

• On May 13, during his visit to Washington D.C., Singapore’s Foreign Minister K. Shanmugam argued that "If the TPP doesn't go through, it will significantly impact both U.S. economic interests and U.S. standing in the region. And it will lead to many questions about U.S. reliability."  The U.S. economy would be hurt as a consequence of not passing a deal because China and other countries will make their own regional pacts and free trade agreements.  The implications would also extend to geo-politics as the United States would not be as engaged in the growth of the Asia-Pacific region as it would with passage of the agreement.

• On May 05, Minister for Trade and Industry Lim Hng Kiang stated that Singapore cannot be a First World economy with Third World costs.  His remarks come at a time when Singapore is grappling with how to restructure its economy to remain pro-growth, competitive and business friendly, while simultaneously meeting the expectations of its citizens that are under pressure from raising costs and stagnating wages.  In recent years, rising costs have become a greater issue. The 2014 budget debates in Singapore included intense discussions about rising costs for businesses, in addition to rents and utilities that coincide with increased wages and worker shortages.  Another consequence has been Singapore’s fall in global competitiveness rankings to No.5 from No.1 in 2010. Offering solutions, Minister Lim said: "Singapore will continue to move towards higher value-added activities and at the same time develop greater innovative capabilities." He also highlighted the Republic's strong network of free trade agreements, which positions Singapore as a "nexus from which companies can control and coordinate their regional and global business activities".

Singapore Can't Have First World Economy, Third World Costs: Lim Hng Kiang The Straits Times 6th May 2014
Singapore cannot be a First World economy with Third World costs, said Trade and Industry Minister Lim Hng Kiang yesterday at a lunch dialogue with prominent European diplomats and business leaders based here. But he also assured them that Singapore will stay competitive and business-friendly even as it restructures the economy to achieve quality growth. He was speaking at the Shangri-La Hotel Singapore at a Europe Day celebration organised by the European Chamber of Commerce (EuroCham) in Singapore. Responding to a question from the floor on rising business costs, Mr Lim said: "We have to acknowledge that, over time, Singapore cannot be a First World economy with Third World costs. There has to be some balance." He explained that Singapore's strategy is to "make sure we create value commensurate with the costs". That is the way to ensure that it is sustainable in the long term, he added. Rising costs have been an ongoing issue. The Budget debate in Parliament in March had included intense discussions about rising costs for businesses here, with soaring rents and utilities, increased wages and worker shortages among the complaints.

Two Ministers and a Minister of State Sworn in at Istana Today Online 3rd May 2014
Three political office holders were sworn in yesterday at a ceremony held at the Istana, after Prime Minister Lee Hsien Loong (second from left) announced their promotions earlier this week. The ceremony, officiated by President Tony Tan Keng Yam (third from left, next to Mrs Tan), saw Mr Tan Chuan-Jin (left) and Mr Lawrence Wong (second from right) sworn in as Manpower Minister and Culture, Community and Youth Minister, respectively. Both men were Acting Ministers in their current ministries. Mr Sam Tan (right), who was previously Senior Parliamentary Secretary (Foreign Affairs and Culture, Community and Youth), was sworn in as Minister of State (Prime Minister’s Office and Culture, Community and Youth).

Singapore to Combine Water, Energy Development OOKSA News 6th May 2014
As its water supply becomes increasingly dependent upon energy supplies, Singapore will need to start using its water reservoirs for power generation as well, Minister for the Environment and Water Resources Vivian Balakrishnan said last week. The island city-state relies heavily on energy-intensive measures to secure its water supply. Both its NEWater program, which treats used wastewater and makes it clean enough to drink, and desalination require large amounts of energy, and both processes are being increased in order to meet demand, according to the Public Utilities Board (PUB). “Desalination and water recycling through reverse osmosis have enhanced our water security considerably over the past decade. However, we are not even more dependent on energy for our water supply,” Balakrishnan said on a Facebook page.

PUB embarks on solar projects to diversify energy sources Channel News Asia 2nd May 2014
Singapore's national water agency PUB has started two pilot projects to harness solar power, building rooftop solar panels at Choa Chu Kang Waterworks and installing floating solar systems on Tengeh Reservoir. It said these projects are part of a national effort to explore alternative and sustainable energy sources to develop Singapore into a smart energy economy. Through both projects, PUB will conduct a test-bedding study on the cost-effectiveness, potential benefits and scale limitations of investing in solar power infrastructure. PUB said the 1 Megawatt peak (MWp) rooftop solar panel at Choa Chu Kang Waterworks will harness solar energy for the plant's water treatment operations, while Tengeh Reservoir will house floating solar systems which double up as an energy catchment to channel generated solar power into the national grid. Chosen for its large roof space and treatment capacity, Choa Chu Kang Waterworks will see up to 50 per cent of its peak daytime electricity supply for water treatment equipment, lighting and air-conditioning coming from solar power.

Singapore: 24% Q1 surge in sales gives life sector a good start Asia Insurance Review 14th May 2014
Sales of both single and annual premium products shot up by 24% for the first quarter of this year, giving Singapore's life insurance sector a good start to the year, according to the Life Insurance Association (LIA). The trade association said that the weighted new business premiums totalled S$698.7 million (US$560.44 million) for the three months to 31 March, an increase of 24 per cent compared with the same period a year ago. Sales of annual premium products for the quarter rose by 24% over the same period last year to S$530.5 million. Single premium product sales soared by 27% in the first quarter to S$168.2 million, of which 15% comprised sales funded by customers' central provident funds.

Singapore: Mixed expectations of more commission disclosures Asia Insurance Review 13th May 2014
Nearly half of the insurance professionals in Singapore polled in a recent survey feel that regulatory requirements for greater commission disclosures are "very likely" to take effect over the next three years. In addition, over 90% of the professionals polled feel that regulatory changes would have a greater impact on the industry over the next 12 months, reported International Adviser which conducted the survey. A mix of senior bancassurance selectors and wealth management professionals were sampled for the survey, which covered a range of industry-specific issues, including business practices, industry outlook and regulations.

Temasek Holdings to invest in hedge funds with Dymon Asia Capital Straits Times 12th May 2014
Temasek Holdings and Dymon Asia Capital are starting a venture to invest in new hedge-fund managers and strategies, according to news reports on Monday. The state investment company will initially invest $500 million to be managed by Singapore-based Dymon, one of Asia's largest hedge funds, Dymon president Jay Luo told Bloomberg. Mr Luo and Dymon managing director Ben Freischmidt will be leading the new venture, whose first investment will be in a global equity long-short hedge fund focused on the Asia-Pacific region, the Bloomberg report said. The fund is led by Carl Vine, a former SAC Capital Advisors manager, and plans to start in the third quarter.

S’poreans prefer to invest at home than overseas Brunei Times 8th May 2014
Singaporeans are more inclined to invest their cash at home than other investors around the globe, a study has found. A survey by Legg Mason Global Asset Management has found that 59 per cent of Singaporean respondents are more focused on global investment opportunities than they were five years ago. This is 16 percentage points less than the 75 per cent average for the rest of the world. Another finding was that Singapore money was mainly invested at home, with 80 per cent of the total sums invested here. But Mr Lennie Lim, Legg Mason managing director and Asia regional head, expects this to change. “We expect to see a change in their approach towards investing overseas with a view to diversifying risk and improving their return on investment,” he said in a statement.

U.S., Singapore reach agreement on tax evasion: U.S. Treasury Reuters 6th May 2014
Singapore has reached a tax information-sharing agreement with the United States under a new law meant to combat offshore tax dodging by Americans, a U.S. Treasury Department spokeswoman said on Monday. The deal, which was expected for more than a year, will make it much easier for institutions in one of Asia's biggest wealth management centers to comply with U.S. rules, and puts it ahead of rival Hong Kong which is yet to finalize a deal. Set to take effect on July 1, the Foreign Account Tax Compliance Act of 2010 (FATCA) will require foreign banks, investment funds and insurers to hand over information to the U.S. Internal Revenue Service about accounts with more than $50,000 held by Americans. Foreign firms that do not comply face a 30 percent withholding tax on their U.S. investment income and could effectively be frozen out of U.S. capital markets.

KGI Securities planning expansion into Singapore Channel NewsAsia 5th May 2014
Taiwanese securities firm KGI Securities is planning to grow its business in Singapore following the completion of its acquisition of local futures broker Ong First Tradition in a deal worth some S$50 million. The newly renamed entity, KGI Ong Capital, is seeking regulatory approval to broaden its services to include securities, wealth management and corporate finance solutions. In particular, the firm plans to expand into services like fixed income, investment banking and institutional equities over the next three years. Meanwhile, it also intends to apply for SGX Securities trading and clearing membership, to gain direct access to SGX's securities trading platform.

Coca-Cola drops free cans to Singapore’s foreign workers Marketing Interactive 7th May 2014
Coca-Cola has partnered the Singapore Kindness Movement and dropped free cans of Coke to foreign workers. Remote controlled drones dropped off to boxes of Coke to more than 2500 workers around Singapore, said Coca-Cola’s agency Ogilvy & Mather Singapore, who was the creative agency behind the campaign. The project had locals writing messages of gratitude to workers at high-rise construction sites around the country and tying it to the cans. 2,734 photos of individuals with their handwritten notes were delivered to as high as 35th story of construction sites to deliver the surprise treat to unsuspecting workers. This was done over the months of March and April.

This Tiny Scanner Will Tell You Exactly What Is In Your Food Business Insider 7th May 2014
A new Kickstarter has just been funded to create a device about the size of a car clicker to tell you what is in your food. The scanner harnesses the power of physics and chemistry to figure out everything from the sugar content of a given apple to whether or not that drink you left on the bar has been drugged. The device, called SCiO, actually uses a technology similar to the one that helps astronomers figure out the make-up of the stars — called spectroscopy.

More banks using big data technology in Singapore Channel News Asia 8th May 2014
Big data technology -- or the ability to process vast amounts of information -- is increasingly being tapped by businesses and governments. The banking sector, including the two biggest banks DBS and OCBC, is among the first movers in this space in Singapore. With over 25 million transactions a month, DBS has one of the busiest ATM networks in the world, with some of the busiest machines found in Ang Mo Kio. To cope with the traffic, the bank uses data analytics. It said it is the first in the world to analyse real-time ATM data and convert this into a plan for ATM cash reloading.

Singapore Closer to Infrastructure Hub Goal Straits Times AsiaReport 5th May 2014
Seven global players in the lucrative infrastructure sector have decided to base key operations here. Their decisions, unveiled recently by the Economic Development Board (EDB), represent a major step forward in Singapore's push to become the region's hub for infrastructure development. The projects covered by the sector include water projects, transport works, and energy projects including those in the fast-growing renewables industry. The seven multinational firms which have decided to house their regional or global infrastructure- related functions here include the subsidiaries of big names such as Samsung and Hitachi.

GE Transportation Chosen by Singapore’s Land Transport Authority Business Wire 5th May 2014
GE Transportation has been selected by Singapore’s Land Transport Authority (LTA) to supply fully automated driverless train control and signaling solutions for the Thomson (TSL) and Eastern Region (ERL) Lines based on its Tempo™ portfolio. GE will provide the Tempo™ Communication-Based Train Control (CBTC) and Computer-Based Interlocking (CBI) systems as part of a contract which includes the design, manufacturing, supply, installation, testing and commissioning of the signaling system and platform screen doors for both TSL and ERL lines, a deal valued at SGD$ 159 million (US$ 126 million). The project will be rolled out in three phases starting in 2019. The Tempo CBTC Solution allows urban transit operators to address their operational and service challenges and needs, ranging from increase in line ridership capacity, revenue service availability and energy consumption to reducing life-cycle costs. This next-generation solution is an integrated and modular signaling and control system, designed to simplify Mass Transit service operations and increase its efficiency. It supports all possible grades of automation to dynamically adjust capacity to required traffic levels while still maintaining safety levels. “We are pleased that Singapore’s Land Transport Authority has selected GE Transportation as a supplier for one of the most demanding mass transit service in the world. GE Transportation is harnessing the power of the industrial internet to simplify railway and mass transit signaling,” said Russell Stokes, President and CEO of GE Transportation.

SMRT Business Outlook Will Improve After Selling Rail Assets to Gov't Today Online 3rd May 2014
SINGAPORE — With its once-lucrative rail business battered by escalating costs, SMRT’s business outlook will improve after it sells its rail assets to the Government, its chief executive Desmond Kuek said yesterday. This arrangement will, among other things, remove the burden of capital expenditures on asset replacement from the operators, which will focus on other service improvements and maintenance work. SBS Transit’s Downtown Line was the first to be placed under the framework.

Singapore Foreign Minister: Failure is Not An Option for U.S. Trade Pact FP 13th May 2014
The foreign minister of Singapore, one of the United States' most important economic and military allies in Asia, is in Washington this week to encourage the Obama administration to pass the Trans-Pacific Partnership. The agreement been a tough sell both internationally and domestically, but Asia-Pacific countries have been looking to the United States to close the massive trade deal, most recently during President Barack Obama's trip to Asia in late April. For Singapore, the message is clear: Failure is not an option. "If the TPP doesn't go through, it will significantly impact both U.S. economic interests and U.S. standing in the region. And it will lead to many questions about U.S. reliability," Foreign Minister K. Shanmugam told Foreign Policy in an interview on Tuesday, May 13. The United States "has staked its prestige" in the region on the passage of the TPP, Shanmugam said. "Everyone can see that this is as important for [the United States] as it is for others." Not passing the agreement will hurt the U.S. economy because China and other countries will make their own regional pacts and free trade agreements, he said. The United States also will not be as engaged in the growth of the Asia-Pacific region as it would with passage of the agreement, and a failure to pass it will lead other nations to question whether Washington has the ability to get a deal done, the foreign minister said.