| Regional Affairs
Amid looming trade war, Singapore pressing on with trade relations: DPM Teo Channel NewsAsia 5th Jul 2018
Singapore hopes countries will be able to resolve their differences speedily and in a way that can bring benefits to everyone, said its Deputy Prime Minister Teo Chee Hean on Thursday (Jul 5) amid a looming trade war between China and the United States. Speaking to Singapore media at the end of a trip to China, he also stressed that Singapore's position is one that is based on principle and not because it supports one country or another. Mr Teo’s comments come as the Trump administration is expected to slap tariffs on US$34 billion worth of Chinese goods on Friday. Beijing has also said it would reciprocate in kind. “We think that a trade war - tit-for-tat - is not going to help any side,” said Mr Teo.
Johor chief minister suggests raising price of water sold to Singapore by almost 1600% Channel NewsAsia 5th Jul 2018
SINGAPORE: Johor's chief minister suggested on Thursday (Jul 5) that the state sell water to Singapore about 1600 per cent more than the current price. Speaking at a press conference, Osman Sapian said he had discussed the matter with Malaysian Prime Minister Mahathir Mohamad. He said that the new price would not be the same as the current one, which is 3 sen per thousand gallons of raw water.
Singapore and China 'natural partners' for Belt and Road: DPM Teo Channel NewsAsia 5th Jul 2018
LANZHOU, Gansu: As globally connected countries, Singapore and China are “natural partners” for the long-term development of the Belt and Road initiative, said Singapore's Deputy Prime Minister Teo Chee Hean on Thursday (Jul 5). Referring to China’s ambitious infrastructure project, which aims to recreate the ancient Silk Road through building land and sea links like railways and ports to boost trade, Mr Teo noted several common objectives have driven bilateral cooperation between the two countries.
Singapore will continue to work closely with Malaysia on 1MDB investigations: MAS chief Channel NewsAsia 4th Jul 2018
Investigations on the scandal-plagued state fund 1Malaysia Development Berhad (1MDB) are ongoing in Singapore and local authorities will continue to work closely with their Malaysian counterparts, said the managing director of the Monetary Authority of Singapore (MAS) Ravi Menon. He was responding to questions from reporters at a media briefing on the release of the central bank’s annual report on Wednesday (Jul 4). “We are still looking at individuals and there are others we are looking forward to interview,” Mr Menon said, though he declined to reveal specifics on how investigations in Singapore are ongoing. While supervisory reviews of the banks have concluded, the MAS will be open to a re-look if new evidence surface. “But so far, that hasn’t been the case,” he said.
South Korea's Moon Jae-in to speak in Singapore on vision for peace on Korean Peninsula Channel NewsAsia 2nd Jul 2018
SEOUL: South Korean President Moon Jae-in will visit Singapore from Jul 11 to 13, the Blue House announced on Monday (Jul 2). He will give a speech on his vision and policies for permanent peace on the Korean Peninsula as well as cooperation with Asian countries in the region. Mr Moon's trip to Singapore comes on the back of the historic meeting last month between North Korean leader Kim Jong Un and US President Donald Trump which Singapore hosted.
Malaysia, Singapore must 'comply fully' with Water Agreement provisions: MFA Channel NewsAsia 25th Jun 2018
Both Malaysia and Singapore must "comply fully" with the provisions of the 1962 Water Agreement and the 1965 Separation Agreement, a spokesperson for the Ministry of Foreign Affairs (MFA) said on Monday (Jun 25). This was in response to media queries on Malaysian Prime Minister Mahathir Mohamad's comments that Malaysia would make a presentation to Singapore on renegotiating the terms of the water supply deal between the two. Said the spokesperson: "The 1962 Water Agreement is a fundamental agreement that was guaranteed by both governments in the 1965 Separation Agreement which was registered with the UN. "Both sides must comply fully with all the provisions of these agreements."
National Affairs
Singapore is 4th most expensive city in the world for expats, with Hong Kong costliest: Mercer The Straits Times 26th Jun 2018
Singapore is now the fourth most expensive city for expatriates, having moved up one spot from last year's ranking, according to the latest Cost of Living Survey published by global HR consulting firm Mercer. Hong Kong tops the table as the world's costliest city for working overseas, followed by Tokyo and Zurich.
Singapore is the safest country in the world for 3rd consecutive year Singapore Business Review 21st Jun 2018
94% said they feel safe walking alone at night. Singapore is considered the safest country in the world for the third year running in global consultant Gallup’s Law and Order report. Singapore has an index score of 97, trumping three European countries Norway, Iceland, and Finland with scores of 93. At the bottom of the index lay Afghanistan (45) and Venezuela (44).
Customs
Customs to speed up process for Thailand-bound exports Singapore Business Review 2nd Jul 2018
Thailand's Singapore-bound exports will likewise go through the faster process. Singapore and Thailand signed a Mutual Recognition Arrangement (MRA) to speed up the clearance of goods from companies certified by the Singapore customs to have robust security practices, an announcement revealed. The said deal is the MRA of Authorised Economic Operator (AEO) programmes between two ASEAN countries. Signed as an initiative under the Singapore-Thailand Enhanced Economic Relations programme (STEER), the MRA is set to deepen economic collaboration and facilitate bilateral trade growth between Singapore and Thailand.
Defense & Security
Singapore takes over command of multi-national counter-piracy task force Hellenic Shipping News 2nd Jul 2018
The Singapore Armed Forces (SAF) has taken over the command of a multinational counter-piracy task force – Combined Task Force (CTF) 151 – from the Japanese Maritime Self-Defence Force. A change of command ceremony was held on Thursday (June 28) at the Naval Support Activity, Bahrain. It was witnessed by Vice Admiral Scott A. Stearney, Commander of Combined Maritime Forces, and attended by Rear-Admiral (RADM) Lew Chuen Hong, Singapore’s Chief of Navy.
SAF acquires new fighting machines to do more with less, will reveal replacement for F-16 fighter jets soon Channel NewsAsia 2nd Jul 2018
SINGAPORE: The Singapore Armed Forces (SAF) is overhauling its arsenal, adding new warplanes, submarines and warships as it gears up for a future with fewer soldiers. High on the agenda is the replacement for the ageing F-16 fighter jets, with Defence Minister Ng Eng Hen saying on Friday (Jun 29) that a decision will be made in the coming months. “F-16s would face obsolescence beyond 2030,” Dr Ng said of the 30-year-old jets. “To plan for a replacement is not as if you are going to buy a new car, you actually need a lead time of eight to 10 years.”
Govts, private firms need to join hands against new threats posed by rapid technological change: DPM Teo TODAYonline 28th Jun 2018
As technology evolves at a rapid clip, governments and private firms are struggling to resolve new vulnerabilities, including those thrown up by the same systems meant to address defence and security gaps, said Deputy Prime Minister Teo Chee Hean who called for greater collaboration across borders and sectors. Speaking at the inaugural Singapore Defence Technology Summit at the Shangri-La Hotel on Thursday (June 28), Mr Teo said defence and security services globally were barely keeping pace with threats posed by rapid technological developments. "It will take some time before more effective countermeasures become available and affordable," said Mr Teo, who is also Coordinating Minister for National Security.
Public and private sector partnerships in defence technology throw up ‘tough questions and moral dilemmas’: Ng Eng Hen TODAYonline 27th Jun 2018
With governments ploughing huge investments in technology and increasingly working with the private sector to develop defence capabilities, there are risks and dilemmas which countries have to grapple with, said Defence Minister Ng Eng Hen on Wednesday (June 27). In the wrong hands, new technologies could be used to undermine nations’ “collective security” for example, said Dr Ng, who was speaking at the opening ceremony of the inaugural Singapore Defence Technology Summit at the Shangri-La Hotel. Already, terrorists and their networks use encrypted apps to orchestrate terrorist plots, or conduct surveillance through drones, which can be also used to deliver improvised explosive devices. The potential of artificial intelligence (AI) and the ethical implications of machines replacing human-decision making are complex issues as well, Dr Ng noted. He also cited the ongoing discussion on data privacy violations by social media.
New $14 million centre will aim to improve maritime safety The Straits Times 20th Jun 2018
A Centre of Excellence in Maritime Safety (CEMS) will open at Singapore Polytechnic (SP) later this year at a cost of $14 million. Announced at the third International Safety@Sea Conference on Wednesday (June 20), it is being launched by the Singapore Maritime Institute and SP, and will collaborate with the industry and research community to develop technological solutions and training systems to help reduce maritime incidents. It will be operational by the fourth quarter and also focus on maritime navigation and operations on-board vessels. The guest of honour at the conference, Senior Minister of State for Transport and Health Lam Pin Min, said CEMS' training programmes will make use of augmented and virtual reality, and focus on new modelling and simulation tools that enhance navigational safety, in tandem with the development of Maritime Autonomous Surface Ships.
Economics
7,800 jobs added to fintech and financial services sector in 2016-2017: MAS Singapore Business Review 5th Jul 2018
The number of jobs in Singapore’s fintech and financial services sector grew by 7,800 over 2016 and 2017, which is already close to the target set by the Industry Transformation Map (ITM), Monetary Authority of Singapore (MAS) managing director Ravi Menon said. “Job growth was mainly driven by the insurance and fund management industries, and to a lesser extent by the banking industry,” Menon said in a speech. IT has emerged as a key functional area driving hiring demand across financial services—some of the fastest growing job roles are in software development, cyber security, data analytics, artificial intelligence, and business process engineering.” Moreover, fintech alone is estimated to have contributed close to 2,000 of the net jobs created during these two years. MAS expects job growth in financial services this year to exceed the ITM target.
Singapore economy to grow 2.5-3.5% amidst trade frictions: MAS Singapore Business Review 4th Jul 2018
Managing director Ravi Menon said Singapore risks being hit by inflation and protectionism. Amidst risks arising from the global economy, Singapore’s economy is expected to remain on a steady expansion path in 2018 and overall GDP growth to hit 2.5-3.5% in 2018, Monetary Authority of Singapore (MAS) managing director Ravi Menon said. For the MAS annual report, Menon said they are closely watching the global growth cycle, which is “probably past its peak,” and tail risks to growth that have grown significantly over the last six months. He said that amongst the “three bears” to the “Goldilocks” state of the global economy he mentioned six months ago, inflation and protectionism have been sighted.
Singapore's foreign reserves grew by $8.5b in 2017 Singapore Business Review 4th Jul 2018
The gains were boosted by $22.3b of investment gains. This chart from the Monetary Authority of Singapore (MAS) shows that Singapore’s official foreign reserves (OFR) gained $8.5b for FY2017/2018. According to its annual report, the gains in the OFR comprise $22.3b of investment gains and a negative $13.8b from currency translation effects.
Singapore needs to watch out for spillover effects from trade tensions: MAS Channel NewsAsia 4th Jul 2018
While the impact from rising trade tensions remains limited thus far with the economy expected to stay on a “steady expansion path”, Singapore needs to guard against potential spillover effects, said Mr Ravi Menon, managing director of the Monetary Authority of Singapore (MAS). This is due to the country’s role as a node in the regional electronics production value chain, as well as a hub for air and sea transport and financial intermediation services, he said alongside the release of the central bank’s annual report on Wednesday (Jul 4). “Bilateral trade between the US and China indirectly contributes to 1.1 per cent of Singapore’s GDP (gross domestic product). Flows between the US and European Union contribute about 0.5 per cent (while) NAFTA trade between US, Canada and Mexico contribute 0.6 per cent.” “These are possible spillover effects,” said the MAS chief.
Singapore to be third largest economy hit by US tariffs on Chinese goods Singapore Business Review 3rd Jul 2018
About 1.25% of market GDP is expected to be affected. This chart from Schroders shows that Singapore is the third top market most affected by US tariffs on Chinese goods via supply chains. About 1.25% of its GDP is expected to be affected. Meanwhile, about 0.1% of Singapore's market GDP could be hit as a result of Chinese tariffs on US goods via supply chains. This makes it the sixth amongst economies to be hit the hardest by the tariffs from China.
Here's what kept Singapore from topping the 2018 sustainable trade index Singapore Business Review 27th Jun 2018
It slipped two places down to third this year after topping the list in 2016. Singapore fell from the top and slip two places in Hinrich Foundation’s sustainable trade index compared to 2016, mainly as a result of lower scores on the environmental pillar. The index scores countries based on three pillars: economic growth, social capital and environmental protection. According to a report, Singapore fell two spots from second place to fourth place in the environmental category due to poor scores in air pollution (61 points) and environmental standards in trade (50 points), which were both lower than the global average.
Climbing oil prices to hurt Singaporeans' purchasing power Singapore Business Review 26th Jun 2018
The MAS reiterated its warning that imported inflation is likely to rise. Singapore's headline inflation rose 0.4% in May. The Monetary Authority of Singapore (MAS) reiterated that “imported inflation is likely to rise mildly” as first seen in their two previous monetary policy statements. The MAS also said that “global oil prices have rallied since the start of 2018 and are expected to average higher for the full year as compared to 2017."
Energy
PUB aims to double water supply by 2060 without using more energy or producing more waste TODAYonline 4th Jul 2018
National water agency PUB has set a target to meet future demand by doubling the amount of clean water it produces today by 2060 without using more energy. That is one of several long-term goals that the PUB committed to on Wednesday (July 4), as it soldiers on with research and development (R&D) efforts to increase water resources for the future and improve water treatment efficiency. Through new technologies, it aims to reduce the energy used in desalination by more than two-thirds, increase the amount of NEWater recovered from used water to 90 per cent at low energy levels, and produce as much energy as it uses in treating used water.
Going green: HDB closer to 2020 solar power target as it awards tender to Sembcorp TODAYonline 25th Jun 2018
More Housing and Development Board (HDB) flats will be solar powered as the agency ramps up efforts to reduce Singapore’s carbon emissions and move closer to its target of having solar panels installed in 5,500 blocks by 2020. The HDB has awarded its third solar leasing contract to Sembcorp Solar Singapore – subsidiary of industrial conglomerate Sembcorp Industries – and its appointed engineering, procurement and construction player, Kurihara Kogyo Co. The project will see the company installing solar photovoltaic panels on the rooftops of 848 HDB blocks in West Coast and Choa Chu Kang, and 27 government sites by the second quarter of 2020, said the HDB in a press release on Sunday (June 24).
Financial Services
Variety of e-payment options is to allow for competition, innovation: Ong Ye Kung TODAYonline 2nd Jul 2018
While he acknowledged that Singapore's e-payment landscape is confusing due to the plethora of options, Education Minister Ong Ye Kung said that the Government has "deliberately taken a different approach so as to allow more competition and innovation in the payments space". Speaking at the Association of Banks' annual dinner on Wednesday (June 20), he acknowledged that having one or two players dominate the market brings "short-term convenience to consumers", but there will be "significant downside risk in the long term" due to a lack of competition in Singapore.
Singapore to cut cash usage, eliminate cheques by 2025 BusinessDay : News you can trust 28th Jun 2018
Singapore is stepping up push towards digital payment with the reduction of cash withdrawals from automated teller machines (ATMs) and elimination of cheques by 2025. According to the country’s education minister, Ong Ye Kung, who is also a board member of the Monetary Authority of Singapore, explained at the 45th annual dinner of the Association of Banks in Singapore (ABS), that the goal is to protect consumers from e-payment risks.
An opportunity rising from e-commerce The Edge Markets 27th Jun 2018
Just over a decade ago, e-commerce was almost an alien concept in this part of the world. Today, however, the sector is booming in Southeast Asia. As digital users grow, so will e-commerce consumers. According to BMI Research calculations, Southeast Asia’s online shopping market in six of its largest economies — Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam — is set to rake in an estimated US$64.8 billion (RM257.94 billion) in 2021, a giant leap from US$37.7 billion recorded in 2017.
Monetary Authority of Singapore Introduces Protections for E-payment Users Baker McKenzie 26th Jun 2018
The Monetary Authority of Singapore (MAS) has proposed new E-payments User Protection Guidelines (Guidelines) to encourage the wider adoption of electronic payments (e-payments) by individuals or micro-businesses by enhancing consumer or account user protection.
Singapore pledges to cut cash, go digital BusinessWorld 22nd Jun 2018
Singapore is accelerating the shift toward digital payments by pledging to eliminate check usage by 2025 and slash cash withdrawals from automated telling machines. Both payment methods are declining in popularity, Education Minister Ong Ye Kung, who sits on the Monetary Authority of Singapore board, said in a speech on Wednesday night. To promote electronic fund transfers, the government-endorsed payments platform, called PayNow, will be extended to companies starting Aug. 13.
Singapore, Hong Kong push to go cashless, as China pulls ahead in electronic payments South China Morning Post 21st Jun 2018
At Hangzhou’s Xiaoshan International Airport, there is no cashier at the KFC taking orders. There are not even self-service touch screen kiosks. To order a Zinger or fried chicken, consumers sit down and scan the QR bar code at their tables and place their orders via smartphone. Payment is made either with Alipay or WeChat Pay. The meal is prepared and a message sent to the smartphone when it is ready to collect.
Food & Agriculture
Online grocers struggle to make a mark in Singapore Singapore Business Review 27th Jun 2018
Sales of the largest online grocers only comprised 0.6% of the total retail sales. Despite the boom of online shopping in Singapore’s retail sector, Singapore’s online grocery retailers couldn’t seem to find a way to break into the supermarket sector. CGS-CIMB, citing a Euromonitor report, reported that the online sales of Singapore’s largest grocery players, such as NTUC, DFI, and RedMart, only accounted for $206m or 11.7% of total online sales and an estimated 0.6% of total retail sales in the country. Cezzane See, CGS-CIMB analyst, thinks this is largely because Singaporeans prefer to pick groceries or fresh foods on their own.
Health & Life Sciences
Incentives of between S$500 and S$2,500 for Singaporeans to join CareShield Life Channel NewsAsia 3rd Jul 2018
Singaporeans born in 1979 or earlier and are not severely disabled will receive “participation incentives” to encourage them to join CareShield Life from 2021, a year after the new national severe disability insurance scheme is launched. The group, aged at least 42 in 2021, will receive between S$500 and S$2,500 over 10 years, depending on their age cohort, with the older getting more. This will be used to offset the annual premiums. To qualify for the incentives, they will have to join CareShield Life in the first two years from 2021. Even those who have pre-existing medical conditions can join the scheme, but underwriting criteria will be tightened after two years. CareShield Life will provide higher payouts for life compared to ElderShield, where payouts are fixed at S$300 or S$400 a month, and capped at up to six years, depending on the scheme. To make joining CareShield Life more convenient, Singapore residents born in 1970 to 1979 or aged 41 to 50 in 2020 will be auto-enrolled into the scheme the next year, if they are insured under the ElderShield 400 scheme and are not severely disabled, said the Ministry of Health. They have up to Dec 31, 2023 to opt out and have their CareShield Life premiums refunded.
Move to allow cash withdrawals from Medisave offers greater flexibility for the severely disabled The Straits Times 3rd Jul 2018
Madam Quek Pong, 86, has dementia and needs help with even the simplest daily activities, such as feeding herself or getting out of bed. She gets $300 a month from ElderShield, which helps her family pay for such necessities as her special diet and and her live-in helper. But the rest of her expenses - about $900 a month - are paid by her nine children. From 2020, severely disabled Singapore residents like Madam Quek can draw up to $200 in cash from their Medisave accounts every month to pay for such necessities.
MOH seeks measures to curb spread of infectious diseases The Straits Times 27th Jun 2018
The Ministry of Health (MOH) wants more powers to curb the spread of infectious diseases here, including stopping individuals who break quarantine from leaving the country, and turning back visitors with a high risk of yellow fever without first offering vaccination. Instead of tracking cases, carriers of infectious diseases or contacts in person, the ministry also wants to be able to carry out surveillance remotely, such as through phone calls and video-conferencing.
Unvaccinated foreign travellers may be denied entry to Singapore under proposed new law TODAYonline 26th Jun 2018
Foreign travelers who are not vaccinated against serious infectious diseases may be denied entry into the Republic under a new law proposed by the Health Ministry (MOH) to better protect citizens against a wider spectrum of infectious diseases. Announcing the start of public feedback on upcoming changes to the Infectious Diseases Act on Tuesday (June 26), MOH said the amendment to give the authorities “discretionary powers” to return unvaccinated non-citizens to their places of embarkation without first offering them vaccination, isolation or surveillance will put the country “in line with international practice”. The proposed changes come as infectious diseases such as avian influenza, ebola, and Middle East Respiratory Syndrome are becoming "serious public health threats globally", the ministry added.
Educating youth on ills of sugar more effective than imposing tax The Straits Times 25th Jun 2018
The rising number of diabetics is indeed a cause for concern in our nation, but I do not think that a tax on sugary drinks is the best way forward (Sugar tax, more access to water to help curb diabetes; June 19). For one thing, the tax will have an impact on socio-economic equity because it will most likely include cheap sweetened beverages and syrups commonly used by lower-income groups; even a slight increase in prices would harm them disproportionately.
Cordyceps products subject to rules and checks The Straits Times 22nd Jun 2018
The Health Sciences Authority (HSA) carries out regular checks to monitor the compliance to these requirements and recalls harmful products when necessary. Last year, the HSA checks on health products containing only cordyceps sinensis showed no safety concerns. The tested products complied with the HSA's limit of 5ppm for arsenic, which is in line with the Asean limit set for traditional medicines and health supplements.
ICT
ICA launches web portal for passport, entry visa applications Channel NewsAsia 29th Jun 2018
The Immigration and Checkpoints Authority (ICA) has launched a web portal that will allow users to apply for new passports or identity cards for themselves, as well as long-term visit passes and entry visas for their relatives and friends.
Singapore has the most competitive digital economy in Asia Inquirer 28th Jun 2018
Singapore, ranked top in Asia, loses the top spot globally in digital competitiveness while as Hong Kong, ranked second in Asia, slips three places down in global ranking, according to the IMD World Digital Competitiveness Ranking, 2018. The report measures the competitiveness of 63 economies based on 50 ranked criteria: 30 Hard and 20 survey data.
Public feedback sought on proposed GST changes for imported services The Business Times 28th Jun 2018
Singapore's Ministry of Finance (MOF) is seeking public feedback on proposed changes to the Goods and Services Tax (GST) that stem from measures announced during the 2018 Budget, it said on Thursday. Finance Minister Heng Swee Keat announced during the Budget that GST will be levied on imported services, including a so-called “Netflix tax” on imported digital services like movie and music streaming, from Jan 1, 2020. The changes will take effect through a reverse charge mechanism for business-to-business imported services, where the local GST-registered business is required to account and pay GST directly to the Inland Revenue Authority of Singapore (Iras) on the services it imports. Despite the change, MOF noted that most GST-registered businesses will not be affected as they can claim full refund of the GST incurred on their purchases, while those affected are mainly financial institutions and residential property developers, which do not get full refunds as they make GST-exempt supplies.
Great expectations: Here's why partnership gimmicks are not working out for telcos Singapore Business Review 21st Jun 2018
Telcos expect a 16% revenue bump from partnerships, but only 30% have executed strategies with their partners. Amidst high competition, telcos try to market their partner tech companies to get other user bases to sign up for their services.
Singapore loses its top position to the USA in a global digital competitiveness ranking – and dwindling future readiness is the problem here Business Insider Singapore 20th Jun 2018
Singapore has been ousted from its top position in a global digital competitiveness ranking,taking second place after losing the throne to the USA which inched up from third position last year. Nordic countries Sweden and Denmark claimed third and fourth place on the list, followed by Switzerland which completed the top five. The remaining countries that rounded up the top 10 list were Norway, Finland, Canada, the Netherlands and the UK.
Infrastructure
Concerns raised over lack of public transport serving new Seletar Airport passenger terminal TODAYonline 4th Jul 2018
The new S$80 million Seletar Airport passenger terminal is on track to open by the end of the year, but concerns have been raised about the facility's accessibility, given the dearth of public transport options for now. "We are concerned about (the lack of public transport), and in fact have communicated with CAG (Changi Airport Group) regarding partnerships with ground transport companies," said a Firefly spokesperson. The low-cost carrier, a subsidiary of Malaysia Airlines, currently operates 20 daily turboprop flights to and from Subang, Ipoh and Kuantan at Changi Airport. It is the first commercial airline slated to commence operations at the new terminal, which is designed to handle 700,000 passengers yearly.
SMRT Trains posts S$86m loss as ridership declines and maintenance costs rise Channel NewsAsia 2nd Jul 2018
Amid a fall in ridership and higher maintenance expenses, SMRT Trains posted an S$86 million after-tax loss for the 2018 financial year ending Mar 31. The loss follows an after-tax profit of S$26 million for the previous financial year, according to an annual operations review report posted on its website on Sunday.
Tuas Desalination Plant opens, another milestone in Singapore’s water quest TODAYonline 28th Jun 2018
Singapore's first desalination plant owned and operated by the Government officially opened on Thursday (June 28). The Tuas Desalination Plant is the Republic's third and has a capacity of 30 million gallons per day (mgd). Singapore’s water sustainability came under the spotlight earlier this week when Malaysian Prime Minister Mahathir Mohamad revived a dispute with Singapore over the terms agreed in a 1962 pact.
PM: ‘Not so urgent’ to tell Singapore of HSR decision Yahoo 25th Jun 2018
Putrajaya confirmed today that it has yet to inform Singapore of its final decision regarding the Kuala Lumpur-Singapore High-Speed Rail (HSR) project, saying its neighbour will know in time. Prime Minister Tun Dr Mahathir Mohamad told Channel NewsAsia in an interview that it is just “not so urgent” to keep Singapore informed on the matter.
SP Group to build 500 charging points for electric cars by 2020 The Straits Times 20th Jun 2018
Energy utilities provider SP Group plans to build 500 charging points for electric vehicles islandwide by 2020. The points will be placed at housing estates, shopping malls, industrial sites and business parks, the firm announced yesterday.
Manufacturing
Low factory output and exports weigh down Singapore PMI in June Singapore Business Review 2nd Jul 2018
The Singapore Purchasing Managers’ Index (PMI) in June dipped 0.2 point to a slower expansion of 52.5 points, marking the 22nd month of consecutive expansion, the Singapore Institute of Purchasing & Materials Management (SIPMM) revealed. A reading of the PMI above 50 indicates that the manufacturing economy is generally expanding, whilst a reading below 50 indicates that the economy is generally declining. The latest PMI reading was attributed to a slower growth in factory output (53.8), slower growth in new orders (54.3) and new exports (53.0), as well as a slightly lower inventory level (52.7), SIPMM said. Meanwhile, overall employment (50.6) is marginally higher.
Chart of the Day: Singapore's electronics inventory hits 7-year high Singapore Business Review 2nd Jul 2018
This chart from Maybank Kim Eng shows that the inventory component of Singapore’s electronics Purchasing Managers' Index (PMI) has been climbing since late 2016 and touched a seven-year high in April. Electronics production gained momentum even as electronics exports continued to contract. Electronics (+17.1%) gathered pace with semiconductors (+27%) remaining the sole driver whilst the rest of electronics declined. "The persistent divergence between electronics production and exports mirrors the episode in 2Q 2013 to 1Q 2014 during which electronics production was rising whilst exports were plunging," said Maybank KE analyst Chua Hak Bin. Chua noted that a positive interpretation of the divergence could be that orders are being booked in Singapore, but production and shipment are taking place elsewhere (like in Penang). A more cautious interpretation could be that firms are building up inventories in anticipation of higher future demand.
Is Singapore selling the tech it's making? Singapore Business Review 26th Jun 2018
Output has been rising even if new orders have been falling since November. UOB economist Francis Tan warned that even if Singapore’s manufacturing output grew 11.1% in May and 9.8% in the first five months of 2018, the high base of the electronics cluster from 2017 may result in a slower pace of expansion in the months ahead. “Singapore’s non-oil domestic exports (NODX) of electronic products had been contracting for six consecutive quarters and there is no reason to keep producing electronic products (which are intermediate goods and of no use to the end-consumer in its current state) without exporting them,” he said.
Singapore factory output up 11.1% in May Singapore Business Review 26th Jun 2018
Singapore’s manufacturing output jumped 11.1% in May 2018. Excluding biomedical manufacturing, output grew 9.8%. According to an announcement, biomedical manufacturing output increased by 17.7% compared to a year ago. The pharmaceutical segment grew 19.2%, thanks to a different mix of active pharmaceutical ingredients being produced. The medical technology segment rose 14.3% with higher export demand for medical devices. Electronics output grew 17.1% as the semiconductors segment posted a robust growth of 26.9%, whilst the output of the rest of the electronic segments fell. Chemicals output jumped 8.6% thanks to the petrochemicals segment which grew 19.6% on the back of increased production capacities. The other chemicals and petroleum segment expanded 12.6% and 9.7% respectively, where the former saw higher output in fragrances. General manufacturing output increased 5.2% as the food, beverages & tobacco segment grew 17.6%, on account of higher production in infant milk products and beverage products. The miscellaneous industries and printing segments fell 4.6% and 8.3% respectively.
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