Singapore Market Report - 022010

SINGAPORE MARKET REPORT 2/2010
CONTENTS
SINGAPORE MARKETS ........................................................ 5
S'pore consumer confidence hits new high .............................................. 5 IMD 2010 World Competitiveness Yearbook rankings Spore comes out on top .................................................................................................... 5 Singapore climbs in global ranking of living costs..................................... 5 S'pore slips one notch in digital economy rankings................................... 6 S'pore is Asia's most liveable city .......................................................... 6 S'pore tops in business risk ratings ........................................................ 6
ECONOMY ........................................................................... 7
Economy recovers 'lost' output to scale new peak .................................... 7 Wholesale Trade Index First Quarter 2010 .............................................. 8 36,500 jobs added in Q1 ...................................................................... 8 Tech sector bucks trend with 8% growth in 2009..................................... 8 S'pore may overtake China ................................................................... 9 MTI 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 .................................. S'pore Mercantile Exchange to debut in Aug .......................................... Economic ties top S'pore-Indonesia talks .............................................. Infocomm Industry Revenue Grew 8% In 2009 ..................................... S'pore well positioned to export data services ....................................... Singapore firms urged to invest in Laos ................................................ Trade with EU expected to rise this year ............................................... S'pore investors to gain from yuan strength.......................................... 10 11 11 11 11 12 12 13
RESEARCH AND INNOVATIONS ........................................ 13

Pharmaceutical & biotech companies partner Singapore to accelerate innovation in Asia .............................................................................. 13 Another shot in the arm for S'pore research .......................................... 14 New R&D institute opens .................................................................... 14
ENERGY ............................................................................ 15
S$680M Fund to Build Solar Ecosystem In Singapore ............................. Jakarta reassures S'pore on gas supply ................................................ Singapore to buy natural gas from Qatar .............................................. Tuas Power, S'pore LNG looking to hire ................................................ 15 15 15 16
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ENVIRONMENT ................................................................. 16
NEA seeks expert help to raise recycling rate ........................................ Newater to meet half of S'pore's needs ................................................ Big splash in the water tech sector ...................................................... Making desalinated water cheaper ....................................................... 16 17 17 18
BIOTECH INDUSTRY ......................................................... 18

Singapore draws biomedical companies first-in-Asia manufacturing and headquarters offices .......................................................................... Local innovation needed to boost biotech sector .................................... Official Launch of Advanced Environmental Biotechnology Centre (AEBC) . Its boom time for Biopolis .................................................................. S'pore to make smallest biosensors in the world .................................... 18 19 19 19 20
INDUSTRY AND COMPANIES ............................................ 20

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

Local construction trade urged to go green ........................................... 22 S'pore slips to 16th in real estate transparency ranking .......................... 23
TRANSPORT ..................................................................... 23
Pact with Malaysia may ignite Kunming rail link ..................................... 23 Singapore 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 .................................. Most locals prefer to visit places in Asia-Pacific region ............................ Buzz is back in S'pore convention and expo business ............................. Genting S'pore to sell UK operations .................................................... 24 25 25 26
INTERNATIONAL RELATIONS ........................................... 27

S'pore to ratify ILO Convention ........................................................... 27
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Singapore Concludes Open Skies Agreements with Barbados, Brazil, Jamaica and Rwanda ...................................................................................... 27
ASIA AND ASEAN MATTERS .............................................. 28

Asean electronic trading link seen going live by Q1 11 ........................... ADB forecasts 7.5% growth for Asia this year ....................................... Singapore to be base for key Asean research office................................ Asian exports close to pre-crisis peaks ................................................. Asean, Gulf nations adopt cooperation plan........................................... Asean+8 best way to engage US, Russia .............................................. South-east Asian countries eye nuclear energy...................................... 28 28 28 29 29 29 30
TAXATION AND ACCOUNTING .......................................... 31

Singapore and Saudi Arabia Sign Agreement for Avoidance of Double Taxation ........................................................................................... Sizeable tax breaks for 'design thinking' ............................................... S'pore accountants report better sentiment .......................................... S'pore corporate tax still 3rd lowest in Asia-Pac ..................................... Tax-deduction scheme for angel investors ............................................ 31 31 31 32 32
EDUCATION...................................................................... 33
SIA undergrads' top employer choice: survey........................................ 33 Help for poor Malay students............................................................... 33
MEDIA AND TECHNOLOGY ................................................ 34

ITs getting very cloudy ...................................................................... Singapore to lead South-east Asia in wireless tech: IDC ......................... Internet exchange launched ................................................................ Singapore gears up for the Future of Media........................................... 'G' mail: One inbox for all govt e-mail .................................................. Growth seen in entertainment, media market........................................ 34 34 35 35 35 35
DEFENCE INDUSTRY ......................................................... 36

Singapore, US reaffirm strong defence ties ........................................... S'pore, Jakarta to boost efforts against terrorism .................................. Malaysian, S'pore armies train in Johor ................................................ Record no. of SAF troops for Afghanistan .............................................. 36 37 37 37
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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 - confirming Singaporeans 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 in quantitative, qualitative research, brand development, business analytics and consultancy continuously surveys 10,800 people across six Asian countries on an annual basis. The surge in the Singapore economy is quickly becoming a textbook example of V-shaped recovery. GDP growth was above 7 per cent before the global recession but plunged to minus-9.6 per cent in the 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 service industries, as well as a fast-growing tourism industry. The Singapore economy is built on strong foundations and the future looks bright - an outlook reflected in the attitude of Singaporean consumers.
IMD 2010 World Competitiveness Yearbook rankings Spore comes out on top
19.5.2010 IMD (International Institute for Management Development) For the first time in decades, Singapore (1) and Hong Kong (2) have topped the USA (3) in IMDs World Competitiveness Yearbook rankings. They are so close, however, that it would be better 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 an excellent 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 costs

19.6.2010 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 by ECA International. Among Asian cities, Singapore gained one level to ninth place. This makes Singapore a pricier place to live in as compared with South Korean's Busan and Ulsan, and Taipei in Taiwan. It is, however, still cheaper than Chinese cities Hong Kong and Shanghai, as well 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 local currency, which 'has been strong relative to other major currencies in the region', said ECA. It added that prices of goods and services commonly bought by international assignees have also 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 send staff 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.
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S'pore slips one notch in digital economy rankings

29.6.2010 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 Kong switched places with Singapore to emerge as the top Asian economy in the rankings occupying the seventh spot. Despite falling one spot, Singapore scored highly in digital policy and vision and delivery of online services. According to the EIU, the annual technology benchmarking 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 dislodged the perennial 'e-readiness' leader, Denmark, by a narrow margin to emerge as the top digital economy. 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 indicators measuring the use of online services, EIU said.
S'pore is Asia's most liveable city

30.6.2010 The Straits Times SINGAPORE is the most liveable city in Asia and ranks third in the world, according to a newly developed index. Preliminary findings from the Global Liveable Cities Index, developed in Singapore, put the city state behind only Swiss cities Geneva and Zurich globally. It ranked well 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 of environmental friendliness and sustainability. It was third in the category of governance and fifth for economic vibrancy and quality of life.
S'pore tops in business risk ratings

30.6.2010 The Straits Times Singapore is the safest place in South-east Asia to do business, regaining the highest possible risk rating, according to global credit insurer Coface. France-based Coface announced yesterday its latest country risk ratings, which assess the average risk of payment defaults by companies in a given country. These ratings take into account factors such as a country's economic and political prospects, as well as the business climate. Singapore's rating for this month jumped from A2 to A1, the best possible rating. Other regional ratings included Malaysia (A2), and China and Thailand (both A3). Singapore - the only 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 strong and pay their debts,' he added. The Coface website explained that Singapore boasts the 'best governance' in Asia, underpinned by 'an effective legal system that facilitates claim collection and a high level of financial transparency'.
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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 gross domestic product (GDP) now close to 3 per cent above its last peak in Q1 2008 And the Monetary Authority of Singapore (MAS) says 'underlying drivers of growth are likely to remain intact', sustaining a high level of activity in the next few quarters, though growth momentum could slow. However, a tightening labour market may add wage pressures to mounting inflationary ones. Consumer price index (CPI) inflation could thus hit 4 per cent by Q4 this year, MAS said in its Macroeconomic Review. And this year Singapore's growth will be driven by trade-related activity, which comprises manufacturing, 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 and the release of pent-up demand to a 'healthy balance of firm demand and well-managed supply', is crucial. Rising consumer demand for laptop PCs, notebooks and smartphones (especially in China and the US), and corporate demand, as companies upgrade ageing systems 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 and GlaxoSmithKline (GSK); Shell and ExxonMobil's ethylene crackers; Applied Materials' semiconductor equipment plant; and REC's solar manufacturing complex - is also expected to offset the closure of Seagate's HDD plant and boost local manufacturing. Asian demand, meanwhile, is expected to spur trade-related services like container activity in the shipping industry, and lift tourism receipts - all of which will offset residual 'pockets of weakness' in the chemicals, transport and construction sectors, the report said. Though growth has been relatively subdued in the financial sector this year, gradual recovery will continue. Driving 70 per cent of its gains thus far were the core domestic lending and insurance segments, but recovery in the sentiment-driven cluster of stockmarket, brokerage and 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 will vary across industries, MAS said. Labour supply constraints, seen in a resident unemployment rate now back down to pre-crisis levels, 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 to consumers. But about four-fifths of CPI inflation this year will likely stem from higher global oil and food commodity prices, and car prices, MAS said. These price pressures could build up to CPI inflation of 4 per cent by year- end. The official inflation forecast for this year is 2.5 to 3.5 per cent, and the projected MAS underlying rate (excluding private road transport costs), 2 per cent.
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Wholesale Trade Index First Quarter 2010

21.5.2010 Singapore department of statistics Domestic wholesale trade (seasonally adjusted) grew by 1.8% in 1Q2010 compared to 4Q2009. The increase was largely attributed to higher sales in industrial & construction machinery, general wholesale trade and chemicals & chemical products sectors, but petroleum & petroleum products registered lower sales. Excluding petroleum, overall domestic sales grew by 9.7%. Compared to the same period a year ago, domestic wholesale trade in 1Q2010 grew by 37.1%, with higher sales reported by all wholesale sectors. Excluding petroleum, domestic wholesale trade increased by 26.9%. After removing price effect, domestic wholesale trade volume 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% in 1Q2010, 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 price changes, foreign wholesale trade volume increased by 9.8% from a year ago. Excluding petroleum, foreign wholesale trade volume increased by 17.4%.
36,500 jobs added in Q1

15.6.2010 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 recovery spurred 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 on Tuesday. The job gains - for the third straight quarter - were comparable to the seasonal high of 37,500 in the last quarter of 2009. Employment fell by 6,200 in the first quarter a year ago due to the global economic downturn. The bulk or 33,400 new jobs came from the services sector - thanks to the opening of Singapore's two casino resorts early this year, which boosted tourism and fuelled employment. The gains were higher than 31,500 in the fourth quarter and 7,500 in the first quarter of 2009. Manufacturing added 3,100 workers, the second consecutive quarter of increase 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. An estimated 63,300 residents were unemployed in March, compared to the the seasonally adjusted 66,200. MOM said 1,800 workers were retrenched and 600 workers had their contracts terminated prematurely. This was comparable to 2,220 in the fourth quarter of 2009 and only one-fifth of the record number - 12,760 - laid off in the first quarter of last year.
Tech sector bucks trend with 8% growth in 2009

16.6.2010 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 the latest statistics released by the Infocomm Development Authority of Singapore (IDA), the local IT industry bucked the economic decline by recording an 8 per cent increase in revenue
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to $62.74 billion last year, up 8 per cent from 2008. The improvement was credited largely to a strong rebound in infocomm exports with sales from this segment soaring some 61 per cent to $40.15 billion in 2009. Exports accounted for 64 per cent of total takings for the sector last year and domestic demand made up the remainder. The strong overseas showing helped offset a marginal 2.3 per cent decline in domestic infocomm sales as most local companies reined in their technology spending during the downturn. Technology hardware continues to be the crown jewel of local tech companies, accounting for 71 per cent of infocomm export revenue last year. This is followed by software products at 20 per cent. IT and telecommunications was responsible for generating 8 per cent of overseas sales and content services accounted for the remaining one per cent. The Asean region and North Asia were the two biggest export destinations for made-inSingapore technology products, accounting for 23 per cent and 19 per cent of overseas takings last year, the IDA revealed. This is followed by Europe, Americas and South Asia at 16 per cent, 15 per cent and 13 per cent respectively.
S'pore may overtake China

9.7.2010 Today The city-state may overtake China as Asia's fastest-growing economy this year, increasing the attractiveness of the Singapore's stocks and putting pressure on policymakers to check inflation 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 secondquarter GDP report due on Wednesday. An acceleration in pharmaceutical output and the opening of two integrated resorts boosted growth in the first half, the result of Singapore's efforts to diversify sources of expansion beyond electronics. The push to bolster services may sustain the economy and support investment 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 and on April 14 allowed a revaluation and shifted to a stance of gradual appreciation. The currency rose as much as 1.2 per cent on the day of the MAS announcement, before slipping the following month as Europe's debt crisis roiled global markets.
MTI Revises 2010 Growth Forecast to 13.0 to 15.0 Per Cent

14.7.2010 Ministry of Trade and Investment Singapore The Ministry of Trade and Industry (MTI) announced that it expects the Singapore economy to expand by 13.0 to 15.0 per cent in 2010, an upward revision from the earlier forecast of 7.0 to 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 a stronger pace in the first quarter of 2010. The economy expanded by 16.9 per cent on a yearon-year basis, higher than the growth of 15.5 per cent estimated in May. On a seasonallyadjusted quarter-on-quarter annualised basis, the economy grew by 45.9 per cent, compared to an earlier estimate of 38.6 per cent. The revision is primarily due to an upward adjustment
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Advance estimates for the second quarter of 2010 indicate that the economy has continued to expand strongly. Compared to the same period last year, real GDP is expected to grow by 19.3 per cent. On a sequential basis, the economy grew by 26.0 per cent in the second quarter. The manufacturing sector is estimated to have grown by 45.5 per cent year-on-year. Growth was driven by a surge in the output of the biomedical manufacturing cluster, as well as a strong expansion in the electronics cluster underpinned by healthy worldwide demand for electronics products. The construction sector is estimated to have grown by 13.5 per cent on a year-on-year basis, compared to 10.2 per cent growth in the first quarter of 2010. This was supported by an increase in public sector construction activities. The services producing industries are estimated to have expanded by 11.4 per cent year-onyear, compared to an increase of 11.2 per cent in the preceding quarter. Growth in the traderelated sectors was bolstered by healthy global trade flows, while the openings of the Integrated Resorts and higher visitor arrival numbers contributed to the growth in the tourism-related sectors. The financial services sector also grew strongly, supported by increased 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 per cent year-on-year. The exceptionally strong growth experienced by the Singapore economy in the first half of 2010 is not likely to be sustained into the second half of the year. There will also be industry-specific factors, such as plant maintenance shutdowns in the biomedical manufacturing cluster that will drag down growth. While year-on-year growth rates in the second half will be healthy, sequential growth from current levels of economic activity will be low. 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 FTA
23.4.2010 The Business Times With the European Union (EU) looking to begin talks on individual trade deals with Asean countries such as Thailand and Vietnam, the Singapore government is hoping that its own free trade agreement (FTA) negotiations with the EU would act as a good model. The first round 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 lead to 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 stalled due to inherent difficulties such as solving issues related to cultural differences, gaps in governance, transparency and negotiation style. Singapore is the EU's 15th-largest trading partner and the biggest in South-east Asia, with more than 9,000 European companies having some presence in Singapore. The head of the Delegation of the European Union to Singapore, Holger Standertskjold, said that while the EUAsean deal was on hold, it still remained the bloc's 'ultimate objective'. The EU has already embarked on trade negotiations with South Korea and India and is working towards a deal with Singapore by mid-2011.
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S'pore Mercantile Exchange to debut in Aug

4.5.2010 The Business Times THE Singapore Mercantile Exchange (SMX) will usher in its first trade this August after concluding a final two-month test of its electronic trading platform. The bourse was initially slated for debut in 2009 but this was subsequently pushed back to the first quarter of this year. SMX is the region's first multi-product commodity derivatives exchange. It will offer trading in commodities such as precious and base metals, energy futures contracts, agriculture, currency pairs, and commodity indices. The exchange previously said carbon trading could also be incorporated into the mix. Trading will commence upon the completion of a twomonth 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 zooming in 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 growing these areas more intensively. Indonesia was Singapore's fifth-largest trading partner last year, while Singapore was Indonesia's largest investor with some US$4.4 billion (S$6.1 billion). Asean already has sought to engage more countries through the East Asia Summit (EAS), which includes Asean plus the six countries of China, South Korea, Japan, India, Australia and New Zealand.
Infocomm Industry Revenue Grew 8% In 2009

17.6.2010 Enterprise One Singapore Firms in Singapores infocomm industry chalked up S$63 billion in revenue last year, an increase of 8%. This was higher than the S$58 billion in 2008, according to the Infocomm Development 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 overall revenue - up from the 61% in 2008. ASEAN was the top export destination at 23%, followed by North Asia at 19%. Malaysia and Indonesia were the 2 biggest consumers of Singapores infocomm services, making up over 60% of the ASEAN export revenue. In contrast, domestic revenue fell slightly to some S$22 billion last year. The hardware segment continued to be a key contributor to overall revenue, at 55%. This segment also recorded the biggest revenue growth of more than 15% in 2009 from the previous year.
S'pore well positioned to export data services

21.6.2010 The Business Times SINGAPORE may account for only a sliver of Asia-Pacific's data services revenue but it still is well positioned to export its services to some of the largest markets in the world. Mark Williams, 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 individual consumers.
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According to a Frost & Sullivan report last year, mobile data usage has continued to grow and will 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 2014 as third generation mobile telephony (3G) services become more commonplace. Voice average revenue per user (ARPU), on the other hand, is expected to decline by 22 per cent in Singapore by 2013. Mobile data going through the networks will grow 60 to 70 times over the next three to four years. But today's infrastructure cannot handle the growth and operators need to learn how to cope with the growth of usage. For example, operators can seek to win customers with suggestions 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 Laos

26.6.2010 The Straits Times TRADE with Laos is booming and Singapore firms should invest more in the country to get a slice of the action. Bilateral trade hit $15.8 million in the first four months of this year, up nearly 20 per cent over the same period last year. Investments by local firms totalled US$108 million (S$150 million) between 2001 and 2009 - making Singapore the 10th largest foreign investor in Laos. Last year, the Laos economy grew by over 6 per cent - one of the highest growth rates in South-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 investors in Laos' economic potential'. Singapore companies have various interests in Laos, including real estate, manufacturing, hospitality and logistics.
Trade with EU expected to rise this year

7.7.2010 The Business Times TRADE between the European Union and Singapore is expected to increase this year despite worries over the impact of Europe's debt woes, head of the EU Delegation to Singapore Holger Standertskjold said yesterday. Ambassador also said that negotiations for an EU-Singapore free trade agreement (FTA), launched in March, are progressing well and could conclude by as early next year. Mr Standertskjold expects the FTA to improve services and investment flows between EU and Singapore and ensure greater market access on par with competitors which already have trade pacts with Singapore, in certain financial services and other service sectors. EU remained Singapore's largest trading partner last year, despite a 9 per cent fall in bilateral trade due to the global downturn. Singapore has already inked FTAs with most of its other key trading 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 of Singapore's trade in goods in 2009 - began after talks for an EU-ASEAN FTA ground to a halt last 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. A key player within ASEAN, Singapore accounts for about one-third of EU's trade with ASEAN and absorbed 60 per cent of EU investments into the ASEAN region.
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S'pore investors to gain from yuan strength

9.7.2010 The Business Times SINGAPORE investors will reap benefits from China's shift to a more flexible exchange rate in the second half of this year, and fears of a double-dip recession should be allayed by solid earnings 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 Australian dollar, will rally versus the US dollar, and could be used by investors as a proxy for the yuan appreciation theme - resulting in increased fund flows into the region. The Monetary Authority of Singapore has started to normalise monetary policy by shifting the neutral stance on the Singapore dollar to one of modest and gradual appreciation. With a sustained recovery in the regional economy, Credit Suisse expects the normalisation of monetary policy to continue throughout Asia into the second half of this year - which will help to 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 will be relatively unaffected by Europe's sovereign debt problems and that a double-dip recession is unlikely. In addition, strong foreign exchange reserves provide stability to Asian currencies. Asia's forex reserves have grown significantly and now stand at US$5.2 trillion, compared with the world's forex reserves of US$7.7 trillion. Asian equity markets are also expected to outperform in the next half of the year - with the setback in the first quarter of this year seen more as a mid-cycle correction than a trend reversal in the recovery cycle. Investors are recommended to focus on companies exposed to the China and Asian consumption theme. This includes technology, consumer discretionary companies and banks with growth sustainability, earnings visibility and balance sheet strength.
RESEARCH AND INNOVATIONS

Pharmaceutical & biotech companies partner Singapore to accelerate innovation in Asia
4.5.2010 Economic Development Board Singapores integrated research network that offers multidisciplinary capabilities across basic and translational research has drawn pharmaceutical and biotech companies that seek to improve 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 growth story. Abbott, Lilly, GlaxoSmithKline, Merck & Co., Novartis, and Takeda: Recent biotech additions to Biopolis include Inviragen and FORMA Therapeutics. Today, 4,300 researchers carry out biomedical 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 accentuated by Asias unique disease biology, Singapores integrated research network presents a strong partner to optimise the drug and discovery process. Singapore is expanding its resources for biomedical sciences R&D to accommodate the fast-growing base of companies that seek to develop therapies to address Asias unmet healthcare needs.
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Another shot in the arm for S'pore research

12.6.2010 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 National Research 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 Nanyang Technological 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 National University of Singapore (NUS), will be starting a research programme on cellular and molecular mechanisms of common inflammatory diseases in Asia such as asthma. Three other centres - set up by the Massachusetts Institute of Technology, the TechnionIsrael Institute of Technology and the Swiss Federal Institute of Technology at Zurich specialise in areas such as biotechnology, environmental science, engineering and communications technology.
New R&D institute opens

16.6.2010 The Straits Times, 16.6.2010 The Business Times SINGAPORE has a new institute that will focus on research into fast-growing and increasingly important 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 be powered by $200 million in funds from several agencies, including the Economic Development Board (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 of Technology, Ecole Polytechnique Federale de Lausanne in Switzerland, Imperial College London, Norwegian University of Science and Technology, University of Cambridge, and the Technical University of Munich. It will also have a seven-member international advisory board comprising 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 his invention and development of dye-sensitised solar cells, a cheap and good alternative to silicon 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 to about 250 scientists in three years. A strategic growth area, the cleantech industry has government funding of nearly $700 million over five years. It is expected to contribute $3.4 billion 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 as outlined in the Economic Strategies Committee's recommendations that energy be a key national R&D priority.
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ENERGY
S$680M Fund to Build Solar Ecosystem In Singapore
21.5.2010 Enterprise One Singapore The Singapore Economic Development Board (EDB) has set aside some S$680 million to build a solar energy ecosystem over the next 5 years. About half - or S$350 million - of the fund will go towards developing the clean energy sector and the rest will go into developing water and waste management solutions. The move, supported by the Building and Construction Authority (BCA) and funded by the National Research Foundation (NRF), aims at boosting research capabilities, including the development of more R&D centers. This will make it more conducive for businesses in the sector 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 of the 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 could double this year to US$70 billion.
Jakarta reassures S'pore on gas supply

18.6.2010 The Straits Times Indonesia cannot 'unilaterally cut or stop the supply' of natural gas to Singapore but will seek a mutual renegotiation of its contract, a senior minister said yesterday. The comments, from Coordinating Minister for the Economy Hatta Radjasa, came a day after senior government officials announced in Parliament a decision to renegotiate Indonesia's natural gas export contracts 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 million metric standard cubic feet per day (MMSCFD) of piped natural gas from several fields in South Sumatra and the Riau Islands. This is more than the 700 MMSCFD required under contracts signed between state oil and gas firm Pertamina and two Singapore gas importers. The first deal was inked with Sembcorp Gas in 1999 for a 22-year term, while the second was signed with Gas Supply in 2001 for a 20-year tenure. It is not clear if the terms of either deal allow for renegotiation.
Singapore to buy natural gas from Qatar

30.6.2010 The Straits Times SINGAPORE will be importing liquefied natural gas (LNG) from Qatar and storing it at a facility currently under construction on Jurong Island. Minister Mentor Lee Kuan Yew confirmed the country's plans to diversify its gas import sources, currently dominated by Malaysia and Indonesia. The partnership with Qatar, the world's biggest natural gas producer, comes amid uncertainties 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 in price.
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Mr Lee's remarks affirm speculation of a Singapore-Qatar partnership, which began last November when the Gulf emirate's Qatar Petroleum International bought into the Petrochemical Corporation of Singapore. The $1.5 billion LNG terminal on Jurong Island, due to 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 hire

2.7.2010 The Business Times SINGAPORE'S third-biggest generating company, Tuas Power (TP), and Singapore LNG Corporation (SLNG) - both building multi-billion-dollar projects on Jurong Island - have embarked on major recruitment drives, including for engineers and operators, to run their new facilities. China Huaneng-owned Tuas Power, which employs over 200 at its Tuas power station and Somerset HQ, will need to boost its manpower by an additional 100 employees to run its $2 billion Tembusu Multi-Utilities Complex (TMUC) currently under construction, Lim Kong Puay, TP's president and CEO said. SLNG, which is developing the $1.5 billion liquefied natural gas terminal, is also stepping up recruitment to bring its staffing to about 70 at peak, its CEO, Neil McGregor told BT in a recent interview. From just 20 staff initially, mainly seconded from PowerGas and the Energy Market 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. SLNG invited graduates in business, economics or engineering to take up an 18-month programme under which they 'will gain exposure to the terminal's business operations and work on interesting projects'. Mr McGregor said that the terminal will need about 50 people in the midterm and about 70 at the peak. 'The reason for the peak is that we need some overlap as we need to train operational staff, including local staff, to gain the necessary expertise over the next three to four years.'
ENVIRONMENT
NEA seeks expert help to raise recycling rate
4.5.2010 The Straits Times PEOPLE here do not recycle waste as much as they should and the National Environment Agency (NEA) is asking for expert advice on ways to raise the recycling rate. The NEA said in a tender document made public last week that it wants a consultant to look into whether measures 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 filling up 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 methods that provide the most bang for the buck, or the 'highest increase of the overall recycling rate per unit cost'. If any of the proposals are implemented, they will be the first measures forcing a 're-use and reduce' culture here by fiat. Despite the presence of recycling bins in HDB estates 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, official targets 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 - with the caveat that the measures 'shall be relevant and applicable to Singapore's context'.
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Newater to meet half of S'pore's needs

29.6.2010 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 desalinated water. These two forms of water now meet 40 per cent of the country's water needs; by 2060, it will be 80 per cent, PUB said on the first day of the Singapore International Water Week. PUB aims to triple Newater capacity so it can meet half of water demand by then, while the use 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 by 2030, as well as build a second desalination plant. It did not say where the new desalination plant 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 be double what it is now as a result of a growing population and industrial activity. PUB projects the country will need about 3 billion litres a day by 2060, split between domestic use and industrial use in a 30-70 proportion. Besides reclaiming used water to produce Newater and purifying sea water, the country will also continue to rely on its water catchment areas. Such areas now take up about two-thirds of the island, but with the network of drains and canals, as well as the damming of all river estuaries to form 17 reservoirs by next year, 90 per cent of the country will become a catchment 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 down to 147 litres a day by 2020. It will encourage the use of water-efficient toilets and taps in homes, and urge people to take snappier showers. Commercial buildings will also be nudged into installing water meters, repairing leaks promptly and tapping on a Water Efficiency Fund for studies and projects. Although the supply of sea water is virtually limitless, current desalination technology uses up a lot of energy, and so costs about 100 times more than buying raw water from across the Causeway. This may result in higher water tariffs down the road, Minister for the Environment and Water Resources Yaacob Ibrahim warned earlier this year. Hope lies in a technology breakthrough which will lower the amount of energy needed in desalination, said PUB director of policy and planning Chua Soon Guan. So research to cut desalination's energy consumption will be a focus for the years to come.
Big splash in the water tech sector

1.7.2010 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 help millions of needy people worldwide get fresh water. Also, national water agency PUB put out to tender the building of Singapore's second water desalination 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 Water Intelligence (GWI), an information service, which plans to set up a centre in Singapore to keep the burgeoning global water industry updated with vital data. And five firms have been
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awarded a total of $6 million in research funds by a government agency to boost Singapore's status as a top water technology centre. Singapore aims to become a 'global hydro hub', drawing the biggest water companies here and pumping funds into water research. The environment and water sector is set to add $1.7 billion to economic output here and employ 11,000, mostly in skilled jobs, by 2015. PUB said the new desalination plant will use a filtration method known as reverse osmosis to remove salt and other impurities from water.
Making desalinated water cheaper

5.7.2010 The Straits Times Desalination, the process of removing salt and other minerals from water to make it drinkable, is set to play a growing role here. By 2060, Singapore aims to boost its desalinated-water capacity 10 times, to meet 30 per cent of water demand, which will double to 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 second water desalination plant, which will add 318,500 cubic m of water a day to the nation's water supply when it is completed in 2013. The Republic's first such plant, the $200 million SingSpring facility in Tuas, began operations in 2005, and currently produces 136,000 cubic m of fresh water daily.
BIOTECH INDUSTRY
Singapore draws biomedical companies first-in-Asia manufacturing and headquarters offices
3.5.2010 Economic Development Board Global biotechnology and pharmaceutical companies that seek to capitalise on Asias growth story are locating first-in-Asia manufacturing facilities and headquarters offices in Singapore. Fixed asset investments from biomedical companies exceeded US$800 million in 2009. Asias growth presents tremendous opportunities but its diversity also poses challenges. In global companies foray into Asia, Singapore can help to enhance manufacturing and business excellence to strengthen their foothold in Asia, said Mr Beh Kian Teik, Director, Biomedical Sciences, Singapore Economic Development Board (EDB). While Singapore has established its position as a leading site for biologics manufacturing in Asia, it continues to enhance its strong track record in chemical-based active pharmaceutical ingredient (API) manufacturing. In October 2009, Singapores Institute of Chemical and Engineering Sciences (ICES), A*STAR, opened a pilot-scale laboratory facility, called the Kilo Lab, where pharmaceutical companies can carry out evaluation of new recipes and processes before going to full-scale manufacturing. The facility also provides a 2 platform to train and develop a new generation of engineers and chemists in Singapore. More than 30 leading biomedical sciences companies that include eight of the top ten pharmaceutical companies have set up regional headquarters in Singapore. Global companies that are partnering Singapore and its growing base of local biomedical sciences companies can also leverage the closer proximity to new markets and partners in Asia.
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Local innovation needed to boost biotech sector

4.5.2010 The Business Times IF SINGAPORE wants to raise the bar for its biotechnology sector, it will need to shift its focus and resources to stimulating home-grown innovation, according to a report. While Singapore stands out from competitors in areas such as infrastructure, cost competitiveness and strong backing from the government, it needs to do more. 'Cross-country cost advantages tend to be short-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 it attractive to multi-national corporations, such incentives may not be sustainable in the longer term. The report also highlighted that Singapore has made significant strides in growing its research and development strengths in recent years. And despite the economic downturn that dogged most of 2009, Singapore continued to attract investments from major biotech and pharmaceutical companies last year. In addition to boosting capital efficiency and locating non-traditional sources of funding, companies also need to consider achieving better returns for investors and developing unique products, in order to flourish in this new operating environment.
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 South Wales (UNSW), and supported by the Singapore Economic Development Board (EDB), the S$21m Advanced Environmental Biotechnology Centre is the first-of-its-kind research centre in Singapore focusing on research in environmental microbiology and ecology, bioprocess development and engineering, and marine processes and health. Drawing on the technology-based bioprocess expertise of NTU and UNSWs strength in microbial ecology, the research will address key issues that Singapore is facing, with a strong focus on water production, water and wastewater purification, reduced energy usage in these processes, and used water reclamation. Led by Nanyang Environment and Water Research Institute (NEWRI) Executive Director Professor Ng Wun Jern, and UNSW Professor Peter Steinberg, the Centre will also develop monitoring programmes, sensor systems and management programmes to safeguard Singapores coastal waters as these have impact on desalination, shipping, recreation, and food resources.
Its boom time for Biopolis

29.6.2010 The Business Times Singapores biomedical sciences sector is booming. And to cater to the growing number of companies that need more space, the nations premier biomedical research hub, Biopolis, will be expanded again. Industrial developer and landlord JTC said in May that it will spend another $140 million to provide 495 000 square feet of new space for companies engaged in cutting-edge work in creating new drugs and medical equipment. This new phase which will be the fifth for Biopolis and will be completed by 2013 will bring the total research and development space at Biopolis to more than 3.3 million square feet. Biopolis has been purpose-built for public and private biomedical research institutes and organisations and the expansion comes at a time when multinational biomedical companies
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are expanding in Singapore. The biomedical sector has been a boost to the overall economy over the first five months this year. For example, Singapores economy grew close to 50 per cent year-on-year in April 2010 and 60 per cent year-on-year in May. And for the whole of 2009, Singapores biomedical sciences manufacturing output rose 2.5 per cent year-on-year to $20.7 billion, while total employment climbed 7.2 per cent to 13.174. Singapore aims for the sector to hit a manufacturing output of $25 billion by 2015.
S'pore to make smallest biosensors in the world

5.7.2010 the Business Times WHAT could be a first for Asia, European semicon giant STMicroelectronics has begun manufacturing the smallest 'biosensors' in the world at STMicro's cutting-edge facility in Singapore. The Geneva-headquartered giant said it is making about 400,000 biosensors a day at its Singapore plant to meet global demand. Biosensors are extremely tiny devices (2mm by 2mm) that combine a biological, a mechanical and a chemical detector component. One example 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 biodiesel
4.5.2010 The Business Times NESTE Oil last week started trials of its second-generation (2G) biodiesel produced from 100 per 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$997 million) and on schedule, Neste said in its Q1 financial report last Friday. Currently over 4,500 workers are employed at the Tuas site. 'The next important milestone for us will be achieving mechanical completion of the renewable diesel plant in Singapore this summer, and starting production there in the fourth quarter,' said Neste Oil president and CEO Matti Lievonen in its interim report. The 800,000 tonnes per annum (tpa) Singapore plant - which will be the world's biggest 2G biodiesel plant once up and running - is one of two twin projects, the second in Rotterdam, which Neste is currently building. 'The plants are 90 per cent and 70 per cent complete respectively,' the Finnish group said last week. Neste's 2G, or NExBTL process, produces an advanced renewable diesel by straight processing of raw materials like vegetable oils, including palm oil from Malaysia and Indonesia and animal fat from Australia and Europe. The main market for the renewable diesel from the Singapore plant will be Europe initially, with the US expected to become an important market later. The Tuas plant will employ over 100 people directly and over 50 indirectly via its service providers.
Shell opens $4b chemical complex

5.5.2010 The Straits Times ENERGY giant Royal Dutch Shell yesterday opened its highly anticipated multi-billion-dollar petrochemical complex in Singapore, producing chemicals used in almost every consumer product from clothes to cars.
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The Shell Eastern Petrochemicals Complex - a sprawling network of plants on Pulau Bukom and Jurong Island connected by sub-sea pipelines - took four years, more than 15,000 workers and enough steel to construct three Eiffel Towers. With an estimated cost of US$3 billion (S$4.1 billion), the project is Shell's lar-gest-ever petrochemical investment and will give a huge lift to the vital chemical industry in Singapore, which accounts for a third of total manufacturing output here.
IBM sets up cloud computing laboratory

5.5.2010 The Business Times IN a major boost to Singapore's cloud computing ambitions, IBM yesterday announced the opening of its cloud computing laboratory in the Republic. According to Teresa Lim, IBM Singapore's managing director, the laboratory will help businesses, government and research institutions and institutes of higher learning design, adopt and reap benefits of cloud technologies; '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 computing capabilities around the world and puts Singapore and the Asean region on the world map as the 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 access

1.6.2010 The Business Times To help them start their 'productivity journeys', small and medium-sized enterprises will get higher rates of funding for related training and easier access to information resources. SMEs make up 99 per cent of enterprises in Singapore, employ 60 per cent of the workforce and generate 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 the Workforce Development Agency (WDA) and lays out three steps to boost productivity: 'Be Aware, Get Trained, and Take Action'.With this, WDA is working with industry groups on productivity programmes to train workers and managers. For some WDA supported schemes, such as courses run by the Singapore Productivity Association, SMEs will enjoy a higher funding rate of 70 per cent, compared to the 50 per cent offered to large companies.
Abbott Nutrition opens R&D centre here

5.6.2010 The Straits Times ABBOTT Nutrition, the maker of popular baby products such as Grow and Similac, has chosen Singapore 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, will eventually employ 65 scientists from around the region. Abbott intends to use the 28,000 sq ft premises at the biomedical sciences hub Biopolis to develop new nutritional products, improve existing ones and adapt them to the tastes of the growing Asian market. The new centre follows from the $450 million powder making plant Abbott opened in Tuas last year. 'Asia is not only growing rapidly in population, but health care is becoming a very important issue,' 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 and understanding their true health care needs, we can be more responsive to the marketplace.'
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Attracting more global SMEs

7.6.2010 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 to half of the total economic output from the cleantech sector by 2015. It expects the industry to add $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 in a recent interview that the cleantech industry 'has significant opportunities for new enterprises due to the relatively fast pace of innovation'. In the past year, the EDB has pumped $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 the commercialisation of cleantech innovations in early-stage companies, and comes with the condition 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 Strategies Committee, which recommended in February that Singapore should lure not just multinationals, but 'hidden champions' among smaller firms that excel in particular niches, as well as fast-growing Asian enterprises looking to expand outside their home country. Industry association Singapore Business Federation said it has seen a 30 per cent increase in the listings of companies in its sustainable business group, largely driven by the addition of local and foreign SMEs. 'We have seen more Singapore firms starting up or diversifying into the clean energy and environment sector, such as into solar manufacturing or green building and IT solutions,' said the federation's spokesman. EDB's Mr Goh believes that Singapore's advantage lies in its ability to offer firms 'a home which can see them through the innovation continuum' - from the research stages to commercialisation. Singapore can be a 'living laboratory' for these firms, by adopting the companies' new solutions and providing venues for testbedding. Singapore is currently building a home specifically for such firms: EDB and industrial landlord JTC Corporation recently unveiled a 50ha eco-business park next to Nanyang Technological University, which will be a centre of cleantech research, innovation and commercialisation. It is expected to draw some $2.5 billion worth of investments in buildings by 2030 when it is fully completed. The Housing and Development Board is also developing Punggol as Singapore's first eco-town, which will offer cleantech firms a location for large-scale testbedding of new green technologies and urban solutions in areas like energy, waste and water management.
CONSTRUCTION BUSINESS
Local construction trade urged to go green
16.6.2010 The Business Times THE Singapore construction industry was rallied to partner the government in promoting environmentally 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.
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At the official opening ceremony, the Singapore Environment Council (SEC) and Singapore Contractors Association Limited (SCAL) jointly launched the SEC-SCAL Eco Certification Scheme for Contractors. The scheme aims to guide contractors to adopt green and sustainable practices. It will provide recognition for contractors that contribute to the protection and sustainability of the environment and provide a framework for contractors to maintain 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 best practices of builders in addressing environmental concerns and mitigating possible inconveniences to the public caused by environmental works. These best practices were compiled from on-site observations of various builders under the Green and Gracious Builders Scheme.
S'pore slips to 16th in real estate transparency ranking

24.6.2010 the Business Times SINGAPOPRE has slipped two places to 16th in a ranking of the transparency of major real estate markets worldwide. The city-state's position in the latest Global Real Estate Transparency Index compiled by Jones Lang LaSalle (JLL) fell as other countries' scores improved, while Singapore's remained the same. Singapore scored 1.73, which placed it 14th in the previous index. But with the same score this 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. In the Asia-Pacific, Australia and New Zealand (fourth globally) are the region's most transparent markets, followed by Singapore and Hong Kong (18th globally). Singapore and Hong Kong are classified as 'transparent' but not 'highly transparent' because there is room for improvement in two areas for both markets, Dr Murray said. Both countries lack investment performance indices, for example, she said. Factors such as outstanding balances, 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 high for its regulatory and legal environment.
TRANSPORT
Pact with Malaysia may ignite Kunming rail link
4.6.2010 The Business Times Resolving the Points of Agreement issue between Malaysia and Singapore could potentially change the face of railway transportation in the region. The rapid transit system that the two countries seek to develop may help speed up the Singapore-Kunming Rail Link (SKRL), a connection 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 Asean countries: Singapore, Malaysia, Thailand, Myanmar, Laos, Cambodia and Vietnam, before linking up with Kunming, and is built upon the common rail connectivity between Singapore and Bangkok via Kuala Lumpur. It is a flagship project of the Asean-Mekong Basin Development Cooperation.
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The POA and rapid transit system will improve the links between Singapore and Malaysia and thus provide a more reliable and efficient base for the SKRL to develop. It will help the movement of goods, services and people across the region. As manufacturers and traders switch to rail for the transport of their goods and services, it will result in lower transport costs for them.
Singapore expands bilateral air services agreement with Greece

17.6.2010 Ministry of Transport Singapore Singapore and Greece agreed to expand the bilateral Air Services Agreement (ASA) between both countries. Under the expanded agreement, carriers from Singapore and Greece are allowed to operate unlimited cargo flights between and beyond the two countries, as well as unlimited hubbing rights1 for cargo operations for carriers of both countries. The expanded agreement further allows carriers from both countries to operate unlimited passenger services between the two countries, and up to 14 weekly passenger services beyond them to any city worldwide. This latest liberal ASA with a European Union (EU) Member State promotes people-to-people ties, boost tourism and enhance bilateral economic relations not just between Greece and Singapore, but also between the Asia-Pacific region and the EU. At present, Singapore Airlines operates twice weekly passenger services between Singapore and the capital city of Greece, Athens.
Najib: Railway land deal major breakthrough

29.6.2010 The Straits Times Malaysian Prime Minister Najib Razak has described the recent agreement reached with Singapore 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 as possible, so that relations can be strengthened and both sides can move forward with a sense of confidence and enthusiasm. The Malayan Railway land negotiations had been a stumbling block in bilateral relations for 20 years until the first breakthrough in negotiations was made in Singapore last month when both sides agreed to move the existing railway station in Tanjong Pagar to Woodlands by July next year. The railway land left behind could then be jointly developed by both countries, or it could be returned to Singapore and land of equivalent value elsewhere jointly developed instead.
TOURISM INDUSTRY
Beerfest Asia aims to be event calendar highlight
4.6.2010 The Business Times IN FIVE year's time, Singapore could be counting Beerfest Asia as one of the main highlights of its event calendar. Conceptualized by Ublues Group, the same company behind popular nightlife hangout Timbre, Beerfest Asia 2010 is in its second year running. Ublues managing director Edward Chia said: 'We hope to grow Beerfest Asia year on year to eventually become part of the Singapore event calendar. The business model for Beerfest Asia can best be described as a hybrid between a MICE and a consumer event, with multiple revenue streams from exhibitors' rental fees, sponsorships and ticket sales. 'Beerfest Asia, first and foremost, is a MICE event for distributors to showcase
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their beers and strike up commercial deals,' said Mr Chia. 'It is also a way of letting brand owners and potential exporters to gauge the tastebuds of Singaporeans.' 'Eventually, we want to make Singapore a beer hub where foreign beer players can view Singapore as a place to enter Asia.' Currently, local festival-goers account for 85 to 90 per cent of visitors at Beerfest Asia, with foreigners making up the remaining 10 to 15 per cent. In the years to come, the company also hopes to further 'internationalise' the event by attracting more overseas consumers and industry players through aggressive overseas marketing campaigns. Once the festival has fully taken off in Singapore, the Ublues Group hopes to export the concept of Beerfest Asia to other locations around the world.
Most locals prefer to visit places in Asia-Pacific region

16.6.2010 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 a priority over the next six months, a figure that is up from 42 per cent six months ago and 30 per cent a year ago. The survey also revealed intra-regional travel remains popular and that given 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 of respondents from Singapore plan to travel within the Asia-Pacific in the next six months. In contrast, 24 per cent of Singaporeans plan to visit Europe in the next six months, while only 13 per cent intend to visit North America. The survey polled about 10,500 consumers from 24 markets, of which 400 people were from Singapore.
Buzz is back in S'pore convention and expo business

23.6.2010 the Business Times The buzz is back in Singapore's convention and exhibition industry as Asia-Pacific economies rebound and new casinos attract more visitors to one of the region's favourite meeting destinations. From telecom and hotel trade shows to Christian prayer meetings and homedecor fairs, conference centres are enjoying robust demand from event organisers along with rising attendance numbers. Convention centres have already sealed contracts for events in 2011 and 2012, with Singapore Expo, located close to Changi Airport, hosting a tenth of all business-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 the industry in 2009. In 2008, Singapore welcomed three million business travellers including convention participants, said Melissa Ow, assistant chief executive at the Singapore Tourism Board (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 9.7 million in 2009. The target is 17 million arrivals by 2015 - more than three times the current population of Singapore. Economists expect Singapore's output to expand 9.0 per cent in 2010 after contracting 1.3 per cent last year, and the government has been pushing service industries to reduce dependence on manufacturing in the long term.
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Genting S'pore to sell UK operations

2.7.2010 the Straits Times CASINO firm Genting Singapore yesterday announced it is selling its operations in Britain to its parent company, unlocking $689 million in the process. The move will allow it to focus on Resorts World Sentosa (RWS), which it says has first-mover advantage in Singapore. In a Singapore Exchange filing, Genting said it will use the money to enhance the marketing and brand development for RWS, and for working capital. Genting added that the funds may also be used for growth in its core businesses in the leisure, hospitality and gaming sectors, if opportunities 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 to over a million visitors a month, or over 3,000 visitors a day. The outlook for Singapore's tourism 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 this year, with tourist spending expected to be between $17.5 billion and $18.5 billion. Arrivals could surpass 2008's all-time high of 10.1 million visitors.
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INTERNATIONAL RELATIONS
S'pore to ratify ILO Convention
15.6.2010 The Straits Times SINGAPORE will ratify the International Labour Organisation (ILO) Convention on Tripartite Consultation. This announcement was made by Minister for Manpower Gan Kim Yong at the ILO in Geneva, Switzerland, on Tuesday. Convention 144 aims to establish national tripartite consultations in ILO member states to promote the implementation of international labour standards. It requires ratifying ILO members to undertake effective consultations on matters pertaining to ILO activities between representatives of the government, employers and workers. Mr Gan said ratifying the convention would mark a 'significant milestone for Singapore, to institutionalise and strengthen tripartism as a unique competitive advantage contributing to our economic and social progress'. Commenting on the ratification, National Trades Union Congress Secretary-General Lim Swee Say said the ratification of the convention is a recognition of the strong tripartite partnership in Singapore which has enabled workers to share in the benefits of economic progress and development.
Singapore Concludes Open Skies Agreements with Barbados, Brazil, Jamaica and Rwanda
19.7.2010 Channel News Asia Singapore has concluded Open Skies Agreements (OSAs) with Barbados, Brazil, Jamaica and Rwanda, at the International Civil Aviation Organisation Air Services Negotiation Conference 2010 (ICAN 2010), held in early July in Montego Bay, Jamaica. The OSAs with Barbados and Jamaica are the first between Singapore and the Caribbean Community. The Singapore-Brazil OSA comes on the back of the Singapore-Peru OSA, which was concluded in 2009 together with the establishment of Air Services Agreements with Colombia and Ecuador. The OSA with Rwanda is Singapore's second with an African country, after the Singapore-Zambia OSA that was concluded in 2008. Without restrictions on capacity, frequency or routing, OSAs allow carriers the full flexibility to introduce services when market opportunities arise. Carriers are also able to tap on traffic from 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 to access more markets by tapping on Singapore's excellent connectivity to the Asia Pacific region. This will reinforce the growing people and trade flows between these regions and the Asia Pacific. The establishment of liberal air services frameworks between Singapore and more 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 the Caribbeans. In Africa, Singapore Airlines operates passenger services to Egypt and South Africa, 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 also concluded an open skies framework for cargo services and expanded traffic rights entitlements for passenger operations between and beyond both countries. Singapore now has OSAs with over 40 countries, including the four new OSAs.
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ASIA AND ASEAN MATTERS

Asean electronic trading link seen going live by Q1 11
8.4.2010 The Straits Times The Asean electronic trading link - which will consolidate price feeds from six regional exchanges - is expected to go live by the first quarter of 2011, a senior manager at NYSE Technologies said in a recent interview. NYSE, which has been working with the exchanges for three 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 the fragmentation of the regional exchanges, a move which could have yielded some cost savings. By contrast, the Euronext was a result of three exchanges merging into a single listed 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 include everyone. 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 different paces.
ADB forecasts 7.5% growth for Asia this year

20.4.2010 The Straits Times THE Asian Development Bank (ADB) has predicted that growth in the region will expand by 7.5 per cent this year, up sharply from the 5.2 per cent a year ago. But growth is likely to moderate 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 that could derail the Asian recovery. With limited investment opportunities elsewhere, Asia's heady recovery and rising interest rates from monetary policy tightening will make it an attractive destination for foreign capital. The ADB's latest outlook report also listed other risks to Asia's recovery, including mistimed stimulus withdrawals, a sharp increase in commodity prices and a slow revival of export demand.
Singapore to be base for key Asean research office

3.5.2010 The Business Times FINANCE ministers from the 10 Asean states plus China, Japan and South Korea meeting on the sidelines of the Asian Development Bank annual meeting in Tashkent agreed to moves that will finally enable their US$120 billion multilateral currency swap mechanism to become operational. They agreed to set up an Asean+3 Macroeconomic Research Office (AMRO) in Singapore to provide monitoring and analysis of regional economies to the Chiang Mai Initiative Multilateralisation (CMIM). The move comes at a time of global financial turbulence caused by the Greek crisis and is seen as timely because of the risks of contagion spreading from the euro zone to Asia and elsewhere. A network of bilateral currency swaps known originally as the Chiang Mai Initiative (CMI) was agreed on by the Asean+3 ministers in 1999, two years after Asia was plunged into a currency 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 an economic surveillance function, which it will now have through the AMRO. The ministers also announced the setting up of a US$700 million Credit Guarantee and Investment Facility
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(CGIF) to support development of local-currency bond markets in Asia, and they established a task force to identify future 'priority areas of financial cooperation' in Asia.
Asian exports close to pre-crisis peaks

28.5.2010 The Straits Times ASIA is riding high on an export boom that has put it well ahead of other regions as the world bounces back from the recent global economic downturn. From Japan to Singapore and Taiwan to Thailand, economies across the region are shipping out sharply increased volumes of cars, electronics and commodities. Some nations are reporting double-digit jumps in shipments for months in a row as worldwide consumer demand begins to pick up pace. In Singapore - Asia's most open economy - exports jumped almost 30 per cent in April over the previous year, the largest increase in more than four years. Exports from many Asian countries have now returned to, or are near, their pre-recession levels. Singapore's April shipments were just 0.4 per cent shy of their pre-crisis peaks, while South Korea's clocked in close to the record-high monthly export performance seen in July 2008. . Still, market watchers are confident that exports are nowhere near collapse. A solid worldwide rise in demand for computers and cars is helping to spur Asian exports, as is a significant increase in intra-Asian trade. Where Asian nations used to export to one another as intermediate destinations, before re-shipping the products off to their final destination in the West, they are now exporting more finished goods to one another, said Mr Neumann. China, in particular, has emerged as a surprisingly strong importer of goods, especially electronics and commodities, from other Asian countries.
Asean, Gulf nations adopt cooperation plan

2.6.2010 The Straits Times ASEAN and the Gulf Cooperation Council (GCC) yesterday agreed on a two-year Plan of Action to foster closer ties between the two regions. The agreement binds both sides to work together in the areas of trade and investment, economic and development cooperation, education, culture and information as well as implementation mechanisms to make these feasible. 'It is a step forward' in ties between the two regions, Cambodia's Deputy Prime Minister and Foreign Minister Hor Namhong, who co-chaired the meeting, said at a media briefing. 'There is huge potential for investment particularly in the agricultural sector,' he noted. Asean secretary-general Surin Pitsuwan, who addressed the media, said he hoped that with an increase in investment and cooperation, bilateral trade would reach US$150 billion (S$210 billion). Singapore already has a free trade agreement with the GCC economies.
Asean+8 best way to engage US, Russia

2.6.2010 The Straits Times A MAJOR breakthrough seems to have been achieved in Asean's relations with the world's major powers, and the shaping of East Asia's international configuration. In their recent meeting in Singapore, Singapore Prime Minister Lee Hsien Loong and Indonesian President Susilo Bambang Yudhoyono were reported to have agreed - subject, of course, to the concurrence of the other eight Asean nations - on Asean inviting the leaders of Russia and the United States to a summit meeting with the 10 Asean countries, together with Australia, China, India, Japan, South Korea and New Zealand, in an 'Asean+8' setting. The Asia-Pacific Economic Cooperation summit in Japan in November, which the leaders of the two powers are committed to attend, was mentioned as a possible occasion for the summit.
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Ever since Washington acceded to the Treaty of Amity and Cooperation (TAC) in South-east Asia last year, there had been much talk about the US joining the East Asia Summit (EAS), which has, since 2005, convened the leaders of Asean plus Australia, China, India, Japan, South Korea and New Zealand in annual summits. With its accession to the TAC, the US had fulfilled all three criteria for participation in the EAS, the other two being full dialogue partnership with Asean and 'substantive relations' with it. For its part, Russia has made no secret of its desire to belong to the EAS since it first met. Russia had been an Asean dialogue partner since 1976 and acceded to the TAC in November 2004. It is important to engage the two global powers in East Asia. The US is the largest export market of Asean's leading trading nations and the second most important source of imports. It is the region's leading source of investments and technology. And it is a looming presence in regional security, a factor in the security calculations of all the countries in the region. As for Russia, it has technology that could be useful to East Asian countries. It is one of the states dealing with the North Korean nuclear question. It has immense natural resources, including energy resources. And it continues to have deep security interests in East Asia.
South-east Asian countries eye nuclear energy

10.6.2010 The Business Times Despite safety fears, South-east Asia's energy-hungry economies are exploring the nuclear option to keep up with escalating power demand in a region of more than half a billion people. Vietnam plans to make its first nuclear plant operational in 10 years, while Singapore, Malaysia, Indonesia and Thailand are all exploring the feasibility of tapping atomic energy. 'Everybody wants aircon, everybody wants the latest appliances, so all these translate into demand for electricity,' says Anthony Jude, director for the energy and water division with the Manila-based Asian Development Bank (ADB). Detractors point to South-east Asia's lack of experience in nuclear power and express doubts about the safety culture in a region prone to natural disasters such as earthquakes and volcanic eruptions. The Philippines built a nuclear plant in the 1970s but it was never operated commercially because of safety concerns and alleged corruption in the contract process. Environmental group Greenpeace believes the region would be better off tapping renewable sources such as geothermal and solar power due to its vulnerability to natural disasters. The appetite for power is certainly there, according to Jude, who told a recent seminar in Singapore that energy demand within the broader Asia-Pacific region was projected to grow an annual 2.4 per cent until 2030. That is faster than the 1.1 per cent annual growth in demand for the rest of the world.
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TAXATION AND ACCOUNTING

Singapore and Saudi Arabia Sign Agreement for Avoidance of Double Taxation
3.5.2010 The Ministry of Finance Singapore Singapore and Saudi Arabia today signed an Agreement for the avoidance of double taxation (DTA). Singapores Minister for Foreign Affairs Mr. George Yeo signed the Agreement in Riyadh with Saudi Arabias Minister of Finance Dr. Ibrahim A. Al-Assaf. The new DTA is expected to further enhance the strong bilateral trade links by minimising the double taxation of income that may occur as a result of cross-border economic activities between the two countries. Amongst other provisions, the DTA includes the internationally agreed Standard for the exchange of information upon request for tax purposes, provides for lower withholding taxes, and sets out permanent establishment rules for businesses.
Sizeable tax breaks for 'design thinking'

2.6.2010 The Straits Times THE impetus for companies here to come up with innovative, creative designs just became more lucrative: a hefty new tax break to encourage companies to adopt 'design thinking' to enhance their competitiveness took effect from yesterday. Called the Productivity and Innovation Credit for Investments in Design, or PIC for Design, it is part of the Productivity and Innovation Credit (PIC) scheme announced in this year's Budget. According to the DesignSingapore Council, which is administering this initiative, PIC for Design aims to encourage pervasive and continuous design innovation in companies in Singapore. The scheme will be available for five years, from the taxation Years of Assessment 2011 to 2015. Businesses can deduct 250 per cent of qualifying expenditure from their taxable income if they spend on approved industrial and product design projects (capped at $300,000 for each Year of Assessment). The PIC was introduced to encourage productivity and drive innovation for economic growth through the provision of generous tax incentives. It applies to specific qualifying activities in six broad categories: R&D expenditure; registration of intellectual property; acquisition of intellectual property; investments in automation; training of employees; and investments in design.
S'pore accountants report better sentiment

22.6.2010 The Business Times Singaporean accountants are gaining more confidence in their organizations than their international peers, according to a survey by the Association of Chartered Certified Accountants(ACCA) In the global economic conditions survey, 54 per cent of Singaporean respondents reported rising business confidence in the second quarter of 2010, versus only 17 per cent who reported deteriorating confidence. In addition, Singapore has become one of the first ACCA markets to record a net increase in business investment, due to a strong improvement in access to finance and a marginal net increase in the number of profitable investment opportunities, the survey found.
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For the first time since the survey was launched in February 2009, it recorded a positive recovery index value. Results show 48.2 per cent of respondents believe conditions are either improving or about to improve, up 2.2 per cent from Q1 this year. Although positive, this value was marginal, as 48.1 per cent - of the 2,206 professional accountants surveyed believe conditions are stagnating or deteriorating.
S'pore corporate tax still 3rd lowest in Asia-Pac

23.6.2010 The Straits Times SINGAPORES corporate tax rates remain the third-lowest in the Asia-Pacific region, according to accounting giant KPMG yesterday. The direct tax rate on company profits here is 17 per cent, higher than Macau at 12 per cent and Hong Kong at 16.5 per cent but lower than the average of 27 per cent among the 20 countries and territories surveyed by KPMG. Last year's budget cut the rate from 18 per cent to 17 per cent. 'In Singapore, our direct tax rates are competitive to attract foreign investments,' said Mr Owi Kek Hean, head of KPMG tax services here. 'The direct tax on profits must be competitive for Singapore to be an attractive investment destination.' Mr Owi added that Singapore's Goods and Services Tax (GST) 'is likely to increase sometime in the future'. 'It's just a question of time,' he said. In a staggered increase, the GST rose from 3 per cent to 4 per cent at the start of 2003, and then to 5 per cent at the beginning of 2004. It was raised again to 7 per cent in July 2007. Mr Owi added that governments here and abroad are moving away from direct corporate taxes towards indirect taxes such as GST or VAT (Value-Added Tax). The rise in indirect taxes will allow countries to reduce corporate taxes further, making them more attractive for investors, said Mr Owi. The KPMG data shows that Singapore's corporate tax rate has fallen steadily, from 22 per cent in 2004 to 17 per cent. Singapore's GST rate of 7 per cent is lower than the average indirect tax rate of 10.8 per cent in the Asia-Pacific. Indirect taxes here are the joint fifthlowest in the region, according to KPMG, after Macau and Hong Kong, which have no indirect taxes.
Tax-deduction scheme for angel investors

29.6.2010 The Straits Times Angel investments, a common and critical source of funds for local start-ups, are now taxdeductible. Under a new initiative, individuals who make equity investments in fledgling firms can get a 50 per cent tax deduction on the amount after two years. The Government hopes the new Angel Investors Tax Deduction Scheme, as the programme is called, will help generate $600 million worth of angel investments over the next five years. Under the new initiative, angel investors who put in a minimum of $100,000 in eligible startups over a year will enjoy the 50 per cent tax deduction, but only at the end of a two-year holding period. For individuals to qualify as angel investors under the scheme, they need to have at least three years of experience in early stage investment, be entrepreneurs with a minimum five-year track record or senior management professionals with at least eight years of corporate experience. The scheme will run until March 2015, but angel investments made from March 1 this year are also eligible. According to Spring, there are more than 100 angel investors here, and they typically invest between $30,000 and $50,000 in local start-ups.
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EDUCATION
SIA undergrads' top employer choice: survey
24.5.2010 The Business Times SINGAPORE Airlines emerged as the most sought after employer among business, engineering and science students here, beating big-name financial institutions to the top spot in a recent employer image survey. While business graduates remained partial to the financial sector - banks dominated the top-10 - Google and Walt Disney Company ranked seventh and ninth, showing that a strong brand counts too. These findings came from Swedish research firm Universum's online poll of 1,286 business and 1,517 engineering and natural sciences students from National University of Singapore, Nanyang Technological University, Singapore Management University and Singapore Institute of Management from February to April. Each student was asked to name five employers that they most wished to work for. Johan Ramel, CEO of Universum APAC, thinks that it made 'perfect sense' that SIA took the top spot, given that it ranked 33rd on Fortune's World's Most Admired Companies last year, is Singapore's flagship carrier and one of the largest companies here strongly linked to innovation, safety and service excellence. Business students naturally gravitate to the financial sector too, he said, noting that since Singapore 'is one of the world's biggest foreign exchange trading hubs, the largest currency traders are in the top 10. Even so, hints of the recent crisis' impact crept into this year's rankings. Goldman Sachs and Deutsche Bank, though still popular, slipped a few spots, while the Monetary Authority of Singapore rose to debut in the top 10 this year. Management consulting seems to have become less popular with business graduates too. McKinsey & Company dropped out of the top 10 while others such as The Boston Consulting Group, Bain & Company each tumbled some 20 rungs from their placings last year. Engineering and natural sciences students chose a more diverse set of ideal employers, spanning industries from oil & gas and IT to pharmaceuticals. Public service organisations made the list too, with the Ministry of Education's teaching jobs rising four spots to rank sixth. Given the growing significance of petroleum refining and chemicals industries to Singapore's economy, Mr Ramel thought it no surprise that ExxonMobil and Shell ranked second and third after SIA. Keppel Corporation also rejoined the leader board as ninth most preferred employer of engineering and science students this year, after slipping to eleventh in 2009. Qualities in a potential employer which students gave most consideration to were a good reputation, financial strength and prestige, all of which Mr Ramel thinks are 'typically musthave employer characteristics for Asian Tigers'. And not unlike their global peers, having a work-life balance topped the career aspirations of students by a large margin, followed by job security and stability, and hopes for an international career.
Help for poor Malay students

25.6.2010 The Straits Times No Malay student accepted into a local university or polytechnic will be denied the opportunity to study because of a lack of funds. That assurance was given by Malay self-help group Mendaki's chairman Yaacob Ibrahim.
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It presented figures showing that students who did not qualify for a government-funded tertiary tuition fee subsidy could still apply for interest-free loans under another scheme. Both schemes are administered by Mendaki. But Dr Yaacob, who is also Minister for the Environment and Water Resources and Minister-in-charge of Muslim Affairs, acknowledged more could be done for those in need. He was speaking at a media briefing at Mendaki's headquarters in Upper East Coast Road after its 21st annual general meeting.
MEDIA AND TECHNOLOGY

ITs getting very cloudy
6.5.2010 The Business Times Cloud computing is the new mantra for Singapore-based companies. Even the Infocomm Development Authority of Singapore (IDA) is an early convert. Research agency IDC says Singapores cloud computing services market is expected to grow 43 percent over the next five years, outstripping the projected regional growth of 29 per cent. Cloud services give smaller companies a distinct advantage with their pay-as-you-use model, which does not need major investments. But they also make sense for larger companies, which can dispense with large and expensive IT infrastructure. The savings can be huge. There are already several Singapore government applications that use cloud services. However, for all the advantages of cloud computing, there are still issues that need to be resolved, most of them related to security.
Singapore to lead South-east Asia in wireless tech: IDC

4.6.2010 The Business Times SINGAPORE will lead the South-east Asia region in LTE (Long Term Evolution) and mobile WiMax adoption, since 3G and 3.5G penetration in Singapore is far higher than in other countries in the South-east Asian (SEA) region, according to research house IDC Corp. 'Despite potential benefits from these newer technologies, SEA countries are still focused on either the launch of 3G services, or on maximising returns on current 3G networks,' says Karen Rondon, IDC's manager for Asean communications research. 'Early trial in 2010-2011 time frame is likely to happen in Singapore, where 3G/3.5G penetration is much higher than in other SEA countries.' The SEA region's market for telecom services (including mobile voice, mobile data, fixed telephony, corporate data and Internet access services), will cross US$36 billion this year, up 8 per cent over 2009. The fastest growth will come from mobile data, which is set to see a 13 per cent jump in revenues. The rise of smartphones will also boost mobile broadband growth. Across the SEA region, mobile broadband will reach its highest growth point at close to 80 per cent this year, fuelled by dropping price plans of devices and services, and continued rollouts of HSDPA/HSPA and WiMAX base stations. Notebook and netbook users will access mobile broadband primarily via USB-based dongles, IDC says. According to researcher Gartner Inc, the iPhone doubled its worldwide marketshare of smartphone sales to 14.4 per cent last year, up 6.2 points over 2008. The iPhone still trails behind Nokia's Symbian-powered smartphones (which saw its marketshare decline 5.5 points to 46.9 per cent), and the RIM Blackberry (which gained 3.3 points to end the year with a 19.9 per cent global.
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Internet exchange launched

15.6.2010 The Straits Times THE Singapore Internet Exchange (SGIX), part of a new range of initiatives to bring Singapore further into the digital age, was launched on Tuesday. The SGIX, a platform for providers to converge and share information, aims to provide local and foreign telecommunications service providers with a neutral and highly-efficient facility for the exchange of internet traffic. It will also improve the broadband quality and speeds in Singapore, said Acting Minister for Information, Communication and the Arts Lui Tuck Yew at the launch at IMBX 2010 on Tuesday morning. 'The two operational nodes of the SGIX are envisioned to exchange up to 50 per cent of local internet traffic among its members,' he added. 'I am encouraged to note that 15 companies, including major internet providers such as SingTel, PacNet and Nucleus Connect, have signed on to SGIX'.
Singapore gears up for the Future of Media

15.6.2010 Media development authority Singapore is gearing up to exploit the opportunities in a rapidly-transforming media landscape with initiatives that seed the development and delivery of next-generation consumer applications, services and experiences. These include the start of 3D TV trial across multiple platforms and the award of funding to innovative industry projects that are expected to change the way media and entertainment are consumed in future. In addition, plans are underway to develop a prototype of the future Mediapolis@one-north. Known as Mediapolis Phase (pronounced Phase Zero), the 16,000 square meters interim space which is expected to be ready for occupancy by first quarter of 2011 will cater primarily to the incubation of start-ups as well as test-bedding and prototyping of new, innovative concepts in the various media sectors including interactive digital media, film and broadcast.
'G' mail: One inbox for all govt e-mail

15.6.2010 The Straits Times SINGAPORE residents will each get a personal online mailbox in two years' time to receive their mail from the Government and public agencies. Mail such as tax statements, reminders to renew TV licences and bills for service and conservancy charges will be sent to this Internet mailbox. To be called OneInbox, it represents a new government approach in harnessing technology for the next phase of its masterplan to deliver services electronically. People can log into the mailbox using their SingPass ID as well as register online to get e-mail and SMS alerts for new mail. Another new feature in the masterplan for 2011 to 2015 is to give residents an online 'safe deposit box' for them to store important personal documents such as their birth certificate and statements of Central Provident Fund savings. In Singapore, four out of five homes have Internet access.
Growth seen in entertainment, media market

16.6.2010 The Business Times THE global entertainment and media (E&M) market is expected to grow at a compound annual rate (CAR) of 5 per cent from this year, hitting US$1.7 trillion in 2014. Last year, it stood at
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US$1.3 trillion. According to PricewaterhouseCoopers's (PWC) Global Entertainment & Media Outlook, the Asia-Pacific will grow at a 6.4 per cent CAR for the same period to US$475 billion by 2014, while Singapore is growing at a rate of 5.1 per cent. In Singapore, total advertising will grow from US$776 million this year by a 6.4 per cent CAR over the five year period to US$1,041 million in 2014. Singapore's newspaper publishing market is expected to grow 3.9 per cent CAR to US$709 million in 2014 from US$585 million last year while Singapore's Internet advertising market will grow at a 15.6 per cent CAR to US$66 million in 2014 from US$32 million last year. Meanwhile, Singapore's Internet access market (both wired and mobile) will grow at a 6.6 per cent CAR to US$826 million from US$599 million last year and Singapore's subscription TV household penetration is expected to grow from 62.2 per cent last year to 81 per cent in 2014. The local TV subscription and licensing fee market will grow at a 6.7 per cent CAR to US$479 million in 2014 from US$347 million last year. Although globally there is an increasing move to the digital platform, the pace of change differs from country to country. 'The impact of Singapore's advertising market is currently less pronounced than in other comparably developed markets', said Marcel Fenez, PWC's global entertainment and media leader. 'While the extent of Internet access, both fixed and mobile, in Singapore is amongst the highest globally, the majority of consumers have not abandoned content over traditional platforms.'
DEFENCE INDUSTRY
Singapore, US reaffirm strong defence ties
22.4.2010 The Straits Times SINGAPORE and the United States reaffirmed their longstanding and strong defence ties, with plans for further cooperation in areas as diverse as disaster relief and countering the threats posed by terrorists and pirates. 'Singapore is a major security cooperation partner for the US and our discussions today reflected the strength of our relationship. Since the signing of our Strategic Framework Agreement (SFA) in 2005, our relationship has grown stronger,' US Undersecretary of Defence for Policy Michelle Flournoy told the press at the US Embassy. The talks focused on the importance of the US commitment to the region, and the need to continue the close cooperation in addressing transnational security threats, Mindef said in a statement. Both sides were pleased at the progress made in bilateral defence ties since the signing of the SFA. The pact has provided the foundation for bilateral defence cooperation across a wide range of areas, including military operations, policy engagement, information exchange and technological research. Ms Flournoy said both sides considered ways in which Changi could be further developed and utilised as a regional centre for humanitarian and disaster aid operations and maritime security. They also discussed joint efforts in countering weapons of mass destruction, she added. The US and Singapore militaries train together regularly and participate in joint exercises. This year marks the 20th anniversary of the Memorandum of Understanding (MOU) the US and Singapore signed in 1990. The MOU and its 1998 addendum allows US armed forces, aircraft and vessels access to military facilities in Singapore, including the berthing of US Navy deep draft vessels at Changi Naval Base.
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S'pore, Jakarta to boost efforts against terrorism

18.5.2010 The Business Times SINGAPORE and Indonesia plan to set up a new working group to strengthen their cooperation in counter-terrorism efforts, Prime Minister Lee Hsien Loong said yesterday Indonesian President Susilo Bambang Yudhoyono proposed the idea during a day-long retreat yesterday and Mr Lee embraced it. Speaking to the Singapore media at the Botanic Gardens, where he earlier hosted Dr Yudhoyono for lunch, Mr Lee said the new working group - the seventh between the two countries - will take existing joint efforts against terrorism a step farther and 'make things work more smoothly and in depth'. The leaders also discussed setting up six other working groups to expand economic cooperation in areas including the Batam, Bintan and Karimun special economic zones, civil aviation and cruise tourism. Two-way trade between Singapore and Indonesia fell last year because of the global economic crisis to $58.5 billion - down sharply from $75.2 billion in 2008. Investment, however, remained strong. Singapore ploughed US$4.3 billion into Indonesia in 2009, making it tops in terms of the amount of realised investment in the archipelago. Turning to Asean's goal of becoming a single community by 2015, Mr Lee said how successful the 10-member bloc will be depends on its ability to 'demonstrate that it is serious about economic cooperation and integration'. 'We must remain relevant in an Asia, where China is emerging and India is rising rapidly, and within Asean, countries like Vietnam are making significant progress,' he said.
Malaysian, S'pore armies train in Johor

26.6.2010 the Straits Times The armies of Singapore and Malaysia have concluded a 10-day bilateral infantry exercise in Johor. It included a battalion full-troop exercise involving servicemen from both sides, as well as tactical discussions to enhance mutual understanding. About 130 soldiers from the 3rd Battalion, Singapore Guards, took part in the exercise with their Malaysian counterparts from the 1st Royal Ranger Regiment. Singapore's Ministry of Defence said in a statement that the exercise, codenamed Exercise Semangat Bersatu, provided a good opportunity for both armies to strengthen their professional interactions. It underscores the long-standing defence ties between both countries, Mindef added. This year's exercise, from June 16 to 25, is the 16th in the series of bilateral exercises between the two armies.
Record no. of SAF troops for Afghanistan

1.7.2010 the Straits Times THE number of Singapore troops heading to war-torn Afghanistan will hit record levels over the next few months, as the Republic steps up its efforts to help rebuild the war-torn country. Next month, the SAF will send a 52-strong crew to Oruzgan, a province south-west of the Afghan capital Kabul, for three months to operate a pilotless surveillance plane and to support coalition forces led by Nato. It will be the largest single SAF deployment to Afghanistan. In September, up to 10 servicemen will be sent to Kabul or Kandahar to teach local security forces to fire artillery guns. In addition, the deployment of 21 servicemen who are manning a battlefield radar that can detect enemy artillery and rocket launches in Tarin Kowt, the provincial capital of Oruzgan, will be extended till the end of this year. The men had been scheduled to return last month. In all, the SAF will deploy more than 160 servicemen to Afghanistan this year, up from 97 last year. Though deployments in Bamiyan in Central
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Afghanistan will be wound down later this year, the number deployed to Afghanistan this year is still the highest since Singapore began helping with Afghan reconstruction efforts in 2007. Nato's expanding deployments are part of a new strategy aimed at building up the capabilities of the Afghan National Security Forces, who are preparing to take over the responsibility of protecting their citizens, said Mr Teo, who is also the Defence Minister. But while the SAF is sending more servicemen to Afghanistan, its role as a peace support force will remain - there are no plans to deploy troops in riskier, front-line positions. He said the SAF's commitment to Afghanistan operations is part of a wider strategy to engage with other countries to 'shape the environment' in a time when the number of threats is constantly increasing. Afghanistan is a special case, he said, as what happens there has a direct bearing on Singapore's security. He noted that several members of the Jemaah Islamiah (JI) terrorist cell in Singapore who were detained in 2001 and 2002 had connections with the Taleban and Al-Qaeda. A video-tape of a JI reconnaissance of Yishun MRT station was also found in Kabul in 2001.
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Singapore Market Report - 022010

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SINGAPORE MARKET REPORT 2/2010

SINGAPORE MARKET REPORT 2/2010

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

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

SINGAPORE MARKET REPORT 2/2010

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

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

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

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

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

SINGAPORE MARKET REPORT 2/2010

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

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

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

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

SINGAPORE MARKET REPORT 2/2010

Singapore climbs in global ranking of living costs

SINGAPORE MARKET REPORT 2/2010

S'pore slips one notch in digital economy rankings

S'pore is Asia's most liveable city

S'pore tops in business risk ratings

SINGAPORE MARKET REPORT 2/2010

SINGAPORE MARKET REPORT 2/2010

Wholesale Trade Index First Quarter 2010

36,500 jobs added in Q1

Tech sector bucks trend with 8% growth in 2009

SINGAPORE MARKET REPORT 2/2010

S'pore may overtake China

MTI Revises 2010 Growth Forecast to 13.0 to 15.0 Per Cent

SINGAPORE MARKET REPORT 2/2010

to the growth estimate manufacturing cluster).

TRADE AND INVESTMENTS

SINGAPORE MARKET REPORT 2/2010

S'pore Mercantile Exchange to debut in Aug

Economic ties top S'pore-Indonesia talks

Infocomm Industry Revenue Grew 8% In 2009

S'pore well positioned to export data services

SINGAPORE MARKET REPORT 2/2010

Singapore firms urged to invest in Laos

Trade with EU expected to rise this year

SINGAPORE MARKET REPORT 2/2010

S'pore investors to gain from yuan strength

RESEARCH AND INNOVATIONS

SINGAPORE MARKET REPORT 2/2010

Another shot in the arm for S'pore research

New R&D institute opens

SINGAPORE MARKET REPORT 2/2010

Jakarta reassures S'pore on gas supply

Singapore to buy natural gas from Qatar

SINGAPORE MARKET REPORT 2/2010

Tuas Power, S'pore LNG looking to hire

SINGAPORE MARKET REPORT 2/2010

Newater to meet half of S'pore's needs

Big splash in the water tech sector

SINGAPORE MARKET REPORT 2/2010

Making desalinated water cheaper

SINGAPORE MARKET REPORT 2/2010

Local innovation needed to boost biotech sector

Official Launch of Advanced Environmental Biotechnology Centre (AEBC)

Its boom time for Biopolis

SINGAPORE MARKET REPORT 2/2010

S'pore to make smallest biosensors in the world