The Corporate Observer, Singapore : RSS Feed http://www.corporateobserver.com.sg en-us The Corporate Observer, Singapore : RSS Feed SINGAPORE (Aug 16, 2010) - It has been six months since we launched our online product The Corporate Observer. We have since received enormous amount of support from readers, advertisers and partners. Even our esteemed media establishments took notice of us. We are truly thankful to everyone. In that six months, we have achieved much. We landed on the website of a major global Internet player. We were put on the phone with Prudential Plc chairman for the AIG takeover story. We broke several major scoops such as the appointment of Peter Seah as DBS chairman and the departure of SIA chief executive Chew Choon Seng. We have shown great potential. The Corporate Observer will now undergo a revamp where we will review the product and content based on the feedback in the last few months. We will be suspending the daily news updates until the new team is in place in October. See you soon! http://www.corporateobserver.com.sg/news.php?reg_id=863 Mon, 16 Aug 2010 15:48:11 +0800 SINGAPORE, (Aug 12, 2010) - Kwek Leng Beng has appointed his eldest son as the chief executive of its China property business. In an announcement today, City Developments Limited said that Mr Sherman Kwek Eik Tse has been appointed as the Chief Executive Officer of CDL China Limited, a wholly owned subsidiary of the company. As the CEO of CDL China Limited, Mr Kwek will be responsible for the overall management of the investments and operations of CDL China Limited, including developing and implementing the company’s real estate investment and business strategies for China. Mr Kwek has taken on various executive management roles in companies both within the Hong Leong Group and in external corporations and given his exposure, experience and familiarity with the real estate investment and development business in China, the Board said it takes pleasure in welcoming Mr Kwek as the CEO for CDL China Limited and is confident that he will provide good leadership to spearhead the Company's corporate and investment strategies for China. Mr Sherman Kwek is the elder son of Mr Kwek, who is executive chairman of CDL, and is also the nephew of Mr Kwek Leng Joo, who is managing director of CDL. http://www.corporateobserver.com.sg/news.php?reg_id=862 Thu, 12 Aug 2010 11:40:22 +0800 Singapore, (Aug 11, 2010) – It was probably unthinkable a few years ago - a property arm of United Overseas Bank buying over the headquarters of DBS Bank. But today, Overseas Union Enterprise Limited, now under the control of Indonesia’s Lippo Group, has agreed to buy the 99-year leasehold DBS Towers One and Two for S$870.5 million. OUE was sold by UOB in 2006 as part of its non-core asset divestment to meet regulatory requirements. In fact, OUE used to be the property arm of now defunct Overseas Union Bank which was taken over by UOB in 2001. DBS Towers is a prime office building located in Shenton Way, at the heart of Singapore’s Central Business District (“CBD”). Built in 1975, DBS Tower One was then the tallest building in Singapore and the first to incorporate a covered walkway around the entire city block. Together with DBS Tower Two, the 37-storey skyscraper comprises a total gross floor area (GFA) of about 1,239,642 sq ft. Both towers are currently fully leased. DBS Bank signed an agreement in 2007 to lease 700,000 square feet of office space for its new headquarters at the new Marina Bay Financial Centre (MBFC), as part of its strategic occupancy programme. Lippo has made it a habit of buying over property assets from the Singapore banks, many of them turning out to be highly lucrative bets in the last five years. OUE said being in close proximity to the Marina Bay area, DBS Towers are poised to benefit from Singapore’s development into a global city for “Work, Live and Play”. The commercial landscape and inner-city living in this area are set to be dynamically transformed by the vibrant activities with the addition of a host of convention, leisure, commercial and entertainment facilities like the Integrated Resort, water promenade and Gardens by the Bay. This gives rise to asset enhancement potentials in DBS Towers, a development strategically located in this corridor of exciting opportunities. The Singapore office market has seen a broad-based recovery in demand from all business sectors led by financial institutions on the back of strong economic recovery and a revival in business confidence. This has not only resulted in many pre-commitments in substantial future new supply, thereby reducing the spectre of oversupply but also the turnaround in prime office rents. Coupled with the limited new supply of office space in 2013 and 2014, prime office rents are expected to rise over next few years. http://www.corporateobserver.com.sg/news.php?reg_id=861 Wed, 11 Aug 2010 23:08:08 +0800 SINGAPORE , (Aug 10, 2010) - Singapore-based Haw Par Corporation Ltd, which makes the highly popular Tiger Balm ointment, has failed to adequately test its healthcare unit's over-the-counter products, the U.S. drug regulator said yesterday. In a warning letter made public on Tuesday, the drug watchdog US Food and Drug Administration said the company's subsidiary, Haw Par Healthcare Ltd, misbranded its Tiger Balm pain-relieving patch, which qualifies as a drug and therefore must be approved, Reuters reported. The warning letter from the U.S. Food and Drug Administration, dated July 20, follows an FDA inspection of the healthcare unit's manufacturing facility in October 2009. FDA said: "The label for Tiger Balm includes the additional statement, 'its ingredients penetrate the skin and are absorbed, thus stimulating blood circulation around the area of pain…We are not aware of any OTC product formulated and labeled like Tiger Balm having been available in the U.S. market.’’ Agency inspectors found that employees were untrained, control procedures were not followed, and laboratory tests had incomplete data, the FDA said. Haw Par, a diversified healthcare and leisure group listed on the SGX, is controlled by banker Wee Cho Yaw. Developed by Chinese herbalist Aw Chu Kin, who lived in Rangoon in the 1900s, the Tiger Balm medical products have been sold in Asia for over a century. http://www.corporateobserver.com.sg/news.php?reg_id=860 Wed, 11 Aug 2010 14:39:27 +0800 SINGAPORE, (Aug 6, 2010) - After its massive losses last year, national shippling line Neptune Orient Line is finally back in the black for the second quarter of this year. The global container shipping and logistics group today reported a net profit of US$100 million for the second quarter of 2010. That was up from a net loss of US$146 million in the second quarter of 2009. The group’s Core EBIT (Earnings Before Interest and Taxes) for the quarter was US$114 million compared to a Core EBIT loss of US$131 million in the same quarter a year ago. Second quarter 2010 revenue increased 53% to US$2.1 billion. “Continued strong container shipping volumes and improving freight rates have helped return us to profitability,” said Group President and CEO Ronald D. Widdows. “The result for this latest quarter reflects significant progress as we turn around our performance from the economic downturn of 2009.” NOL reported core EBIT (Earnings Before Interest and Taxes) of US$40 million for the first half of 2010, compared to a US$353 million Core EBIT loss a year ago. Revenue in the first half increased 44% to US$4.2 billion. Net profit for the first half of 2010 was US$1 million, probably not enough to pay for their chief executive’s salary this year. This compared to a net loss of US$391 million in the first half of 2009. The group said it will not pay an interim dividend to shareholders. However, the Group will consider a final dividend to be paid based on its current policy of paying an annual dividend of 20% of net profits after tax. Looking ahead, NOL said with further improvement anticipated in container shipping volume and rates, NOL Group expects significant improvement in third quarter profits. NOL will continue to emphasize cost efficiency, improved productivity and service delivery. http://www.corporateobserver.com.sg/news.php?reg_id=858 Fri, 06 Aug 2010 18:08:07 +0800 SINGAPORE , (Aug 10, 2010) - The Singapore economy is unlikely to expand at the rapid pace seen in the first half when it registered almost 18 per cent growth in GDP, according to the government. The Ministry of Trade and Industry has maintained its annual growth forecast of 13 to 15 per cent. This makes Singapore one of the fastest growing economies this year. MTI said the economy expanded 18.8 per cent during the quarter ending June 30, up from 16.9 per cent in the preceding quarter. http://www.corporateobserver.com.sg/news.php?reg_id=856 Thu, 05 Aug 2010 18:29:53 +0800 SINGAPORE, (Aug 5, 2010) - Productivity is very much the catchphrase in the government and its champions this year. Not surprising, Stephen Lee, who heads the employers' movement in Singapore, is leading by example in terms of promoting productivity and rewarding those who have acheived it. As chairman of SIA Engineering Company Limited (SIAEC), Mr Lee today presented a cheque of $0.6 million to staff, as part of the company’s productivity gain-sharing programme. The presentation was made at a National Day Observance Ceremony of the Aerospace and Aviation Cluster held at the SIAEC A380 Hangar. The National Trades Union Congress (NTUC) unveiled its Cheaper, Better, Faster (CBF) strategy in 2009 to help improve the global competitiveness of companies and to benefit workers in Singapore. Embracing this strategy, in November 2009, SIAEC launched six CBF initiatives in Phase 1 of the programme. With the full implementation of Phase 1 in April this year, the programme progressed to Phase 2, with an additional seven CBF initiatives in three operating divisions. SIAEC aims to achieve $10 million in productivity gains for its Phase 1 initiatives over the course of 12 months. Mr Stephen Lee said: Productivity improvement is a collaborative process, and is most effective when all employees partner management to identify and implement continuous improvements. The national initiative of Cheaper, Better, Faster has given us all a good platform for employees, unions and management to work together to sharpen our competitiveness. Mr William Tan, Chief Executive Officer of SIAEC said: “The global aerospace industry is intensely competitive. Our competitive edge and differentiating factor is our people - the skills of each employee, the readiness to embrace change, the synergy of our collective teamwork and the flexibility of our workforce. These give us the competitive edge in the global arena.” Recognising that employees are key to the success of its CBF strategy, SIAEC is sharing its productivity gains with staff. For the productivity gains of Phase 1 achieved from February to June 2010, the Company is giving staff in its three operating divisions a total of $0.6 million. http://www.corporateobserver.com.sg/news.php?reg_id=855 Thu, 05 Aug 2010 18:19:42 +0800 SINGAPORE, (Aug 5, 2010) - The Government Investment Corporation of Singapore, a sovereign wealth fund chaired by Lee Kuan Yew, has added three banks as joint bookrunners for the upcoming IPO of its logistics unit that could raise as much as US$3 billion, newswire Reuters reported today. The three bookrunners -- UBS (UBSN.VX), China International Capital Corp (CICC) and DBS (DBSM.SI) -- will help in the listing of Global Logistic Properties (GLP), which owns warehouses in China and Japan, Reuters quoted unnamed sources. GLP's public offer could be the biggest in Singapore since Singapore Telecommunications (STEL.SI) raised over S$4 billion in 1993, exceeding the $2 billion raised in CapitaMalls' (CMAL.SI) by Singapore's property developer Capitaland. http://www.corporateobserver.com.sg/news.php?reg_id=854 Thu, 05 Aug 2010 18:06:13 +0800 Singapore, (Aug 11, 2010) – Uncomfortable with the increased political risks in Thailand, Ho Kwon Ping’s Banyan Tree Holdings is selling its Dusit Thani Laguna Phuket for S$110 million. In an announcement, Banyan Tree said its subsidiary, Laguna Resorts & Hotels Public Company Limited (“LRH”) is selling the hotel asset in the Thai resort island to to Dusit Thani Public Company Limited for the sum of 2.62 billion baht. The company said the expected gain on disposal (before tax and minority interests) for BTH is S$68.4 million. The excess of the sale proceeds over the book value is expected to be S$69.6 million based on sales proceeds of S$110 million. On this basis, the sale proceeds amount to about 2.7 times the book value of the Hotel. As a comparison between BTH’s market capitalization and its net asset value, based on BTH’s market capitalization of S$645 million at BTH’s closing share price on the SGX-ST on 6 August 2010 of S$0.85 and net asset value of BTH based on its audited accounts for the financial year ended 31 December 2009, BTH’s market capitalistion is only 1.3 times the net asset value of BTH. The proposed sisposal will reduce BTH’s and LRH’s exposure in Phuket, Thailand which is in line with BTH’s strategy of diversifying its assets away from Thailand given the increased political risk Thailand presents and the heavy representation of Thai hotel properties amongst the BTH’s and LRH’s assets. With the proceeds, LRH plans to invest in a hotel or hotel-related project overseas, repay its bank loans, and/or pay dividends to its shareholders. These will directly or indirectly benefit BTH, as the majority shareholder of LRH. The Phuket hotel is owned by LRH together with LRH’s wholly-owned subsidiaries. LRH and Dusit Thani Public Company Limited are required to and will be seeking their respective shareholders’ approval on the proposed sale. LRH has appointed Capital Advantage Co., Ltd., a financial advisor approved by the Office of the Securities and Exchange Commission of Thailand, as its independent financial advisor on the transaction. Singapore Exchange has confirmed that the approval of BTH shareholders is not required for the sale under Rule 1014 of the Listing Manual. http://www.corporateobserver.com.sg/news.php?reg_id=853 Thu, 05 Aug 2010 10:42:08 +0800 Singapore, (Aug 4, 2010) – In an unprecedented move, the Singapore central bank has given DBS Bank a public censure as well as instructed the government controlled bank to put aside more capital to cover its operational risks. A month after DBS’s branch banking, ATM and online operations suffered a nationwide service outage, the Monetary Authority of Singapore (MAS) today said it has taken supervisory action against the bank for the massive breakdown which caused significant inconvenience to the bank’s customers. MAS said it has censured DBS Bank for the shortcomings and inadequate management oversight by the bank of its outsourced IT systems, networks, operations and infrastructure that resulted in the widespread system outage. This incident has revealed weaknesses in DBS Bank's technology and operational risk management controls. Ms Teo Swee Lian, deputy managing director, Financial Supervision, MAS, said, “MAS takes a serious view of this incident. We expect all financial institutions to put in place a robust technology risk management framework that will ensure the reliability, resiliency and speedy recoverability of the institution's IT systems and infrastructure, whether outsourced or in-house. We have recently written to the CEOs of all financial institutions to remind them of this. MAS will not hesitate to take appropriate supervisory action against any financial institution which fails to meet the standards set in the IBTRM Guidelines.” ... DBS and its outsourcing vendoe IBM also released details of their findings on the events that led to the massive breakdown. Responding to the MAS censure, CEO chief executive Piyush Gupta again apologised to customers, this time sticking safely to “deeply sorry’’ instead of “deeply regret’’ seen in the bank’s first announcement. Mr Piyush who has been on the job for less than one year on the job and in recent months announced several ambitious plans to grow the business said: “The system outage is of grave concern to us and we acknowledge MAS’ censure. DBS would like to assure customers that taking into account the regulatory capital charge, our total capital adequacy ratio is still comfortably above the required levels. Measures to strengthen our technology and risk management controls are also well underway. Twelve months ago, DBS commenced a two-year programme to further enhance our system reliability and resilience and we are accelerating the implementation of these initiatives. DBS is deeply sorry for the outage and once again, my apologies to our customers for all the inconvenience caused." http://www.corporateobserver.com.sg/news.php?reg_id=852 Wed, 04 Aug 2010 17:20:21 +0800 SINGAPORE, (Aug 10, 2010) - The Sinar Mas group which controls Singapore listed Golden Agri and its Indonesian agricultural unit PT SMART continues to defend its environmental records with a latest independent report that cleared its position as a responsible palm oil player. In an announcement today, Golden Agri said the independent verification report (“IVEX”) that will be published today will show PT SMART as a responsible and vital player in the drive towards sustainable palm oil production. “We have full confidence that the upcoming IVEX report will uncover the truth that SMART is a responsible company. We are sharing the report in full and it will speak for itself. Greenpeace has painted an incorrect picture of us. The report will show how we act with absolute responsibility and integrity in relation to developing and managing our extensive palm oil plantations,” said Daud Dharsono, President Director of SMART. The IVEX report is jointly authored by Control Union Certification (“CUC”) and BSI Group (“BSI”), two of the world’s leading certification bodies. CUC and BSI were also assisted by leading experts from the Bogor Agricultural Institute. “This report will be a turning point for all. The international reputation of CUC and BSI and the fact that this exercise was conducted in an independent, scientific and well-grounded manner cannot be disputed. The report will give us the facts which we look forward to sharing with all our stakeholders,” said Mr Dharsono. “Palm oil is a strategic product for the growth and development of Indonesia and for the alleviation of poverty. We remain committed to working with all parties in finding solutions to achieving growth in the palm oil industry while doing this in a sustainable manner,” concluded Mr Dharsono. Greenpeace has been slamming Indonesian plantation groups for alleged anti environmental behaviour particularly in the palm oil sector. http://www.corporateobserver.com.sg/news.php?reg_id=851 Wed, 04 Aug 2010 11:47:30 +0800 SINGAPORE, (Aug 10, 2010) – Wee Cho Yaw’s United Overseas Bank Group has turned in an impressive set of results, reporting a 27.9 per cent surge in profits to S$602 million for the quarter ended June 30, 2010. On a half year basis, the bank posted after-tax earnings of S$1.3 billion million, 48 per cent higher than the first half of 2009. UOB's results outperformed rival banks DBS and OCBC. DBS had reported a loss of S$300 million after a goodwill charge of over S$1 billion while OCBC earned S$503 million, dragged down by rising costs. The result was also in line with the average estimate of S$600 million from five analysts polled by Dow Jones Newswires. For the first half, the performance at UOB was due to robust contributions from fee and commission income coupled with a reduction in impairment charges as the quality of the group’s assets remained sound. Net interest income was stable amidst the declining interest rate environment and was underpinned by an increase in interest bearing assets. Volatile financial markets resulted in lower trading and investment income. The board has declared an interim dividend of 20 cents per ordinary share. The scrip dividend scheme will be applied to the interim dividend. The group said it continued to be disciplined in controlling expenses and at the same time maintained a balance with increased spending on higher business volumes and infrastructure investment. The group is reaping the benefits from its regional franchise. Loans in the regional countries expanded 11.7 per cent from end 2009. Concerted efforts to harness the strength from this franchise will continue. Overall, net loans grew 4.6 per cent from end 2009 as the group reduced its exposure in the West and grew corporate loans selectively by avoiding participating in finely priced loans. The balance sheet and capital position remained strong. Loan quality continued to improve whilst most of the debt securities exposure to Europe is of investment grade. Core Tier 1 capital and Tier 1 capital adequacy ratio (CAR) strengthened further by another 1.1 percentage points to 13.0% and 15.1% respectively, compared to last year end. Net interest income decreased 3.9 per cent year-on-year to S$1,784 million with net interest margin declining 19 basis points to 2.19 per cent in the first half of 2010. Quarter-on-quarter, net interest income declined 1.8 per cent to S$884 million and net interest margin was 11 basis points lower. The decline in net interest margin was due to interbank and securities as gapping opportunities were limited and higher yielding bank debt securities were replaced with lower yielding corporate debt securities in anticipation of the new Basel requirement. Loan margins also declined as competition remains intense. Non-interest income was maintained at S$984 million for the first half of 2010. Excluding the one-time gain from the sale of UOB Life Assurance Limited, non-interest income registered a decline of 8.5 per cent compared to the first half of 2009 due to lower trading and investment income. Fee and commission income was robust at S$570 million, increasing 22.5 per cent year-on-year and remained steady quarter-on-quarter. The improved performance was across all business areas both within and outside Singapore and was supported by increased cross selling efforts in the Group. Loan-related fee income benefited from increased loan activities whilst strong sales from trade and credit card businesses boosted the income. There was also increased contribution from fund management and investment product sales. Trading and investment income was lower as it was affected by market volatility in the second quarter of 2010. Known for its cost control, UOB said expenses in the first half of 2010 increased 7.1 per cent to S$1,082 million as costs were under tight control last year due to the financial crisis. Net customer loans increased 6.1 per cent from a year ago and 3.2 per cent from last quarter to S$103.8 billion as at 30 June 2010. The increase was driven mainly by housing loans and loans to the general commerce sector. Both leapt 11.1 per cent and 10.4 per cent, respectively from last year end. Deposits grew 7.5 per cent year-on-year and was unchanged at S$125.7 billion quarter-on-quarter. Loans-to-deposits ratio remained strong at 82.5 per cent. The group’s asset quality continued to improve with non-performing assets declining further to S$2.5 billion as at 30 June 2010. Non-performing loans (NPL) ratio dropped to 1.9 per cent as NPL improved across all territories, particularly in Singapore and Malaysia. There was also significant improvement in the manufacturing and financial institution sectors. The group continued to maintain a strong capital position. As at 30 June 2010, Group Tier 1 CAR increased to 15.1 per cent and total CAR reached 20.1 per cent, well above the regulatory minimum of 6 per cent and 10 per cent respectively. The increase in CAR over Wee Ee Cheong, the group’s deputy chairman and chief executive, said: “We delivered a set of results consistent with the Asian economic recovery story, with our first half results driven by strong fee income and lower credit costs. In line with our targeted approach, key regional markets recorded strong loans growth of 12% year-to-date. On the macro front, the de-leveraging process in the West is still working through. We believe concerted policy responses should minimise risks of a double-dip recession for the global economy. Barring major shocks to the system, Asia should continue to be a bright spot.'' http://www.corporateobserver.com.sg/news.php?reg_id=850 Tue, 03 Aug 2010 19:21:39 +0800 SINGAPORE, (Aug 3, 2010) - Mainboard listed commodity group Noble Group Limited remains popular with regional bankers as the company concluded its guarantee facility that was well over subscribed. In a statement, Noble said it has renewed, extended and upsized its existing US$800 million committed guarantee facility originally concluded in May 2009 to US$1.55 billion. The group had targeted US$1.2 billion due to exceptional bank demand and oversubscription. The facility was arranged by nine mandated lead arrangers and bookrunners, including China Development Bank Corporation, Hong Kong Branch, Citigroup Global Markets Asia Limited, Commerzbank Aktiengesellschaft, Hong Kong Branch, Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (trading as Rabobank International), DBS Bank Ltd., ING Bank N.V., The Royal Bank of Scotland plc, Hong Kong Branch, Société Générale and Standard Chartered Bank (Hong Kong) Limited. A total of 26 banks committed in the general syndication, including Arab Bank plc, Singapore Branch, Axis Bank Limited, Hong Kong Branch, Banco Santander, S.A., Hong Kong Branch, Bank of America, N.A., Bank of Taiwan, Hong Kong Branch, China Development Bank Corporation, Hong Kong Branch, Citibank, N.A., Hong Kong Branch, CITIC Bank International Limited, Commerzbank Aktiengesellschaft, Hong Kong Branch, Commonwealth Bank of Australia, Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (trading as Rabobank International), DBS Bank Ltd., London Branch, First Gulf Bank PJSC, Singapore Branch, Gulf International Bank B.S.C., ICICI Bank Limited, Hong Kong Branch, ING Bank N.V., KBC Bank N.V., Industrial and Commercial Bank of China Limited – Abu Dhabi Branch, Lloyds TSB Bank plc, National Australia Bank Limited, Royal Bank of Canada, Société Générale, Standard Chartered Bank (Hong Kong) Limited, The Bank of Tokyo-Mitsubishi UFJ, Ltd., The Hongkong and Shanghai Banking Corporation Limited, Hong Kong Branch and The Royal Bank of Scotland plc, Hong Kong Branch. The facility will be used to support the company, its subsidiaries and related companies in connection with the issuance of trade and financial instruments, particularly letters of credit and bank guarantees. http://www.corporateobserver.com.sg/news.php?reg_id=849 Tue, 03 Aug 2010 15:20:43 +0800 SINGAPORE, (Aug 2, 2010) – Singapore Exchange (SGX) today announced a net profit of $320.1 million for its full financial year ended 30 June 2010, up 5 per cent from FY2009 but fourth quarter earnings was down 12.7 per cent, mostly in line with analysts expectations. Excluding a goodwill impairment of $2.7 million and write-back of property impairment of $5.0 million, the FY2010 profit was $317.8 million, the second highest profit level achieved since SGX’s listing in November 2000. Revenue grew 8 per cent to $639.7 million in FY2010 on increased equity trading and a revival in primary market activities. Earnings per share for FY2010 was 30.1 cents, with return on equity at 39.2 per cent. The SGX board proposed a final dividend of 15.75 cents per share. This will bring the total dividend for FY2010 to 27.0 cents per share. In addition, the board also raised SGX’s base dividend commitment to 16.0 cents per share, payable on a quarterly basis, effective FY2011. Mr Magnus Bocker, SGX CEO said, “Last year was the second best year for SGX. We will continue to expand our distribution network, products and services while maintaining Singapore's high regulatory standards. This will further strengthen our position as the Asian Gateway. We are committed to becoming one of the leading exchanges in the world.” http://www.corporateobserver.com.sg/news.php?reg_id=848 Mon, 02 Aug 2010 20:40:51 +0800 SINGAPORE, (Aug 2, 2010) - HSBC, the biggest bank in Europe, has joined the growing number of global financial groups that reported improved profitability as the global economy recovered. The London based HSBC said net profits more than doubled to US$ 6.76 billion dollars in the first half of this year as bad debt charges were slashed. "As we focus on building a high quality asset base for the future, it is encouraging that loan impairment charges now stand at their lowest levels since the start of the financial crisis," HSBC chief executive Michael Geoghegan said in a statement accompanying the results. "They almost halved overall, reducing by 6.8 billion dollars to 7.5 billion dollars year-on-year. "This reflects the benefit of more stable economic conditions for many of our customers and follows our actions, begun before the crisis, to reduce exposure to unsecured lending outside our key relationships, to exit unprofitable business lines and to tighten underwriting standards for new business," he added. Other global banks have released strong corporate results in recent days as the global economies recovered from the financial meltdown last year. UBS AS, Switzerland’s largest bank, last week said it reported net income of 2.01 billion Swiss francs for the quarter ended June 30, beating estimates by analysts and continuing a third consecutive quarter of profits. The Zurich based bank had reported a net loss of 1.4 billion francs a year ago. Meanwhile, Deutsche Bank AG, Germany’s largest banking group also beat analysts forecasts by reporting net income of 1.16 billion euros, up from 1.09 billion euros a year ago and analysts’ forecast of 1.05 billion as polled by Bloomberg. http://www.corporateobserver.com.sg/news.php?reg_id=847 Mon, 02 Aug 2010 18:32:59 +0800 Singapore, (August 2, 2010) – After DBS’s surprise loss last week, OCBC Bank today unveiled net profit of S$503 million for the second quarter ended 30 June 2010, an increase of 8 per cent from S$466 million a year ago. The group’s second quarter result included three months’ consolidation of the results of 100 per cent –owned Bank of Singapore, which was acquired frm ING Bank in January this year. OCBC said the net profit growth was driven by increased fees and commissions, higher realised gains on investment securities and lower allowances. The results were somewhat below market expectations. Despite the inclusion of the private bank operations, the net profits were still 26 per cent below the first quarter and below the average projections of S$517 million by analysts polled by Dow Jones Newswires. The group had seen rising operating expenses and falling interest margins during the second quarter. ... OCBC Group continues to be strongly capitalised, with its Tier 1 ratio as at 30 June 2010 improving to 15.3 per cent, up from 14.4 per cent at the end of the previous quarter, and total capital adequacy ratio strengthening to 16.3 per cent from 15.2 per cent, over the same period. Commenting on the group’s performance, OCBC chief executive David Conner said: “Given that our underlying businesses are performing well, we are pleased with our first half results. Broad-based loan growth, strong gains in fee income, including the boost to our wealth management business from the Bank of Singapore, coupled with a robust increase of insurance products sales at Great Eastern, all underscore OCBC’s healthy customer franchise. While we are alert to the possibility of renewed volatility in the financial markets, on balance we have a positive outlook, in light of the growth prospects in our key markets.” http://www.corporateobserver.com.sg/news.php?reg_id=846 Mon, 02 Aug 2010 15:34:43 +0800 SINGAPORE, (Aug 6, 2010) - How’s that for a job where your pay will be tied almost entirely to your stock performance? Well, that’s what Lim Soon Hock, well known personality in the IT industry, will be getting at mainboard listed technology firm Stratech Systems. In an announcement today, Stratech said Mr Lim has been appointed chairman and executive director at the company where he will be paid a token salary of, yes, S$8 a year. Instead, the man who used to run Compaq Asia Pacific will be allotted and issued 28.8 million new ordinary shares in Stratech and be awarded options to subscribe to 12.5 million new ordinary shares. Stratech shares were trading at four cents apiece yesterday, giving his new shares a value of about S$1.15 million. ... Mr. Lim said: “There are very few companies in Singapore with the kind of Intellectual properties which Stratech has developed and accumulated over the years. This is the company’s most valuable asset, apart from human capital. The IP and patents offer a company more latitude to grow exponentially and to be more profitable, as has been stratech systems limited shown by the phenomenal success of many top Fortune 500 companies in the USA. ‘’ “Stratech has now evolved to be a large company in its formative stage. I am delighted to be offered the rare opportunity to join the board and the management, at this crucial turning point in its history, to take the company to its next stage of growth, by unlocking the potential of the Company’s IP to the fullest.” Seen actively involved in community projects in the last few years, Mr. Lim was a non-executive and independent director of the company, since 16 September 2004. He was the chairman of the nominating committee and also served as a member of both the audit committee as well as the remuneration committee. David Chew, the executive chairman of Stratech said: “The fact that Mr. Lim is prepared to be remunerated in equities is a big vote of confidence in our Company, our capabilities and potential. In the company’s next lap, the sky is NOT the limit, as we continue to work hard to maximize shareholders’ value.” “Mr Lim is a veteran in the industry. As the Company embarks on its next lap of growth, it intends to tap on Mr. Lim’s long years of experience in management and business as well as his domain expertise in the industry to unlock the full potential of the company’s intellectual properties (IP). Mr. Lim has proven experience in taking a company from start-up to phenomenal success as with his tenure in Compaq Computer Asia Pacific and in business turn-around as well as business acceleration with Digital Equipment Singapore and SITA INC Asia Pacific.” In the last decade, Mr. Lim has been involved with taking three companies public, one each on SGX-ST, ASX and AIM as well as four mergers and acquisitions. About a year ago, he was appointed by a consortium of banks and a public auditing firm to oversee the restructuring and reverse take-over for a public-listed company, which he completed successfully recently. “One of Mr. Lim’s key tasks is to streamline the Company’s operations, raise productivity, oversee corporate governance and risk management, given the complex nature of the business, which is largely project based, and to prepare the company for the next phase of growth. The Company has a proven track record of designing, developing and implementing complex IT systems for complex and demanding operating environments, such as its iFerretTM, Super BullsEye® II and OCOE System,“ said Mr. Sajjad Akhtar, chairman of the audit Committee. Stratech was listed on the mainboard of the Singapore Exchange in 2000. It is principally engaged in the design, development, integration, implementation, maintenance and project management of information technology and advanced technology systems http://www.corporateobserver.com.sg/news.php?reg_id=845 Mon, 02 Aug 2010 14:41:06 +0800 SINGAPORE, ( July 30, 2010) – Almost 10 years after DBS Group grossly over paid for its acquisition of its Hong Kong operations, the Singapore’s largest banking group is still talking about goodwill impairment to wipe off value of its key asset up north. In a surprise move today, DBS said it has made a one-time goodwill impairment charge of S$ 1.02 billion during the second quarter for DBS Hong Kong Limited, causing the bank to report a loss of S$300 million. “Since the previous review, there have been noticeable and persistent strains in wholesale funding markets, which have driven banks to adjust their funding strategies and liquidity positions. Given these structural changes, there is an increased likelihood that the interest margin compression recently experienced by DBS’ operations in the territory will persist,’’ DBS – the first local bank to report earnings for second quarter – said. ... Net interest income remained stable at S$1.07 billion. DBS utilised its capital and liquidity position to support customers’ financing needs as regional economic conditions strengthened. Loans expanded 9 per cent from the previous quarter from broad-based regional corporate loan demand and from housing loan drawdowns in Singapore and Hong Kong. DBS was also active in supporting corporate customers’ financing needs through bond issues. But net interest margins declined nine basis points from the previous quarter to 1.84 per cent. More than half of the margin decline was due to a shift in the securities portfolio towards higher-quality issues with lower yields. In addition, deposit costs were higher due to competition for USD and HKD funding. Despite its low cost deposit base from POSBank, DBS’s net interest margins have been unimpressive in recent quarters. Non-interest income rose 16 per cent from the previous quarter to S$748 million. Fee income increased 5 per cent to SGD 358 million. Wealth management fees benefited from increased product sales while credit card revenues increased with higher transaction volumes. Loan syndication fees remained at the previous quarter’s strong levels. Trading income grew 21 per cent from the previous quarter to SGD 278 million. The rise was driven by customer revenues, which grew 45% and accounted for more than half of total trading income. Investment gains doubled to SGD 98 million as there were increased opportunities for profit-taking of debt securities. If any other good news, expenses rose 2 per cent from the previous quarter to S$ 717 million. The cost-income ratio was little changed at 40 per cent. Return on equity was 11.1 per cent and return on assets was 1.07 per cent, compared with 8.2 per cent and 0.82 per cent respectively in the previous quarter. http://www.corporateobserver.com.sg/news.php?reg_id=844 Fri, 30 Jul 2010 16:27:11 +0800 SINGAPORE, July 30, 2010 – It’s little wonder that Indonesian plantation giants have been seen out there hiring corporate communications specialists to help them fight their environmental protection war. Again, the Sinar Mas group which is controlled by Indonesian tycoon Eka WIdjaja has to reassure the market that it doesn’t clear primary forests and peat lands as well as do damage to orang-utans as claimed by Greenpeace activists. In its latest statement, PT SMART responded to a report by Greenpeace entitled “How Sinar Mas is expanding its empires of destruction” and said all concession areas owned or managed by SMART and its listed parent company, Golden Agri-Resources Ltd, are located on degraded land, based on government concessions and in accordance to national laws and regulations. ... http://www.corporateobserver.com.sg/news.php?reg_id=843 Fri, 30 Jul 2010 11:50:57 +0800 SINGAPORE, (July 29, 2010) - SingTel Group has set up a S$10 billion loan programme to line up financing for the medium term, joining the growing number of listed companies here which recently tapped the debt market. SingTel said its wholly-owned subsidiary, SingTel Group Treasury Pte. Ltd. today established a S$10 billion Guaranteed Euro Medium Term Note Programme (EMTN Programme), where notes can be issued from time to time to raise money for the telecom giant. HSBC and Morgan Stanley Asia (Singapore) Pte. are the arrangers and dealers for the EMTN Programme. Approval in-principle has been obtained for the listing and quotation of the Notes on the Singapore Exchange. Rating agencies Moody’s Investors Service and Standard & Poor’s have assigned ratings of Aa2 and A+. Several large Singapore listed companies including Capitaland, Neptune Orient Lines and United Overseas Bank were also in the debt market lining up medium and long term facilities to fund their operations. Temasek Holdings also successfully launched its 40-year bonds worth S$1 billion last week. http://www.corporateobserver.com.sg/news.php?reg_id=842 Fri, 30 Jul 2010 00:50:36 +0800 SINGAPORE, (July 29, 2010) - The Monetary Authority of Singapore which just reported record profits for last year said its current policy of allowing the Singapore currency to gradually appreciate remains appropriate, meaning its monetary policy remained unchanged from April. Speaking at the release of MAS annual report today, the central bank’s managing director Heng Swee Kiat said while inflation is expected to pick up towards the latter part of the year, it has evolved broadly as anticipated during the April review. ... Reflecting the upturn in the global financial markets. the central bank reported a net profit of $10.12 billion last year - its highest ever - reversing a $9.2 billion loss the year before. The MAS, which manages a portion of Singapore's reserves, transferred $3.38 billion of its profits to the Singapore reserves in addition to $160 million to the Government's Consolidated Fund. http://www.corporateobserver.com.sg/news.php?reg_id=841 Thu, 29 Jul 2010 22:14:31 +0800 SINGAPORE, July 29, 2010 - You kinda know there was an announcement coming when DBS Bank sent out a test message on the SGX announcement website yesterday. Well, it came this morning and it’s yet another senior appointment at the Temasek controlled bank which has been increasing its bench strength in the last few months with several new hires. This time, a familiar name who was once “one of us’’ - the highly bubbly, eloquent and knowledgeable Lim Say Boon, once a senior editor in Singapore as well as Australia and well known in the media circle. In a statement, DBS said Mr Lim, 53, has been appointed Chief Investment Officer for its wealth management business, reporting to the recently appointed Ms Tan Su Shan who heads the bank’s private banking as well as Mr Rajan Raju, Head of Consumer Banking. Mr Lim joins the group together with a few other senior managers hired recently to beef up the private banking arm of the Singapore bank. ... At DBS, Mr Lim will set up and work with a senior investment committee to set a multi-asset-class, strategic asset allocation framework for DBS’ wealth management clients that is risk-adjusted to suit different customer risk profiles. This strategic asset allocation framework will set the stage for relationship managers and investment counselors to advise their clients on their advisory, tactical positions or core, discretionary portfolios. Said Ms Tan, “With the right people and platform, we need the right ideas to best advise our clients. The CIO office will pull together all the best brains – and insights – from various parts of the bank, to formulate a global investment strategy with an Asian bias for Asian clients. Most global banks offer a global asset allocation strategy for their clients, whether they are in the US, Europe or Asia. DBS’ investment strategy will be unique in that it will be formulated to fit in and resonate with our clients' strong Asian focus.” In a career spanning 28 years, Mr Lim has held various senior positions in investment research and private banking/wealth management. Before Standard Chartered Bank, he had held positions including Director, Portfolio Counseling with Citigroup Private Bank; Head of Investment Research for OCBC Securities; regional Research Manager with Societe Generale-Crosby Securities; Director of Research for Standard Chartered Indonesia; and Research Manager for Standard Chartered Securities Singapore. He also held senior positions in the financial media in Australia in the 1990s - as finance editor for The Herald-Sun and Sunday Herald-Sun newspapers. Meanwhile, Olivier Crespin joined DBS Private Banking on 1 July as Chief Operating Officer. In this role, Crespin is tasked with providing seamless integration to all parts of the bank, providing high tech banking solutions and a trustworthy backbone for DBS clients’ banking needs. Prior to DBS, Crespin had a 16- year career with Citi in Asia, North and South America. His latest position was Global Head of Operations at Citi Private Bank, based in New York. DBS Private Banking recently strengthened its Non Resident Indian (NRI) business, as well as its teams for Singapore and the region. The bank appointed Mr Hemal Khanna and Ms Gayatri Ahuja as team leads for the NRI segment. Khanna was previously a senior director at ABN Amro in Singapore, and Ahuja was from DBS Treasures. Other recent appointments include Mr Samer Taki, who heads the Middle East team, Ms Frances Boon who heads one of the Singapore teams, Ms Geraldine Low who joined as a senior private banker and Mr Wee Yan Hann, who joined as senior regional product manager. http://www.corporateobserver.com.sg/news.php?reg_id=840 Thu, 29 Jul 2010 14:55:52 +0800 SINGAPORE, (July 28, 2010) - Chua Thian Poh's Ho Bee Developments has submitted the highest bid of S$411 million for a land parcel located at North Buona Vista Drive. The site, to be used for commercial development, was launched for sale by JTC Corporation. Located next to the Buona Vista MRT station, the plot has a land area of 17,994 square metres. The total allowable gross floor area is 111,565 square metres, out of which 2,000 square metres is to be set aside for retail space. Forty per cent of the space can be used for residential or serviced apartments. Ho Bee said the total estimated development cost for the project is about S$1 billion. The Group expects rental for the office units to fetch around S$5psf and intends to lease out the property for recurring income upon completion of the project in about 4 to 5 years time. http://www.corporateobserver.com.sg/news.php?reg_id=839 Wed, 28 Jul 2010 20:11:16 +0800 SINGAPORE, (july 28,2010) - In what was widely seen as a landmark case, the Singapore Court of Appeal has awarded businessman Peter Lim damages of S$210,000 in his defamation suit against the owners of the Raffles Town Club. This is the highest defamation damages ever awarded to a non-political figure in Singapore. Mr Lim had won his law suit against RTC shareholders Mr Lin Jian Wei and Ms Margaret Tung in one of the longest trials in Singapore. Mr Lim had claimed that a statement signed by Mr Lin Jian Wei and Ms Margaret Tung was defamatory, as it implied that the club's financial difficulties were due to mismanagement by the original directors, of whom he was one. The court awarded Mr Lim $140,000 in general damages and $70,000 in aggravated damages. Popularly known as the Remisier King, Mr Lim controls key stakes in several listed companies in Singapore including palm oil group Wilmar which catapulted him into the billionaire club. http://www.corporateobserver.com.sg/news.php?reg_id=838 Wed, 28 Jul 2010 19:49:01 +0800 SINGAPORE, (July 27, 2010) - Sovereign wealth fund Temasek Holdings has reached an agreement with Impulsora Mexicana de Desarrollos Inmobiliarios ("IMDI") to set up a joint venture (JV) to pursue land banking opportunities in Mexico. Both parties will commit a total of US$200 million to the venture, which will be formally launched in the third quarter of 2010. The joint venture will evaluate opportunities arising from the demand for affordable planned housing as Mexico's middle-income population grows. Mr Lorenzo Gonzalez Bosco, Temasek's Managing Director, Investments, Mexico, said, "Mexico's transforming economy provides opportunities for Temasek to expand its investments in sectors such as real estate. The rising middle-income population also provides a foundation for Mexico's long-term growth." Mr Benito Bucay, board member of IMDI said “IMDI is very pleased to partner with Temasek, a world-class investor with whom we share similar investment principles and, like us, looks to develop long-term business relationships." http://www.corporateobserver.com.sg/news.php?reg_id=837 Wed, 28 Jul 2010 14:38:23 +0800 SINGAPORE, (July 28, 2010) - Fresh from winning its bid to take control of Singapore's healthcare group Parkway Holdings, Malaysia's sovereign wealth fund Khazanah Nasional Bhd has hired three banks to help it sell Singapore dollar-denominated Islamic bonds, according to Bloomberg News. CIMB Investment Bank Bhd., DBS Bank Ltd. and Oversea- Chinese Banking Corp. will arrange a so-called benchmark sale of five- and 10-year sukuk, a source told Bloomberg. Benchmark typically means at least S$500 million (US$366 million). After facing contesting bids from India's Fortis Group, Khazanah on Monday offered S$3.5 billion to take full control of Parkway. http://www.corporateobserver.com.sg/news.php?reg_id=836 Wed, 28 Jul 2010 14:32:21 +0800 Singapore, (July 28, 2010) – CapitaLand‟s wholly-owned serviced residence business unit, The Ascott Limited (Ascott), has expanded its presence into Bali, Indonesia, by clinching a contract to manage a 174-unit serviced residence in Kuta. To be named Citadines Bali Kuta, the serviced residence will open in 2012. The contract is awarded by Indonesian developer PT Rudy Indopratama Sejahtera. It increases Ascott‟s presence in Indonesia to over 1,800 serviced apartment units across nine properties in Jakarta, Surabaya and Bali. Ascott is currently the largest international serviced residence owner-operator in Indonesia. Mr Lim Ming Yan, Ascott‟s Chief Executive Officer, said: “While the majority of Ascott‟s guests are business travellers and expatriates on extended stay, more leisure travellers are choosing to stay at our serviced residences. Bali is a world famous resort destination and over the years, it has become an increasingly attractive MICE destination. Bali continues to attract a high volume of tourist arrivals each year, which bodes well for our business in this market. With Citadines Bali Kuta, our guests can now enjoy the familiar homely environment in a renowned resort destination. Our Citadines properties are vibrant residences for the independent traveller. By having our Citadines property in lively and trendy Kuta, our guests will be in the heart of all the action in Bali.” Mr Hartono Tanujaya, President Director of PT Rudy Indopratama Sejahtera, said: “Serviced apartments are becoming more popular as the choice for quality accommodation as they combine the space, comfort, and privacy of a private apartment with services and convenience. By tapping into Ascott‟s 26 years of experience in operating serviced residences, Citadines Bali Kuta will offer the perfect home with resort living experience for global travellers.” http://www.corporateobserver.com.sg/news.php?reg_id=835 Wed, 28 Jul 2010 14:24:33 +0800 Singapore, (July 28, 2010) – Temasek controlled Mapletree Logistics Trust Management Ltd. (“MLTM”), as Manager of Mapletree Logistics Trust ,has signed a preliminary agreement with Kabushiki Kaisha A-Max (“A-Max”) to acquire three major properties worth S$200 million in Japan. The three properties are (a) Iwatsuki Logistics Centre: a distribution centre with ancillary office located in Iwatsuki, Saitama Prefecture with gross floor area (“GFA”) of 30,000 sqm. (b) Iruma Logistics Centre: a distribution centre with ancillary office with GFA of 26,000 sqm, located in the city of Iruma, Saitama Prefecture; and (c) Noda Logistics Centre: a distribution centre with ancillary office with GFA of 36,000 sqm, located in the city of Noda, Saitama Prefecture. The buyer will pay 13 billion yen or about S$200 million to the vendor, A-Max, is a logistics facilities development and management company. ... MapletreeLog said it has sufficient financial flexibility and capacity to fund the Acquisition which is expected to be completed by end 3Q 2010. The purchase price and other acquisition costs of the Properties will be fully funded by debt, which will bring MapletreeLog’s gearing level to 43.6 per cent, after taking into account all acquisitions announced to date. http://www.corporateobserver.com.sg/news.php?reg_id=834 Wed, 28 Jul 2010 14:19:06 +0800 SINGAPORE - (July 28, 2010) – Magnus Bocker, the recently appointed SGX chief, continues to hit the news with yet another new initiative, this time on the commodity futures front. Singapore Exchange (SGX) and the London Metal Exchange (LME) today said they are jointly developing cash-settled mini monthly metals futures contracts to be traded and cleared through SGX. The collaboration will broaden distribution into Asia for the LME, the world’s leading market for non-ferrous metals. SGX will be the first market in Asia to make available to investors – including individuals – metals futures priced off global benchmark prices from the LME. An initial suite of futures contracts will be launched for selected non-ferrous metals and steel billet, allowing retail investors to trade and manage their risk exposures during this time zone. ... The copper and zinc futures contracts are expected to be launched by the first quarter of 2011, followed by other metals contracts later in the year, subject to regulatory approval http://www.corporateobserver.com.sg/news.php?reg_id=833 Wed, 28 Jul 2010 11:24:06 +0800 SINGAPORE, (July 27, 2010) - We first reported it about two months ago about the impending departure of Singapore Airlines (SIA) chief executive Chew Choon Seng and the two possible candidates groomed to take over. Today, the national carrier confirmed Mr Chew will step down at the end of this year when his contract expires. The airline said in a brief statement to AFP that an announcement on Chew's replacement would be made once the board has made a decision on the candidate. ... In the same announcement, SIA also said that Mr Ng Chin Hwee, executive vice-president (human resources & planning), and Mr Mak Swee Wah, executive vice- president (operations & services), would report directly to Mr Chew. The market talk is that the race to be SIA’s next CEO is a straight fight between Mr Ng and Mr Mak. http://www.corporateobserver.com.sg/news.php?reg_id=832 Tue, 27 Jul 2010 22:44:59 +0800 SINGAPORE, (July 26, 2010) - BP PLC (BP) after spending months trying to clean up the Gulf of Mexico is now clearing the deck in its books as well as the top management with embattled Chief Executive Tony Hayward replaced. The British oil giant said American Robert Dudley, the executive director who heads the company's oil spill response effort in the Gulf of Mexico, will lead the entire company from October 1 when Mr Hayward steps down. "It will be a different company going forward, requiring fresh leadership supported by robust governance and a very engaged board," Chairman Carl-Henric Svanberg said in a statement. "The Gulf of Mexico explosion was a terrible tragedy for which--as the man in charge of BP when it happened--I will always feel a deep responsibility," Mr Hayward whose horrendous performance at the congressional hearing on the oil spill was heavily criticized said in a statement. BP also reported record loss of US$17.2 billion compared to a profit of US$4.39 billion for the second quarter. The company is taking a big charge on the oil spill clean up and compensation and is expected to sell assets and cut dividend to fund the damage control. http://www.corporateobserver.com.sg/news.php?reg_id=831 Tue, 27 Jul 2010 15:45:13 +0800 SINGAPORE, (July 27, 2010) – Global banks badly hit by the financial crisis a year ago are returning to credible profitability as the corporate reporting season gets underway. Among them, UBS AS, Switzerland’s largest bank, said it reported net income of 2.01 billion Swiss francs for the quarter ended June 30, beating estimates by analysts and continuing a third consecutive quarter of profits. The Zurich based bank had reported a net loss of 1.4 billion francs a year ago. The latest results beat median estimate of 1.12 billion francs polled by Bloomberg News. Chief Executive Oswald Gruebel said he was confident about the bank’s future as withdrawal from the bank’s wealth management business slowed. Meanwhile, Deutsche Bank AG, Germany’s largest banking group also beat analysts forecasts by reporting net income of 1.16 billion euros, up from 1.09 billion euros a year ago and analysts’ forecast of 1.05 billion as polled by Bloomberg. http://www.corporateobserver.com.sg/news.php?reg_id=830 Tue, 27 Jul 2010 15:22:39 +0800 SINGAPORE, (July 27,2010) - Vietnam's HAGL Group plans to sell convertible bonds worth 1.1 trillion dong or about US$57.6 million to Singapore's sovereign wealth fund Temasek Holdings. The group, based in Vietnam's Central Highlands, said it is taking steps toward the bond issue, Channel News Asia reported. Proceeds, together with profits from property investments, would go toward expanding its business and ensuring a safe debt ratio. http://www.corporateobserver.com.sg/news.php?reg_id=829 Tue, 27 Jul 2010 14:44:48 +0800 SINGAPORE, (July 27, 2010) - Rodyk & Davidson, Singapore’s oldest law practice, announced a change in leadership today with managing partner Mrs Helen Yeo, who has served in this role for eight years, stepping down at the end of December this year . Mrs Yeo, wife of former minister Yeo Cheow Tong, will be succeeded by Mr. Philip Jeyaretnam, Senior Counsel, who was selected by the equity partners of Rodyk last year. Having worked with him for more than 18 years, Mrs Yeo describes Philip as “one of the finest minds in the profession”. He comes on board officially on 1 January 2011. Mr Jeyaratnam, a well known novelist as well, is the son of late opposition politician JB Jeyaratnam. By December, Mrs Yeo will have reached the contractual retirement age of 60 for equity partners in the firm. Mrs Yeo will also assume her new role as Senior Consultant at Rodyk next year, continuing to look after valuable key client relationships that she has built for the firm and assisting in developing new business. http://www.corporateobserver.com.sg/news.php?reg_id=828 Tue, 27 Jul 2010 14:31:53 +0800 SINGAPORE, (July 26, 2010) - Singapore's manufacturing output continued to expand at breathtaking pace even as the country recently released record breaking GDP growth for the second quarter but observers noticed the latest expansion was at a slower rate with some signs of contraction in some sectors. According to the government investment promotion agency Economic Development Board (EDB), industrial production in June rose by 26.1 per cent on-year. This was slower than the market forecasts for an expansion of 36.7 percent on-year. 

Output surged 58.6 percent in May and 49.7 percent in April, the two months which contributed to the spectacular GDP expansion in the second quarter. Indeed when compared to the month of May, output in June decreased by 23.4 percent. 

Excluding biomedical manufacturing, output would have fallen by only 1.8 percent. 


The sharpest deceleration in growth was seen in the biomedical manufacturing segment, which surged 29.8 percent on-year in June, against the 117.7 percent on-year growth in May. The Singapore economy enjoyed better-than-expected economic growth in the second quarter, rising 26 per cent in the three months ended in June compared to the prior period on a seasonally adjusted basis, according to the Ministry of Trade and Industry. Some economists now expect the economy to slow in the second half http://www.corporateobserver.com.sg/news.php?reg_id=827 Mon, 26 Jul 2010 13:53:17 +0800 SINGAPORE, (July 26, 2010) - Things are hotting up in the takeover battle at Parkway Holding as Malaysian sovereign wealth fund Khazanah is reportedly poised to offer to buy all outstanding shares of Singapore's Parkway Holdings, valuing it at $3.3 billion. Khazanah's latest offer will be around S$3.95 ($2.88) per share of the Singapore healthcare firm in response to the S$3.80 offered by rival suitor Fortis Healthcare (FOHE.BO) of India, the sources told Reuters. The report came after the listed healthcare group suspended trading of its shares this morning on the local bourse. If confirmed, the purchase will be the Malaysian state investor's biggest acquisition overseas. Parkway shares last traded at S$3.88 apiece and the market has been expecting a counterbid after its partial offer was met by another bid by India’s Fortis group. "It will be a general offer," said one of the sources who has direct knowledge of Khazanah's latest bid. Analysts told Reuters Fortis could walk away and cash in its 25 percent holding in Parkway. http://www.corporateobserver.com.sg/news.php?reg_id=826 Mon, 26 Jul 2010 12:16:25 +0800 SINGAPORE (July 23, 2010) - The People’s Bank of China (PBC) and the Monetary Authority of Singapore (MAS) today announced the establishment of a bilateral currency swap arrangement. MAS said the move was aimed at promoting bilateral trade and direct investment for economic development of the two countries. The announcement was made at the 7th Joint Council for Bilateral Cooperation (JCBC) Meeting between China and Singapore held in Beijing. http://www.corporateobserver.com.sg/news.php?reg_id=823 Fri, 23 Jul 2010 17:19:50 +0800 SINGAPORE (July 23, 2010) – HDB homes' resale prices have hit another high, with the median cash-over-valuation (COV) jumping by S$5,000 to S$30,000 in the second quarter. Data released on Friday by the HDB showed that its resale price index in the second quarter this year rose 4.1 per cent over the previous quarter - the fifth consecutive quarter of price increase. This is higher than the initial flash estimate of 3.8 per cent. The proportion of resale cases transacted above valuation also increased to 96 per cent. HDB reiterated it will ensure that there is an adequate supply of new flats to meet housing demand. ERA Asia Pacific associate director Eugene Lim told ChannelNewsAsia that going forward, HDB prices are expected to continue edging upwards due to the positive economic outlook. However, he expects to see resistance as buyers realise they are actually buying pre-owned flats at peak prices. PropNex CEO Mohamed Ismail likened the high COVs to a vicious circle. “Previous owners of HDB flats who sold their flats with a high COV can now afford to pay high COV for their new flats,” he said, “Furthermore, it is currently the market practice for sellers to ask for high COV as they know that they are expected to pay a high COV when they purchase their next HDB flat," said . Either that or they are looking for more cash to put down the deposit on their new private property purchase.” ... Meanwhile, private home prices in Singapore continued to trend up but at a slower pace. Data released by the Urban Redevelopment Authority showed that overall prices rose by 5.3 per cent in the second quarter of 2010, compared to 5.6 per cent in the first three months of the year. http://www.corporateobserver.com.sg/news.php?reg_id=822 Fri, 23 Jul 2010 16:53:57 +0800 SINGAPORE (July 23, 2010) - The rise in consumer prices slowed down unexpectedly last month – but observers believe it is just a brief respite as prices in Singapore are expected to soar in tandem with the fast-growing economy. Consumer price index rose 2.7 per cent in June from a year earlier, down from May's 3.2 per cent expansion, the Department of Statistics said in a statement. The pace was below the 3.5 per cent predicted by a Dow Jones Newswires poll of five economists. In the first six months of the year CPI inflation was 2 per cent, lower than the government’s full-year inflation forecast of between 2.5 and 3.5 per cent. Action Economics director David Cohen told Dow Jones: "The global inflation environment has remained benign. Some of the softness in the global commodity market recently has been an outgrowth of the general nervousness in the financial markets on the sustainability of global growth. That might change." http://www.corporateobserver.com.sg/news.php?reg_id=821 Fri, 23 Jul 2010 16:23:27 +0800 SINGAPORE (July 23, 2010) – Following a first round of public consultation to increase transparency of short selling , the Singapore Exchange (SGX) is proposing to implement new rules and measures to provide more information on such activities in the marketplace. The proposals – which will undergo another round of public consultation - centre around two suggestions distilled from the earlier public consultation: The marking of short sell orders and publication of short selling statistics; and reporting of substantial short positions. Adding that the latest consultation exercise was introduced after close discussions with the Monetary Authority of Singapore, SGX reiterated that such timely information “provides greater disclosure and contributes to enhanced accountability”. “The MAS is fully supportive of the proposed measures,” SGX noted. ... Meanwhile, SGX CEO Magnus Bocker has confirmed press reports that the bourse is thinking of scrapping the 90-minute lunch break - a suggestion that has not gone down too twll with stock traders and remisiers. Adding that SGX is in discussions with market participants on the proposal, Mr Bocker told reporters that such a move could boost trading volumes by 10 per cent – as it would allow investors to capitalise on late market action in Tokyo, Shanghai and Sydney, as well as early trading in Mumbai. However, he reiterated that it was still too early to say when the move could be implemented. http://www.corporateobserver.com.sg/news.php?reg_id=820 Fri, 23 Jul 2010 16:03:00 +0800 SINGAPORE (July 22, 2010) – Keppel Corp, the world's largest maker of oil rigs, posted a better-than-expected 9.4 per cent rise in second-quarter net profit - excluding exceptional items - but warned the oil spill in the Gulf of Mexico is affecting its orderbook. Reiterating that strong demand from emerging economies would continue to fuel rising global oil consumption, Keppel CEO Choo Chiau Beng said: “The Gulf of Mexico oil spill has understandably caused some industry players to adopt a wait-and-see attitude on new rig orders and this has in turn impacted our orderbook. However, this phase will pass.” Keppel, which announced yesterday S$170 million of new contracts in Brazil, generates about two-thirds of its revenue and gross earnings from offshore and marine business, reported a second quarter net profit of S$347.3 million, compared to S$317.3 million a year earlier. Analysts had predicted a S$301.5 million net profit. Including exceptional items, Keppel's net profit fell 49.6 per cent - or a drop of about S$392 million. In June last year, Keppel sold its entire 45.5 per cent stake in Singapore Petroleum Company to PetroChina. The divestment principally accounted for exceptional gains of S$422 million in that particular quarter. For the first six months of the year, its net profit rose 11.1 percent to S$962, 129, compared to the corresponding period last year. The global recession last year slowed orders for rig makers and the industry has come under further pressure in the wake of BP's oil spill in the Gulf of Mexico. And Keppel largely has its property arm to thank for as it managed to turn in a solid performance in the first six months of the year. http://www.corporateobserver.com.sg/news.php?reg_id=819 Thu, 22 Jul 2010 17:50:39 +0800 SINGAPORE (July 22, 2010) - Overseas-Chinese Banking Corporation (OCBC) and its subsidiary, OCBC Securities, announced they will be offering banking and securities trading services on Apple’s iPad from tomorrow – the same day the popular device goes on sale here. With most corporations jumping on to Apple’s earlier gizmo iPhone, the banking group is claiming the honour of being the first to offer such services on the iPad. The iPad applications will be made available through the Apple App Store in Singapore, said OCBC in a statement. It added: “The new service offerings are in line with OCBC Bank’s ongoing strategy to proactively leverage on technological innovation to make it easier for our customers and investors to perform retail banking and securities trading transactions, anytime and anywhere. It is also in keeping with OCBC Bank’s commitment to offer our customers choice of multiple channels to suit their lifestyles.” http://www.corporateobserver.com.sg/news.php?reg_id=818 Thu, 22 Jul 2010 16:50:21 +0800 SINGAPORE (July 22, 2010) – Ms Elim Chew, founder of retail firm 77th Street, was one of three new faces appointed to MediaCorp’s board of directors yesterday. Apart from Ms Chew, MediaCorp announced that Oracle Financial Services Software chairman Venky Krishnakumar and Mr Rajiv Wahi, chair of The Prince of Wales Bhumi Vardaan Foundation, as the other new additions to the new-look board which will be headed by Mr Teo Ming Kian, Permanent Secretary for National Research & Development, Prime Minister’s Office. http://www.corporateobserver.com.sg/news.php?reg_id=817 Thu, 22 Jul 2010 16:09:43 +0800 SINGAPORE (July 22, 2010) - Oil giant BP has filed a lawsuit in the Singapore High Court for breach of contract against six former employees of its global fuel oil and Asia bunker team who have resigned since the end of May, according to Reuters which quoted company sources and court documents. When contacted by Reuters, a BP spokeswoman declined comment beyond saying that an investigation was going on. http://www.corporateobserver.com.sg/news.php?reg_id=816 Thu, 22 Jul 2010 15:43:32 +0800 SINGAPORE (July 22, 2010) – Changi Airport's passenger traffic hit 3.62 million last month, a 18.6 per cent jump over a year earlier when the aviation industry was feeling the brunt of the global financial crisis. The latest figure is also 8.1 per cent higher than the passenger traffic in pre-crisis June 2008. In total, the airport handled 20.2 million passengers in the first six months of the year. This is 17.0 per cent more than the corresponding period last year and 8.1 per cent higher than two years ago. http://www.corporateobserver.com.sg/news.php?reg_id=815 Thu, 22 Jul 2010 15:08:49 +0800 SINGAPORE (July 22, 2010) – Government investment arm Temasek Holdings announced today it plans to launch a S$1 billion 40-year benchmark bond. The bonds - rated “AAA” by Moody's and Standard & Poor's - mark the longest-ever maturity for Singapore dollar-denominated debt. http://www.corporateobserver.com.sg/news.php?reg_id=814 Thu, 22 Jul 2010 14:19:15 +0800 SINGAPORE (July 21, 2010) - The Singapore Exchange (SGX) is considering whether to scrap the lunchtime break to boost its stock market trading volume, sources told local television network Channel NewsAsia. According to the report, there is currently no timeline for the measure. Removing the lunchbreak will result in continous trading from morning through the day. But such a move will need the blessing of regulators and buy-in from key stakeholders. http://www.corporateobserver.com.sg/news.php?reg_id=813 Thu, 22 Jul 2010 00:26:37 +0800 SINGAPORE (July 21, 2010) – Kuok Khoon Hong’s Wilmar International Limited continues to make waves in the corporate market as its wholly-owned subisdiary PGEO Group has agreed to take control of entered into a sale and 91.3 per cent stake in Natural Oleochemicals (Natoleo) from Kulim (Malaysia), a company listed on Bursa Malaysia, for RM$450 million. Subject to certain conditions including regulatory approvals from the Ministry of International Trade and Industries Malaysia, the acquisition by Wilmar will be funded by internal sources of funds and bank borrowings. Based in Pasir Gudang, Johor, Natoleo is one of the world’s largest oleochemicals producers with significant market share in Europe and Asia and a growing presence in USA. Natoleo enjoys a reputation for industry-leading technical and operational know-how and its large, high quality client list includes many of the world’s leading multi-national corporations. http://www.corporateobserver.com.sg/news.php?reg_id=812 Wed, 21 Jul 2010 19:39:23 +0800 SINGAPORE (July 21, 2010) - In a collaboration with Facebook, SingTel today announced it would offer customers free mobile browsing on a text-only version of the popular social networking site SingTel Mobile customers can access the service through their mobile phone browser by keying in "0.facebook.com". According to SingTel, the text-only site is optimised for speed and it does not have graphics or photos. Users would have to click on links - thereby incurring standard data charges - to view photos posted by their friends. http://www.corporateobserver.com.sg/news.php?reg_id=811 Wed, 21 Jul 2010 19:09:03 +0800 SINGAPORE (July 21, 2010) - Malaysian sovereign fund Khazanah took one small step closer to victory in the bidding tussle over Parkway Holdings against India's Fortis Healthcare, after more than half of the Parkway shareholders gave the go-ahead for the offer to be considered. But the next step could prove a bridge too far, as it has garnered only a mere 5 per cent acceptance level so far - out of the 313 million votes required for the deal to go through - with five days to go before its partial offer lapses. Khazanah is seeking to more than double its current 23.8-per-cent stake to 51.5 per cent. It announced today that out of about 605 million votes - which constitutes some 70 per cent of the total number of shares - cast by Parkway shareholders, 50.5 per cent have approved its S$3.78-a-share offer made in May. This meant that Khazanah unit Integrated Healthcare, which is fronting the offer, has met one of the two conditions for the partial offer to succeed - prompting Integrated Healthcare director Quek Pei Lynn to declare that the firm was "very pleased" about the outcome. However, Khazanah, which had already extended its offer's initial closing date by 18 days, still has its work cut out. http://www.corporateobserver.com.sg/news.php?reg_id=810 Wed, 21 Jul 2010 18:43:52 +0800 SINGAPORE (July 20, 2010) - DBS Bank has set up a wholly foreign-owned entity, DBS Investment & Financial Advisory (DBSIFA), to offer corporate finance services in mainland China. With a registered capital of US$1.0 million, the firm was set up in Beijing, China. The interest in DBSIFA is held through DBS Bank’s wholly-owned subsidiary, DBS Asia Capital. DBSIFA will be providing corporate finance advisory services, which will enable DBS Bank to build onshore financial advisory origination and execution capabilities in China. DBS already runs a locally operated subsidiary offering retail and corporate banking services to the country. http://www.corporateobserver.com.sg/news.php?reg_id=809 Tue, 20 Jul 2010 20:22:48 +0800 SINGAPORE (July 20, 2010) - Government investment company Temasek Holdings said its sterling-denominated bonds - its first issue in the British currency - have been over-subscribed. Temasek had launched and priced a dual-tranche offering of 12-year and 30-year sterling-denominated bonds - which were rated "AAA", the highest investment grading, by Standard & Poor's and an equivalent "Aaa" by Moody’s - worth a total of £700 million (S$1.48 billion). The £200-million guaranteed notes due in 2022 will carry an annual coupon rate of 4.625 per cent. For the £500-million guaranteed notes due in 2040, the annual coupon rate is 5.125 per cent. Net proceeds from the bond issue will be used by Temasek to fund its ordinary course of business. Quoting an unnamed banker involved in the deal, the Wall Street Journal reported that the £200-million chunk was 3.5 times subscribed while the £500-million tranche was three times subscribed. Temasek treasury head Alyssa Ong said in a statement that the issues saw strong investor demand from high-quality accounts. Pointing out that the bonds new stakeholders for Temasek, enhance its capital efficiency and increase its funding flexibility, Ms Ong added the oversubscribed sale was “in response to enquiries from United Kingdom-based institutional investors about long-dated, high-grade sterling bonds". http://www.corporateobserver.com.sg/news.php?reg_id=808 Tue, 20 Jul 2010 16:37:08 +0800 SINGAPORE (July 20, 2010) – Just two months after the deadly riots on the Bangkok streets were quelled amid blazing buildings, mainboard-listed Amara Holdings - a homegrown group which has businesses in property, hotels and F&B - has announced it will build its first property there. In a filing to the Singapore Exchange, Amara said its hospitality arm Amara Hotels & Resorts will mark its first entry into Thailand with a 272-room hotel in central Bangkok on Surawong Road - near Silom Road where some of the fiercest fighting had taken place between Red Shirt protesters and the Thai soldiers. The hotel, Amara Bangkok, is scheduled to open in 2012 and is being designed as "an exciting business/leisure hotel with an emphasis on the use of local materials to create an 'oasis in the city'," the company said. Amara, which signed an agreement today with quasi-government agency Thailand Crown Property Bureau, described the upcoming hotel's location as "one of the most exciting areas in Bangkok, an area known for its rich and colourful local entertainment and shopping activities, as well as the financial district of Bangkok". It added the location was also chosen "for its convenient access to and from Suvarnabhumi International Airport and its proximity to the other commercial and shopping centres of Bangkok". http://www.corporateobserver.com.sg/news.php?reg_id=807 Tue, 20 Jul 2010 14:05:14 +0800 (July 26. 2010) - Raffles Medical Group Ltd which operates its flagship Raffles Hospital at North Bridge Road will spend between S$80 million and S$100 million to expand the operations on its site. In an announcement Raffles said the hospital has received the grant of outline permission from the Urban Redevelopment Authority to build an additional 102,408 square feet of space on its site at North Bridge Road, expanding its gross floor area from the present 307,875 square feet to 410,283 square feet. The additional area will enable the listed healthcare group to expand existing services as well as to develop new facilities and services at the hospital. ... The company shares were trading around S$1.85 before lunch, up two cents apiece. Healthcare groups have been very much in focus of late, following the heated battle at Parkway Holdings which has been a target of takeover bids by two foreign groups. With a dearth of good listed healthcare groups in this region, analysts say companies such as Raffles could come into focus after the Parkway tussle is resolved. Raffles shares have traded to the current level from as low of S$1.07 last year. http://www.corporateobserver.com.sg/news.php?reg_id=806 Tue, 20 Jul 2010 13:08:38 +0800 SINGAPORE (July 19, 2010) - Fish farmer Qian Hu Corp said on Monday that its net profit for the second quarter ended June 30 fell 43 per cent to S$950,000, from S$1.66 million a year ago. Between April and June, sales dropped 4.1 per cent to S$22.7 million - from S$23.7 million in 2009 - while fully diluted earnings per share fell to S$0.21 from S$0.38. The poor Q2 showing dragged down Qian Hu's net profit for the first six months of the year, which fell by 22.9 per cent to S$2.36 million, compared to the corresponding period last year. Qian Hu cited the political riots in Bangkok, which forced its retail chain stores in the Thai capital's downtown area to be shut; airport closures in Europe due to ash fallout; and the World Cup tournament in July as the three main factors which hurt exports of its ornamental fish. http://www.corporateobserver.com.sg/news.php?reg_id=805 Mon, 19 Jul 2010 18:11:25 +0800 SINGAPORE, (JULY 26, 2010) - Looks like it's all over at the takeover battle at Parkway Holdings as India's Fortis Healthcare has decided to divest its entire stake in the listed healthcare group after Malaysian sovereign fund Khazanah came up with a general offer at S$3.95 per share. Khazanah and Fortis had been locked in a heated battle to take control of Parkway after the latter made its first general bid triggering a counter bid from Khanazah. Fortis Healthcare had bought 23.9 per cent stake in Parkway at S$3.56 per share in March and subsequently had raised its stake in Parkway to 25.3 per cent through the open market. Khazanah has a 23.32 per cent stake in Parkway. Khazanah's lastest offer is 4.5 per cent higher than its earlier partial offer that it proposed. Now it is taking full control of the company. Fortis Healthcare could make a profit of Rs 362 crore through the divestment. Earlier, the Malaysian sovereign wealth fund had launched a USD 835-million partial offer for a 51.5 per cent Parkway stake at SGD 3.78 a share. Fortis countered it with a USD 2.3-billion at SGD 3.8 per share to fully take control of Parkway. The market had been expecting Khazanah to make a full offer today at S$3.95 apiece. Parkway shares were suspended this morning pending announcements from Khazanah. http://www.corporateobserver.com.sg/news.php?reg_id=804 Mon, 19 Jul 2010 17:57:18 +0800 (July 16, 2010) - The United States Senate yesterday (US time) voted 60 to 39 to approve an overhaul of the financial regulatory system, with the New York Times describing the Bill as "heralding the end of more than a generation in which the prevailing posture of Washington toward the financial industry was largely one of hands-off admiration". American president Barack Obama is expected to sign the Bill sometime next week - the third landmark piece of legislation signed by Mr Obama, following the enactment of the historic health care bill in March and last year’s major economic stimulus program. Still, detractors are skeptical over the effectiveness of the new regulatory regime and the passing of the Bill could have adverse political implications for the upcoming midterm elections, despite lingering public anger at Wall Street. http://www.corporateobserver.com.sg/news.php?reg_id=798 Fri, 16 Jul 2010 17:45:24 +0800 SINGAPORE (July 16, 2010) - In a popular YouTube clip (watch video here), they were decked out in spiffy corporate attire, standing in front of their fancy cars while sharing how they had made millions. Now, three members of the defunct multi-level marketing firm, Sunshine Empire, could soon be trading their sharp suits and stiff collars for prison garb. A district court has found 49-year-old James Phang Wah - who set up Sunshine Empire and was referred to as "chief" in the said video - guilty of several offences, including running a fraudulent trading company and falsifying accounts. His wife, Neo Kuon Huay, and ex-company director Jackie Hoo Choon Cheat were convicted of similar charges. The trio, who will be sentenced on July 30, had managed to raise more than S$180 million from investors within 15 months - in what was described as Singapore's largest-known Ponzi scheme. Phang and Hoo were each found guilty of eight charges related to criminal breach of trust involving nearly a million dollars. District Judge Jasvender Kaur also found Phang and Neo each guilty of six counts of falsifying accounts involving nearly S$600,000. http://www.corporateobserver.com.sg/news.php?reg_id=797 Fri, 16 Jul 2010 16:47:07 +0800 SINGAPORE (July 16, 2010) – ComfortDelGro, Singapore’s largest transport operator as well as the world’s second largest land transport group, has launched a S$46.8 million takeover bid for Swan Taxis, the biggest provider of taxi services in and around Perth, Western Australia. In a regulatory filing today, ComfortDelGro announced that together with Swan Taxies, the pair has lodged a bidder’s statement, along with the necessary documents with the Australian Securities and Investment Commission. ComfortDelGro’s offer for all the shares and options in Swan Taxi would be internally funded. The Singapore-based transport operator is already the largest private bus operators in New South Wales and Victoria – to add to its considerable overseas footprint in places including China, the United Kingdom and Vietnam. Swan Taxis, which has been in existence since 1928, started out as a co-operative before being restructured into an unlisted public company in 2007. It currently operates a fleet of 1,667 taxis – or a 91 per cent share of the market. For the 12 months ended June 30 last year, Swan Taxis turned in revenue of A$13.3 million and profit before tax of A$4.6 million. ComfortDelGro noted that “the prospects for the taxi industry in the city are bright” with Perth’s population expected to keep growing. Citing Swan Taxi’s “advanced despatch system and strong customer base”, ComfortDelGro Group CEO Kua Hong Pak said: “We are excited about the prospects that this proposed acquisition offers us – a geographical expansion and extension of another of our core businesses in Australia.” ... The Swan Taxis board has recommended shareholders to accept the offer, with its chairman Kevin Foley reiterating that the board is backing the bid after it was "satisfied it represented a strong return to shareholders and the best opportunity to develop the business to meet growing demand". http://www.corporateobserver.com.sg/news.php?reg_id=796 Fri, 16 Jul 2010 16:20:07 +0800 SINGAPORE (July 15, 2010) - India-based Fortis Healthcare has set the deadline for Parkway shareholders to accept its S$3.2 billion general offer - as it reiterated its ambitions to "create a leading integrated healthcare services provider in Asia" by combining the strengths of the two entities. According to its offer document, which it despatched today, Fortis added that it would have lifted Parkway's revenue and net profit for the last financial year by 23.7 per cent and 11.9 per cent respectively. The combined revenue and net profit would have hit S$1.25 bn and S$133 million respectively. Fortis, which has pledged to make Parkway the flagship entity of the combined group, also noted that together, the two companies would operate 68 hospitals, satellite and heart command centres, 37 patient assistance centres and some 12,200 beds. They would also employ about 2,700 doctors and 18,000 other employees. http://www.corporateobserver.com.sg/news.php?reg_id=795 Fri, 16 Jul 2010 12:21:14 +0800 SINGAPORE (July 15, 2010) - It’s been a while since they had an “ang moh’’ (local slang for Caucasian) on their board. In fact, the bank doesn’t even have many white guys among its senior ranks to start with. But United Overseas Bank has been saying it is looking at succession planning at its board which has been staffed with several establishment men in their 70s. Chaired by tycoon Wee Cho Yaw, UOB which is not a big fan of foreign talent, today announced it has appointed former US Ambassador to Singapore Franklin Leo Lavin as an independent non-executive director. Mr Lavin, 52, who was the top American diplomat in Singapore from 2001 to 2005 was Under Secretary for International Trade at the US Department of Commerce from 2005 to 2007. He was chairman of Edelman Asia Pacific since 2009. The last Westerner to sit on UOB board had been John Dean Junior, a senior banker from Silicon Valley who stepped down a few years ago. Unlike DBS Group and OCBC Bank, UOB has kept a tight lid on foreign talent recruitment with Mr Wee helming the banking group for the last 51 years. Both DBS and OCBC are currently run by foreigners. http://www.corporateobserver.com.sg/news.php?reg_id=794 Thu, 15 Jul 2010 17:44:58 +0800 SINGAPORE (July 15, 2010) - Australand, the Australian property arm of Singapore's Capitaland Group, said it has achieved a significant milestone in its capital management strategy with the successful establishment of a A$1.3 billion unsecured syndicated bank debt facility, replacing existing secured facilities totalling A$1.15 billion. The new facility comprises three tranches: A$325 million expiring in June 2012, A$650 million expiring in June 2013 and A$325 million expiring in June 2014. The new facility both reduces the concentration of debt expiring in any one year and extends the Group’s debt maturity profile to 2.6 years. The syndicate consists of existing lenders to Australand with the addition of one new lender to the Group. The $1.3 billion unsecured facility replaces the secured $750 million Multi Option Facility which was due to expire in August 2011 and three secured bank bilateral facilities of $248 million, $100 million and $48 million expiring in April 2012, June 2012 and November 2012 respectively. Pricing of the new facility is in line with current market rates and is an improvement on margins of the replaced facilities. Australand has also established a Euro Medium Term Note Programme to enable access to offshore debt capital markets. This will assist the Group in further diversifying its sources of debt capital and improve access to longer dated funding. Australand’s Chief Financial Officer, Kieran Pryke said “we are pleased to have achieved this first step in moving to a totally unsecured borrowing platform. The new facility represents further progress against the Group’s capital management objectives, unencumbering approximately $2.4 billion of the Group’s assets, improving the Group’s liquidity position, extending the debt maturity profile, providing a lower average cost of debt and driving a reduction in administration costs across the Group”. “This transaction demonstrates the support of Australand’s relationship banks and positions the Group well by improving its financial flexibility and further diversifying its funding sources” Mr Pryke added. Capitaland shares ended one cent higher at S$3.78 apiece today while Australand shares closed one Australian cent lower at A$2.49 a share. http://www.corporateobserver.com.sg/news.php?reg_id=793 Thu, 15 Jul 2010 17:28:31 +0800 SINGAPORE (July 14, 2010) - The Hong Kong subsidiary of Singapore's DBS Group will pay out a combined HK$651 million ($84 million) to some buyers of Lehman Brothers constellation notes, the territory's financial regulator said on Wednesday. According to Reuters, customers classified by the bank as having a low to medium risk profile would receive their money returned plus interest that would have been payable had it been placed in a fixed-term deposit, Hong Kong's Securities and Futures Commission said in a statement. Investors in Singapore, Hong Kong and Indonesia who bought the product had lost their money after the U.S. investment bank Lehman Brothers went under in 2008. The constellation notes are credit-linked notes related to the collapsed U.S. bank. http://www.corporateobserver.com.sg/news.php?reg_id=791 Wed, 14 Jul 2010 17:35:38 +0800 SINGAPORE (July 14, 2010) – Singapore Prime Minister Lee Hsien Loong was quick to play down comparisons with China, after economists asserted that the republic was on track to overtake China as the fastest growing economy in Asia, and probably the world – following Singapore’s exceptional second quarter showing. Speaking to Singapore reporters at the end of his official United States visit, Mr Lee reportedly said: “Numerically the growth figures may be higher than other countries. I would hesitate to compare myself to China. I think if you compare yourself to Shanghai they may well be ahead of us.” The Prime Minister added: “But it's a good result and we should be happy but at the same time we should understand that it doesn't mean that next year you're going to get this, and the year after that you're going to get this." The government today upgraded Singapore’s growth forecast to 13 to 15 per cent, up from an earlier estimate of 7 to 9 per cent. China is expected to grow around 10 per cent this year. Several economists including Mr David Cohen, a regional economist with research house Action Economics, have gone on record to state that Singapore was on track to become the world’s fastest growing economy this year. But while Singapore will "probably come on top of the charts worldwide", Mr Cohen told AFP that this should be seen in the context of Singapore's GDP contraction of 1.3 per cent last year due to the global economic crisis, while China's GDP grew at around 9.0 per cent in 2009. http://www.corporateobserver.com.sg/news.php?reg_id=789 Wed, 14 Jul 2010 17:22:18 +0800 SINGAPORE (July 14, 2010) - Another record-breaking quarter has prompted the Singapore government to raise its full-year economic growth forecast spectacularly to between 13 per cent and 15 per cent. The latest forecast is a whopping 6 percentage-point increase from the previous estimated range of between 7 per cent and 9 per cent. The republic's blistering first quarter economic performance continued from April to June: GDP in the second quarter grew 26 per cent from the previous quarter, according to the latest statistics from the Ministry of Trade and Industry (MTI). MTI also revised its Q1 growth figures to a whopping 45.9 per cent — the fastest on records going back to 1975, according to the Wall Street Journal —from an initial estimate of 38.6 per cent. Taken together, Singapore's economic growth in the first half of the year hit a a record 18 per cent. The ministry said in a statement: "The exceptionally strong growth experienced by the Singapore economy in the first half of 2010 is therefore not likely to be sustained into the second half of the year. While year-on-year growth rates in the second half will be healthy, sequential growth from current levels of economic activity will be low." Even so, the sustained growth for the first six months of the year prompted the government. which is known for its cautious stance, to raise its GDP forecast - after private sector economists have repeatedly pointed out that the previous estimate was unrealistically low given the stellar growth that the republic had seen since the beginning of the year, post-crisis. And now, the latest official forecast has outstripped private economists' estimates. Still, CIMB-GK economist Song Seng Wun told WSK that the government's projects were attainable. "I suppose the only question now is how much more juice is left, but the forecasts are realistic," said Mr Song, who described 2010 as likely to be a tale of two halves. Singapore's open economy was hit especially hard by the recent global downturn and it underwent its worst recession since independence in 1965. Separately, Mr Song told Bloomberg that Singapore "will be among the fastest-growing countries not just in Asia, but the world, this year" - and policymakers would have to watch out for heightened inflation expetations following the latest exceptional data. http://www.corporateobserver.com.sg/news.php?reg_id=788 Wed, 14 Jul 2010 13:15:33 +0800 SINGAPORE (July 13, 2010) - Ratings agency Standard & Poor's (S&P) has maintained its ratings for the three Singapore banks DBS, OCBC and United Overseas Bank. "The affirmations acknowledge the banks' strong financial profiles and prudent management strategies, which enabled them to maintain resilient performances in an uncertain and difficult operating environment," S&P credit analyst Ivan Tan said, "these banks have liquid, well-capitalized balance sheets and healthy credit portfolios, protected by proactive risk management and sensible risk appetites." Last month, fellow ratings firm Moody's also affirmed its ratings for the three Singapore banks, pointing out that the eurozone debt crisis was expected to have limited impact on Asian lenders. Projecting a "stable" outlook for all the three banks, S&P rated DBS at "AA-" for the long term and "A-1+" for the short term while it gave both OCBC and UOB a rating of "A+" for the long term and "A-1" for the short term. S&P's dual rating methodology indicates "AAA" as the highest rating for a financial institution's long-term obligations and "A-1+" for short-term obligations. http://www.corporateobserver.com.sg/news.php?reg_id=787 Wed, 14 Jul 2010 11:31:38 +0800 SINGAPORE (July 13, 2010) - In 670 words, DBS chief executive Piyush Gupta tried to draw a line under last Monday's fiasco that saw the bank's automated teller machines (ATMs) as well as its Internet and mobile banking services break down for seven hours. Posting a message on DBS' website, Mr Gupta again apologised for the service disruption - which analysts estimated could have delayed several million dollars worth of transactions - and for the first time, explained what actually went wrong: A procedural error had occurred when an IBM repair team was replacing a faulty component in one of the bank's storage systems which connects to its main computers. Acknowledging Mr Gupta's open letter, the Monetary Authority of Singapore (MAS) said in a statement that it has "instructed DBS to give a full account of the incident to the public, including the actions it will take to prevent future recurrence". MAS did not rule out penalising the bank, adding that it will assess the outcome of DBS' ongoing investigation "before determining the appropriate regulatory action to take". Said Mr Gupta: "I am writing to personally apologise to you... You have every right to expect uninterrupted services 24/7, 365 days a year from us and I am sorry we have failed you on that count." While the explanation shed much light on what went wrong, it begs the question: Why didn't the bank inform their customers immediately when it became clear that a widespread service disruption was inevitable, saving them the rude shock that greeted them - at the ATMs, on their mobile phones and computers - when they tried to access DBS' banking services that morning? Mr Gupta conceded as much: "On hindsight, our internal escalation process could have been more immediate. We could also have done more to mobilise broadcast channels to inform customers of the disruption in services first thing in the morning." A full-scale investigation is still underway but so far, Mr Gupta said the bank understands from its IT vendor IBM that an "outdated procedure was used to carry out the repair" - again, the question is why? http://www.corporateobserver.com.sg/news.php?reg_id=785 Tue, 13 Jul 2010 22:08:31 +0800 SINGAPORE (July 15, 2010) - Is the overheating Singapore economy showing some signs of cooling? A day after the government released figures that showed the economy grew by 18.1 per cent in the first half of this year, the fastest in the world, the Urban Redevelopment Authority (URA) reported the private home sales totalled only 847 units in June, down from 1083 units in the month earlier. The top sales from the developers in June included projects like The Minton, La Brisa and Waterfront Gold. Developers had put out 1,010 private homes for sale during the months of June. Despite what appears to be some moderation in sales, residential prices continued to chalk up new benchmarks in recent months, surpassing the high of 1996 in some districts. Some analysts are warning the new prices recorded may not be sustainable and buyers are beginning to pull back. Some observers are already warning about the effects of the overheating. “With numbers like these, there is a growing chance that the MAS will have to tighten the screws again in October,” Frederic Neumann, co-head of Asian economic research at HSBC in Hong Kong and a former consultant to the World Bank told Bloomberg. Slack in Singapore’s economy “appears to have already vanished over the course of the first half of the year. Domestic demand continues to expand briskly, which should help to offset some of the emerging weakness in export markets.” .... Yesterday, the government attributed the strong economic expansion in the first six months of the year to strong exports and tourism-related expansion generated by the opening of the two integrated resorts. The Singaporean economy grew 19.3 per cent in the second quarter compared with the same period last year, the biggest rise since records began in 1975. http://www.corporateobserver.com.sg/news.php?reg_id=784 Tue, 13 Jul 2010 16:51:30 +0800 SINGAPORE (July 13, 2010) – Barclays has hired six senior bankers for its global wealth management division - adding to its Southeast Asia and South Asia teams based in Singapore – as part of aggressive plans to expand its business in the region. The London-based bank announced last month that it plans to quadruple the size of its wealth management business in key Asian markets over the next five years. The new hires were all poached from other banks and include Mr Soh Chye Guan – a 25-year industry veteran who was most recently a senior director at HSBC – who would join Barclays Wealth on July 23 as market head for Singapore and Malaysia. He will oversee and manage the team of private bankers and deliver the growth targets for both markets. http://www.corporateobserver.com.sg/news.php?reg_id=783 Tue, 13 Jul 2010 15:03:15 +0800 SINGAPORE (July 12, 2010) – Tiger Airways reported robust passenger volumes and load factors for last month, reflecting the sustained recovery of the aviation industry. The low-cost carrier saw 508,000 passengers board its flights last month, a 39 per cent increase year-on-year with the load factor unchanged at 86 per cent over the corresponding period. http://www.corporateobserver.com.sg/news.php?reg_id=782 Mon, 12 Jul 2010 18:38:54 +0800 (July 12, 2010) – While a global double-dip recession is unlikely, Asia must remain on guard for possible threats to the world's economic recovery, International Monetary Fund (IMF) chief Dominique Strauss-Kahn said today. Speaking at a conference in South Korea, Mr Strauss-Kahn cited a potential spillover from the eurozone debt crisis; the sharp rise in capital inflows into Asia; and the risks of overheating as “negative shocks” which policymakers in Asia “need to remain attuned to”. Still, with the economic recovery on track, Mr Strauss-Kahn added: “I don't believe there will be another dip. Our baseline is that there will be a recovery.” Last week, IMF forecast growth for Asia this year to hit 7.5 per cent compared to an average 4.6 per cent worldwide. Hailing the continent as "a global economic powerhouse" in the wake of the global slowdown, Mr Strauss-Kahn said: "As Asia's economic weight in the world continues to rise, its stake in the economic performance of other countries is rising too." The reforms put in place since the 1997-98 East Asian financial crisis, in particular, allowed Asia to rebound quickly from the global financial crisis “despite being hit hard initially”. But with Europe and the United States expected to face a possibly extended period of lower growth, the IMF chief urged Asia to increase domestic investment and consumption to counterbalance reliance on exports. "It's encouraging that many of the changes needed to foster and sustain this second engine of growth are already under way across the region," he said. These include strong social safety nets, which can boost private consumption, better infrastructure to encourage private investment and more flexible exchange rates, he said. http://www.corporateobserver.com.sg/news.php?reg_id=781 Mon, 12 Jul 2010 18:02:30 +0800 SINGAPORE (July 12, 2010) – Shares of Singapore-listed offshore-drilling firm Jasper Investments fell 17.6 per cent to close at S$0.07 today, its biggest fall since July 2, after the firm's independent auditor raised concerns about the firm's financial health. Over the weekend, in its statement filed with the Singapore Exchange, independent auditor Grant Thornton LLP raised a red flag on the company, as its current liabilities exceeded its assets by US$56.1 million (S$77.4 million). The auditor said that the company's status would depend on its "ability to generate revenue and cash flow within the next 12 months by securing drilling contracts from customers". "If the group is unable to continue as a going concern, adjustments would have to be made to reflect the situation that the assets may need to be realised other than in the normal course of business and at amounts which could differ significantly from the amounts stated in the balance sheet," it added. http://www.corporateobserver.com.sg/news.php?reg_id=780 Mon, 12 Jul 2010 17:18:25 +0800 SINGAPORE (July 12, 2010) – British bank Standard Chartered has signed an agreement to buy GE Commercial Financing (Singapore) , a specialist in hire-purchase financing and small and medium enterprise factoring. The bank did not disclose the price in its announcement today but said the deal has received regulatory clearance and should be completed by the end of the month. Mr Ajay Kanwal, StanChart’s regional head of consumer banking (Singapore and Southeast Asia), said the “strategic” acquisition further strengthens its franchise in Singapore and “helps us become a core bank to our SME customers”. http://www.corporateobserver.com.sg/news.php?reg_id=779 Mon, 12 Jul 2010 16:00:52 +0800 SINGAPORE (July 9, 2010) - Asset managers here handled record high assets worth S$1.2 trillion as at the end of last year, according to the Monetary Authority of Singapore. The latest figure was a 38.9 per-cent jump from $864 billion a year earlier and surpassed the pre-crisis peak in 2007. However, despite the growth in assets under management, the number of investment professionals last year dipped by 4 per cent to 2,516 compared to a year ago - due to fund closures, retrenchments during the crisis and cautious re-hiring. But the overall headcount is expected to rebound as market sentiments improve, said MAS. Speaking at the OCBC Global Treasury economic and business forum, MAS managing director Ong Chong Tee said the Asia Pacific region continued to be the key investment markets for Singapore-based asset managers, accounting for 61 per cent of the total assets under management (AUM) in 2009. This represented an increase of 9 percentage points from the 2008 MAS survey, underscoring the growing interest in Asia markets. Mr Ong said: "Asia's economic resilience through this recent crisis period stood in stark contrast to the more developed economies,' he noted. 'This was the first time that Asia has led a global recovery. In Q2 2009, most Asian economies exited the recession when US and Europe were still in contraction. In fact, the large economies in Asia such as China, India and Indonesia, continued to expand throughout the crisis. " As at the first quarter of this year, the region's combined GDP had risen more than 11 per cent above its previous peak, while that of G3 economies remained 2 per cent below their pre-crisis level. Going forward, Mr Ong said Asia is expected to continue to outperform the global economy. The IMF now expects Asia to grow by 7.5 per cent in 2010, with China potentially growing by some 10.5 per cent. By comparison, the world economy is expected to rise by 4.6 per cent. http://www.corporateobserver.com.sg/news.php?reg_id=773 Sat, 10 Jul 2010 00:21:21 +0800 SINGAPORE (July 9, 2010) - Dutch firm Cascal's resistance finally broke after Sembcorp Industries completed a US$192 million (S$266 million) takeover of the company by acquiring 92.3per cent of its shares at the close of its tender offer yesterday (New York time). Announcing this in a statement today, the Singapore energy, water and marine conglomerate said that it now plans to delist Cascal from the New York Stock Exchange. Sembcorp first made its move in April - striking a deal with Biwaters to acquire its 58.4 per cent stake in Cascal while making a US$206 million (S$285.2 million) offer to acquire Cascal's remaining shares. Knocking back the bid as "inadequate and coercive", Cascal went on to lodge a lawsuit against Sembcorp in a New York District Court, claiming that the Singapore firm allegedly breaching United States securities law and confidentiality agreements. But the lawsuit ultimately failed, with the Cascal board withdrawing on Monday its recommendation to reject the offer. All of Cascal's directors and executive officers also indicated that they intend to tender all of their shares for sale to Cascal. Noting the stiff opposition from the Cascal board against the offer, Sembcorp group president and chief executive Tang Kin Fei said he was pleased with the outcome. Mr Tang reiterated that the strategic acquisition will transform the group into a global water player with enhanced capabilities to serve the water and wastewater needs of both industrial and municipal customers. The acquisition will raise Sembcorp's operating capacity in the fast-growing water and waster water services sector by about 50 per cent, and aid its expansion into new markets such as South Africa and Latin America, where Cascal already operates. http://www.corporateobserver.com.sg/news.php?reg_id=772 Fri, 09 Jul 2010 23:51:59 +0800 SINGAPORE, (JULY 9, 2010) - SIA Engineering Company (SIAEC) has extended the contract of its president & chief executive officer William Tan Seng Koon. The new contract will be for three years, from 1 July 2010 to 30 June 2013, and will supersede Mr Tan’s current employment terms. Mr Tan was appointed as chief executive of SIAEC in May 2001, and as director of the Board on 1 March 2010. SIAEC said under Mr Tan’s leadership, the company has expanded the breadth and depth of its maintenance, repair and overhaul (MRO) services, and forged strategic collaborations with leading aerospace manufacturers. Since the Company’s listing on the Singapore Stock Exchange in May 2000, it has seen a double-fold increase in its revenue, share price and the number of joint ventures. The Board commended Mr Tan and his management team for the excellent performance of the company, and will continue to support management in meeting the demands of a highly competitive industry and the high expectations of its stakeholders. http://www.corporateobserver.com.sg/news.php?reg_id=770 Fri, 09 Jul 2010 17:39:01 +0800 SINGAPORE (July 8, 2010) – Government state investment arm Temasek Holdings turned in a mixed report card when it released its annual report today: While the value of its portfolio recovered and climbed 43 per cent – setting a new record in the process – its profits fell by 26 per cent as the financial markets struggle to shake off the lingering impact of the global economic crisis. In the 12 months to March this year, the market value of Temasek’s portfolio jumped to S$186 billion – surpassing the S$185 bn set in 2008 – an increase of S$56 billion from a year earlier. At a media briefing, Temasek's executive director Simon Israel described the new record portfolio valuation as a “number obviously that we are pleased with”. Said Mr Israel: “Through the roller coaster of a massive correction, from the market peak of 2007, to a near meltdown in 2008 and early 2009, and a mixed recovery in the second half of 2009, we kept our cool, and focused on what we needed to do as a long-term investor.” He added: “We maintained a liquid posture, kept our powder dry, made sure the home base was secure, and invested and divested steadily, taking advantage of opportunities which came along. Some investments had not turned out as expected, while most other investments did well. Where we thought the risks were not acceptable, or when we had other better opportunities, we were ready to do what we thought was best for the long term, despite any short-term pain.” However, net profit fell to S$4.6 billion, from S$6.2 billion a year earlier due to “lower profit contributions from some of the portfolio companies which were impacted by the global financial crisis", according to the annual report. ... While the question of who will take over the reins of Temasek still looms large – following a botched succession exercise last year attributed to strategic differences with CEO-designate Charles Goodyear, who subsequently left the firm – Mr Israel tried to put the issue to bed. Said Mr Israel: "There is no active immediate search for a CEO. Ho Ching is CEO and remains CEO." http://www.corporateobserver.com.sg/news.php?reg_id=769 Thu, 08 Jul 2010 17:39:07 +0800 SINGAPORE (July 8, 2010) - French supermarket giant Carrefour has refuted speculation that it plans to sell off its outlets in Singapore and Malaysia. Carrefour said in a statement that it was "business as usual" for every store in Singapore and Malaysia. It added that it had opened four hypermarkets in Malaysia this year and plans another four by the end of the year. Earlier this week, media reports had emerged that Carrefour was looking to offload its outlets in Singapore, Malaysia and Thailand for up to US$1 billion (S$1.39 bn) - following a statement in May by Carrefour CEO Lars Olofsson who said he was open to offers for the company's operations in markets where it was not in the top two spots. http://www.corporateobserver.com.sg/news.php?reg_id=768 Thu, 08 Jul 2010 14:55:06 +0800 SINGAPORE (July 8, 2010) - Malaysian sovereign fund Khazanah has extended the deadline of its partial offer for a majority stake in Singapore-based Parkway Holdings - after it received acceptances for less than 14.2 million shares, well short of the 313 million-target it was seeking to double its existing Parkway stake to 51.5 per cent. The partial offer of S$3.78 a share, which was made in May, was due to close today. But in an expected move - following a counterbid from Indian rival Fortis Healthcare - Khazanah unit Integrated Healthcare Holdings, which is fronting the offer, announced it was extending the deadline to July 26 or possibly beyond. At the time of its offer, Khazanah held a 23.8 per-cent stake in Parkway.Khazanah said it had received about 183.5 million valid votes fromshareholders approving the partial offer, which represents an approval of the offer by approximately 97.5 per cent of the total number of valid votes. However, only those holding a mere 4.5 per cent of the remaining shares - or 14,186,550 shares - accepted the partial offer. Khazanah revealed that its Parkway stake currently stands at 23.7 per cent and it has not acquired or agreed to acquire any shares. Last week, Fortis trumped Khazanah's offer by launching a general offer of S$3.80 a share - a move that observers believe would usher a full-blown bidding war with Khazanah tipped to come back with a higher offer. ... Meanwhile. Khazanah has reportedly started talks with five banks for loans that will enable it to increase its offer. Acording to Bloomberg, which cited three unnamed people with knowledge of the matter, Khazanah has approached Australia and New Zealand Banking; CIMB; DBS Bank; OCBC Bank and United Overseas Bank to seek a loan of at least S$1 billion. Khazanah will also reportedly increase a planned sale of Islamic bonds to as much as $1 billion from an initial $500 million if it decides to offer more for Parkway. http://www.corporateobserver.com.sg/news.php?reg_id=767 Thu, 08 Jul 2010 14:28:37 +0800 SINGAPORE (July 7, 2010) - Temasek Holdings, which is expected to unveil its annual report this month, is set to post a record jump in the value of its assets as markets rebounded and the Singapore state investment firm increased bets in Asia, according to Bloomberg. The past year had seen Temasek bugged by a brief period of leadership uncertainty after former BHP Billiton CEO Charles "Chip" Goodyear, who was designated to succeed Ms Ho Ching as chief executive, left the firm in August last year citing differences in strategy. Temasek would be reporting results for the 12 months to March 31 this year. CIMB-GK economist Song Seng Wun told Bloomberg that Temasek’s assets would likely have recovered by about 40 per cent to around the S$185 billion peak reached two years earlier. A year ago, assets plunged S$55 billion as Temasek lost on bank stakes during the financial crisis. Said Mr Song: “It’s a pretty spectacular rebound. All that red from the previous year would have turned around very sharply in line with the strong performance of the market.” Bloomberg reported that excluding the purchase of rights shares, Temasek invested about US$4.4 billion in 2009, down from US$9.5 billion the previous year, according to estimates by London-based Monitor Group. It completed 15 publicly announced deals worth about US$2.1 billion this year, according to preliminary data compiled by the consulting firm. Temasek has been expanding aggressively into energy, commodities and agriculture. Financials and telecoms, however, still account for the biggest share of its holdings. ... Specifically, Temasek bought more shares in PT Bank Danamon Indonesia and Neptune Orient Lines over the past year, among investments that increased in value as markets recovered. Danamon’s shares have risen more than four-fold from the subscription price of 1,200 rupiah in April last year. Neptune Orient has risen 48 per cent from the S$1.30 price offered to investors in June last year. The MSCI World Index rose 49 per cent in the 12 months through March. Temasek also spent more in Asia as the region led a rebound from the global economic crisis. Globally, sovereign fund assets climbed 9 per cent in 2009 from a year earlier to US$3.5 trillion, London-based research firm Preqin said in March. http://www.corporateobserver.com.sg/news.php?reg_id=765 Wed, 07 Jul 2010 17:52:16 +0800 SINGAPORE (July 7, 2010) – Overseas Union Enterprise Limited (OUE) which is now controlled by James Riady’s Lippo Group said its wholly-owned subsidiary, Clifford Development Pte Ltd (CDPL) has pre-committed leases with several prestigious corporations totaling some 88,000 sq ft or equivalent to 22 per cent of the net lettable area of 50 Collyer Quay. The initial lineup of tenants include Skandinaviska Enskilda Banken AB (PUBL), one of Europe’s leading banks with a track record spanning more than 150 years; Bain & Company SE Asia, Inc., one of the world’s leading global business consulting firms; and Allen & Overy LLP, a leading international law firm offering a full range of legal services across 36 major centres worldwide. OUE said as a testament to the group’s commitment to the commercial property sector, the former Overseas Union House is being redeveloped into a new Grade A 18-storey office tower; the iconic Change Alley Aerial Plaza Tower being conserved and the Change Alley Pedestrian Overhead Bridge being retrofitted to provide quick and sheltered link to the Raffles Place MRT station. This redevelopment has received Building and Construction Authority (BCA) Green Mark Gold Certification. Upon completion, the entire development will comprise a total gross floor area of 503,469 sq ft, net lettable area of 412,000 sq ft, and 245 car parking spaces on four basement levels. The office tower floor plates will range up to some 30,500 sq ft, with two of the floors designated as trading floors. The conservation of the Change Alley Aerial Plaza Tower and the refurbishment of the Change Alley Pedestrian Overhead Bridge are targeted to complete simultaneously with the office tower in the first quarter of 2011. http://www.corporateobserver.com.sg/news.php?reg_id=764 Wed, 07 Jul 2010 15:45:05 +0800 SINGAPORE (July 6, 2010)- The Singapore assets of popular French supermarket Carrefour SA could end up with a new owner soon, according to media reports. According to Dow Jones Newswires, leading global supermarket chains are interested in the assets of the French hypermarket Carrefour SA in Singapore, Thailand and Malaysia, people with direct knowledge of the deal told the news agency today. "It's the big boys that are interested. Big C Supercenter and Tesco for the Thai assets; Tesco, Dairy Farm International Holdings and Japanese supermarkets for the Malaysia stores, and Tesco for Singapore," one of the sources told Dow Jones Newswires. A second person said if a single buyer emerges for all three countries "the deal will probably be wrapped up this year. If not, it could take a bit longer." A third person said Monday that Carrefour was in the early stages of selling its stores in Thailand, Singapore and Malaysia and that if the sale goes through it could fetch the French retail giant up to US$1 billion. In Singapore, Carrefour operates a highly popular store in Suntec City. http://www.corporateobserver.com.sg/news.php?reg_id=763 Tue, 06 Jul 2010 17:34:50 +0800 SINGAPORE (July 6, 2010) - Talk of Optus, the Australian telecom arm of Singapore Telecoms, going for a listing continued to surface and this time with the help of the company’s own official. Comparing the Aussie mobile unit with other listed giants on the Australian bourse, Optus chief executive Paul O Sullivan had told investors recently that the company would be ranked nineteenth by revenue if it were listed on the ASX. This position would be supported by Optus' 30 per cent contribution to SingTel's EBITDA in the year to March 31, Mr O Sullivan was quoted the Australian Financial Review. SingTel reiterated that it had no immediate plans for a float, which punters expect would raise up to A$10 billion, but said it would "not be averse" to divestments if they added value for shareholders, according to The Australian Financial Review. Senior executives of Singtel including its CEO Chua Sock Koong had repeatedly denied the group was going to list the Australian subsidiary. For the last financial year, Optus reported a 16 per cent rise in annual net profit to US$676 million, thanks to its due to its mobile phone business where the group holds the second largest market share Down Under. http://www.corporateobserver.com.sg/news.php?reg_id=762 Tue, 06 Jul 2010 17:22:35 +0800 SINGAPORE (July 5, 2010) - It's girl power at Temasek Holdings as the Singapore state investment fund has reportedly hired Baroness Shriti Vadera - a controversial figure in British politics and one of the closest economic policy advisers of ex-British Prime Minister Gordon Brown - as an adviser to chief executive Ho Ching. According to British daily newspaper Telegraph, the appointment of Lady Vadera - a former UBS Warburg corporate financier who was appointed business minister under Brown's government - to assist Temasek's board, was likely to be a temporary stint of six months. It added that it understands that Temasek wants access to Lady Vadera's financial and geopolitical expertise, as it restructures parts of its investment portfolio. The Telegraph said the British Cabinet Office's advisory committee on business appointments is expected to reveal the appointment later today as part of Whitehall rules policing roles taken by former government ministers. The Uganda-born investment banker was an adviser to Mr Brown during his time as Chancellor of the Exchequer. She was involved in the sale of the government defence technology company QinetiQ; the partial sale of the London Underground; and placing national rail network back into public ownership. Following Mr Brown's ascension to Prime Ministership, Lady Vadera was appointed to several government positions before she was appointed as business minister in 2008. Since leaving the government under controversial circumstances last September, Lady Vadera - who was dubbed by the British press as "Shrieky Shriti" for shouting at officials - has been hired by the Dubai government to give its strategic advice on the restructuring of Dubai World's debts. She has also become a policy adviser to the rotating G20 presidency, which currently sits with South Korea. http://www.corporateobserver.com.sg/news.php?reg_id=761 Tue, 06 Jul 2010 16:40:20 +0800 SINGAPORE (JULY, 5, 2010) - Look like there is no shortage of mega corporate transactions even as the stock market goes through a sluggish phase amid the global economic uncertainties. With the battle for control at hospitality group Parkway Holdings still in full swing, Kuok Khoon Hong’s Wilmar International, now the second largest company on the Singapore Exchange, said it is buying CSR Limited’s sugar and renewable energy business in Australia for A$1.75 billion. Mr Kuok, a nephew of Malaysia richest man Robert Kuok who was known as Sugar King, is looking to take control of Sucrogen which is the largest producer of raw sugar in Australia after another bidder from China known as Bright Food which made a cash offer of between A$1.65 billion and A$1.7 billion which was below an earlier indicative bid of A$1.75 billion that it pitched in April. CSR had originally planned to spin off Sucrogen - which is among the top 10 globally - into a separate listed entity in order to separate it from its building products businesses. The agreed deal gave Sucrogen an enterprise value of A$1.34 billion in equity and A$403 million in net debts. Wilmar said the acquisition will be funded by internal funds and bank borrowings. Completion is expected around Sep 20, 2010 and is subject to the approval from Australia’s Foreign Investment Review Board and New Zealand’s Overseas Investment Office. Mr Kuok, chairman and chief executive of Wilmar said:“The acquisition of Sucrogen will jump-start [the group’s] strategy to expand into sugar.’’ He described Sucrogen as a good strategic fit with Wilmar’s existing portfolio of high quality, processed agri-products. The shrewd Malaysian commodities trader said Wilmar will work with Sucrogen’s management to create synergies and to pursue growth strategies in Indonesia and other high potential Asian markets. According to the Financial Times, Bright Food’s failure to secure the sugar business marks the second time recently that a major Chinese company, with an appetite for food and crop protection assets, has missed out because of pitching a lower offer at the eleventh hour. FT noted that late last year, Sinochem cut it’s A$2.8bn bid for Nufarm by 8 per cent and was consequently trumped by Japan’s Sumitomo, which went on to buy a 20 per cent stake in Nufarm – one of the world’s largest “off-patent” agricultural chemical manufacturers. Wimar shares were trading at S$5.85, up 12 cents at 3 pm today. http://www.corporateobserver.com.sg/news.php?reg_id=760 Mon, 05 Jul 2010 15:42:24 +0800 SINGAPORE (July 6, 2010) – Indonesian group PT SMART (SMART) and its Singapore-listed parent company Golden Agri-Resources (GAR) continue to defend their environmental records as the two responded to the latest allegations made by Greenpeace. In a statement to the Singapore Exchange, both companies of the Sinar Mas Group, refuted latest allegations by Greenpeace that appeared on its website which stated that SMART is a “controversial company” among other things. “GAR’s subsidiary SMART is a responsible company that is committed to producing sustainable palm oil. SMART manages all oil palm plantations of GAR. Contrary to Greenpeace’s statements, SMART is absolutely against burning and established a zero burning policy in 1997, ahead of the Indonesian government, which subsequently established the same policy in 1999.’’ the statement said. ... The industry provides direct employment for approximately 4.5 million persons in the country. In 2005, palm oil accounted for US$ 3.8 billion of exports, or 6 per cent of non oil and gas exports of the country. In 2009, it reached US$ 10.4 billion worth of exports or 11 per cent of Indonesia’s non oil and gas exports. In addition, the product is a vital component in the food chain, allowing the world to meet its growing demand for food. The presence of palm oil makes a wide range of products – from food to cosmetics – affordable for households. Indonesian palm oil and other agricultural groups such as SMART and GAR have consistently been targets of Western environment protection groups in the last few years. The Indonesian conglomerates have been hiring experts and public relations agencies to help defend their cases. GAR shares were trading half a cents lower at 52.5 cents a piece at 4.30 pm today. http://www.corporateobserver.com.sg/news.php?reg_id=759 Mon, 05 Jul 2010 14:30:59 +0800 SINGAPORE (July 5, 2010) - Remember the time when there was no such thing as an automated teller machine (ATM) and you can only withdraw money over-the-counter at the bank's branch offices? Well, for DBS and POSB customers this morning, it felt like pre-1979 again when DBS' banking services were disrupted around 3am this morning. Customers were unable to withdraw cash from ATM or use their credit cards issued by Singapore's largest lender. DBS' internet banking services were down as well. While the breakdown was reported as early as 630am, DBS said in a statement that it had detected the problem some 3.5 hours earlier. As at 10am, partial services were resumed - the bank said all its DBS and POSB ATMs as well as branch services have been restored and it is now working to restore all other services as soon as possible. http://www.corporateobserver.com.sg/news.php?reg_id=756 Mon, 05 Jul 2010 14:16:21 +0800 SINGAPORE (July 2, 2010) – The proposed secondary listing of mainboard-listed China Fishery - which would have been the first Singapore-Oslo dual listing since an agreement was inked in July last year between the Singapore and Oslo stock exchanges – has been aborted. In a filing on the Singapore Exchange (SGX), the Hong Kong-based company said it has pulled the plug on its proposed secondary listing on the Oslo Bors due to the current market sentiment in Europe. http://www.corporateobserver.com.sg/news.php?reg_id=754 Fri, 02 Jul 2010 16:54:28 +0800 SINGAPORE - (July 2, 2010) - PUB, Singapore’s national water agency, and Optiqua Technologies Pte Ltd, the Singapore-based provider of real time monitoring solutions for the international water industry, announced today the signing of a collaborative agreement for the development of Optiqua’s real time sensor technology. Under the agreement, PUB and Optiqua will embark on a collaboration to accelerate the development and launch of Optiqua’s award-winning monitoring technology into an affordable sensor that can be implemented in Singapore’s water distribution grid for real-time water quality monitoring. This 15-month pilot project is being pilot-tested at PUB’s facilities. Optiqua’s sensor technology is based on its patented Lab-on-Chip platform that can continuously monitor a full spectrum of potential contaminations in drinking water. As a low-cost, online solution, it allows for an economically viable network to be implemented throughout a water distribution grid. Such a high density network of sensors provides an effective early warning system that can dramatically reduce incident response times and recovery costs. Melchior van Wijlen, Managing Director of Optiqua Technologies said, “This is an important step in bringing our monitoring solutions to its final development and launch. We have always enjoyed an excellent working relationship with PUB. We are confident that their support and experience will greatly benefit our products, especially as we look to integrate our sensor technology with PUB’s investments in innovative data infrastructures and data analysis. It will offer the building blocks for an island-wide real time early warning system, which will help to protect public health and improve the overall water quality protection.” Harry Seah, Director, Technology & Water Quality from PUB said, “Singapore enjoys safe drinking water because of our comprehensive water treatment processes and rigorous water quality monitoring programme.In spite of this, PUB is always on the look-out for new reliable and faster methods for water quality monitoring. This pilot project with Optiqua is expected to complement PUB’s ongoing efforts in real-time water quality monitoring. Such a system will further enhance safety for all our water consumers.” http://www.corporateobserver.com.sg/news.php?reg_id=753 Fri, 02 Jul 2010 16:36:43 +0800 SINGAPORE (July 2, 2010) - Malaysian sovereign fund Khazanah is likely to respond to Fortis’ counter-bid for Parkway in a week’s time, India's Economic Times (ET) quoted an unnamed senior official as saying. The senior official said: "Let’s hear all the facts out. We have the luxury of time. But, before July 8, the first closing date, expect something from us." The source added that Khazanah had expected Fortis’ offer. Now that Fortis had made its move, it has given Khazanah a "sense of pricing". The senior official added: “It’s only (a) few hours since the bid has been out in the market. We have to wait and see how Parkway reacts and the pay-out capabilities of Fortis. The offer has not necessarily come as a surprise. We are looking at it." Shares of mainboard-listed Parkway Holdings closed 8.4 per cent higher after Fortis Healthcare offered to buy the remainder of the company for S$3.2 billion(read earlier story here). Following a one-day trading halt, Parkway shares closed at S$3.83 a piece today - the shares closed at S$3.57 on Wednesday. New Delhi-based Fortis is offering S$3.80 a share for the 75 per cent it doesn’t already own. The all-cash bid tops the partial offer from Malaysian sovereign fund Khazanah, which offered S$3.78 a share in May to more than double its stake to 51.5 percent in Parkway. As the dust settles after Fortis' move yesterday, analysts are expecting a counterbid from Khazanah, which could usher a full-blown bidding war - echoing the Parkway investors' sentiment which accounted for the spike in share price. ... Nomura analysts Lim Jit Soon and Tsai Yuan Yiu believe the crux of how the bidding war would pan out lies in Malaysian healthcare services provider Pantai - in which Khazanah and Parkway hold stakes of 60 per cent and 40 per cent respectively. The Nomura analysts wrote in a note to clients: "The risk for Fortis is that if it manages to control Parkway but is unable to come up with an amicable agreement with Khazanah over Pantai, Pantai’s value to Parkway may be affected." Fortis, they added, would have taken such a consideration into account. "This conundrum does not apply to Khazanah as it is in control of Pantai and likely to extract the best value if it succeeds in controlling Parkway. In this regard, we believe Khazanah may have an edge in the bidding process," the analysts said. http://www.corporateobserver.com.sg/news.php?reg_id=747 Fri, 02 Jul 2010 11:22:42 +0800 SINGAPORE (July 1, 2010) - Singapore home prices continued to head north, surging to a 17-year high in the second quarter of this year despite uncertainties in the global financial markets and some signs of the market cooling off recently. Releasing the latest flash estimate for private residential property market, the Urban Redevelopment Authority (URA) said property prices for private homes rose 5.6 per cent in the second quarter as compared to the previous quarter. Prices of non-landed private residential properties increased by 5.1 per cent in Core Central Region, 4.5 per cent in Rest of Central Region and 5.7 per cent in Outside Central Region in the quarter. In comparison, for first quarter, prices of non-landed private residential properties increased by 4.4 per cent in Core Central Region, 7.9 per cent in Rest of Central Region and 4.3 per cent in Outside Central Region. Commenting on the latest numbers, PropNex said the flash estimates released by URA and HDB for 2Q10 have revealed a sustained demand for both the public and private housing. It said in a statement:“The resale price index (RPI) inched up to another 3.8 per cent to another new high of 160.9. The increase could be attributed to median Cash-Over-Valuation (COV) nudging up a little more quarter-on-quarter.’’ “Our 2Q10 transactions show a median COV of $30,000 for all flat types across all estates,“ PropNex CEO Mr Mohamed Ismail, said. “HDB’s 1Q10 results showed an overall median COV of $25,000.” Mr Ismail said: “I am confident that the private property price index will continue to go up towards the end of 2010. And this will be easily achieved with our projected overall growth of about 3-4 per cent per quarter for the rest of 2010.” But Koh Poh Chew, managing director at property consultancy KPC Properties warned that the rise in the property market may not be sustainable. “This rate of increase is not sustainable. Already we are seeing sellers on the ground getting more realistic in their asking prices and yet buyers are still adopting a wait-and-see attitude. There are just too many uncertainties out there.’’ The URA will release the full 2nd Quarter 2010 real estate statistics in about a month , when more data on the caveats lodged and the take-up of new projects are reported. With elections around the corner, property prices and affordability particularly in the public sector could become a hot issue. The government had already taken several measures to tamper with speculative demand as well as ensure ample supply of land and flats. http://www.corporateobserver.com.sg/news.php?reg_id=746 Thu, 01 Jul 2010 19:04:19 +0800 SINGAPORE (July 1, 2010) - After months of "will-they-or-won't-they" speculations and counter-speculations, India's Fortis Healthcare has finally made its move - and it is going one up over rival bidder Malaysia sovereign fund Khazanah by making a general offer to buy all the remaining shares it does not own at S$3.80 per share. Yet, observers remain baffled over Fortis' gameplan. Are they merely stoking a bidding war to drive up Parkway's share prices as they look to achieve a higher exit price? Are they just out to thwart Khazanah and secretly hoping that they will not have to cough up with the money to acquire 100 per cent of Parkway? Fortis' expected move comes a week before Khazanah's partial offer was set to close on July 8 - and come several weeks before the July 30 deadline set by Singapore's security regulator to declare whether or not it intends to make a counterbid for Parkway. Announced in a regulatory filing to the Singapore Exchange, the Fortis bid - which tops Khazanah's partial offer to take its shareholding to 51.5 per cent by offering S$3.78 for each share - values Parkway at S$4.3 billion. Parkway shares closed at S$3.57 yesterday and were halted from trading today pending the announcement. Fortis, India’s second-biggest hospital operator by market value, had first revealed its ambitions to use Parkway as a vehicle to expand into the global healthcare market when it paid S$959.4 million in March for a 23.9 per cent stake in Parkway. In a separate statement, Fortis chairman Malvinder Mohan Singh, who also assumed the chairmanship of Parkway following Fortis' earlier investment, said the general offer was to "build upon our investment in March this year and we see the combined platform as a way to drive long-term value for the shareholders of both Parkway and Fortis". Analysts, though, were not overly impressed with Fortis' general offer. Expecting a bidding war to erupt, some suggested that Fortis was merely trying to whip up a bidding frenzy and achieve a better exit price. Mr Ranjit Kapadia, an analyst with Mumbai-based HDFC Securities, told Reuters: "Fortis is just testing the water with this offer. Had it been serious it could have made an offer Khazanah wouldn't have been able to match." Mr Ambareesh Baliga, an analyst with Mumbai-based brokerage Karvy Stock Broking, added: "It's just the beginning of a bidding war. A price of up to S$4.20 would be fair for Parkway." http://www.corporateobserver.com.sg/news.php?reg_id=745 Thu, 01 Jul 2010 12:20:40 +0800 (June 30, 2010) - It might be the last of China's "big four" state banks to list, but the initial public offering (IPO) of Agricultural Bank of China (ABC) - in which Singapore state investment arm Temasek Holdings and United Overseas Bank Group are cornerstone investors - is certainly not the least. Far from it. ABC kicked off today a share offer worth a world-record US$23.2 billion as it gets its listing plans underway. It will float its shares in Hong Kong and Shanghai next month, and the monster IPO is on track to overtake a previous record of US$22 billion set by Industrial and Commercial Bank of China in 2006. The IPO has already won bedrock support from heavyweight investors -- including Qatar's sovereign wealth fund, British bank Standard Chartered and US food giant Archer Daniels Midland. According to AFP, queues were building outside bank branches in Hong Kong where the ABC prospectus was being handed out. "I think it will be a pretty good investment -- there is good demand for this stock," Warren Ng, 24, told AFP as he grabbed a weighty prospectus at HSBC's headquarters in the city's financial district. "I've already made up my mind. I'm going to put some money in it." Hong Kong daily South China Morning Post (SCMP) reported that retail investors may be distracted by the World Cup. "The IPO has come at a wrong time as market sentiment is not good while the World Cup is going on," Christopher Cheung, chairman of Hong Kong's Christfund Securities, to SCMP, "(Some investors) think they could earn more money from soccer betting than the IPO." http://www.corporateobserver.com.sg/news.php?reg_id=744 Wed, 30 Jun 2010 18:33:40 +0800 SINGAPORE (June 30, 2010) – Bouyed by an 87-per-cent surge in full-year profit, Mapletree Investments - the real estate unit of Singapore’s state investment firm Temasek Holdings – has set its sights on bigger ambitions, including almost doubling its assets in five years with an eye on an initial public offering (IPO). Net income rose to S$393.8 million in the year ended March 31 from S$210.3 million the previous year, helped by new developments and gains from the increased value of its holdings. Total assets under management climbed 9 percent to S$12.9 billion in the year. Mr Hiew Yoon Khong, Mapletree’s chief executive officer, told reporters at a press briefing: “In a nutshell what the new business plan entails is doubling up, gearing up our business by two times in terms of size. Other performance metrics that we are targeting such as profitability and fee income we expect to scale up considerably in the next four to five years.” According to Mr Hiew, Mapletree’s shift since 2004 to an Asia-focused private- equity growth model from a Singapore-based traditional real estate firm has spurred growth. The company aims to almost double assets under management to S$25 billion in five years, with a focus on China, India and Vietnam. Mapletree currently manages two real estate investment trusts. It plans to launch more such funds, including industrial and property trusts. The company may list Mapletree Industrial Trust, which has assets of S$1.73 billion, this year, Chief Financial Officer Wong Mun Hoong said at the press meeting. Mapletree said it also planned to list a trust in Singapore that will hold its commercial properties, anchored by VivoCity, after selling shares in its industrial trust. The firm is still deciding on the other assets that will be included in the planned Mapletree Commercial Trust. But Mr Hiew reiterated there was “still quite a lot of work” before any listing of the trusts. In fact, Mapletree is also considering an IPO, after the listing of the industrial and commercial trusts. Said Mr Hiew: “It’s always at the back of our mind. It’s more sensible to profile ourselves better before we jump into the public space.” http://www.corporateobserver.com.sg/news.php?reg_id=743 Wed, 30 Jun 2010 18:00:04 +0800 SINGAPORE (June 30, 2010) – With about week to go before Khazanah’s partial offer for Singapore-based Parkway Holdings, the Malaysian sovereign fund’s bid was dealt another blow. In a report, Glass Lewis, an independent governance analysis and proxy voting firm, advised Parkway shareholders against supporting the Khazanah offer on the basis it could cause fissures in the boardroom. In fact, it is advising shareholders to compel either Khazanah or rival suitor India’s Fortis Healthcare to make a full general offer, by voting against Khazanah’s partial offer. Mr Jason McCandless, a Glass Lewis analyst, wrote: “Without commenting on the fairness of the partial offer value, we believe that allowing Khazanah to acquire a controlling interest in Parkway could be unfavorable for continuing shareholders over the long-term. If the partial offer were successful, the remaining minority shareholders of Parkway would be left in an untenable position to Khazanah's strategic decisions for the Company, fair or unfair.” The report added that Khazanah should put up a full general offer since its stated intent is to control the company. Mr McCandless added: “Though the investor indicates that the structure of the partial offer provides shareholders the opportunity for continued participation in the growth of the Company, we believe that such a manoeuvre allows for Khazanah, or any party that were to present a partial offer, to acquire control of the Company without offering a control premium to all shareholders of the Company.” http://www.corporateobserver.com.sg/news.php?reg_id=742 Wed, 30 Jun 2010 16:23:39 +0800 Singapore, (June 30, 2010) - Keppel Integrated Engineering Ltd (KIE), the environmental technology and engineering arm of Keppel Corporation Limited, today officially opened Singapore’s newest Waste-to-Energy (WTE) plant, the first to be built under the National Environment Agency (NEA)’s Public-Private Partnership (PPP) initiative. The Keppel Seghers Tuas WTE Plant has the capacity to treat 800 tonnes of solid waste a day to generate more than 20MW of green energy, contributing to Singapore’s electricity supply. It is the first incineration plant in Singapore to showcase WTE technology from a local company, and also one of the most compact WTE plants in the world. KIE, through its wholly owned subsidiary, Keppel Seghers Engineering Singapore Pte Ltd (Keppel Seghers), designed and built the WTE plant incorporating Keppel Seghers’ combustion grate and flue gas cleaning proprietary technologies, and will operate and maintain the plant for 25 years under a contract awarded by the NEA. Together with the Senoko WTE Plant, which Keppel Seghers also operates, Keppel will treat close to half of Singapore’s incinerable waste. Both the WTE plants and the Keppel Seghers Ulu Pandan NEWater Plant form the initial portfolio of K-Green Trust which was listed on the Main Board of the Singapore Exchange yesterday. Mr Michael Chia, Deputy Chairman and Chief Executive Officer of KIE, said, “Occupying only 1.6 hectares, the Keppel Seghers WTE Plant is designed to effectively support NEA’s aim of building a sustainable quality environment in land-scarce Singapore, incorporating many space-saving and technologically advanced features.” During the opening ceremony, Keppel also announced that research on Memstill1 by the Keppel Environmental Technology Centre (KETC) is entering the next milestone in technology implementation with the design, construction, and operation of a demonstration plant. The plant, to be built on Singapore Refining Company’s petroleum refinery located on Jurong Island, will have a freshwater production capacity of 100m3/day. Developed further by the KETC, Memstill is a new technology that produces desalinated water using waste heat and membrane-based distillation. Therefore, Memstill technology can be considered environmentally friendly. Mr Chia added, “Our commitment to being a significant and long-term partner of the Ministry of the Environment and Water Resources and its statutory boards extends beyond waste management. I am pleased to announce that with the support of the Environment and Water Industry Programme Office, PUB and EDB through the TechPioneer grant, we will be taking a big stride in our water solutions with the construction of a Memstill demonstration plant located on Jurong Island during the fourth quarter this year.” The KETC is a R&D centre that KIE set up in 2007 to initiate, manage and conduct R&D, product development, engineering process improvement, project management improvement and knowledge management activities within the KIE Group. http://www.corporateobserver.com.sg/news.php?reg_id=741 Wed, 30 Jun 2010 15:05:03 +0800 SINGAPORE (June 29, 2010) – It has almost become an annual ritual: A disgruntled institutional shareholder at United International Securities (UIS) – a closed-end fund controlled by United Overseas Bank Group – piling pressure on its board over the discount to net asset value at which the shares are trading. And this time, European hedge fund Laxey Partners, which holds about 20.3 million UIS shares or a stake of more than 10 per cent, are going a step further: They want to remove directors Wee Cho Yaw, Wee Ee Cheong, Ong Sea Eng Terence and Yeo Teng Yang. But with one stroke, UIS appeared to have defused the situation - at least for now. In a filing to the Singapore Exchange today, UIS rejected Laxey’s request for an extraordinary general meeting (EGM). Apart from the removal of the UIS directors, Laxey also called for resolutions to ask the directors to “provide all shareholders with a detailed explanation as to the reasons” for the discount; “take all steps necessary” to reduce the discount; and allow shareholder to redeem their shares. UIS said in a statement that its board has sought legal advice and found that the requested resolutions concerning the discount are “not resolutions that may be properly passed at a general meeting of the Company because they relate to matters which fall within the Directors’ powers of management”. As to Laxey’s request to remove the directors, UIS reiterated that with the exception of Mr Wee Ee Cheong, the others were re-elected recently by shareholders at its annual general meeting. It added that Laxey also failed to provide reasons behind the proposed removal of the directors. It was just seven months ago when UIS had to deal with similar criticisms from shareholders at an EGM called by Laxey. Then, a proxy shareholder asked if the fund can be converted into a unit trust so that shareholders can exit at the net asset value instead of “perpetually trading at a discount”. http://www.corporateobserver.com.sg/news.php?reg_id=740 Tue, 29 Jun 2010 19:47:26 +0800 SINGAPORE (June 29, 2010) - Singapore Airlines has joined in the bandwagon of Singapore companies taking advantage of the low interest rate environment to raise money through the debt market. In an announcement, the national carrier said it is issuing 10-year fixed rate notes worth S$500 million due 2020 to help fund its operations . This funding is raised under the company’s S$1 billion multi-currency medium term note programme which has been priced on 29 June 2010. The net proceeds from the Series 001 Notes will be used for general corporate or working capital purposes and financing of capital expenditure. The Series 001 Notes will bear interest at the rate of 3.22 per cent per annum, payable semi- annually in arrear. The Series 001 Notes, which will not be rated, are expected to be issued on or about 9 July 2010. The joint lead managers and joint bookrunners in respect of the Series 001 Notes are Australia and New Zealand Banking Group Limited, DBS Bank Ltd, Oversea-Chinese Banking Corporation Limited and United Overseas Bank Limited. SIA said application will be made to the Singapore Exchange to list the notes. Several listed companies including DBS, United Overseas Bank and Neptune Orient Line have been tapping the debt market for fund raising exercises that would secure funding for the next few years. The companies have been taking advantage of the low interest rate environment amid the uncertain equity market condition to secure financing for the next few years. http://www.corporateobserver.com.sg/news.php?reg_id=739 Tue, 29 Jun 2010 17:43:42 +0800 SINGAPORE (June 28, 2010) - The Urban Redevelopment Authority (URA) has awarded the tender for the white site at Jurong Gateway Road to Lend Lease Retail Investments and Lend Lease Commercial Investments - both part of Australia's Land Lease Group. The group submitted the highest bid of S$748.9 million for the 99-year lease site, which can be developed for commercial, residential or hotel use. It has a site area of 19,124.5 square metres, and a maximum gross floor area of 107,098 square metres. The tender for the site was launched on April 26 and closed on June 24. Commenting on the bid, Lend Lease chief executive officer Steve McCann told The Australian that this was an "important strategic transaction for our Asian business". http://www.corporateobserver.com.sg/news.php?reg_id=738 Mon, 28 Jun 2010 18:45:05 +0800 SINGAPORE (June 28, 2010) - Neptune Orient Lines, Singapore's national shipping line has hired three banks to help arrange a roadshow that may result in a dollar bond issue, a source close to the deal told Reuters. The news agency said the company hired Standard Chartered Bank, HSBC and DBS for the three-day roadshow that would begin in Singapore tomorrow which will take the management to Hong Kong and London. http://www.corporateobserver.com.sg/news.php?reg_id=737 Mon, 28 Jun 2010 16:49:03 +0800 SINGAPORE (June 28, 2010) - Visitor arrivals to the republic surged to a record high for the sixth straight month in May. According to the Singapore Tourism Board (STB), 946,000 people visited Singapore last month, an increase of 30.3 per cent compared to a year ago. Indonesia (186,000), India (116,000), Malaysia (82,000), China (72,000), and Australia (64,000) were Singapore's top five visitor-generating markets in May. These markets accounted for 55 per cent of total visitor arrivals for the month. Marina Bay Sands, the second of Singapore's two Integrated Resorts, opened in late-April. Along with Resorts World Sentosa , the two IRs attracted droves of tourists - boosting tourist arrivals as the global economic recovery got underway. With MBS fully opened this week, more tourists are expected in town to check out the landmark attraction. http://www.corporateobserver.com.sg/news.php?reg_id=736 Mon, 28 Jun 2010 16:11:25 +0800 SINGAPORE (June 28, 2010) - Container shipping leader APL which is part of Singapore’s Neptune Orient Line is moving two senior executives into new roles to strengthen global trade lane management and build further momentum in the European market. NOL said today it has named European regional president Dave Appleton to the newly created position of senior vice president, liner trade management. It also said that Detlev Kerber, vice president of the Asia-Europe trade, will replace Appleton as the President in Europe. Both are 30-year veterans of the maritime industry. Both begin their new assignments Aug. 1. “We’re putting two capable leaders with decades of international experience in place to grow our business,” said APL President Eng Aik Meng. “They’ll help us meet the building demand as global trade recovers and deliver the service reliability our customers depend on.” Mr Appleton, who had been APL’s European President since 2002, will now manage all the carrier’s global trade lanes. He’ll work with executives in planning, operations and regional management to refine APL’s ocean and land transportation services. Mr Kerber will manage sales, business development and operations throughout Europe. APL, the world’s fourth-largest container carrier, has more than 20 ocean services connecting Europe to Asia and the Americas. As the Asia-Europe trade executive, Kerber was responsible for most of those. Mr Appleton will be based in Singapore, the corporate headquarters of APL’s parent company, NOL Group. Kerber will move to the London suburb of Uxbridge, headquarters for APL’s European region. http://www.corporateobserver.com.sg/news.php?reg_id=735 Mon, 28 Jun 2010 15:00:24 +0800 SINGAPORE (June 28, 2010) - CapitaMalls Malaysia Trust (CMMT) will offer units in the real estate investment trust to retail investors in Malaysia at an indicative price of MYR1.08 each in an initial public offering, according to the prospectus published by the Malaysian unit of Singapore-based CapitaMalls Asia. Under the IPO, the trust will offer 786 million units to institutional investors in Malaysia and overseas, and to the retail investors in Malaysia. "The final retail price will be the lower of the retail offer price of RM1.08 per unit or the institutional price less a discount of 2 sen. The institutional price will be determined by way of book building," it added. http://www.corporateobserver.com.sg/news.php?reg_id=734 Mon, 28 Jun 2010 12:38:48 +0800 SINGAPORE (June 28, 2010) – For ex-jailbirds seeking a second chance, Singapore can be a rather unforgiving place. But not so in China, it seems, where Chen Jiulin, the disgraced former chief executive of China Aviation Oil (CAO) who was sentenced to 51 months’ jail in 2006, has made a remarkable comeback – less than 1 ½ years after he was granted an early release from Changi Prison. According to media reports from China, Mr Chen, 49, was recently appointed as vice-president of the CGGC International Company, which is run by the state-owned Asset Supervision & Administration Commission under the State Council, the same organization that supervised CAO. CGGC International, a state-owned engineering and construction firm, is best known as the main contractor for the Three Gorges Dam. Mr Chen was reportedly released from jail on January 20 last year, after he was convicted of issuing false financial statements and failing to inform the Singapore stock exchange of CAO Singapore’s losses, among other charges. Under his watch, CAO Singapore - the listed unit of state-owned China National Aviation Fuel Group Corporation which holds a 51-per-cent stake - incurred losses of US$550 million trading oil derivatives. According to the Beijing Times, Mr Chen tried to persuade the Beijing authorities into giving him another role with China National Aviation Fuel Group, arguing that the losses CAO Singapore incurred were not his personal responsibility as government agencies had approved all of the derivative positions. ... Not only has Mr Chen been granted a new lease of life, he has gotten a new name. Mr Chen had apparently changed the middle character of his name - presumably for better luck. While the pronunciation is the same, the new character means “nine”. As Wall Street Journal writer Dinny McMahon pointed out, this begs the question: how many lives does Mr Chen have left? http://www.corporateobserver.com.sg/news.php?reg_id=733 Mon, 28 Jun 2010 11:52:56 +0800 SINGAPORE (June 26, 2010) - Now that one of the most influential men in the country has publicly given his blessings, can we expect to see the consolidation of Singapore banks anytime soon? Speaking at the Association of Banks of Singapore annual dinner yesterday evening, Minister Mentor Lee Kuan Yew said Singapore could do better with two instead of three major local banks so they could expand overseas in a more meaningful manner. Mr Lee said the three banks - DBS, United Oveseas Bank (UOB) and OCBC - did not have the size to engage foreign markets in the same way that global leaders do. "We are in Indonesia in a small way, Malaysia in a small way, Thailand almost nothing. But the big future is in China and in India, and I don't see three banks as capable of making that foray as two banks. Maybe even eventually one bank. Just look as the capitalisation of the big banks in the US and in the UK," said Mr Lee. Domestically too, a consolidation made sense, he felt. "I would have preferred personally that there were only two banks because I don't think Singapore was big enough for three banks," said Mr Lee. ... The Corporate Observer had stuck its head out in March to make the call that the three banks could become two soon (read our commentary here). Now that Mr Lee has endorsed that view, we feel even more assured that our call could turn out right. http://www.corporateobserver.com.sg/news.php?reg_id=731 Sat, 26 Jun 2010 14:23:06 +0800 (June 25, 2010) - China has revised the yuan exchange rate to its highest level yet as international pressure builds on Beijing to allow its currency to strengthen ahead of the G20 meeting this weekend. The Bank of China set the central parity rate, or the daily official level, at 6.7896 to the dollar, 0.3 per cent stronger than Thursday's 6.8100 - marking the yuan's strongest level since China freed its currency from an 11-year-old peg in July 2005 and moved to a tightly managed floating exchange rate. http://www.corporateobserver.com.sg/news.php?reg_id=730 Fri, 25 Jun 2010 17:09:05 +0800 SINGAPORE (June 25, 2010) - Seems like CapitaMall Asia (CMA) made up its mind fairly quickly about listing its assets across the Causeway on the Malaysia stock exchange. CMA first announced the proposed listing of its Malaysian unit CapitaMalls Malaysia Trust (CMMT) after it had received approval from the Securities Commission of Malaysia. The decision, it said, depends "on a number of factors, including prevailing market conditions". In a filing on the Singapore Exchange today, CMA said it had received approval for the proposed listing from Bursa Securities - the Malaysia stock exchange - and the prospectus has been lodged with the Securities Commission - an announcement which all but confirmed it was proceeding with the listing. CMA had said it plans to sell 786.5 million shares of CMMT and will retain as much as a 41.7 per cent stake in the Malaysian trust after the sale. http://www.corporateobserver.com.sg/news.php?reg_id=729 Fri, 25 Jun 2010 16:52:44 +0800 SINGAPORE (June 25, 2010) - Overseas Union Enterprise has successfully raised a term loan of S$425 million from OCBC Bank with the proceeds to be used to part finance the development and construction of its Leonie Hill project. In an announcement, OUE said the Cove Development Pte Ltd, an indirect wholly owned subsidiary through its fully owned Seaview Property Holdings obtained the secured term loan facilities from the Singapore banking group. OCBC made available to Cove an interest rate swap facilities for the notional amount of S$375 million for fixing interest rate swap transactions for tenure of up to four years or Sep 30, 2014, whichever is earlier. Cove will use the money to finance the acquisition costs already paid by the company on the property project. It will part finance the upgrading premium in relation to the development of 33 Leonie Hill Road as well as the construction costs. OUE is controlled by Indonesia’s Lippo Group which had worked with OCBC on several property project, including buying over its massive site at Kim Seng Road a few years ago. http://www.corporateobserver.com.sg/news.php?reg_id=728 Fri, 25 Jun 2010 16:04:20 +0800 SINGAPORE (June 25, 2010) – The republic’s manufacturing output went up by a record 58.6 per cent year-on-year last month – exceeding market expectations and eclipsing the previous high of 49.7 per cent set in April – as factories ramped up production to meet robust overseas orders for electronics and pharmaceuticals. The latest monthly figure released by the Economic Development Board (EDB) was almost double the 32.1 per cent forecast in a Dow Jones Newswires' poll of analysts. Electronics output rose an annual 51.8 per cent while biomedical manufacturing expanded 117 per cent with the main boost coming from a 121.8 per cent jump in pharmaceuticals, the EDB said. For the other sectors, chemicals surged 19.6 per cent, precision engineering rose 40.5 per cent and transport engineering increased 0.3 per cent. ING Bank NV economist Tim Condon said in a note ahead of the release of the data that Singapore was enjoying an export-led recovery much like the rest of Asia, although this was obscured by the volatile pharmaceuticals sector. He stated that Singapore's economy is in line for strong growth in the second quarter, forecasting a 7.7 per cent quarterly expansion. http://www.corporateobserver.com.sg/news.php?reg_id=727 Fri, 25 Jun 2010 15:52:40 +0800 SINGAPORE (June 25, 2010) - India’s Fortis Healthcare, which is currently pitted against Malaysian sovereign wealth fund Khazanah for control in Singapore-listed Parkway Holdings, said the Government of Singapore Investment Corp (GIC) had decided to defer a preferential investment in the Indian healthcare group. According to Reuters, GIC - which is a Singapore sovereign wealth fund chaired by Minister Mentor Lee Kuan Yew - will evaluate participating in broader fund raising by the Fortis group. In a statement today, Fortis which already owns nearly 25 per cent of Parkway said GIC remains committed to Fortis through its substantial investment in Fortis' convertible bonds. "The statement doesn't necessarily mean GIC is committed to the cause of Fortis," said Ranjit Kapadia, an analyst at Mumbai-based HDFC Securities who was quoted by Reuters. Mr Ranjit added: "GIC may not be willing to pay a premium of 11 per cent on the current market price of Fortis and that may have led to the deferment of allotment." With Khazanah mounting a partial takeover offer at Parkway shortly after the Indian company came into the picture, Fortis is expected by many to make a counter bid for control in the company. With more than a month to the deadline for any action, the company has been keeping its cards close to its chest and has said it was keeping all options open on Khazanah's offer for Parkway. http://www.corporateobserver.com.sg/news.php?reg_id=726 Fri, 25 Jun 2010 15:30:55 +0800 SINGAPORE (June 25, 2010) - As a sign that the tussle over Parkway Holdings is heating up, conspiracy theories are coming to the fore - and the latest surround an alleged pact that India-based Fortis Healthcare made with Parkway's senior management. A circular by Parkway’s independent adviser Morgan Stanley had implied Fortis would tell three Parkway Holdings directors - vice chairman Richard Seow Yung, executive vice chairman Lim Cheok Peng and CEO Tan See Leng - how to vote because of an agreement between them and the Indian company. The three Parkway Holdings directors had chosen to vote against Khazanah’s offer to buy a majority stake in the Singapore-based hospital chain. In a filing to the Singapore Exchange yesterday, the three Parkway directors reiterated their decisions were not dictated by the Indian company and that they had made their decision as shareholders in Parkway and it was in the best interest of the company. The three directors were retained on the Parkway board when Fortis bought TPG Capital’s 24-per-cent stake in March. On May 27, Khazanah launched an offer to more than double its stake to 51.5 per cent. Majority of the non-Khazanah shareholders have to vote and also agree to tender their shares in the open offer to allow the fund to gain control of Parkway. Fortis is the largest shareholder in Parkway with a 25.4 per cent stake. In a report on Wednesday, Morgan Stanley had pointed out Fortis can direct the three directors on their votes but it should be subject to their legal or fiduciary duties as directors of the company. It also said the directors can get financial benefits if Fortis sells more than 10 per cent of its shares or its stake falls below 10 per cent. “Two of the three directors also had a similar arrangement with TPG. It’s surprising such issues are being raised now,” a person close to Fortis told India's Economic Times. http://www.corporateobserver.com.sg/news.php?reg_id=725 Fri, 25 Jun 2010 13:28:17 +0800 SINGAPORE (June 24, 2010) - The Agricultural Bank of China (ABC) – in which Temasek Holdings and the United Overseas Bank are cornerstone investors - is raising up to US$11.41 billion from the Hong Kong portion of its initial public offering (IPO), moving a step closer to completing what could be one of the world's biggest IPOs ever. The rural lender is selling 25.4 billion H shares, or 8 per cent of the enlarged capital of the bank before an overallotment option is exercised, according to an IPO prospectus posted on the Shanghai stock exchange last week. Quoting two people familiar with the deal, Dow Jones reported that the indicative price range for the Hong Kong listing has been set at a range of between HK$2.88 and HK$3.48 per share. ABC, which is the largest retail bank in the world with 320 million customers, is kicking off the formal H-share roadshow today and is scheduled to list in Hong Kong on July 16 - one day after its Shanghai trading debut. While considered the weakest of China's big banks with a bigger legacy of bad loans, ABC is the last of China's Big Four banks to list – hence offering a rare opportunity for investors still willing to bet on China's long-term growth. While the price range for the A-share portion has not yet been revealed, FinanceAsia reported that sources said it is expected to start at the same level as the H-share range. Assuming this will be the case, the bottom end of the H-share price range implies a total deal size of $17.7 billion, while the top suggests a maximum deal size of about $21 billion. The Industrial and Commercial Bank of China raised a record US$22 billion in 2006 and is still the world's biggest IPO ever, according to Dow Jones. http://www.corporateobserver.com.sg/news.php?reg_id=719 Thu, 24 Jun 2010 18:13:40 +0800 SINGAPORE (June 24, 2010) –Singapore banks are unlikely to face a significant increase in non-performing loans should there be a modest correction in real estate prices, accordimg to ratings agency Fitch. This is so partly because of a relatively buoyant labour market. Also, Singapore has already seen a decline in mortgage and construction loan delinquency rates since the middle of last year. “Moreover, local authorities are likely to implement more measures to curb excessive speculation, which if unchecked could have a negative impact on the banking sector”, Fitch added. http://www.corporateobserver.com.sg/news.php?reg_id=718 Thu, 24 Jun 2010 16:22:55 +0800 SINGAPORE (June 23, 2010) - The new leadership at DBS Group continued to unveil new senior management staff as the government linked bank looks to improve on its preformance. In an announcement, DBS said it appointed Ken Stratton as Managing Director and Global Head of Sales for its Global Transaction Services (GTS) team with effect from September. He will manage the cash management, trade finance and securities & fiduciary services sales teams across DBS' 16 markets in Asia, Britain and the US. Mr Stratton joins DBS from J.P. Morgan, where he is currently Head of Financial Institution Sales, Treasury Services for Australia & New Zealand. DBS has been boosting its senior management in recent months including appointing Chan Tuck Wai as head of global transaction services. Besides the appointment of new chairman Peter Seah and chief executive Piyush Gupta at the top, DBS recently also hired Tan Su Shan as head of private banking and POSBank former general manager as advisor to the national savings bank. http://www.corporateobserver.com.sg/news.php?reg_id=717 Thu, 24 Jun 2010 00:34:25 +0800 SINGAPORE (June 23, 2010) - Inflation in Singapore stood at 3.2 per cent for the second month in a row - as the increase in prices of goods and services remained at a 14-month high. The latest figure exceeded market expectations of a 3 per cent increase in prices, compared to May last year.The Monetary Authority of Singapore has said it expects inflation to average between 2.5 and 3.5 per cent this year - although inflation could breach 4 per cent in the second half of the year. For the latest round of inflation, car and petrol prices were the main culprit, pushing up transport costs by a hefty 15 per cent. Housing prices, the biggest component of the consumer price index - which us used to measure inflation in Singapore - climbed 1.6 per cent from a year earlier and food prices rose 1.3 per cent. Citigroup economist Kit Wei Zheng attributed the price increases last month to tighter COE quotas this year compared with last year, which made COE premiums in May "two to three times higher than last year's levels". DBS economist Irvin Seah said in his report before the latest figure was released that the rising wages - as the labour market tightens - "should set the conditions for demand-pull inflationary pressure to kick in". Said Mr Seah: “Though growth momentum is expected to moderate going forward, inflation will still hang above the 3 percent mark for the rest of the year.” Mr Seah noted that the decline in the Singapore dollar last month could have pushed consumer prices higher by making imports more expensive. According to Bloomberg, the Singapore dollar slid about 2 per cent against the US dollar during the month. http://www.corporateobserver.com.sg/news.php?reg_id=715 Wed, 23 Jun 2010 17:57:39 +0800 SINGAPORE (June, 23, 2010) - Catalist-listed Avaplas has announced plans to delist from the Singapore Exchange as its controlling shareholder Cal-Comp Electronics (Thailand) Public Limited plans to take full control of the precision engineering firm. In an announcement, Avaplas Limited which makes and sells precision engineering plastic injection moulding said the privatisation will help it realise better synergy if the company were to become a wholly owned subsidiary of the offeror. It would be in a better position to effect improvements through various means including restructuring, prospects introduction, management support and financial assistance. The delisting would allow the company to save on its additional expenses relating to the maintenance of the listing status and focus its resources on business. The shares had already been suspended since April 26 when the percentage of shares held in public hands fell below the free float requirements. http://www.corporateobserver.com.sg/news.php?reg_id=714 Wed, 23 Jun 2010 17:23:49 +0800 SINGAPORE (June 23, 2010) – Parkway Holdings shareholders – who could find themselves in the middle of a tug-of-war between India-based Fortis Healthcare and Malaysia sovereign fund Khazanah - are arguably in an enviable position as the value of their shares head north. Yet they appear to have a difficult decision to make in two weeks' time – July 8 is the deadline for the shareholders to decide whether they should first, approve a proposal to let Khazanah raise its stake in Parkway to 51.5 percent from around 24 percent, and second, to accept Khazanah's partial offer for Parkway shares. Even the experts cannot make a clean call on this one. Khazanah’s bid – and Parkway’s share price - took a hit today after Morgan Stanley, which is acting as an independent adviser to Parkway Holdings, said the offer is not compelling even though the offer price is "reasonable". Morgan Stanley added "there is no certainty that shareholders will receive the offer price." "Although the value implied by the offer price is reasonable, the offer price is not compelling in the context of a partial offer involving a change of control," Morgan Stanley said in its report which Parkway filed a copy of to the Singapore Exchange. Parkway shares closed at S$3.68 a piece today, down 1.9 per cent from yesterday. ... Earlier on Monday, RiskMetrics, an independent advisory firm, recommended Parkway investors approve the proposal. The firm said Khazanah's offer price of S$3.78 a share exceeded Parkway's share price prior to the offer, and shareholders would still be free to decide whether or not to accept Khazanah's offer after the vote. Stressing that it was not making any recommendation with regard to whether or not to accept Khazanah's offer, it pointed out that by allowing Khazanah to make the bid would increase the likelihood of shareholders - who are still undecided on the partial offer – “retaining the option to sell some, all or none of their shares into the bid prior to its close”. http://www.corporateobserver.com.sg/news.php?reg_id=713 Wed, 23 Jun 2010 17:12:56 +0800 SINGAPORE (June 22, 2010) - Three minority shareholders of rubber moulding manufacturer SanTeh's China subsidiary are resisting the proposed disposal of its cement and building materials businesses. In a filing on the Singapore Exchange, SanTeh said the shareholders Nanfang Cement, Shanghai Zhonglu Group and Hubei Fenghua Technology Development are seeking a court order from the Intermediate People’s Court of Zhangzhou City to cancel the shareholders' approval to dispose the assets and an injunction to stop the disposal. The three shareholders hold a combined stake of less than 5 per cent. http://www.corporateobserver.com.sg/news.php?reg_id=712 Tue, 22 Jun 2010 18:16:33 +0800 Singapore, 22 June 2010 – CDL Hospitality Trusts (“CDLHT”) has launched a private placement of new stapled securities in CDLHT at an issue price of between S$1.71 and S$1.77 per new stapled security to raise up to S$150 million. The issue price range of between S$1.71 and S$1.77 per new stapled security represents a discount of between 6.3 per cent and 9.4 per cent to the volume weighted average price on June 2` up to the time the placement agreement was signed. Part of Kwek Leng Beng stable of companies, CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (“H-REIT”), a real estate investment trust, and CDL Hospitality Business Trust (“HBT”) which is a business trust. M&C REIT Management Limited, the manager of H-REIT, plans to use about S$116.3 million of the net proceeds from the private placement to repay the Singapore dollar portion of the one-year bridging facility that was used to finance the recent acquisition of Australian properties comprising Novotel Brisbane, Mercure Brisbane, Ibis Brisbane, Mercure Perth and Ibis Perth in 1Q 2010. http://www.corporateobserver.com.sg/news.php?reg_id=711 Tue, 22 Jun 2010 17:15:30 +0800 NEWS ANALYSIS By Loh Chee Kong cheekong@corporateobserver.com.sg Increasingly when China sneezes, the world catches a cold. Conversely, when China raises a faint smile, the world goes into a laughing fit. How else would one explain the seeming euphoria over the People's Bank of China's vague statement that it will allow for a more flexible currency? As the yuan yesterday surged to a five-year high - but still well within the official trading band - against the greenback, global stock markets were sent into a mild frenzy before profit-taking and a dose of reality set in to erase earlier gains. While some analysts went as far as to declare China's decision to unpeg the yuan against the United States dollar as a panacea to the world's current economic troubles, the more measured experts were quick to point out that the statement (read it here) was, in fact, nothing more than a politically-calculated gesture - albeit a positive one - from Beijing to buy some time before the G20 meeting this weekend. "The timetable was really forced by political circumstances," said Alan Ruskin, chief currency strategist at RBS Securities, told the Los Angeles Times. As the LA Times pointed out, the need for a global economic "rebalancing" — including more spending by the developing world and more saving by the developed world — is expected to be a key topic of the G20 summit. Mr Rom Badilla, a former senior vice president with HSBC Halbis Capital Management who now blogs on Bondsquawk, also noted the statement from the China central bank was deliberately vague as to the degree of the amount of appreciation it will allow. Mr Badilla wrote on his latest blog: "China doesn’t want the G20 meetings to focus on the currency peg and prefers to press other issues such as the European debt crisis and rising budget deficits for developed countries." A commentary Monday by China's official Xinhua News Agency said as much: "If (global leaders) cannot make good use of the coming G20 summit to press ahead with the much-needed overhaul of the global financial system, the international community will soon find to its disappointment that its leaders look only for red herrings, rather than real solutions, at a time when true leadership is badly needed." Mr Badilla added that the "truth of the matter" is that China was reluctant to allow a sizeable gain in the yuan given that the currency has already appreciated with the decline in the euro, dampening Chinese exports to Europe. "Further declines in the euro due to the deterioration of the European fiscal situation may alter China’s plan of allowing considerable appreciation for the yuan," he said. And while the announcement would fuel optimism - and hence, gains in the sentiment-driven equity markets - that a stronger yuan would be good news for US multinationals, the fact is the US remained on shaky ground reflected by its weak economic data. http://www.corporateobserver.com.sg/news.php?reg_id=710 Tue, 22 Jun 2010 12:10:47 +0800 SINGAPORE(June 21, 2010) - Singapore Power's Australian unit SP AusNet said it will vigorously defend against claims made against it in the Supreme Court of the state of Victoria in a case involving a major bush fire last year which killed 119 people. According to ChannelNewsAsia, SP Ausnet also clarified that its parent company, Singapore Power, is not a defendant in the class action taken up by more than 600 people. The lawsuit alleges that SP Ausnet breached safety guidelines, causing the bush fire in February last year. The firm said court documents filed by the plantiff's lawyers have incorrectly referred to Singapore Power, instead of SP Ausnet. http://www.corporateobserver.com.sg/news.php?reg_id=709 Mon, 21 Jun 2010 18:28:40 +0800 SINGAPORE (June 21, 2010) - The Thai government will make a final decision in two weeks whether it should buy back the satellite business from Singapore's Temasek Holdings, Information and Communications Minister Juti Krai-rirk was quoted as saying today. The Nation online quoted the minister as saying he has yet to consult a legal advisory team and a special panel that was set up to review on the issue. The two teams would consider the buy-back option based on a Supreme Court ruling on the satellite business. Satellite operator Thaicom was formerly known as Shin Satellite and owned by former Thai premier Thaksin Shinawatra. It was part of the Shin Corp conglomerate, which was sold to Temasek in January 2006, sparking a political uproar and subsequently the coup that toppled the Thaksin government. http://www.corporateobserver.com.sg/news.php?reg_id=708 Mon, 21 Jun 2010 17:58:35 +0800 SINGAPORE (June 21, 2010) - DBS, Southeast Asia's biggest bank, wants to boost its China head count by more than 20 percent this year, its chairman Peter Seah told Chinese newspaper Shanghai Daily. Said Mr Seah: "We are committed to investing in growing the business, and will be increasing our head count by over 20 percent this year." More than half of the new hires will be for retail banking, with the rest slated for positions in institutional banking, treasury and markets, he added. According to Shanghai Daily, Mr Seah shrugged off concerns that China's economy is overheated. He said that several economic indicators pointed to a peak in growth back in mid-2009 and since then there has been a trend toward normality. http://www.corporateobserver.com.sg/news.php?reg_id=707 Mon, 21 Jun 2010 17:21:13 +0800 SINGAPORE (June 21, 2010) - Several Indian banks have assured Fortis Healthcare that they will line up the US$2 billion that the firm may need if it decides to place a counter bid for the Singapore-based hospital chain Parkway, India's Economic Times reported – even as several foreign banks purportedly backed off from funding Fortis after pressure from Khazanah. Axis Bank, Punjab National Bank, SBI, Bank of Baroda and Yes Bank are among the Indian banks that have given such an in-principle commitment, Economic Times quoted an unnamed person close to the matter saying. Fortis is yet to take a call on whether to counter bid Malaysian sovereign fund Khazanah that has offered to buy a majority stake in Parkway, and Singapore’s securities regulator has asked the Indian firm to announce its plans by July 30. Fortis will need over US$2.3 billion if it decides to buy the 74.6 per cent stake that it doesn’t own in Parkway Holdings. According to Economic Times, a senior Yes Bank executive said it has committed Rs 500 crore to Fortis if it proceeds with a counter bid. A Fortis spokeswoman declined to comment on the developments. ... A person from the investment banking community told the newspaper that several foreign banks have backed out from funding Fortis after Khazanah and its investment bank CIMB “informally” expressed concerns over those international lenders backing the Delhi-based healthcare chain. Khazanah’s reservations could be over conflict of interest as the company has several projects and investments globally in which some of the foreign banks are involved. http://www.corporateobserver.com.sg/news.php?reg_id=706 Mon, 21 Jun 2010 16:53:08 +0800 SINGAPORE (June 21, 2010) - China’s decision to allow greater flexibility in its currency won’t affect Singapore’s exchange- rate policy, the Monetary Authority of Singapore (MAS) said. In a statement, MAS said China’s “announcement will not have an impact on Singapore’s exchange-rate regime”. It added: “The policy of a modest and gradual appreciation” of the Singapore dollar announced on April 14 “remains unchanged and is appropriate against underlying economic conditions”. On Saturday, the People’s Bank of China indicated it’s abandoning the 6.83 yuan peg to the dollar adopted during the global crisis to shield exporters. The central bank said while there’s no basis for “large scale” moves in the currency, the exchange rate will be allowed increased “flexibility.” Singapore, which manages the local dollar against a weighted basket of currencies of the island’s major trading partners, said in April it would undertake a one-time revaluation and seek a gradual appreciation of the currency as the nation rebounded from last year’s global slump. The policy of managing the Singapore dollar against a group of currencies “allows us to accommodate the changes within the existing framework of our exchange-rate system,” MAS added. http://www.corporateobserver.com.sg/news.php?reg_id=705 Mon, 21 Jun 2010 16:29:11 +0800 SINGAPORE (June 21, 2010) – As the bidding war over Australian miner Macarthur Coal peters out, which saw Singapore-listed Noble Group’s attempt to own a 24-per-cent stake - via the sale of its subsidiary Gloucester Coal - squeezed out by rival bidders, Noble is one step closer to accomplishing its Plan B. In a regulatory filing on the Australian stock exchange, Gloucester directors have recommended its shareholders accept Noble’s A$1.03 billion (S$1.24 bn) takeover offer. As at 4.10pm, Noble shares were trading at S$1.91 a piece, up 3.8 per cent for the previous day's close of S$1.84. "The independent directors of Gloucester have decided to recommend that Gloucester shareholders accept the Noble offer in the absence of a superior proposal," the company told the stock exchange. Noble, Asia's largest commodities trading company, already owns 87.7 per cent of Gloucester via its wholly owned subsidiary Osendo Pte Ltd. But as Noble’s Plan A - to sell Gloucester to Macarthur - looks destined to fall apart as rival players including US-based Peabody Energy and Australia-based New Hope entered the fray, Noble announced on April 6 its intention to make an off-market takeover offer to acquire all the shares in Gloucester. http://www.corporateobserver.com.sg/news.php?reg_id=704 Mon, 21 Jun 2010 16:07:30 +0800 SINGAPORE (June 18, 2010) - The Thai government needs to resolve several legal issues before it can act on a proposal to buy Singapore government investment arm Temasek Holdings' stake in Thai satellite operator Thaicom. The announcement comes days after the Thai government confirmed it is seeking to buy Thaicom assets from Temasek due to national security reasons. Thai Prime Minister Abhisit Vejjajiva has said the deal will depend on pricing and other conditions. According to the Wall Street Journal, Thai Finance Minister Korn Chatikavanij said the legal issues include amendments to the concession contract that may not be legitimate and a dispute between the government and Thaicom over a US$6 million (S$8.38 million) compensation for damages to one of its satellites. Also at issue is the launch of an iPSTAR broadband satellite that may have breached the concession contract. http://www.corporateobserver.com.sg/news.php?reg_id=703 Fri, 18 Jun 2010 16:50:05 +0800 SINGAPORE (June 18, 2010) - Malaysia has issued commercial banking licences to five foreign banks - and Singapore's DBS is not among the list. The Malaysian central bank, Bank Negara, announced it has issued licences to French giant BNP Paribas; Indonesia's PT Bank Mandiri (Persero); the National Bank of Abu Dhabi; as well as Japan's Mizuho Corporate Bank and Sumitomo Mitsui Banking Corporation. DBS missed out despite speculations that it was a possible candidate, following increased economic and financial linkages between Singapore and Malaysia after a historic meeting last month between the Prime Ministers of both countries. Due to political sensitivities - Singapore government investment arm Temasek Holdings owns a 28-per-cent stake in DBS Group - DBS currently does not have much exposure in the Malaysian market. It runs a licensed offshore bank in Malaysia, the DBS Labuan Branch, and a representative office in Kuala Lumpur. The issuance of the five new licences are part of the Malaysian government's efforts announced in April last year to liberalize the financial sector, allowing nine new banking and insurance licences and easing foreign ownership limits for non-commercial banks. http://www.corporateobserver.com.sg/news.php?reg_id=702 Fri, 18 Jun 2010 14:36:06 +0800 SINGAPORE (June 18, 2010) - Golden Agri-Resources will take the "food" out of Asia Food and Properties (AFP) as it acquires AFP's last remaining food business - a Chinese food firm - for almost S$200 million. Golden Agri says it will acquire Florentina International Holdings (FIH), which manufactures snack noodles, instant noodles and ice sticks in China and has eight production plants in 7 provinces throughout the country. According to Golden Agri, the acquisition will allow it to leverage FIH's market knowledge, customer base and extensive distribution channels in China. It adds that it will also be able to share its production base and reduce logistics costs by synergizing with FIH. AFP confirmed that after the divestment, it will no longer have any non-property business. It will focus on its core business, as the food unit constitutes only a minor part of its entire operations. The net proceeds of about $199.6 million would be used to increase its land bank when opportunities arise or used as general working capital and repayment of loans, AFP said. Whether it's time for AFP to change its name is anyone's guess. http://www.corporateobserver.com.sg/news.php?reg_id=700 Fri, 18 Jun 2010 12:17:40 +0800 SINGAPORE (June 18, 2010) - Communications services company Teledata (Singapore) has announced the shock immediate sacking of its CEO Christopher Michael Pan - after less than seven months at the helm. Without elaborating, the firm said that following an internal review by its board, Mr Pan was fired "on the grounds that he has committed acts tending to bring the Company and/or himself into disrepute". The company, which announced Monday it was backing out of two proposed acquisitions, added in its latest filing to the Singapore Exchange: "In this connection, the Company is considering its options against Mr Pan." Teledata had been unable to pull off recent acquisition plans. On Monday, it announced the termination of the proposed acquisitions of Elektromotive and Ione Resources, which had been agreed on April 26 and April 3 respectively. The termination comes less than three weeks after Mr Pan had returned from leave of absence - from May 1 to June 2 for "personal reasons" - during which he had relinquished his position as the company’s CEO and was not authorized to carry out any executive duties on behalf of the company. On April 28, the company was questioned by SGX for not disclosing in its annual report the percentage of public shareholding. In its reply on May 5 - the same day that it announced Mr Pan's leave of absence - Teledata said it tried in vain to get its substantial shareholders Mr Pan and Calypso Management Holdings "to confirm their respective direct and deemed interest in the Company as at March 18, 2010". "At the time of this announcement, the Company has not received a response to these requests," the firm said then. Mr Pan, 40, was appointed as the firm's CEO and chairman since November last year - following Calypso's acquisition of a 17.6-per-cent stake in Teledata. http://www.corporateobserver.com.sg/news.php?reg_id=699 Fri, 18 Jun 2010 10:33:27 +0800 SINGAPORE (June 17, 2010) - At least one nation remains confident doing business with the country despite the Greek fiscal tragedy. In an announcement, Singapore said it has expanded its bilaterial air services agreement (ASA) with Greece. 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. http://www.corporateobserver.com.sg/news.php?reg_id=698 Thu, 17 Jun 2010 18:08:23 +0800 SINGAPORE (June 17, 2010) – An Amsterdam Court yesterday ruled in favour of Sembcorp Industries in its planned takeover for Dutch water services firm Cascal – another boost to its bid after a New York District Court earlier threw out Cascal’s motion for an injunction against the takeover. In a regulatory filing, Sembcorp said its partner Biwater Investments – which sold its 58.4 per cent stake in Cascal to Sembcorp – had filed a petition in the Amsterdam Court on May 24, for an inquiry to be conducted into the “policy and course of affairs” at Cascal, “limited to Cascal’s acts and deeds in relation to Biwater's proposed sale of its stake in Cascal to Sembcorp and the Voluntary Tender Offer (VTO)”. Biwater then filed a supplemental application for an order to restrain Cascal from issuing new shares to frustrate the VTO. http://www.corporateobserver.com.sg/news.php?reg_id=697 Thu, 17 Jun 2010 18:08:09 +0800 SINGAPORE (June 17, 2010) – Residents in the Seletar and Yio Chu Kang precincts will soon have a new "chic, modern and green" leisure destination. Named Greenwich V, the new two-storey mall - occupying 45,000 sq ft – will be developed by Far East Organization (FEO). According to FEO, it will capture “some of the vibrancy and atmosphere of its namesake in New York City, which is famous for its cafes, bohemian vibe and fun”. Located at the junction of Yio Chu Kang Road and Seletar Road, Greenwich V would serve about 530,000 residents. It has 35 retail spaces available and confirmed tenants so far include Cold Storage, Guardian, 7-Eleven and food court operator Kopitiam. Mr Kelvin Ling, chief operating officer of FEO’s Retail Business Group, said the area has a “sizeable population who we believe are a little underserved… in terms of shopping and entertainment options”. Said Mr Ling: “We are looking at apportioning about half of the mall to F&B, like cafes and restaurants, because we want Greenwich V to become ‘the’ place where families and friends can meet and relax.” http://www.corporateobserver.com.sg/news.php?reg_id=696 Thu, 17 Jun 2010 17:42:21 +0800 SINGAPORE (June 17, 2010) – The republic’s exports rose for a seventh month in May as a surge in electronics shipments offset declining overseas sales of pharmaceuticals. But sales to the European Union - Singapore’s biggest export market - grew at a much slower pace last month, climbing just 5.7 per cent from a year earlier compared with a 21.3 per cent increase in April. While the non-oil exports (NODX) grew by 24 per cent last month on a year-to-year basis, the growth was marginally lower – falling by 0.1 per cent – as compared to April. Standard Chartered economist Alvin Liew told Bloomberg that given Singapore’s trade-dependent economy, it could be “one of the first” to feel the impact of the eurozone debt crisis. Mr Liew added: “One of the key risks for Singapore trade we see is the potential spillover impact of the Europe sovereign-debt crisis on trade flows and trade financing to the region.” A Morgan Stanley research report said the NODX numbers were "likely to remain strong in the near term given easy base effect". It added that the leading global indicator, US ISM New Orders Index, remained positive and an expected moderation in export growth in the second half of the year, when the base effect wears out, "looks mild for now". The report added: "However, concerns with regards to the EU sovereign debt issues remain... we would be closely watching out for downside risks from trade linkages on that front. Further, as highlighted by today’s data, the volatile pharmaceutical segment could potentially add noise on the exports front." http://www.corporateobserver.com.sg/news.php?reg_id=695 Thu, 17 Jun 2010 17:01:26 +0800 SINGAPORE (June 16, 2010) - Singapore's securities regulator has given India's Fortis Healthcare until July 30 to say whether it intends to make a full offer for hospital operator Parkway Holdings. The statement today from the Securities Industry Council (SIC) came a day after Fortis Healthcare said it was keeping its options open over a counterbid for Parkway, the subject of a partial takeover bid by Malaysian sovereign wealth fund Khazanah. "Parkway shareholders should be given sufficient information, advice and time to enable them to reach an informed decision on the partial offer," SIC said in a statement. An SIC spokesman said Khazanah had the option to extend the closing date for its partial offer from July 8 until 10 days after July 30 in order to give shareholders a chance to assess their options. According to SIC, a party has 50 days to decide whether to make a counterbid from the date an offer document by a rival party is despatched to shareholders. Integrated Healthcare, the Khazanah unit, sent out its offer document on June 10. http://www.corporateobserver.com.sg/news.php?reg_id=694 Thu, 17 Jun 2010 12:11:34 +0800 SINGAPORE (June 16, 2010) - Another old guard at SingTel has retired - making it two in less than a week. SingTel today announced that Mr Lim Eng, CEO of NCS, will be retiring from the company after 30 years of service. Mr Lim's last day of service will be July 14 and he will then be replaced by Mr Chia Wee Boon, who is currently the chief operating officer of NCS. Mr Lim, 54, joined SingTel in 1980 as an engineer and rose through the ranks, having held several key management positions, including Group Director (Human Resource), VP (Corporate Products) and CEO (General Business). He has also contributed in SingTel’s overseas ventures as President of New Century InfoComm Co Ltd (NCIC Taiwan) and COO of Fax International, USA. As CEO of NCS, Mr Lim led the company’s growth both in revenue as well as market share. Today, NCS generates in excess of a billion dollars in annual revenues and also tops the Singapore IT services market in terms of market share, ahead of global giant players. In addition, he played a key role in the acquisition and integration of SCS Computer Systems. News of Mr Lim's retirement comes six days after SingTel announced it has initiated a search for a new CEO International, following the stepping down of Mr Lim Chuan Poh, who had agreed to stay on until the end of the year to ensure a smooth transition of responsibilities. http://www.corporateobserver.com.sg/news.php?reg_id=693 Wed, 16 Jun 2010 19:07:46 +0800 SINGAPORE (June 16, 2010) - Waterfront housing is supposed to be the next big thing in Singapore but this morning, shoppers in the republic's premiere shopping belt must have felt like they were shopping in Venice. Heavy rain today caused flooding in many areas in central Singapore, including in Orchard Road which underwent a massive makeover in recent years. At the popular shopping district, the floods reached knee-high level and caused traffic to come to a standstill as rescuers waded into the water to get distressed drivers and passengers out of the vehicles. According to PUB, the rain was especially heavy over Orchard Road and the Rochor area. The national water agency pointed to the freak weather - almost 100 mm of rain fell from about 9 am to 11 am. The rainfall recorded within the two-hour period was more than 60 per cent of the average monthly rainfall for June. The Singapore Civil Defence Force, SCDF, said they dispatched two fire engines to the junction of Orchard Road and Paterson Road where rescuers helped about 60 passengers from two SBS Transit double-decker buses and about 10 people from six cars stranded in their vehicles to safety. ... PUB advises the public to exercise caution as flash floods may still occur in the event of heavy storms. It says the cause of the flood is still being investigated. In the meantime, there would be several red faces and finger-pointing in the corridors of power. Especially when a 1999 New Paper article (read story here), quoting an environment ministry spokesperson, claimed that Orchard Road will "almost never" flood, and that it takes a "combination of high tides and about 100mm of rainfall within an hour" for floods to occur here. For the record, the rate of rainfall recorded today was half of that. http://www.corporateobserver.com.sg/news.php?reg_id=692 Wed, 16 Jun 2010 18:38:50 +0800 SINGAPORE (June 16, 2010) – The iconic Tanglin Shopping Centre – Singapore’s second oldest shopping mall – would be the next to go along Singapore’s premiere shopping belt which has undergone a massive makeover in recent years. Located at the junction of Orchard Road and Tanglin Road - yes, the part that was spared the horrendous flash floods today - the shopping centre was a favourite haunt for lovers of “live” music – with legendary band Tania regularly playing to packed crowds in the Anywhere club between the late 70s and mid-90s. Millennium & Copthorne Hotels (M&C) announced today that its wholly-owned subsidiary, King’s Tanglin Shopping Private Limited (KTSPL), has signed a collective sales agreement (CSA) with respect to its strata-titled interest in Tanglin Shopping Centre. Since 1981, KTSPL owns 85 freehold strata units comprising retail/office units and 325 carpark lots in the shopping centre. Under the terms of the CSA, a sales committee has been authorised to negotiate and finalise the collective sale of Tanglin Shopping Centre, and to enter into a sale and purchase agreement on behalf of the owners of units which have signed the CSA. http://www.corporateobserver.com.sg/news.php?reg_id=691 Wed, 16 Jun 2010 18:10:30 +0800 SINGAPORE (June 16, 2010) – FrontPoint management – a British unit of Morgan Stanley – has snapped up more shares in Singapore-based Parkway Holdings for its client, the third time in two weeks. Morgan Stanley is advising Malaysian sovereign wealth fund Khazanah on its S$1.18 billion partial offer for Parkway. In a regulatory filing, Morgan Stanley said FrontPoint yesterday bought 115,000 shares at S$3.7748 each for a “discretionary investment client”. The transaction was the latest in a series, including one where FrontPoint bought 110,000 Parkway shares at $3.845 each – sparking fresh expectations of an impending bidding war for the health-care firm. http://www.corporateobserver.com.sg/news.php?reg_id=690 Wed, 16 Jun 2010 17:45:14 +0800 SINGAPORE (June 15, 2010) - After almost a year after its setting up to take charge of the liquefied natural gas terminal, the Singapore LNG Corporation (SLNG) has appointed the chairman, board of directors and chief executive officer - following an extensive global search. The Energy Market Authority announced in a statement today that the SLNG board will be chaired by Mr Bob Tan, who is currently also the chairman of Jurong Engineering Limited, the chairman of the Institute of Technical Education of Singapore and the vice-president of the Singapore National Employers Federation. Appointed the CEO is Mr Neil McGregor, who was previously SLNG's executive director. Mr McGregor has more than 36 years of experience in the energy industry, including the area of LNG. Mr McGregor said his immediate priority will be the execution and on-time delivery of Singapore's first LNG Terminal. http://www.corporateobserver.com.sg/news.php?reg_id=684 Wed, 16 Jun 2010 14:04:18 +0800 (June 16, 2010) - In what could be a sign of the Asian property bubble reversing, a Hong Kong developer revealed that the sales of 20 luxury flat - which would have earned it HK734 million - had been canceled. According to a Bloomberg report, the botched transactions included a HK$439 million deal - or HK$88,000 per square foot - for an apartment which was claimed as a world record. Henderson Land Development, controlled by Hong Kong billionaire Lee Shau-kee, made the disclosure in a filing to the stock exchange yesterday, after Hong Kong’s government repeatedly told the company to explain home sales that were agreed though not completed. While Henderson had included transactions for 24 units in the 39 Conduit Road project in its earnings, just four of the sales have closed, it said. Henderson said it had paid back deposits of 5 percent of the agreed purchase prices and entered cancellation agreements, refunding other payments. It’s confident because of the “prestigious” location, and will be “sparing” with sales. http://www.corporateobserver.com.sg/news.php?reg_id=683 Wed, 16 Jun 2010 13:50:01 +0800 SINGAPORE (June 15, 2010) - A technical glitch gave some UOB credit cardholders an unexpected points "windfal" recently. While the bank had reacted swiftly to rectify the error, a lucky few - who redeemed their points for gift vouchers or retail discounts before the bank realized the glitch - got to keep their gains. The Corporate Observer understands that only a handful of UOB cardholders benefited from the boo-boo. Under the UOB Rewards points system, credit cardholders earn one point - or "UNI$1" - for every S$5 retail purchase charged to his UOB Credit Card. When contacted, a UOB spokesperson confirmed that a technical error had "resulted in a group of UOB card members being credited with UNI$ reward points that they did not earn". "We have since informed them and regret any inconvenience caused," the spokesperson added. http://www.corporateobserver.com.sg/news.php?reg_id=682 Tue, 15 Jun 2010 19:43:22 +0800 SINGAPORE (June 15, 2010) – Property watchers could point to the latest sales figures of the private residential market – usually the first segment to feel the impact of a property slump – as a sign that the market has finally turned. But those hoping for a subsequent correction in prices would do well to bide their time. Following a red-hot first four months of private home sales, the number of deals sealed last month fell by half to just 1,078 units – as compared to April when 2,208 units changed hands. According to the latest figures from the Urban Redevelopment Authority (URA), the number of transactions fell across all segments – although price levels were generally unchanged. The project with the highest number of units sold in May was The Minton, a 99-year leasehold condominium located in Lorong Ah Soo (OCR), with 204 units sold at the median price of $849 psf. The next best-selling project in May was Casa Aerata at Lorong 26 Geylang. The highest prices was achieved at Orchard View and the Sage where units were sold at S$3,641 psf and S$3,225 psf respectively. Nine units at Marina Bay Suites were sold at the median price of $2,506 psf, while two units at The Residence At W were sold at $2,800 psf. Noting that the overall price levels last month were “more or less” similar to April’s, Mr Joseph Tan, CB Richard Ellis executive director (residential), said he expects price levels to stay the same for the current month, although sales volume could fall further to between 700 and 800 units - translating into a total of 4,000 new homes sold in the second quarter this year. He added: “Sales in June are expected to be slower in view of the World Cup season, school holidays, Europe debt crisis and volatile stock markets.” http://www.corporateobserver.com.sg/news.php?reg_id=680 Tue, 15 Jun 2010 19:13:50 +0800 SINGAPORE (June 15, 2010) - India's Fortis Healthcare has reportedly hired Macquarie and Religare Capital - and is in talks with RBS - to raise funds for a possible battle with Malaysian sovereign wealth fund Khazanah over Singapore's Parkway Holdings. Quoting two unnamed sources with knowledge of the matter, Reuters reported that the banks' mandate was to arrange debt and they are not involved in Fortis' equity raising plans. India's Economic Times newspaper also reported that a consortium of banks were willing to fund up to US$1 billion. Contacted by Reuters, Fortis, Macquarie, RBS and Religare declined comment. Fortis, which owns roughly 25 percent of Parkway, had wanted to build a controlling stake in the firm before Khazanah made a surprise US$835 million offer to lift its stake to 51.5 per cent. Under Singapore rules, Fortis will have to make a general offer for Parkway shares it does not own or a potential bid of more than US$2.3 billion because it recently bought Parkway shares. Last week, Fortis unveiled plans to raise as much as US$1.2 billion in equity and debt. "All these steps indicate Fortis is very aggressive about Parkway and is working towards arranging funds within the limited timeframe for the counterbid," Sapna Jhawar, an analyst with Mumbai-based brokerage Sharekhan, told Reuters. http://www.corporateobserver.com.sg/news.php?reg_id=676 Tue, 15 Jun 2010 16:40:39 +0800 SINGAPORE (June 14, 2010) - Temasek Holdings and two Middle Eastern sovereign wealth funds have agreed to invest in the Agricultural Bank of China's planned listing in Hong Kong and Shanghai, according to wire reports. The Qatar Investment Authority and the Kuwait Investment Authority will be joining the Singapore investment firm in being key stake holders, though final commitment amounts are still being negotiated. When contacted by ChannelNewsAsia, Temasek declined to comment on the reports. The AgBank offering is estimated to be seeking between US$20 billion and US$30 billion. http://www.corporateobserver.com.sg/news.php?reg_id=675 Mon, 14 Jun 2010 18:56:40 +0800 SINGAPORE (June 14, 2010) - Under-pressure Prime Minister Abhisit Vejjajiva, who is still trying to heal the rifts caused by last month's violent crackdown on Red Shirt protesters, said his government is seeking to buy out the stake of Singapore government investment arm Temasek Holdings in satellite firm Thaicom on the grounds of national security. "Looking back to the time when Temasek bought Shin Corp shares, it notified the public and the Stock Exchange of Thailand that it had no intention to buy the satellite (operator)," Mr Abhisit said. "Therefore we are considering this issue, and the finance ministry is now negotiating with the company." Temasek subsidiaries own a combined 96.3 per cent stake in Shin Corp, which holds 41.1 per cent of Thaicom's shares. The Bangkok Post reported today that the Thai government wants to avoid Thaicom's satellites being used to air anti-government broadcasts. A change in ownership could result in changes to the terms of the remaining 12 years of Thaicom's concession to launch and operate satellites, the newspaper report said. While an earlier news report stated that the Thai government will spend 5 billion baht (S$215.6 million) to buy Thaicom, Mr Abhisit said the figures have not been finalized. The Thai premier told Bloomberg there was no formal offer yet. "It’s just really a starting of negotiations," he added. This is not the first time the Thai government is trying to buy back Thaicom. In 2007, Thailand’s military-appointed government started informal talks with Temasek to buy the satellite company. The army chief who led the coup warned at the time that Singapore may be using Shin’s assets to spy on military leaders, a charge the companies denied. http://www.corporateobserver.com.sg/news.php?reg_id=674 Mon, 14 Jun 2010 18:42:00 +0800 SINGAPORE (June 14, 2010) - Developers would soon have to update their government contact list: It will be all change at the top for the government's land and property agencies, following the departure of a top official at the Ministry of National Development (MND). The ministry announced today changes to several key senior appointments - including new CEOs at the Urban Redevelopment Authority (URA) and the Housing Development Board (HDB) - which will take effect from August 1. Mr Tay Kim Poh, currently CEO of HDB, will be appointed MND's Deputy Secretary (Development) - replacing BG (NS) Tay Lim Heng, who has left the ministry to pursue other interests. URA CEO Cheong Koon Hean will, in turn, take over Mr Tay at the helm of HDB. Mrs Cheong will continue her concurrent appointment as Deputy Secretary (Special Duties) at MND, with the responsibility of overseeing land reclamation issues. "Mrs Cheong's strong leadership will be invaluable to HDB as it continues to meet Singapore's future public housing needs", said the ministry. Mr Tay, CEO of HDB since 2006, spearheaded the Remaking Our Heartland (ROH) plans to revitalise and rejuvenate Singapore's public housing estates. He enhanced HDB's sustainability and community engagement efforts. He also played a pivotal role in the implementation of major public housing policies, such as the Enhanced Additional Housing Grant and the Lease Buyback Scheme. http://www.corporateobserver.com.sg/news.php?reg_id=673 Mon, 14 Jun 2010 18:18:15 +0800 SINGAPORE (June 14, 2o10) - The last remaining of the six E3 Holdings directors who were last week reprimanded by the Singapore Exchange, has stepped down from the Catalist-listed investment holding firm. In a stock exchange filing, E3 said its director and chief financial officer, Sieh Li Huan, left the firm with effect from June 11. The other five had all stepped down before the SGX reprimand. The firm said Ms Sieh was leaving to "pursue personal interests and considering the reprimand by SGX". Last week, SGX chided Ms Sieh along with five other former directors of E3 and its unit, Englo Real Estate Development for breaches of listing rules. http://www.corporateobserver.com.sg/news.php?reg_id=672 Mon, 14 Jun 2010 17:57:54 +0800 SINGAPORE (June 14, 2o10) - As part of the Singapore Exchange's (SGX) recently announced S$250 million Reach initiative, SGX and India-based HCL Technologies have signed a S$110 million IT outsourcing agreement. Under the five-year agreement, HCL will provide SGX with management services and infrastructure support, including the Exchange's Reach initiative. With Reach, SGX aims to create the world's fastest trading engine and connect key global financial hubs to Singapore. Mr Bob Caisley, executive vice president and chief information officer at SGX said this agreement forms a major part of the Reach initiative and will be the only outsourcing agreement as part of the initiative. Adding that the data centre provider will be announced soon, Mr Caisley said: "HCL is an important partner for SGX in enabling the Reach initiative to provide customers with the fastest access to Asia and in enhancing the efficiency and effectiveness of our operations on daily basis." http://www.corporateobserver.com.sg/news.php?reg_id=671 Mon, 14 Jun 2010 17:53:34 +0800 SINGAPORE (June 11, 2010) – The deputy chairman of SA Tours - buoyed by her unlikely victory against the Singapore Island Country Club (SICC) in getting the Court of Appeal to overturn the suspension of her membership - has failed in her attempt to sue the club and its general committee for libel. After prevailing in a two-year court battle which saw the case brought before the highest court, Ms Kay Swee Pin subsequently sued SICC and the 13-member general committee after the club posted for a year on the notice boards of its clubhouses that her membership would be suspended – for the corresponding period - after she had “falsely declared” that she was a spouse of SICC member, SA Tours group executive chairman Ng Kong Yeam, “to make use of the Club Facilities since September 1992”. The SICC is one of the most prestigious clubs in Singapore, with the members list reading like a who's who in the republic's corporate scene. In overturning the suspension, the Court Appeal had ruled that despite the fact that her marriage was not legally valid at the time of her membership application, the club was “irrational” in establishing that Ms Kay had made the false declaration in order to use the club facilities. But there was no repeat of Ms Kay’s court victory in her defamation suit. http://www.corporateobserver.com.sg/news.php?reg_id=669 Fri, 11 Jun 2010 20:03:18 +0800 (June 11, 2010) - Shares in petroleum giant BP opened higher in London on Friday, a day after a sharp drop linked to the company's difficulties with an oil leak in the Gulf of Mexico was reversed in New York. According to AP, BP shares were up 7.5 per cent at 393 pence in late morning trading on the London Stock Exchange, rebounding from a 13-year low in early trading on Thursday. In New York on Thursday, the stock closed 12.3 per cent higher, clawing back some of the losses from a 15.8 per cent rout on Wednesday. The firm's shares have lost half their value since the April 20 rig explosion off the Louisiana coast. Prior to the incident, it was trading at 655.4 pence. The rebound would come as a relief to BP investors, including the Government of Singapore Investment Corporation's (GIC) According to media reports, GIC’s shareholding in the company could have lost US$540 million (S$760 million) in value since May 1 as a result of the fallout from the Gulf of Mexico oil spillage. http://www.corporateobserver.com.sg/news.php?reg_id=668 Fri, 11 Jun 2010 19:00:03 +0800 SINGAPORE (June 11, 2010) – The eurozone debt crisis, which has already wrecked havoc on the stock markets and dampened global sentiment, will not hamper Singapore’s tourism renaissance – although visitors are expected to spend less, according to a UBS Investment Research report. Describing the recently-opened Integrated Resorts as “strategic milestones in the tourism development cycle”, UBS analyst Michael Lim upgraded his forecast for tourism arrivals this year by 12 per cent to 11.7 million, up from 10.4 million. Mr Lim also revised upwards his forecast for next year by 6 per cent to 12.8 million. Pointing out that European tourist traffic accounting for less than 15 per cent of the total number of visitors to Singapore, Mr Lim reiterated that a global contagion was unlikely. Said Mr Lim: “With upcoming tourism offerings like Youth Olympics, F1, MICE, International Cruise Terminal, river safari, we believe the tourism uptrend is intact. The Euro sovereign crisis, while a going concern, is unlikely to derail the tourism recovery.” http://www.corporateobserver.com.sg/news.php?reg_id=667 Fri, 11 Jun 2010 18:46:02 +0800 SINGAPORE (June 11, 2010) - An associate of Morgan Stanley Asia, which is acting as the independent financial adviser in Malaysian sovereign wealth fund's partial offer for Parkway Holdings, has bought 75,000 shares in the Singapore healthcare group. In a filing to the Singapore Exchange, Morgan Stanley said British-based FrontPoint Management bought the shares at S$3.83 each - higher than Khazanah's offer. Khazanah had offered S$1.18 billion, or S$3.78 a share, to increase its stake in Parkway to 51.5 per cent. Speculation has been growing in recent days that Parkway's other major shareholder, Fortis Healthcare of India, may launch a bidding war, which could send the already soaring share prices to surge further. http://www.corporateobserver.com.sg/news.php?reg_id=666 Fri, 11 Jun 2010 16:37:06 +0800 SINGAPORE (June 11, 2010) - The CLOB saga might have left a bitter taste in the mouths of hundreds of thousands of Singaporeans who were forced to sell off their Malaysia-traded shares at huge losses, after then-Malaysian PM Mahathir Mohamed imposed capital controls at the height of the Asian financial crisis. But as they say, time heals all wounds - and a bit of political broking probably helped too. In yet another sign of greater cross-border financial and economic linkage - following a historic meeting between Singapore PM Lee Hsien Loong and his Malaysian counterpart Najib Razak three weeks ago - CapitaMalls Asia (CMA), a subsidiary of Temasek Holdings unit CapitaLand, announced it was thinking of listing its assets across the Causeway. In a regulatory filing on the Singapore Exchange, CMA said it has received approval from the Securities Commission of Malaysia and depending on market conditions, plans to sell 786.5 million shares of its Malaysian unit CapitaMalls Malaysia Trust (CMMT) and will retain as much as a 41.7 per cent stake in the Malaysian trust after the sale CMMT will not be available to retail investors in Singapore - hardly a surprise given the bad experience more than a decade earlier. Since the CLOB saga, which also involved a public war of words between the Singapore and Malaysia market regulators, it was rare for any major Singapore company - let alone one linked to Singapore government investment arm Temasek - to list on the Malaysian exchange. http://www.corporateobserver.com.sg/news.php?reg_id=665 Fri, 11 Jun 2010 13:02:59 +0800 SINGAPORE (June 10, 2010) - The Singapore Exchange (SGX) has reprimanded investment holding company E3 Holdings as well as named and shamed six of its directors for breaches of listing rules and failures of corporate governance. For not disclosing material agreement and accurate information on its investments in China, E3 was also reported by SGX to the Monetary Authority of Singapore for breaching listing rules. According to SGX, E3 had failed to announce the disposal of its stake in Song Yuan Petrochemical to an interested person and for failing to seek shareholders' approval for selling the stake. The six E3 directors reprimanded for "not demonstrating the qualities and standards expected of directors and the management of SGX-listed companies" were: Mr Peter Ngo Gim Kang, Dr Anthony Soh Guan Cheow, Mr Kenneth Ngo Chin Chow, Ms Sieh Li Huan, Mr Chong Hon Leong and Mr Liau Beng Chye. http://www.corporateobserver.com.sg/news.php?reg_id=663 Thu, 10 Jun 2010 21:31:21 +0800 SINGAPORE (June 10, 2010) - The heat is on or is it just wishful thinking? In any case, the market chose to believe the sexier story. Parkway Holdings shares continued to trade upwards as investors reckoned a hotly contested battle for control is underway as news broke that Fortis Healthcare is planning to raise money to build its warchest for a potential general offer that will match the bid from Malaysia’s sovereign wealth fund Khazanah Nasional Berhad. The stock rose to a high of S$3.85 during morning trade, up from a 52-week-low of S$1.51 apiece as India's Fortis Healthcare announced plans to raise up to 27.5 billion rupees (S$828 million) via a stock issue. The proceeds will certainly beef up Fortis’s position should it really take on the new predator with a counterbid. At S$3.85, the stock is trading at its highest level since Nov 5, 2007. In a surprise move, Khazanah said two weeks ago it was making a partial offer of S$3.78 a piece or S$313 milion in total to take control of the Singapore-listed healthcare group. Fortis, on the other hand, had only bought a 23.9 per cent stake in Parkway in March for S$959 million, and was reportedly taken by surprise when Khazanah launched a S$1.18 billion partial takeover offer for the health-care provider. ... Indeed, Fortis had also approved increasing its borrowing limit to 60 billion rupees. Interestingly in a separate statement, Fortis shareholders agreed to sell a stake in the Indian company to a unit owned by Singapore’s sovereign wealth fund Government of Singapore Investment Corp for 3.8 billion rupees. The New Delhi-based group didn’t say what it plans to use the money for. The company was only prepared to say it was keeping its all its investment options open. http://www.corporateobserver.com.sg/news.php?reg_id=662 Thu, 10 Jun 2010 14:18:28 +0800 SINGAPORE (June 9, 2010) - China Yuchai International Limited (CYI), a subsidiary of Hong Leong Asia Ltd, said it has entered into a settlement agreement with the United States Securities and Exchange Commission (SEC). The agreement was to resolve a SEC informal inquiry concerning the restatement of its 2005 consolidated financial statements contained in its annual report. The restatement corrected errors relating primarily to an understatement of accounts payable at December 31, 2005 by about RMB 167.8 million by its subsidiary, Guangxi Yuchai Machinery Company Limited. According to CYI, no monetary penalty or fine will be imposed on the company or any individual in connection with the SEC settlement. But CYI had to consent to the entry of an administrative order, "which directs the Company to cease and desist from committing or causing violations" of specified federal securities laws and related SEC rules. CYI reiterated that it consented to the order "without admitting or denying the factual findings". http://www.corporateobserver.com.sg/news.php?reg_id=660 Wed, 09 Jun 2010 18:49:31 +0800 SINGAPORE (June 9, 2010) - Jetstar will kick off its long haul flights with its planes flying between Singapore and Melbourne in December; and then, between Singapore and Auckland in March. Releasing details of its plan to challenge the long haul carriers, which was first announced last month, Jetstar CEO Bruce Buchanan said other destinations being considered include Rome, Athens and North Asian cities such as Beijing. The Melbourne-based airline is using Singapore as a springboard into Asia Pacific, where economic growth is fueling demand for air travel. Jetstar is also speeding expansion through a tie-up with Air France-KLM Group that will allow it to plug into the flight network of Europe’s largest carrier. http://www.corporateobserver.com.sg/news.php?reg_id=659 Wed, 09 Jun 2010 18:30:03 +0800 (June 9, 2010) - Debrahlee Lorenzana, who is suing Citibank for discrimination after she had been fired from her banker job, is in trouble with her new employer for one too many media appearances. The New York Post is reporting that the 33-year-old's current employer, JP Morgan Chase, is unhappy at the recent publicity over the lawsuit, in which Ms Lorenzana alleged she was fired because she was "too hot". Ms Lorenzana (picture) told the New York Post that her new employer tried to get her to call off planned television appearances. When asked if she was likely to get fired for pushing ahead with media appearances, Lorenzana told the reporter: "I was under so much stress (my boss) said it wasn't up to her and that the only thing I can tell you is pray." Her lawyer said they would sue JP Morgan Chase if she is fired. http://www.corporateobserver.com.sg/news.php?reg_id=658 Wed, 09 Jun 2010 17:31:53 +0800 SINGAPORE (June 9, 2010) - Temasek Holdings, which bought a 5 per cent stake in India's National Stock Exchange (NSE)last month, could nominate its senior managing director Manish Kejriwal to the NSE board, according to Indian daily Business Standard. The newspaper reported that the NSE board would discuss the appointment of a new director when it meets on June 11. Quoting unnamed sources, it added that Mr Kejriwal would be nominated to replace New York Stock Exchange (NYSE) Euronext’s Chief Operating Officer Lawrence Leibowitz on the board. Temasek had bought the 5-per-cent stake from NYSE Euronext. http://www.corporateobserver.com.sg/news.php?reg_id=657 Wed, 09 Jun 2010 17:15:03 +0800 SINGAPORE (June 9, 2010) – The bleak European picture might have sent jitters sweeping through the local bourse, but it has not dampened private economists’ rosy outlook for the Singapore economy. In fact, following a second quarter that was dogged by the European debt crisis, 19 economists surveyed by the Monetary Authority of Singapore (MAS) have upgraded their median GDP growth forecast to 9 per cent this year – up from the 6.5 per cent estimate in March. For next year, the economists expect Singapore’s economy to grow by 5.5 per cent. The private economists’ latest forecast is at the upper end of the government's official growth forecast of 7 to 9 per cent. ... At the Nomura Asian Equity Forum yesterday, Nomura’s Europe economist Peter Westaway said he does not expect the region to slip back into recession – given the “very strong” political will in the European Union to alleviate the debt situation. While the debt crisis would “certainly” usher a slowdown due to the fiscal tightening carried out in countries such as Greece, Spain and Italy, Mr Westaway said the overall outcome would likely result in a mere 0.5 percentage point drop in Europe’s GDP. Said Mr Westaway: “Against that, you need to take into account as well the fact that the euro has depreciated... the consequence of that would be to boost growth. That would at least outweigh the downside effects of fiscal consolidation.” http://www.corporateobserver.com.sg/news.php?reg_id=656 Wed, 09 Jun 2010 17:01:35 +0800 SINGAPORE (June 8, 2010) - Motorola has its legendary "Six Sigma" management strategy. Now, the Monetary Authority of Singapore (MAS) has come up with its "Six Tenets of Effective Regulation". As international regulatory standards are being reviewed and tightened, MAS has unveiled its approach to regulation. It says its regulatory framework is based on the following tenets: outcome focused; shared responsibility; risk appropriate; responsive to change and cycles; and impact sensitive. Reiterating that while the new international regulatory standards would mean "some tightening too in Singapore, the shift will not be dramatic" - given the fact that its regulatory framework "is prudent and the financial system is stable". Said MAS: "The regulatory framework will be targeted at and sensitive to the risks it is aimed at, and more responsive to changes and risks in the industry. It will also be sufficiently flexible to set requirements that are commensurate with the risk profile and unique circumstances of particular financial institutions. Rules will be clear and not subject to frequent disruptive change as well as consistently applied to like activities conducted across sectors." http://www.corporateobserver.com.sg/news.php?reg_id=655 Tue, 08 Jun 2010 18:43:53 +0800 SINGAPORE (June 8, 2010) - Temasek Holdings is reportedly in talks with the Indian government on a US$2 billion fund for infrastructure projects in the world's second-fastest growing major economy, the Wall Street Journal (WSJ) quoted India's minister for road transport and highways as saying. "It's a good investment opportunity, and they are looking at it," Mr Kamal Nath said in an interview. "They have to look at whether they fund individual projects or set up some holding structures." Mr Nath told WSJ he will meet with Temasek tomorrow. Temasek didn't immediately respond to WSJ’s request for comment. http://www.corporateobserver.com.sg/news.php?reg_id=654 Tue, 08 Jun 2010 18:21:27 +0800 SINGAPORE, (June 8, 2010) - Singapore Telecommunications took another step towards becoming a major global player today as its Indian associate Bharti Airtel successfully completed its acquisition of Zain Group’s operations in 15 African countries. In an statement, Singtel said Bharti which is about one third owned by the Singapore telecom giant has completed the deal which will see it controlling mobile phone operations across Africa for an enterprise value of US$10.7 billion. With this acquisition, Airtel will become the first Indian brand to go truly global with a footprint that covers over 1.8 billion people. Bharti also becomes a major Indian multinational with operations in 18 countries across Asia and Africa with a customer base of over 180 million. Likewise, Singtel with its exposure in Bharti also expanded its global footprint to Africa. The transaction is the largest ever cross-border deal in emerging markets and will result in combined revenues of over US$12.4 billion and EBITDA of over US$4.7billion, based on the last audited results. With the completion, Bharti is now among the five largest mobile operators in the world. http://www.corporateobserver.com.sg/news.php?reg_id=653 Tue, 08 Jun 2010 17:59:16 +0800 SINGAPORE (June 8, 2010) - Five days after the Singapore Exchange (SGX) unveiled a S$250 million initiative to allow faster and larger trade executions, it announced it has established a London office "to better serve its growing number of European-based customers". The London office, which will be headed by former Deutsche Bank managing director David Battle, will be SGX's second overseas office. It set up its first overseas office in Beijing in April 2008. SGX said the establishment of the London office was a follow-on from its recently-announced new initiative which will "create the world’s fastest trading engine, establish a world-class data centre and seamlessly connect trading communities in Chicago, New York, Tokyo and London to Singapore". "These four hubs will radically lower cross-border connectivity costs and make it even more attractive to be a member of SGX," the exchange added. SGX CEO Magnus Bocker said the exchange's presence in London "marks a strong commitment to our customers in meeting and responding to their needs". Said Mr Bocker: "Building connectivity and enhancing market accessibility will strengthen our position as the market of choice for investors wanting to participate in Asia’s rapidly-growing economies, and for issuers seeking to access global capital markets." http://www.corporateobserver.com.sg/news.php?reg_id=652 Tue, 08 Jun 2010 17:53:16 +0800 SINGAPORE (June 8, 2010) – Mainboard-listed commodities firm Olam International splashed out US$250 million to acquire a unit of US firm ConAgra Foods, and its executive director Shekhar Anantharaman promptly declared: We still have US$1 billion to spend. In a regulatory filing, Olam said it will buy the dehydrated and vegetable products business and operating assets of Gilroy Foods & Flavors from ConAgra. The acquisition includes Gilroy's dehydrated onion, garlic, capsicum, fresh vegetable and purees operations. ConAgra will keep the Gilroy assets that make seasoning blends and flavours. Olam says the acquisition is part of its “strategic plan to consolidate its Spices & Dehydrates business into a global leadership position”. It adds that the latest investment will build upon the configuration of assets acquired earlier from SK foods (US tomatoes), De Francesco & Sons (US onions) and Key Foods Ingredients (China garlic). As part of the acquisition, Olam has entered into a long term supply agreement to cater to ConAgra's needs for dehydrated vegetable products. “The Company believes that the investment will open up other such opportunities with major food companies which are progressively outsourcing their ingredient and raw material supply chain to reliable third party suppliers in order to concentrate on their value-added or branded businesses,” Olam added. http://www.corporateobserver.com.sg/news.php?reg_id=651 Tue, 08 Jun 2010 16:09:35 +0800 (June 8, 2010) - Prudential's shareholders yesterday gave full vent to their fury over the company's failed bid for Asian insurer AIA, branding its directors as "arrogant", according to British daily The Independent. While there were a handful of positive comments aimed at the company's board, the majority were sharply critical of Prudential directors, and of chairman Harvey McGrath and chief executive Tidjane Thiam in particular. "You failed to do your job properly, all of you. All of you are responsible for this failed deal," Shareholder Anthony Watts told directors, saying they should "do the honourable thing" and resign. The men and women who are responsible for losing their shareholders £450m - the cost of the botched deal - sat stony faced as they listened to one stinging criticism after another. But despite the barrage of recriminations, the wasn't a single boardroom casualty, with Mr McGrath and others weathering the storm by plainly ignoring calls for their heads. Moving forward, Mr McGrath said Prudential will concentrate on growth from within, although it would still consider small-scale takeovers to boost its presence in fast-growing Asia, Reuters reported. "One of the lessons we've learnt is that in the post-crisis world we live in, doing large cross-border acquisitions in financial services is going to be very difficult," McGrath said. "I think we'll continue to seek to grow this business organically. You should expect us to look at bolt-on acquisitions." http://www.corporateobserver.com.sg/news.php?reg_id=650 Tue, 08 Jun 2010 12:12:06 +0800 NEWS ANALYSIS By Loh Chee Kong cheekong@corporateobserver.com.sg At one point, the battle for control over Parkway Holdings appeared a foregone conclusion. But events have conspired to tilt the fight in favour of the underdog, India-based Fortis Healthcare. When Malaysian sovereign wealth fund Khazanah announced its S$1.18 billion partial offer to more than double its stake in Parkway to 51.5 per cent, the offer - at S$3.78 a share - represented a healthy premium for Parkway shares which were trading at S$3.02 per share. Following the announcement, Parkway share price shot up by 20 per cent the next time trading resumed. And it has been trading steadily since, between S$3.62 and S$3.79. Suddenly, the "significant" premium that Mr Ahmad Shahizam Mohd Shariff, director of Khazanah unit Integrated Healthcare, talked about doesn't seem to be so enticing anymore. Today, Parkway shares closed at S$3.68 - a mere 10 cents off the offer on the table. And this development was perhaps exactly what the people at Fortis were hoping for - as they kept quiet and bided their time all this while. Fortis holds about 25.37 per cent of Parkway shares - marginally more than Khazanah's 23.32-per-cent stake prior to its partial offer. Already, the soaring stock price had led to several directors at Parkway's subsidiaries disposing of their Parkway shares in the open market - instead of selling them to Khazanah. http://www.corporateobserver.com.sg/news.php?reg_id=646 Mon, 07 Jun 2010 19:31:07 +0800 SINGAPORE (June 7, 2010) - Swiss bank UBS has named David Forsyth as the head of Singapore prime broking - a unit that serves hedge funds - replacing Alastair Sclater who had held the post for less than a year, Reuters reported. According to an internal note seen by Reuters, Mr Forsyth, who will join UBS in mid-June, was head of prime brokerage sales for Australia before he left the Swiss bank in 2008 for Kerry Consulting. Mr Forsyth will be taking over Mr Sclater, who was appointed to then-newly created post only in August last year. http://www.corporateobserver.com.sg/news.php?reg_id=645 Mon, 07 Jun 2010 16:04:37 +0800 SINGAPORE (June 7, 2010) – Singapore property group Overseas Union Enterprise (OUE)’s controlling shareholder, Indonesia’s Lippo Group, is offloading up to 52 million of its shares – even as OUE announced it has adopted a policy of paying annual dividends of at least 50 per cent of its after tax profits. OUE said in a regulatory filing today that the shares are put up for sale at an indicative price range of between S$11.50 to S$14.00 – a substantial discount from yesterday's closing price of S$17.50 – making it worth up to S$728 million. This makes up 26.5 per cent of OUE’s issued share capital. Following the placement of shares, OUE shares closed 3.4 per cent lower at S$16.90. Through its investment unit Golden Concord Asia, Lippo Group currently holds a direct interest in 37.32 per cent of OUE’s shares and an indirect interest in 51.19 per cent. Credit Suisse is the sole global coordinator of the secondary follow-on offering. It is also joint lead manager and bookrunner with Morgan Stanley and Standard Chartered. In March, Lippo Group paid S$957 million to buy Malaysian tycoon Ananda Krishnan's stake in OUE, giving it sole control of the property group. The move came following reports that ties between Lippo president Stephen Riady and Mr Krishnan were strained and that there were disagreements over the management of OUE. Concurrent with the placement of its shares, OUE has said it was proposing to issue up to S$200 million of convertible notes due in 2015. The issue size and pricing will be determined after a book-building exercise. The notes will be offered to institutional or accredited investors in Singapore, qualified institutional buyers in the US and also eligible investors outside the US. According to OUE, the net proceeds would be used to acquire sites or properties for the development of hospitality, retail, commercial and residential properties in Singapore. http://www.corporateobserver.com.sg/news.php?reg_id=644 Mon, 07 Jun 2010 15:57:00 +0800 SINGAPORE (June 7, 2010) – Global crisis or not, the financial sector remains key to Singapore’s economic growth – especially more so when productivity’s the buzzword. Speaking at the Nomura Asia Equity Forum, Mrs Lim Hwee Hua, Second Minister for Finance, reiterated in her keynote address the financial sector’s “two-fold role” in the republic’s drive to grow its economy. Apart from being an engine of growth itself, the financial sector had a key role to play in Singapore’s efforts to raise productivity – its economy’s Achilles heel – including internationalizing its small and medium enterprises (SMEs). In this regard, financing was a “crucial enabler” for SMEs, Mrs Lim pointed out. Said Mrs Lim: “There will be a demand for long-term growth capital from value-adding investors, equipped to lend their experience to nurture enterprises over time. There will also be demand for cross-border financing by companies venturing overseas to seek new markets.” The government has said that it is looking to set up a cross-border financing institution and Mrs Lim reiterated that such an institution would have to involve “many market players”. She added: “Aside from providing financing for growth and investment, a robust and well-governed financial sector also provides tools for companies to efficiently run their businesses. For example, judicious use of derivatives by treasury and risk management desks can allow corporations to effectively plan and manage their cost of doing business.” http://www.corporateobserver.com.sg/news.php?reg_id=643 Mon, 07 Jun 2010 14:54:49 +0800 This is a sample news brief, which will appear in the front-page of the site, if selected as so. Just follow the format shown here, and replace this text, and it will come out fine. The image tag which you see at the beginning of this paragraph corresponds to the respective image, which you will upload below. You can place such image tags wherever in any paragraph, and the corresponding image will appear in that spot in the flow of the article.Do play around to try how it can be used. Sample paragraph 2: Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam remaperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto. beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit. http://www.corporateobserver.com.sg/news.php?reg_id=639 Fri, 04 Jun 2010 20:00:58 +0800 SINGAPORE, (June 4, 2010) - Indonesia's government controlled telecom giant PT Telekomunikasi Indonesia (Telkom) expects a tower deal with Singapore Telecommunications (SingTel) worth up US$1.2 billion to be completed this year. According to Reuters, Telkom, which said it sees single-digit percentage growth in second-quarter net profit, is shifting its focus to data services to earn higher profits as subscriber growth in Southeast Asia's biggest economy slows. It also needs to invest heavily in telecoms infrastructure including towers. Telkom's president director Rinaldi Firmansyah was quoted as saying the firm was still in talks with SingTel. Earlier this year, Telkom said it would borrow nearly $400 million to buy out SingTel's interests in about 9,000 telecoms towers. "We'll still have to see how aggressive they will be about finding tenants for the towers once the deal is done. http://www.corporateobserver.com.sg/news.php?reg_id=638 Fri, 04 Jun 2010 19:06:16 +0800 SINGAPORE (June 4, 2010) - As composer Paul Simon once sang:"After changes upon changes, we are more than less the same.'' Or should it be the more we change, the more we remain the same? More than 13 years after his retirement from POSB's top job and several top management changes later, Bertie Cheng has now been rehired by the new management as an advisor to the Singapore savings bank which was taken over by DBS in November 1998 - a year after Mr Cheng's retirement. DBS said the appointment will take effect from June 1. DBS, which recently made former banker Peter Seah its chairman, described Mr Cheng as the iconic leader of the former statutory board POSBank who was associated with the Bank for over 31 years, with the last 23 years as its CEO. Since its high profiled decision to expand its regional operations and talent pool, DBS has been retiring many of the local veteran bankers in the group and appointing foreigners into senior positions. At the top, the group had five foreign CEOs in the last 10 years. http://www.corporateobserver.com.sg/news.php?reg_id=637 Fri, 04 Jun 2010 15:56:14 +0800 SINGAPORE (June 4, 2010) - The Singapore competition watchdog has barked. And this time, it bit hard too. In two announcements today, the Competition Commission of Singapore (CCS) has for the first time imposed fines on a company – Singapore’s largest ticketing company Sistic - for abusing its dominant position. The competition regulator also penalised 14 electrical companies for collusion in job bidding. CCS, an anti-trust statutory board set up in 2004 under the Ministry of Trade and Industry, said it fined Sistic S$989,000 for infringing Section 47 of the Competition Act after probing a series of exclusive agreements by the ticketing company and 19 venues, including the Esplanade and Singapore Indoor Stadium, where it is appointed the sole ticketing service provider. A typical agreement Sistic had with these venues contained explicit restrictions requiring all events to use Sistic as the sole ticketing service provider. ... Separately, CCS also issued its infringement decision against 14 electrical and building works companies for bid-rigging or collusive tendering. The 14 companies are Aldale Electrical Services, Alpha & Omega Engineering Services, Arisco Engineering & Maintenance Services, AVL Electrical Engineering, DAE Services, E-SP Integrated Services, Etora United Engineering, Huang Soon Electrical Engineering Works, Integrated One Construction, MME Services, Ronnie Lim Electrical and Plumbing Contractor, System Technic Engineering, Toplist Mechanical and Electrical Services and Triple H Technology. http://www.corporateobserver.com.sg/news.php?reg_id=636 Fri, 04 Jun 2010 15:30:31 +0800 SINGAPORE (June 3, 2010) - PT Bank OCBN NISP, the Indonesian subsidiary of Singapore's OCBC Bank, plans to issue subordinated debt with a tenure of seven years worth around Rp 1 trillion (US$110 million) The interest rate offered over the bond is fixed. OCBC NISP appointed Standard Chartered Securities Indonesia, Danareksa Sekuritas, and NISP Sekuritas as the underwriters of the debt issue. The papers have been rated AA- by Fitch. The yield on the paper is expected to be offer at between 10.75 per cent and 11.75 per cent. The International Finance Corporation (IFC) was earlier reported to be keen on investing in the papers. http://www.corporateobserver.com.sg/news.php?reg_id=635 Thu, 03 Jun 2010 18:30:52 +0800 SINGAPORE, (June 3, 2010) - Six months into his leadership, Magnus Bocker has certainly got things moving fast at the Singapore Exchange (SGX). Indeed, within the first few days of June alone, SGX has unveiled several key initiatives that are aimed at pushing the Singapore bourse into new frontiers including its latest announcement today which looks to strengthen its position as a key player in Asia. SGX said it will spend S$250 million on plans to strengthen Singapore’s position as the best market for accessing Asia. The new initiative - Reach - will create the world’s fastest engine with the lowest trading latency, establish a world class data centre for SGX and seamlessly connect trading communities in global financial hubs to Singapore. Reach will be rolled out from the first quarter of next year. SGX said the resulting trading environment will be ideal for global investors, including sophisticated traders and participants new to the region. It will bring better liquidity and greater velocity to the market, enhancing SGX’s position as the Asian gateway. ... Mr Bocker, CEO of SGX said:“We are the leader among exchanges in satisfying global appetite for Asian investment products. With Reach, Singapore will become even more accessible to greater numbers of investors including international traders seeking the next generation of growth opportunities. The investment also reaffirms SGX’s commitment to provide global reach for Asian issuers.” Gan Seow Ann, head of markets at SGX added, “Customers which co-locate their trading applications with SGX’s trading engines will be able to capitalise on new trading opportunities. We are delighted that 40 per cent of our broking members have already signed up as the first batch of subscribers. http://www.corporateobserver.com.sg/news.php?reg_id=634 Thu, 03 Jun 2010 17:54:52 +0800 SINGAPORE (June 2, 2010) - Singaporeans hungry for alternative news would have one less online source to go to for now. Popular socio-political website The Online Citizen (TOC) announced Sunday on its website that it will be taking an "indefinite" break. "We will make further announcements in due course," its chief editor Andrew Loh wrote. The sudden announcement saw Netizens speculating on the cause of the move - prompting the TOC team to assure on its Facebook page that "there's nothing to worry about". The Corporate Observer looks forward to TOC's return to action soon. http://www.corporateobserver.com.sg/news.php?reg_id=633 Wed, 02 Jun 2010 18:56:48 +0800 SINGAPORE (June 2, 2010) – Singapore Exchange (SGX) has become the first exchange in the world to trade a futures contract based on dividend payouts in constituent companies of the Japanese benchmark index. In a statement today, SGX said its derivatives market will start trading the new SGX Nikkei Dividend Point Index futures from June 17. The SGX Nikkei Dividend Index futures will expand SGX’s existing range of Nikkei products. One of the most popular products in the Singapore futures market, the Nikkei 225 Index futures traded on SGX currently accounts for 30 per cent of global trading of the contracts. http://www.corporateobserver.com.sg/news.php?reg_id=632 Wed, 02 Jun 2010 18:30:50 +0800 SINGAPORE (June 2, 2010) – Khazanah, Malaysia’s state investment company, may raise as much as S$500 million from the biggest sale of Islamic bonds, or sukuk, denominated in neighboring Singapore’s currency. Khazanah had announced last week that it plans to tap the Singapore dollar bond market to raise between S$300 million to S$500 million, according to IFR Asia, a Thomson Reuters service. According to Bloomberg, which quoted two people familiar with the matter, Khazanah is using the bond sale to fund its takeover of Singapore-based Parkway Holdings. CIMB Investment Bank Bhd. is among banks that may start the sale as soon as this month, one of the people said. http://www.corporateobserver.com.sg/news.php?reg_id=631 Wed, 02 Jun 2010 17:29:58 +0800 SINGAPORE (June 2, 2010) - Private equity Navis Capital Partners has made a voluntary conditional cash offer worth of S$77.44 million for Singapore-listed logistics firm Eng Kong Holdings, with an eye on taking it off the mainboard. Navis is making a cash offer of S$0.295 per share - a 37.2 per cent premium over the market price of the shares prior to the announcement of the offer. It added that Eng Kong's substantial shareholders and directors - including its deputy chairman Eddie Li, managing director Paul Ng and executive director Godfrey Leung - have given "irrevocable undertakings" to accept the offer. The trio hold a combined stake of abot 66.39 per cent. http://www.corporateobserver.com.sg/news.php?reg_id=630 Wed, 02 Jun 2010 16:48:11 +0800 SINGAPORE (June 2, 2010) - Following the imminent collapse of Prudential's takeover bid for AIA, sovereign wealth funds including Qatar Holdings and the republic's Government of Singapore Investment Corporation (GIC) and Temasek Holdings are reportedly set to pounce on the wreckage. Sources told UK newspaper The Daily Telegraph that AIA's parent American International Group (AIG) was exploring talks with the SWFs which could become cornerstone investors in AIA ahead of reviving plans for an initial public offering in Hong Kong. A deal would be an added blow to the Pru since some of the funds agreed to underwrite Prudential's record $21bn rights issue. Qatar Holding and GIC, which owns a 0.5 per cent stake in Prudential, were named in the prospectus as underwriters. One source told The Daily Telegraph: "The sovereign investors know the asset well and have become more keen on the back of the publicity surrounding the deal. They want to play a part in a deal one way or another." A well-placed source said: "Only half the AIG board wanted the deal with the Pru – the other half wanted to sell a cornerstone stake to sovereign wealth funds ahead of an IPO." http://www.corporateobserver.com.sg/news.php?reg_id=629 Wed, 02 Jun 2010 14:29:27 +0800 SINGAPORE (June 2, 2010) - Indonesian tax authorities have reportedly launched investigations on Singapore-listed Wilmar International. According to Jakarta Post, Wilmar, the world’s largest palm oil trader and the second largest firm in Singapore in terms of market cap, is being investigated by the Indonesian tax office over fictitious value added tax (VAT) refunds. Tax director general M Tjiptardjo told the Indonesian newspaper that the authorities are investigating Wilmar's taxes "from the 2007 to 2008 period". http://www.corporateobserver.com.sg/news.php?reg_id=628 Wed, 02 Jun 2010 14:08:32 +0800 SINGAPORE (June 2, 2010) - New York-listed water services firm Cascal board again rejected a US$206 million (S$289 million) takeover offer from Singapore-based Sembcorp Industries, calling it "inadequate" as it "grossly undervalues" the waste-water management company. Cascal's move comes after its lawsuit - seeking an injunction against the bid - against Sembcorp was thrown out last week. The Dutch firm said in a statement Tuesday (today, Singapore time) that its board, in recommending shareholders not tender their holdings in support of the US$6.75 a share bid from Sembcorp, is "actively holding discussions and negotiating strategic alternatives that we hope can result in a superior transaction for stockholders of Cascal". http://www.corporateobserver.com.sg/news.php?reg_id=627 Wed, 02 Jun 2010 12:53:27 +0800 SINGAPORE (June 2, 2010) - The death knoll finally sounded for Prudential's floundering takeover bid for American International Group's main Asian unit AIA. The UK insurer announced it was in negotiations with AIG to terminate the agreement - a move which will see Prudential incurring costs of approximately £450 million (S$915.7 million) comprising the break fee of £152.6 million; arrangement and underwriting fees of approximately £81 million; and advisory and other fees, which include the estimated net cost of the derivative hedging instruments entered into to hedge the foreign exchange risk. Under intense pressure from its major shareholders, Prudential threw in the towel after it failed to lower the deal's US$35.5 billion price tag to US$30.4 bn. In a terse statement Tuesday, AIG rejected the revised offer dealing a fatal blow to the deal. In its statement today, Prudential did not say that the AIG agreement has been formally terminated but said it was "expected". Prudential CEO Tidjane Thiam, whose position along with chairman Harvey McGrath's would now be under scrutiny, reiterated the firm had "entered into this potential transaction from a position of strength in Asia and we view the region as offering excellent growth opportunities for Prudential". He added: "We agreed with shareholders that a renegotiation of the terms was necessary given market movements but it has not proved possible to reach agreement." http://www.corporateobserver.com.sg/news.php?reg_id=626 Wed, 02 Jun 2010 12:19:35 +0800 (June 2, 2010) - Just eight months after leading his party to break the Liberal Democratic Party's five decades of political monopoly, Japan's Prime Minister Yukio Hatoyama has resigned in the wake of a broken promise to move United States troops off Okinawa. Mr Hatoyama's stepping down - the fourth consecutive resignation of a prime minister in Japan after less than a year - comes at a time when the world's second largest economy is trying to cement its tentative economic recovery. Tokyo shares reversed their losses on news of the resignation. Japan's Nikkei Stock Average was up 0.1 per cent but the yen lost ground against the US dollar and the euro. Mizuho Research Institute economist Hirokata Kusaba told the Telegraph: "Hatoyama's resignation may cause delays in the scheduled releases this month of the government's growth strategies and fiscal discipline. Whoever replaces Hatoyama would need to work them out before an upper house election, or else disappoint voters.” Yoshinori Nagano, senior strategist at Daiwa Asset Management, told Wall Street Journal: "An unpopular prime minister will leave, so the market should start pricing in all the negative factors related to politics." http://www.corporateobserver.com.sg/news.php?reg_id=625 Wed, 02 Jun 2010 11:56:24 +0800 SINGAPORE (June 1, 2010) - It will be all change at the top for CapitaRetail China Trust (CRCT), a subsidiary of CapitaMalls Asia. CRCT announced a reshuffle today, with its CEO Wee Hui Kan resigning and stepping down from the board as a director to "pursue his other interests". Mr Tan Tee Hieong, who is currently the deputy chief financial officer and head of finance at CapitaMalls Asia, will replace Mr Wee at CRCT's helm. According to CRCT, Mr Tan has more than 17 years of experience in international treasury, finance and risk management. As CapitaMalls Asia head of finance, Mr Tan was a key member of the team responsible for the equity fund raising and acquisition of Xizhimen Mall in 2008. CRCT has also appointed Ms Tan Siew Bee as head of finance. All the new appointments will effect from July 1. http://www.corporateobserver.com.sg/news.php?reg_id=624 Tue, 01 Jun 2010 21:31:22 +0800 SINGAPORE (June 1, 2010) - Veteran OCBC banker Lai Teck Poh has joined the company's board as a non-executive director, following his recent retirement from the Singapore banking group. Mr Lai, 65, joined OCBC has executive vice president in 1988 and stepped down during the bank's recent restructuring http://www.corporateobserver.com.sg/news.php?reg_id=623 Tue, 01 Jun 2010 17:31:21 +0800 SINGAPORE (June 1, 2010) - Prudential's high profile acquisition bid for AIA - which saw the UK insurer turn to listing in Singapore and Hong Kong to raise funds - is in danger of collapsing after the Asian insurer's parent American International Group rejected a cut-price deal. In a regulatory filing today, Prudential confirmed its attempt to cut the price of the US$35.5 billion takeover bid to US$30.4 bn had been rejected. Just hours earlier, AIG issued a statement that it “will adhere to the original terms of its previously announced agreement with Prudential”. In its statement, Prudential said it was seeking to lower the price to comprise of US$23 bn in cash, US$5.375 billion worth of shares in the combined companies and US$2 billion in notes. With the rejection, Prudential said its board was "considering its position". "A further announcement will be made when appropriate," the firm added. Prudential’s bid had been plagued by bad press, with several major investors criticizing the proposed deal as overpriced. The 162-year-old British insurer also was trying to pull off a US$21 billion rights offer, the biggest for an acquisition in history, at a time when Europe’s sovereign debt crisis was hurting corporate fundraisings worldwide. http://www.corporateobserver.com.sg/news.php?reg_id=622 Tue, 01 Jun 2010 16:31:26 +0800 SINGAPORE (June 1, 2010) - After five days, Fortis Healthcare has finally broken its silence to shed more light on its next move, following Malaysian sovereign wealth fund Khazanah's surprise S$1.18 billion bid to take control of Singapore-based Parkway Holdings. Fortis' long silence had fueled market talk that it could exit its S$963 million investment - just two months after announcing its bold ambitions to build a leading global healthcare chain. But in a conference call, Fortis managing director Shivinder Singh - who said that the firm had been legally advised to keep silent on the issue - narrowed down its options to either holding on to its 25-per-cent stake or mount a counterbid. Said Mr Singh: "Parkway is a big investment for the company. Fortis is looking at the best potential situation and outcome for itself. I think in all the possibilities that we seem to have, Fortis will not walk out dented by this position." India newspaper Economic Times quoted an unnamed person familiar with the development as saying that Fortis was contemplating a counter bid. Said the person, who requested anonymity: “An exit is not an option at this point. In all our investments, we have management control of hospitals.” While a counterbid would see Fortis pitting itself against a fund with potentially limitless capital, analysts told the Economic Times that money will not be a constraint for Fortis. “Fortis has the financial muscle to fund a counter bid, evident from the money they raised from private equity and bond market to fund Parkway's deal in less than a month,” said Vishal Gandhi, VP for Lifesciences at Yes Bank. http://www.corporateobserver.com.sg/news.php?reg_id=621 Tue, 01 Jun 2010 15:49:21 +0800 SINGAPORE (May 31, 2010) - The Singapore Exchange (SGX) issued a stinging rebuke against beleagured technology services firm NEL's audit committee, which had offered "mitigating" reasons - including a dispute over fees payable to special auditors Ernst & Young - for its delay in releasing the findings of the special auditor's report. Rebutting NEL's regulatory filing Sunday evening, SGX said in a statement today that NEL's audit committee had "full control" over the release of the report. It added: "It is illogical for the Audit Committee to represent that it was not 'party to the company’s non-compliance with the SGX directive'. It is well established that an Audit Committee cannot abdicate its responsibilities under the pretext of delegation." The NEL independent directors, which form the audit committee, said the non-action of the company's Hong Kong-based executive director was another factor. Noting how the audit committee was able to issue its response to SGX's reprimand last week via SGXNET on a Sunday, SGX added: "The Audit Committee, in its account of events, would have us believe that it could not procure the release of the Special Auditors’ report." SGX pointed out that the issue of professional fees was "irrelevant". Said SGX: "NEL received the draft report on March 22, 2010. Thereafter, the Audit Committee repeatedly failed to finalise and release the report. There is no credible reason for the delay in releasing the findings of the Special Auditors’ report." The SGX had directed NEL to appoint special auditors to investigate the affairs of the company in January last year, following a confidential report filed by its former auditor KPMG under the Companies Act. SGX has since reported NEL to the Commercial Affairs Department and the Monetary Authority of Singapore, after the special auditor's report alleged that NEL had engaged in a series of "round-tripping" transactions involving 13 other companies spanning across Malaysia, Hong Kong and China. http://www.corporateobserver.com.sg/news.php?reg_id=618 Mon, 31 May 2010 23:10:00 +0800 SINGAPORE (May 31, 2010) - In the latest of a flurry of cross-border financial activities, the Government of Singapore Investment Corporation (GIC) has agreed to acquire a 5 per cent stake in the proposed real estate investment trust of Malaysian developer Sunway City. Sunway City said it has entered into a cornerstone agreement with GIC for the sale of 134 million units of the REIT. In its stock exchange filing, Sunway City said GIC will buy the units at 98 Malaysian sen per unit or at the institutional price determined after book-building, whichever is lower. Sunway City is planning to raise 1.6 billion ringgit (S$686 million) from IPO of REIT, which expected to be biggest in Malaysia. http://www.corporateobserver.com.sg/news.php?reg_id=616 Mon, 31 May 2010 22:18:11 +0800 SINGAPORE (May 31, 2010) - Mega church City Harvest is under investigation by the Office of the Commissioner of Charities (COC) and the Commercial Affairs Department (CAD) over some financial transactions involving several individuals and companies related or connected to the church. A joint statement issued today by the COC and police said CAD officers visited the offices of the individuals and the companies under investigation. The officers secured records and accounts for the purpose of the investigations. The probe was initiated after COC received omplaints of misuse of church funds against City Harvest Church. The COC said it informed the CAD when it found that some of the financial transactions may need to be investigated. Since it was founded in 1989, City Harvest had grown "from a small cell group of schooling youngsters to a megachurch with businessmen and marketplace professionals", according to its website. In March, City Harvest announced it paid $310 million for a stake in Suntec Singapore, becoming it's co-owner. http://www.corporateobserver.com.sg/news.php?reg_id=615 Mon, 31 May 2010 17:50:43 +0800 NEWS ANALYSIS By Loh Chee Kong cheekong@corporateobserver.com.sg Cue the romanticizing. CNBC’s Indian affiliate television network CNBC TV18 has already described Malaysian sovereign wealth fund Khazanah’s partial offer for Singapore-listed Parkway Holdings as a “proxy war between Singapore and Malaysia, and India has become the battle ground”. On the surface, Khazanah’s S$1.18 billion offer to more than double its stake to 51 per cent in Parkway is a straightforward move to gain control of a rare global asset – an established healthcare group with multi-country operations. But throw in the notion that the republic’s investment arm Government of Singapore Investment Corporation (GIC) is backing Indian healthcare chain Fortis in the other camp, and the plot thickens. Fortis recently raised US$85 million from GIC through a preferential issue – giving GIC a 5 per cent stake in Fortis – subject to shareholders’ approval. And according to India’s Economic Times, Fortis is discussing financing options with GIC as it weighs the possibility of launching a counter-offer for Parkway. “Fortis has two options— either to exit from Parkway and make a few millions or to increase its holding through a counter-offer. The second option is more on the cards as it has also tacit support of GIC,” a source told the newspaper. But any expectations that GIC would financially back Fortis in an all-out bidding war against Khazanah seem misplaced: The Khazanah offer appears to have the blessings of both the Singapore and Malaysia governments – coming on the heels of a historic meeting between Singapore Prime Minister Lee Hsien Loong and his Malaysian counterpart Najib Razak. Fortis CEO Bhavdeep Singh is giving little away, telling the Indian media that it wants to “just leave it at that for now”. It is now four days since Khazanah announced its partial offer. But with all eyes on Fortis, the Indian firm has remained resolutely quiet - although its executives must be furiously working behind the scenes to work out the various scenarios. The uneasy calm could set the stage for what some analysts expect to be an all out bidding war - or Fortis could simply be resigned to giving up a golden goose it thought it had both hands on. As far as healthcare entities are concerned, few come as attractive as Parkway Holdings given its global footprint. http://www.corporateobserver.com.sg/news.php?reg_id=614 Mon, 31 May 2010 17:12:42 +0800 SINGAPORE (May 31, 2010) - One in five resident employees changed jobs in the two years between 2007 and 2009, according to a survey by the Ministry of Manpower (MOM). According to MOM, workers who had undergone Workforce Skills Qualification (WSQ) training experienced greater job mobility. WSQ also significantly increased the chances of machine operators, cleaners and labourers moving to service, clerical, craftsmen and related occupations. These are the key findings from an occasional study on “Labour Mobility” released by MOM. Among the resident employees who switched jobs, most moved to occupations with similar skills level. More employees also moved within industries than across industries. Workers who had undergone WSQ training experienced greater job mobility. http://www.corporateobserver.com.sg/news.php?reg_id=613 Mon, 31 May 2010 14:36:29 +0800 SINGAPORE (May 31, 2010) - Walter Woon, who recently stepped down as Attorney General to return to the academia, will step down from the board of the Monetary Authority of Singapore (MAS) from tomorrow. In a press release, MAS also announced that Mr Lim Hng Kiang, Minister for Trade and Industry, has been re-appointed as MAS’ Deputy Chairman for a further period of two years from the same day. Teo Ming Kian, Permanent Secretary (National Research and Development), Prime Minister’s Office, has also been re-appointed for a further period of two years. http://www.corporateobserver.com.sg/news.php?reg_id=612 Mon, 31 May 2010 14:29:10 +0800 SINGAPORE (May 31, 2010) - Once again in the news, property and hotel group Overseas Union Enterprise Limited has announced a fund raising of up to S$200 million worth of convertible bonds due 2015 as well as a share placement by the controlling shareholder. OUE, which suspended the trading of its shares in the morning, said Golden Concord Asia - a controlling shareholder of the company with a direct interest in 37.32 per cent of the company’s shares and an indirect interest in 51.19 per cent - plans to sell an undisclosed number of its shares in a placement. Indonesia’s Riady family of the Lippo Group controls close to 90 per cent of the company after buying out their feuding partner Ananda Krishna from Malaysia earlier this year. http://www.corporateobserver.com.sg/news.php?reg_id=611 Mon, 31 May 2010 14:02:08 +0800 SINGAPORE (May 31, 2010) - Millennium & Copthorne (M&C), a subsidiary of Singapore-listed City Developments, announced its CEO Richard Hartman, 64, will retire as Group Chief Executive Officer by the end of this year. In a regulatory filing today, M&C said a search is underway for Mr Hartman's succesor. Following his retirement, he will remain on the M&C Board as a non-executive director and as a senior adviser. M&C chairman Kwek Leng Beng said Mr Hartman, who joined the group in April 2008, "has since strengthened the management and steered the Company through one of the worst economic crises in recent history". http://www.corporateobserver.com.sg/news.php?reg_id=610 Mon, 31 May 2010 14:01:45 +0800 SINGAPORE (May 31, 2010) - Prudential's proposed US$35.5 billion acquisition of American International Group's Asian unit AIA is on tenterhooks after weekend talks to reduce the asking price remains deadlocked. The UK insurer's shareholders forced the companies back to the negotiating table last week - when it became apparent to Prudential that its investors would fail to support a US$21 bn rights issue needed to fund the takeover, in a vote due to take place next Monday. And the Wall Street Journal (WSJ) reported that while Prudential remains confident a cut-price deal could be thrashed out, an unnamed source reiterated that saving the deal is still far from certain. Prudential CEO Tidjane Thiam, was due to be in London this morning for two days of intensive talks with powerful UK institutions - following a weekend of intensive meetings in California and New York with investors, as well as representatives from AIG and the US Treasury which owns 80 per cent of AIG following a government bailout. http://www.corporateobserver.com.sg/news.php?reg_id=609 Mon, 31 May 2010 13:46:26 +0800 SINGAPORE (May 31, 2010) - Shares of Parkway Holdings surged the most in more than 12 years in Singapore trading after Malaysia sovereign wealth fund Khazanah's S$1.18 billion partial offer. By mid-day, Parkway's share price had hit a high of S$3.79. As at 12.55pm, it shares were trading at S$3-69 a piece, up 67 cents. The 22-per-cent jump outstripped the 0.5-per-cent gain by the benchmark Straits Times Index. Khazanah offered S$3.78 a share in cash on May 27 to expand its Parkway stake to 51.5 percent. In a research note today, DMG & Partners analysts Lynette Tan and Terence Wong wrote that Khazanah may seek greater collaboration between Parkway and its existing health-care assets. They added: “Such synergies usually take a while to be executed, but they do provide opportunities for Parkway." http://www.corporateobserver.com.sg/news.php?reg_id=608 Mon, 31 May 2010 13:09:01 +0800 SINGAPORE (May 29, 2010) - Underfire investment firm The Profitable Group has hit back at investors, criticising the "thuggish" and "criminal" behaviour of the group which turned up at its office Monday demanding their money back. Mr John Nordmann, group operations director of the Singapore-based investment firm dabbles largely in overseas land plots, reportedly said Thursday in a letter to investors that he would not hesitate to call the police and press charges should there be a repeat incident. About two months ago, British newspaper Daily Telegraph reported that one of the sites bought by the Profitable Group in Britain was designated a "green belt" land, where housing development is banned. According to TODAY, irate investors, who had parked their money on the site, been told they would get a reply by Thursday about their investments. Mr Nordmann said they were still entitled to a 12.5-per-cent annual payment on their capital - an amount that the group have "refused to accept", Mr Nordmann said. Suggesting that the investors behaved like "some sort of militant vigilante group", Mr Nordmann said the payouts for their land investments depended on certain events, such as planning permission being granted for the land - and that event, for the plot of land concerned, "has not taken place", he reiterated. The investors also claimed they were owed a combined S$700,000 but Mr Nordmann said the outstanding amount was S$16,600. Still, he conceded there were delays in payment for investments in a product called Boron. http://www.corporateobserver.com.sg/news.php?reg_id=607 Sat, 29 May 2010 12:20:17 +0800 SINGAPORE (May 29, 2010) - Prudential, which is facing the tough challenge of raising a massive takeover warchest for AIA in the midst of the Europe debt crisis, is reportedly trying to persuade AIA's parent AIG to accept a cut-price deal. According to a Bloomberg report yesterday, Prudential is talking to AIG about changing the terms of the US$35.5 billion deal, with Prudential conceding in a statement that discussions between the companies “may or may not lead to a change in the terms of the combination". And AIG spokesman Mark Herr effectively put paid to Prudential's hopes when he said in a statement: "We have a signed agreement with Prudential, and we expect them to use their best efforts to live up to it." Refuting an earlier media report, the US Treasury Department, which helped fund the US$182.3 billion bailout of AIG, also clarified that it has not asked the company to find a compromise on the AIA deal. Prudential CEO Tidjane Thiam, 47, was in New York on Thursday to make his case in person to executives that the price for AIA should be cut, a person with knowledge of the situation told Bloomberg. http://www.corporateobserver.com.sg/news.php?reg_id=606 Sat, 29 May 2010 11:43:46 +0800 By Loh Chee Kong cheekong@corporateobserver.com.sg SINGAPORE (May 27, 2010) – Singapore Airlines (SIA) was one of 19 carriers which were fined a combined KRW120 billion (S$134.8 million) for operating a cartel by colluding over fuel charges and other levies for cargo handling between 1999 and 2007. Compared to the other airlines, SIA's KRW2.3 bn (S$2.58 million) fine was relatively low. South Korea-based airlines Korean Air and Asiana Airlines were hit with the heaviest penalties of KRW48.74 bn and KRW20.66 bn respectively. Germany's Lufthansa had the third-largest fine of KRW12.1 bn. When contacted by The Corporate Observer, an SIA Cargo spokesperson said the company "is very disappointed" by the decision of the South Korea Fair Trade Commission (FTC). The spokesperson added that SIA Cargo has not received the "full reasoning" of FTC's ruling. The spokesperson told The Corporate Observer: "After receipt, SIA Cargo will study the decision closely with a serious view towards mounting an appeal. SIA Cargo has no further comment at this time as these matters are part of an ongoing legal process." Announcing the punitive actions, the South Korea anti-trust watchdog said in a statement that another two airlines - Scandinavian Airlines System and Air India - were warned to stop the unfair trade. The 21 airlines which ran afoul of anti-trust regulations came from 16 countries and include most of the world's major airlines. Other airlines facing fines include Japan Airlines International, a unit of Japan Airlines; Cathay Pacific Airways; British Airways; Malaysia Airlines; and Air France, part of Air France-KLM. The commission said their unfair practices resulted in KRW6.7 trillion worth of sale losses in the South Korean airline market. According to South Korean newspaper Joong Ang Daily, the probe was the biggest international cartel case the anti-trust agency has ever handled, which included summoning 54 airline executives from around the world for investigation and conducting a joint investigation with foreign anti-trust agencies for the first time. The FTC said in its statement: "“Air cargo shipments accounted for nearly 25 per cent of Korea’s total exports in 2009, and we believe the cartel dealt serious damage to the export competitiveness of local companies. Now we will be able to ease the burden on local consumers by helping lower prices on products imported by air cargo.” http://www.corporateobserver.com.sg/news.php?reg_id=600 Thu, 27 May 2010 19:24:20 +0800 SINGAPORE (May 27, 2010) – Watch out if you receive a letter or an email bearing the logo, name or letterhead of the Monetary Authority of Singapore (MAS) – you could be the target of a scam. The MAS has warned Singaporeans of such letters and emails which “typically ask the recipients for personal information or to transfer funds to a particular party or account”. In an announcement on its website today, the regulator said it has learnt of “isolated” cases where consumers received such letters and emails. “MAS does not send unsolicited letters or emails asking for confidential information or for funds to be transferred electronically,” it reiterated. http://www.corporateobserver.com.sg/news.php?reg_id=599 Thu, 27 May 2010 18:13:30 +0800 SINGAPORE (May 27, 2010) - The Urban Redevelopment Authority (URA) today released the detailed sales conditions for the industrial site at Pioneer Road North/Soon Lee Street. The land parcel at Pioneer Road North/Soon Lee Street is placed under the Reserve List for application for sale. Developers interested in purchasing the site can now apply to URA for it to be put up for tender1. http://www.corporateobserver.com.sg/news.php?reg_id=598 Thu, 27 May 2010 17:11:39 +0800 SINGAPORE (May 27, 2010) – Singapore Exchange (SGX) today said SGX Academy’s Securities and Derivatives Cross-Trading Training Course has been accredited by The Institute of Banking & Finance (IBF) under the Financial Industry Competency Standards (FICS) framework. Supported by The Monetary Authority of Singapore and the Singapore Workforce Development Agency, FICS framework hopes to raise the quality of the financial workforce and training providers and The course - Singapore’s first FICS-accredited professional securities and derivatives cross-trading course – will start next month. It is targeted at new trading representatives (TRs) and the existing pool of about 4,000 TRs. Course participants will learn how to enhance trading performance with simultaneous securities and derivatives cross-trading strategies. SGX Academy expects 150 participants to sign up for the course in its first year. http://www.corporateobserver.com.sg/news.php?reg_id=597 Thu, 27 May 2010 16:46:44 +0800 By Loh Chee Kong and Cheow Xin Yi cheekong@corporateobserver.com.sg SINGAPORE (May 27, 2010) - Call it coincidence if you will. But the flurry of cross-border financial and economic activities following Monday's historic meeting between Singapore Prime Minister Lee Hsien Loong and his Malaysian counterpart Najib Razak - which broke a 20-year-old gridlock on thorny bilateral issues - could be a sign of things to come. With speculation that DBS could be granted a foreign commercial banking licence by the Malaysian Central Bank to operate in June, Malaysia's state investment arm Khazanah - apart from plans to tap the Singapore dollar bond market to raise between S$300 million to S$500 million - has mounted an ambitious S$1.18 billion takeover offer for Singapore-listed healthcare group Parkway Holdings. Under the terms of the Partial Offer, Integrated Healthcare - a unit under Khazanah - proposes to acquire 313 million shares in Parkway at a price of S$3.78 per share. The price represents a 25.2 per cent premium to Parkway's last traded price of S$3.02 per share. If the Partial Offer is successful, Integrated Healthcare will increase its holding from 23.5 per cent to 51.5 per cent - blocking Indian healthcare giant Fortis' attempts to add Parkway’s assets to its network of 62 hospitals in India. In March, Fortis shelled out US$685 million to buy over a 23.9 percent stake in Parkway from US firm TPG Capital. Parkway operates 16 hospitals with 3,400 beds in Singapore, Malaysia, India, China, Brunei and the United Arab Emirates. Mr Ahmad Shahizam Mohd Shariff, director of Integrated Healthcare, said the offer gave Parkway shareholders an opportunity to realise the value of their holdings at a significant premium to the market price. Should the partial offer succeed, Integrated Healthcare plans to consolidate Khazanah's existing stakes in Parkway, Pantai, Apollo Hospitals, and IMU to become Asia's premium regional healthcare platform. http://www.corporateobserver.com.sg/news.php?reg_id=596 Thu, 27 May 2010 15:20:30 +0800 SINGAPORE (May 27, 2010) - Monday's historic meeting between the Prime Ministers of Singapore and Malaysia not only yielded a breakthrough in a 20-year-old gridlock on railway land issues, it also appeared to pave the way for greater cross-border participation in economic and financial markets. Today, Malaysian state investment agency Khazanah announced plans to tap the Singapore dollar bond market to raise between S$300 million to S$500 million, according to IFR Asia, a Thomson Reuters service. The bond is likely to be a sukuk with a tenor of three to five years as Middle Eastern investors are capped at investing in 5-year paper. The deal will be launched within the next few weeks, it added. This will be Khazanah’s first Singapore dollar bond issue. CIMB is co-ordinating the deal and two domestic banks, DBS and OCBC, are expected to be the arrangers. At the same time, Khazanah also launched an $835 million offer to gain control of Singapore's largest private healthcare provider, Parkway Holdings, setting it against India's Fortis Healthcare. http://www.corporateobserver.com.sg/news.php?reg_id=595 Thu, 27 May 2010 14:43:19 +0800 By Cheow Xin Yi email@corporateobserver.com.sg SINGAPORE (May 26, 2010) – The republic’s latest data on manufacturing output has again exceeded expectations with a staggering 51-per-cent year-on-year showing. But with worries of Europe’s debt problems looming in the background, analysts are still singing the same refrain: Such growth momentum is short-lived and unsustainable. When the Economic Development Board (EDB) announced a 43-per-cent year-on-year spike in manufacturing output in March, there was a consensus that the growth would be curtailed in the coming months. Yet the latest figures for April threw such predictions out the window. Nevertheless, economists and analysts alike are sticking to their guns – and their case this time appears to be strengthened by the ongoing Europe debt crisis, which has already hit the financial markets and is threatening to spill over to the real economy. Mr Tai Hui, Standard Chartered Bank’s regional head of South East Asia economic research, told The Corporate Observer: “The growth rates are way too rapid – if you continue to have this kind of growth rates in the next several months, you’ll run out of capacity.” Mr Tai added: “The second and more important issue is the outlook of Europe and the export market, and whether we are seeing some deceleration of growth in China - all these will create some uncertainty in the business sector and force more moderate level of growth in the second half of the year.” HSBC economist Frederic Neumann said as much when he told Dow Jones: "These numbers are nice to look at, but hardly sustainable." He added: "Prepare for a sequential slowdown this summer as the global trade cycle takes a breather and, along with it, the local economy." http://www.corporateobserver.com.sg/news.php?reg_id=594 Wed, 26 May 2010 19:28:55 +0800 This is a sample news brief, which will appear in the front-page of the site, if selected as so. Just follow the format shown here, and replace this text, and it will come out fine. The image tag which you see at the beginning of this paragraph corresponds to the respective image, which you will upload below. You can place such image tags wherever in any paragraph, and the corresponding image will appear in that spot in the flow of the article.Do play around to try how it can be used. Sample paragraph 2: Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam remaperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto. beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit. http://www.corporateobserver.com.sg/news.php?reg_id=593 Wed, 26 May 2010 18:51:33 +0800 SINGAPORE (May 26, 2010) - Dubai World’s ship-repair unit, has sued Singaporean tycoon Tan Boy Tee for breaching an agreement tied to a S$2.4 billion takeover deal, Bloomberg reported. Drydocks sued Tan in the High Court last month for the profits from buying and selling 11 million shares of Singapore shipbuilder Otto Marine. While no value was cited in Drydock’s claim, that number of shares is worth about S$4.1 million today, according to Bloomberg. Tan’s indirect interest in Otto breached a three-year non- compete clause in his agreement to sell Labroy Marine, a shipyard operator he founded, to Drydock in January 2008, the unit of the Dubai state holding company said in its suit. In his filing, Tan denied having an interest in the shares bought by his son in late January and sold on Feb. 14. A Feb. 4 Otto statement said Tan had taken a significant stake in the company as part of a share placement that raised S$95 million. http://www.corporateobserver.com.sg/news.php?reg_id=592 Wed, 26 May 2010 18:24:43 +0800 SINGAPORE (May 26, 2010) - Ms Jamie Tan had already booked the accommodation for her upcoming trip in July to Penang when she received an email informing her that she had won a two-night stay at Hard Rock Hotel Penang. And her first reaction was to think it was a bad joke. "I rung the person up when I got the email and was like (asking), ‘Are you for real’? I guess you never really believe it till you actually receive the (vouchers), because you never know what’s real and what’s not," said Ms Tan, who is a HR consultant for banks. That was when she realized she had indeed won the online lucky draw, which was jointly organized by Asia Web Direct - a subsidiary of Australia-listed online travel group Wotif.com - and The Corporate Observer. Thankfully, as The Corporate Observer found out when it called Ms Tan to confirm with her the good news, the hotel free-stay will come in handy soon - Ms Tan, who is in her early 30s, was born in Penang and visits her hometown regularly. "I will head back there another time," she quipped. http://www.corporateobserver.com.sg/news.php?reg_id=591 Wed, 26 May 2010 16:52:31 +0800 SINGAPORE (May 26, 2010) - Singapore-listed commodity trader Noble Group will invest about S$150 million to build its first soy crushing plant in Brazil, Brazilian newspaper Valor Economico reported on Tuesday. The plant, to be located in Brazil's main soy state of Mato Grosso, will be able to process 1.3 million tonnes of the legume per year, Ricardo Leiman, Noble's global chief executive, told Valor. Work will start at the beginning of 2011 at the latest, so that the plant can be operational in 2012, he said. The company is expanding operations in South America to fuel the Chinese market, which is a voracious consumer of commodities. http://www.corporateobserver.com.sg/news.php?reg_id=590 Wed, 26 May 2010 16:19:12 +0800 SINGAPORE, (May 26, 2010) - Finally, a part of the secretive Government of Singapore Investment Corp (GIC) that may be listed? According to Reuters, the GIC which is chaired by none other than Mr Lee Kuan Yew himself is exploring the possibility of listing its logistic business in Singapore in a public offer that could be worth between US$500 million to S$1 billion. http://www.corporateobserver.com.sg/news.php?reg_id=588 Wed, 26 May 2010 15:03:44 +0800 SINGAPORE (May 26, 2010) - Technology services firm NEL Group is in hot soup after the Singapore Exchange (SGX) said it has reported the company to the Commercial Affairs Department (CAD) on "possible breaches of the law" arising from a special audit. It has also reported NEL to the Monetary Authority of Singapore for breaching listing rules which are governed by the Securities and Futures Act. According to an executive summary of the special audit, the breaches centre on a series of "round-tripping" transactions in 2007 between NEL and 13 companies spanning across Malaysia, Hong Kong and China. NEL's net cash out-flow for these transactions was US$9.6 million. "Round-tripping" involves a company selling an unused asset to another company while at the same time agreeing to buy back the same or similar assets at about the same price. Such practices distort the market by establishing false revenue benchmarks and inflating profits, particularly in cases where companies booked the value of the incoming capacity as revenue and the value of the outgoing capacity as an investment. NEL shares have been suspended since January last year. In a filing today to reprimand the company and its directors, SGX also named and shamed NEL's four directors - Lam Nai Man, R Kalaichelvan, Chieng Siong Kuong and Victor Lim Yong Poh - and advised other listed companies against appointing any of them to their boards. ... Explaining its actions, SGX said it had directed NEL to conduct a special audit in January last year after a filing by NEL's former auditors, KPMG, of a "confidential report" to the Minister for Finance pursuant to section 207(9A) of the Companies Act. Under the subsection of the Act, the external auditor of a public company has a legal duty to report to the Minister if potential fraud may have been uncovered during the annual audit exercise. According to SGX, a draft report was presented by Ernst & Young - which was tasked to conduct the special audit - on March 22 this year to SGX and NEL's audit committee. Subsequently, SGX had "repeatedly" requested the audit committee to provide its comments, if any, on the draft report so that the report could be finalized and released publicly. "The audit committee repeatedly failed to do so," SGX said. http://www.corporateobserver.com.sg/news.php?reg_id=587 Wed, 26 May 2010 11:39:47 +0800 SINGAPORE (May 25, 2010) - The National Wages Council (NWC) has recommended that companies grant sustainable wage increases to their employees, taking into account the firm's performance and prospects. Releasing its wage guidelines for the year starting in July (till end June 2011), the tripartite council noted that companies have rolled back their wage restraint measures in varying degrees. It urged companies which have not done so, to take the guidelines into account when deciding on wage increases. In situations where companies still face cost pressures, have yet to fully recover from the downturn, and where a built-in wage increase is not sustainable, the council recommends that they instead grant variable payments. The government had recently announced revisions to the employer's CPF contribution rate -- to be raised by one percentage point in two steps. NWC said companies should take this into account as well as such contributions are part of the overall wage package. http://www.corporateobserver.com.sg/news.php?reg_id=586 Tue, 25 May 2010 19:59:24 +0800 By Loh Chee Kong and Cheow Xin Yi cheekong@corporateobserver.com.sg SINGAPORE (May 25, 2010) – It is not often that the chairman of a global corporate giant with a market cap of almost US$20 billion would find time to talk to a modest media start-up like The Corporate Observer. But these are extraordinary times for UK insurer Prudential. It is mounting a battle on two fronts in its planned acquisition of American International Group’s (AIG) prized Asian asset AIA: On one hand, it is trying to convince sceptical shareholders of the deal. On the other hand, it is trying to win new investors and raise funds for the takeover, including via a rights issue that is worth more than its market cap. After a two-week delay following a regulatory snag, Prudential got its listings – which are tied to the US$21 bn rights issue - in Singapore and Hong Kong off the ground today. And Prudential chairman Harvey McGrath, 57, wasted precious little time - just hours after speaking to the Hong Kong media, Mr McGrath was busy fielding questions from journalists based in Singapore via a conference call. And he spent most of the 15 minutes convincing sceptical reporters that the US$35.5 bn takeover deal will garner the 75 per cent shareholder approval needed. Little wonder as Prudential’s AIA bid has been dogged by bad press since the day it was announced – the latest being news that AIA CEO Mark Wilson has reportedly issued a quit threat if the deal succeeds. A weak debut of its Asian listings did not help either: Shares of Prudential’s dual primary listing in Hong Kong and secondary listing in Singapore were both down on their first day of trading, with its Singapore-listed shares closing 4 per cent lower at S$7.41. But Mr McGrath reiterated he was “not terribly concerned about what the price does on a day.” Said McGrath: “The overall market is off borrowing from New York’s weak session yesterday and Europe began falling off with concerns about the euro. The price is obviously down, but ultimately...what I’m more concerned about is how (the price) does over coming months and years … as we develop the business and how that will flow through into share price performance and shareholder value.” ... Prudential shed more light later on Mr Wilson's future when its spokesperson said the firm has "not had any indication from Mark Wilson that he intends to leave AIA and we will not comment further on speculation". The spokesperson added: "We have every confidence in the strength and depth of the management teams in both businesses and in our ability to deliver an effective integration. We believe this deal will deliver substantial long-term value for our shareholders." http://www.corporateobserver.com.sg/news.php?reg_id=585 Tue, 25 May 2010 19:51:13 +0800 SINGAPORE (May 25, 2010) - The recovery of republic's tourism sector continues as tourist arrivals continued a double-digit growth last month. According to latest data from Singapore Tourism Board (STB), April's tourist arrivals surged 20.4 per cent compared to a year ago, with some 938,000 foreigners visiting Singapore's shores. STB attributed the growth to the "continued improvement of the economic climate". http://www.corporateobserver.com.sg/news.php?reg_id=584 Tue, 25 May 2010 18:43:00 +0800 SINGAPORE (May 25, 2010) - Seems like OCBC is having better luck with Islamic banking than its rival DBS bank. While DBS was reported to be downsizing its Islamic banking unit here, the chief of OCBC's Islamic banking unit in Malaysia said he expects continuous double-digit growth this year for both asset and profitability. OCBC Al-Amin Bank CEO Syed Abdull Aziz Syed Kechik told Bernama that the target was achievable as the economic recovery would lead to stronger demand for Islamic banking. http://www.corporateobserver.com.sg/news.php?reg_id=583 Tue, 25 May 2010 18:07:20 +0800 SINGAPORE (May 25, 2010) - Sembcorp Industries (Sembcorp), a mainboard listed energy and water company of the Temasek Group, said its fully-owned utilities subsidiary, Sembcorp Utilities has entered into an agreement to buy a 49 per cent stake in Thermal Powertech Corporation India (TPCIL). TPCIL is set to build, own and operate a coastal power plant in Krishnapatnam, SPSR Nellore District, Andhra Pradesh in, India. This would be Sembcorp’s first power plant project in India. Sembcorp Utilities signed a joint venture agreement with Gayatri Energy Ventures (GEVL) to invest in a 49 per cent stake in TPCIL. The equity stake is worth about Rs 1,042 crores (S$319 million), to be funded through internal funds and / or borrowings. Completion of the acquisition is expected to take place in mid-2010 upon the satisfaction of conditions precedent typical for the implementation of power projects in India. This investment by Sembcorp is one of the largest by a Singapore company in India and amongst one of the more major foreign direct investments into the Indian power sector in recent times. http://www.corporateobserver.com.sg/news.php?reg_id=582 Tue, 25 May 2010 17:20:44 +0800 SINGAPORE (May 25, 2010) - A Malaysian-registered tanker, MT Bunga Kelana 3, and a St Vincents and The Grenadines-registered bulk carrier, MV Waily, have collided in the Traffic Separation Scheme (TSS) of the Singapore Strait. The Maritime and Port Authority of Singapore (MPA) was reportedly alerted to the incident which occurred some 13 kilometres southeast of Changi East, around 6:10am today. No injuries were reported. But the collision damaged a cargo tank of the MT Bunga Kelana 3, causing a spill of an estimated 2,000 tonnes of crude oil. The MPA has dispatched four patrol and emergency response craft to the affected area and also activated oil spill response companies which have deployed three craft equipped with oil spill equipment. Work is ongoing to contain and clean up the oil spill. Both vessels are currently anchored in the Singapore Strait. MPA's Port Operations Control Centre has issued navigational broadcasts to ships to keep clear of the anchored vessels and traffic in the remains unaffected. http://www.corporateobserver.com.sg/news.php?reg_id=581 Tue, 25 May 2010 14:36:15 +0800 SINGAPORE (May 25, 2010) - Far from any fanfare over the commencement of its listings in Singapore and Hong Kong today, Prudential's bid to acquire Asian insurer AIA took a hit after AIA's CEO threatened to quit if the US$35.5 billion takeover goes through. The Financial Times reported today that Mr Mark Wilson has told friends and industry executives of his plans, saying the proposals to buy the Asian arm of troubled US insurer AIG would be a "disaster waiting to happen". The news appeared to cast a shadow over the start of trading in Prudential shares in Singapore and Hong Kong from 10am today, as the British insurer seeks to tap the region to help fund its massive acquisition. On May 17, Prudential launched a US$21 billion rights issue to help pay for the purchase. Prudential's existing shareholders will have the right to buy 11 new shares for every two they now own at US$1.51 each. The Singapore and Hong Kong listings are being done by way of introduction, which means adding trading venues without issuing new shares. FT quoted an unnamed person saying: "Mark remains loyal to AIA, but doesn't plan to stay with the merged group because he feels it is a disaster waiting to happen. Many colleagues feel the same way." One British-based investor told the paper that the departure of 43-year-old Wilson, who is based in Hong Kong, would be a blow. He is credited with saving AIA last year when American International Group (AIG) almost collapsed. "Because of what happened, Mark has earned the trust and loyalty of senior staff and agents," said the investor. Both Mr Wilson and Prudential declined comment when contacted by AFP. http://www.corporateobserver.com.sg/news.php?reg_id=580 Tue, 25 May 2010 11:23:00 +0800 SINGAPORE (May 24, 2010) – As market talk intensifies over who would be Singapore Airlines (SIA) next CEO, the airlines is keeping the suspense for now. At a press and analysts briefing today following the release of its full-year results, SIA said the process for finding the next CEO has been going "smoothly and on track". SIA reiterated it will make announcement in due course. Mr Chew Choon Seng, SIA’s CEO since June 2003, is widely expected to step down, with his three-year service contract expiring this year. Mr Chew, who joined SIA in 1972, is past the official retirement age of 62. He is 63. Away from succession issues, Mr Chew said the airlines sees recovery in business class demand over the next 12 months but warned that the carrier is "not out of the woods yet". "We will exercise caution in putting capacity back because of this concern that the recovery is still fragile," said Mr Chew. http://www.corporateobserver.com.sg/news.php?reg_id=579 Mon, 24 May 2010 19:45:06 +0800 SINGAPORE (May 24, 2010) - DBS Group, Southeast Asia's largest lender, is shrinking its Singapore-based Islamic unit in what Reuters described as "yet another sign that the city-state's efforts to promote sharia banking is struggling". DBS has a just over 50 per cent stake in Islamic Bank of Asia (IB Asia). In response to Reuters' queries, a DBS spokeswoman told Reuters that the bank has transferred 10 of its 65 staff to DBS and redeployed others to new roles within the Islamic bank. "IB Asia will continue to focus on wholesale banking but prioritise its business focus on fee-based investment banking business activities and in private equity," she added, "We remain committed to growing our Islamic banking franchise in this region." IBA, Singapore's only wholly-owned full licensed Islamic bank, suffered a loss of US$77.1 million in 2009 after making specific allowances on debt owned by customers in the Gulf region. The bank had US$725 million in assets as at end-2009, including US$453 million in payments due from non-bank customers. A source had earlier told Reuters the Islamic unit of DBS planned to get out of the lending business entirely. The bank has also not replaced departing staff, including former CEO Vince Cook who left in December. http://www.corporateobserver.com.sg/news.php?reg_id=578 Mon, 24 May 2010 18:37:56 +0800 SINGAPORE (May 24, 2010) - Who says businesses are the main beneficiaries of cloud computing? Preschool kids in Singapore - and more specifically, their teachers - will be at the forefront of the next big wave in infocomm technlogy - thanks to a US$2 million joint initiative between the Lien Foundation and the charity arm of US-based enterprise cloud computing firm Salesforce.com. A pilot of the initiative will be rolled out in June in five major non-profit preschool operators including Presbyterian Community Services (PCS) and Persatuan Pemudi Islam Singapura (PPIS). Over the next 18 months, Lien Foundation has committed US$1 million in capital to support the implementation of IT solutions and accompanying hardware to 60 non-profit preschool centres . Salesforce.com Foundation will donate US$1 million in licenses to give more than 600 teachers the ability to update and manage student data in the cloud. Mr Lee Poh Wah, Lien Foundation CEO, said: “It is rare to have two foundations– one from the East and one from the West – coming together for an initiative of this size, and with the common interest to enhance the productivity of non-profits through harnessing the power of infocomm technology. We expect the combined resources from Lien and Salesforce.com Foundation to inspire a major transformation in Singapore’s preschool sector over the next year.” http://www.corporateobserver.com.sg/news.php?reg_id=577 Mon, 24 May 2010 18:21:58 +0800 SINGAPORE (May 24, 2010) - Cloud computing might still be a relatively new concept to businesses here, but that has not stopped the rest of Asia Pacific from lapping it up - if the quarterly performance of enterprise cloud computing firm Salesforce.com is anything to go by. Announcing its fiscal first quarter results today, Salesforce.com said its revenue in the region grew 55 per cent year-on-year. The company added more than 400 new customers in the region between February to April. The company, which is fending off a lawsuit filed against it by Microsoft for alleged patent infringement, declined to disclose the breakdown of its total revenue by regions. Nevertheless, its combined quarterly revenue increased 24 per cent to US$377 Million. The firm's total customer base now stands at more than 7,400 organisations in Asia Pacific. which is described by Salesforce.com CEO Marc Benioff as the "fastest growth region". Mr Benioff is in town for a two-day conference organised by the Infocomm Development Authority. While the concept of cloud computing - the hosting of computing applications on an array of serves in a remote location - is not entirely new, particularly for computer users at home, what's new is the increasing use of clouds for enterprise applications. Ms Lindsey Armstrong, Salesforce.com executive vice president (Asia Pacific & Japan), said: “Cloud computing is proven to deliver enterprise-class IT using a much more cost-effective and innovative model. That’s why Salesforce.com is gaining market share at the expense of traditional software vendors.” http://www.corporateobserver.com.sg/news.php?reg_id=576 Mon, 24 May 2010 17:23:18 +0800 SINGAPORE (May 24, 2010) - Asian stock markets were mostly higher today, led by China, as investors took heart from a late rally on Wall Street. As at 4.50pm, Singapore's Straits Times Index (STI) went up by 0.8 per cent to 2,722.69 points. Elsewhere in Asia, China's Shanghai Composite index jumped 3.5 per cent to 2,673.42 as jitters of tighter credit policies eased amid mounting hopes for the yuan to appreciate. Australia's S&P/ASX 200 added 2.1 per cent to 4,395.40 and Hong Kong's Hang Seng gained 0.6 per cent to 19,663.66. Stock markets in South Korea, India and Indonesia also gained. The stock market rebound was led by China, with stocks of Chinese property developers in Hong Kong and the mainland surging on hopes that Beijing may go slow on future tightening measures to curb the property market. Wall Street's rise Friday appeared to underpin improved sentiment. "I think we'll see a bit more strength (in Wall Street) overnight but the buyers are still very cautious," UBS head of sales George Kanaan told Wall Street Journal. Chinese President Hu Jintao on Monday promised more reforms of his country's fixed yuan exchange rate but gave no timetable. Hu spoke amid a two-day meeting with U.S. officials including Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner. Japan's Nikkei 225 stock average dropped 26.14 points, or 0.3 percent, to 9,758.40 while Thailand's benchmark index fell 2.3 percent with investors cautious after the worst political violence in the Thai capital in decades last week. http://www.corporateobserver.com.sg/news.php?reg_id=575 Mon, 24 May 2010 16:53:21 +0800 (May 24, 2010) - China will adjust its exchange rate policy at its own pace, President Hu Jintao said today at the start of talks with the United States over the Chinese currency and other sensitive trade issues. "China will continue to steadily advance the reform of the formulation mechanism of the renminbi exchange rate under the principle of independent decision-making, controllability and gradual progress," Mr Hu said. He was speaking at the opening of annual high-level strategic talks with the United States, with the two countries looking to end months of discord over issues such as the value of the yuan, or renminbi. Critics of China's currency policy say it keeps the yuan artificially low to make the country's exports cheaper and more attractive than those of trading rivals. Speculation had grown recently that China was ready to allow a gradual yuan appreciation but experts say that now looks unlikely as the government will seek exchange rate stability as the European sovereign debt crisis rages. http://www.corporateobserver.com.sg/news.php?reg_id=574 Mon, 24 May 2010 16:40:44 +0800 SINGAPORE (May 24, 2010) - Temasek Holdings has today appointed former Singapore Exchange CEO Hsieh Fu Hua as president and executive director - an announcement that overshadowed news that the state investment arm failed in a final appeal against an Indonesian court ruling that it had breached anti-monopoly laws. Temasek has not had a president since Mr Quek Poh Huat, who is now group CEO at Singapore Power, left in 2003. Temasek also announced the appointment of Dilhan Pillay Sandrasegara to head the investment company's portfolio management. Mr Sandrasegara, who would take charge with effect from Oct. 18, is currently the managing partner of WongPartnership LLP. But it is Mr Hsieh's appointment which took the spotlight. Mr Hsieh has come a long way since he was part of the 1994 exodus of the senior management at Morgan Grenfell Asia - a company he joined in 1974, rising up the ranks to become chief executive. But it was his appointment as SGX CEO in 2003 and the sterling job he did which catapulted him to prominence. Mr Hsieh, who is currently a Temasek board member and a special adviser to Temasek chief executive Ho Ching, will assume his new responsibilities from Aug 1, Temasek said in a statement. Mr Hsieh, who joined Temasek in February after leaving SGX last year, will be one of three executive directors on Temasek's board including Ms Ho and New Zealander Simon Israel who runs Temasek's Singapore operations. The statement added: "(Mr Hsieh) will work closely with Ho Ching and the Temasek leadership team to build a robust institution for the long term, including talent development and succession planning at Temasek." Ms Ho, who took over as CEO in 2004 and reversed an earlier decision announced in 2007 to step down, has said that she wants to move on, if a proper replacement is found. And sources told The Wall Street Journal that Mr Hsieh will spearhead the search for a new CEO. http://www.corporateobserver.com.sg/news.php?reg_id=573 Mon, 24 May 2010 16:27:18 +0800 SINGAPORE (May 24, 2010) - The consumer price index - Singapore's chief measure of inflation - shot up by 3.2 per cent in April as compared to the same period a year ago, doubling the rate of change seen in March. The increase in consumer prices is the highest in 14 months. Data released by the Department of Statistics today showed that the price increase were mainly due to higher transport, housing and food costs as an accelerating economy and a booming labour market boosted housing and transportation costs. The inflation rate was more than the 2.6 per cent median estimate of five economists surveyed by Bloomberg News. Prices rose 0.9 per cent from March, without adjusting for seasonal factors. Following higher prices of cars and petrol, transport costs surged by 13.4 per cent in April, from a year earlier. Housing cost rose by 2.9 per cent as a result of higher electricity tariffs and service and conservancy charges, while food prices went up by 1.2 per cent, arising from more expensive prepared meals, vegetables, fresh seafood, chilled pork, as well as rice and other cereals. http://www.corporateobserver.com.sg/news.php?reg_id=572 Mon, 24 May 2010 15:41:42 +0800 By Cheow Xin Yi email@corporateobserver.com.sg SINGAPORE (May 21, 2010) - Investors should brace themselves for another rollercoaster ride on the markets next week, as fears of the European debt crisis undermining a global economic recovery caused a selling wave across Asia in recent days. Major Asian indices, including Singapore’s Straits Times Index, fell sharply on Friday following a US and Europe selloff sparked by worse-than-expected economic data coming out from US. Japan's Nikkei 225 stock fell 2.5 percent to 9,784.54, its lowest level since December, while Singapore fell 1.9 per cent to 2,701.20, capping a 5.4-percent loss since last Friday. Hong Kong and South Korean stock exchanges were closed for a public holiday. Trading in Thailand has been suspended due to political turmoil. Only China’s Shanghai stock market bucked the trend, rising 1.1 per cent. In Singapore, news of stellar first quarter output growth at 15.5 per cent has failed to lift markets as the better-than-expected economic numbers were overshadowed by ongoing fiscal woes in European countries such as Greece. "This eurozone saga is turning into a bad horror movie," Phillip Securities economist Joshua Tan told Dow Jones Newswires. "You think the monster is dead but it keeps coming back." OCBC investment analyst Carey Wong told The Corporate Observer: “The tone is quite jittery and we have people heading for the door. It makes a lot of sense because the picture over at Europe still very murky. It’s also in people’s interest if they have money on the table to take it off first. Better to take some profit rather than be faced with a loss." http://www.corporateobserver.com.sg/news.php?reg_id=569 Fri, 21 May 2010 19:10:39 +0800 SINGAPORE (May 21, 2010) - Singapore Airlines (SIA) posted a nearly seven-fold increase in its fiscal fourth quarter profit as cargo and passenger demand rebounded from the 2009 slowdown. But the stellar quarter, while helping the company avert its first ever annual lost, was not enough to steer its annual profits above market expectations. SIA, 55 per cent owned by Singapore state investor Temasek Holdings, booked a net profit of S$278 million between January and March, compared to S$42 million a year ago and a Reuters consensus of S$266 million. The fourth quarter profit recovery helped the company to avert its first ever annual loss, although growth in its more profitable business class faces new threats from Europe's economic troubles. Still, its annual net profit of S$216 million was 80 per cent lower than a year ago, and was below the S$289 million average estimate by analysts surveyed by Reuters. Shares of SIA, which came in second in the Airline of the Year award at the 2010 Skytrax World Airline Awards last Thursday, have declined about 5 per cent since the start of the year. In comparison, shares of its Asian rival Cathay Pacific gained nearly 4 per cent while that of Australian carrier Qantas dropped 20 per cent. Still, the decline in SIA shares outperformed the 7 per cent drop in the broader Singapore's benchmark stock index. SIA’s fortunes contrasted sharply with another rival British Airways (BA), which also reported its annual results today. BA posted a record annual pre-tax loss of £531 million on slumping sales but forecast it would break even this year. BA, which faces a cabin crew strike next week, said its net loss widened to £425 million in the 12 months to March from £358 million in the previous year. Revenues tumbled 11.1 per cent to £7.99 billion. http://www.corporateobserver.com.sg/news.php?reg_id=568 Fri, 21 May 2010 19:03:17 +0800 SINGAPORE (May 21, 2010) – One of the most celebrated works by 15th century playwright William Shakespeare has landed on the latest fad of the 21st century. Shakespeare’s A Mid Summer’s Dream has been readapted into a comic – hand-drawn by renowned comic illustrator Mike S Miller, who has worked with the likes of Marvel and DC – widening the play’s appeal to today’s tech-savvy generation. Titled the Bard’s Dream, the series of iPad applications are available for download at S$0.99 here. It is developed by Omnitoons, the mobile arm of the Potato Productions group - a collection of content and solution providers that works across many media platforms and services both consumers and business clients. Potato Production also owns The Corporate Observer. Ms Karen New, who heads Omnitoons, felt the “attractive” graphics would make the Shakespeare’s classic more appealing and accessible, particularly for students. The graphics are accompanied by text from The Arden’s Shakespeare edition but users can switch the application’s settings to enjoy the comic in modern English. Soon, the comic would even be made available in Chinese, according to Omnitoons. Doing so would make the popular play accessible to a larger demographic, said Ms New. http://www.corporateobserver.com.sg/news.php?reg_id=567 Fri, 21 May 2010 17:58:17 +0800 SINGAPORE (May 21, 2010) - Hong Kong tycoons have emerged as among the biggest supporters of a record US$21 billion rights issue by UK insurer Prudential, according to Reuters quoting unnamed sources with direct knowledge of the matter. Singapore’s big boys are also getting in on the action. The Government of Singapore Investment Corporation (GIC) is one of the underwriters for the rights issue and owns a 0.5 per cent stake in Prudential. But one of the sources said GIC was expected to be looking to raise its stake. According to Reuters, Temasek Holdings - Singapore Government’s other state investment arm - is also said to be in talks about taking a stake in the insurer but has not made a final decision. Contacted by Reuters, Temasek declined to comment. Prudential is using the rights issue to raise cash to fund a US$35.5 bn acquisition of US insurance giant AIG's Asian life unit AIA. Reuters reported that most institutions that agreed to sub-underwrite the deal were UK funds that already make up the bulk of Prudential's shareholders. But Asian investors were the second-largest group, with Asia's tycoons leading the charge, the sources said. Hong Kong media reports had earlier speculated that billionaire Li Ka-shing and property tycoon Cheng Yu-tung were among those on the list. http://www.corporateobserver.com.sg/news.php?reg_id=566 Fri, 21 May 2010 17:16:37 +0800 Singapore (May 21, 2010) – Singapore Airport Terminal Services Limited (SATS) said its wholly-owned subsidiary, Singapore Food Industries Pte Ltd (SFI), has signed a joint venture agreement today with Jilin China-Singapore Food Zone Development Construction Investment Co. Ltd (JCS) and DaChan Food (Asia) Co. Ltd (DaChan) to set up a modern, integrated pig farm (IPF) in Jilin province in the mainland China. http://www.corporateobserver.com.sg/news.php?reg_id=565 Fri, 21 May 2010 17:15:53 +0800 SINGAPORE (May 21, 2010) - The High Court has awarded S$4.7 million to Tiger Airways for damages resulting from a breach of contract by Swissport Singapore. In a media release, the low-cost carrier said the award was the full amount it claimed for Swissport's premature termination of a ground handling agreement. According to Tiger Airways, in January last year, Swissport gave Tiger Airways notice that it was unilaterally terminating its ground handling service agreement with effect from April 1 last year, about two years earlier than the stated expiration date of the agreement. As grounds for this early termination, Swissport had sought to rely on the voluntary termination of its licence to operate at Changi Airport granted by the Civil Aviation Authority of Singapore. Tiger Airways commenced legal proceedings against Swissport in March last year, with the High Court ruling in it favour a month later. Swissport's attempt to lodge an appeal was subsequently dismissed by the courts. The low-cost carrier said in the statement" "Following hearings to assess damages, the Court has awarded the full claim... Once received, this amount, plus costs awarded, will be recognized in the airline’s financial accounts." http://www.corporateobserver.com.sg/news.php?reg_id=562 Fri, 21 May 2010 16:10:35 +0800 (May 21, 2010) – A leading European business institute has slammed the unilateral measures taken by Germany to restrict the financial markets as “counterproductive, inconsistent and liable to hinder European growth”. On Wednesday, Germany – without consulting the other European Union member states - banned "naked" short sales of eurozone government bonds and credit default swaps, as well as 10 major German-listed financial stocks. In a press release issued today, the EDHEC-Risk Institute, which is part of EDHEC Business School, reiterated that the “lack of convergence on these issues with the US authorities leaves little hope of the measures being effective”. “This ban poses numerous problems and runs up against legal and practical obstacles that make it inapplicable or even counterproductive”, including the fact that it would be “impossible for intermediaries and ultimately for regulators to verify investors’ holdings of the securities representative of the risk the credit default swaps are assumed to cover”. http://www.corporateobserver.com.sg/news.php?reg_id=561 Fri, 21 May 2010 15:52:45 +0800 SINGAPORE, (MAY 21, 2010) -- Standard Chartered Plc plans to add 2,000 people to its staff strength in Singapore over the next three years. In an interview with Bloomberg, Ray Ferguson, the recently appointed regional chief executive for Singapore and Southeast Asia said the UK based bank wants double- digit annual growth in staff in Southeast Asia. Ferguson told Bloomberg that he is upbeat about growth in the region, although confidence may be hit by concerns over whether Europe can contain its debt crisis. “We see the environment ahead with caution, but we also do see continued opportunities as Asian economies grow,” he said. “I still see an Indonesia that’s growing five to six percent this year. I still see a China that’s going to grow similar to the historic trend rates it’s had over the last five years, and an India that’s growing.” Mr Ferguson's comments came two days after another regional bank Australian and New Zealand Banking Group (ANZ) said it plans to add 500 people to its operations in Singapore, following its takeover of the retail banking business of Royal Bank of Scotland. http://www.corporateobserver.com.sg/news.php?reg_id=560 Fri, 21 May 2010 15:12:54 +0800 By Cheow Xin Yi email@corporateobserver.com.sg SINGAPORE (May 20, 2010) - While Singapore-listed Wilmar International is feeling the heat over tax fraud allegations against its Indonesian unit – its shares took a severe beating – Indonesian tax authorities are the ones under fire in Indonesia. According to The Jakarta Globe, Indonesian lawmakers are urging companies to take legal action if they feel they had been treated unfairly during a tax investigation. The lawmakers’ comments followed calls for the revision of Indonesia tax laws, which they said gave the tax office too much power. Mr Edison Betaubun, a member of the House of Representatives’ Commission XI for finance, also pointed to indications of “manipulation” by tax officials. 
“If you keep trying to please the tax office, it will only cause you to suffer more losses,” he said at a hearing with firms allegedly involved in tax scandals, including Wilmar. Shares of Singapore-listed Wilmar, the world’s largest palm oil trader and the second largest company in Singapore in terms of market capitalization, have taken a beating despite coming out to strongly refute the allegations since the news broke yesterday. Its shares closed a further 4.5 per cent down to $5.50 a piece today, after plunging about 7 per cent the day before to hit a 18-month low. Investor sentiments were dented following media reports that Wilmar’s Indonesian subsidiaries are under investigations in a 3.6 trillion rupiah tax probe involving two senior tax officials – the allegations were contained in an internal tax directorate report and was brought up in Parliament by Indonesian lawmaker Bambang Soesatyo. ... With the uncertainty hanging over the investigations, if any, observers are urging the authorities and the company to shed more light on the case. To date, the tax authorities have not even said whether they were starting formal investigations into the allegations. Neither has Wilmar shared how it intends to clear its name. A Citigroup report pointed out that “a statement from the tax authorities or government agencies” would help the situation. “It would appear that the market is not confident of the whole situation and is still awaiting greater clarity,” said the report. http://www.corporateobserver.com.sg/news.php?reg_id=553 Thu, 20 May 2010 19:04:10 +0800 SINGAPORE (May 20, 2010) - The European draft rule to tighten hedge-fund regulations may make it “unduly difficult and onerous” for Singapore-based alternative investment managers to access investors in Europe, according to Mr Michael Coleman, chairman of the Singapore chapter of the Alternative Investment Management Association. In an email statement to Bloomberg, Mr Coleman said: “The latest set of directives, if left unchanged, could significantly detract from the growth of the local alternative investment management industry." The European Parliament’s economic and monetary affairs committee approved this week a measure to force hedge-fund managers outside the EU to agree to transparency standards in exchange for marketing access to investors in the bloc. Singapore’s hedge-fund industry has grown from near zero in 1997 to 138 single-strategy hedge-fund managers that employ more than 800 professionals, according to a survey by the local chapter of AIMA. The industry oversees at least US$34.9 billion ($49 billion), excluding assets managed by several of the large global firms, it said. The full EU parliament is due in July to give its verdict on the draft legislation, which the US and UK have opposed. Final EU approval of any measures requires an accord between the parliament and EU national governments in a process that could take another year or more. http://www.corporateobserver.com.sg/news.php?reg_id=552 Thu, 20 May 2010 17:49:46 +0800 SINGAPORE, (May 20, 2010) - Moody’s Investors Service has revised to stable from negative the outlook for the Aa1 long term deposit ratings for the three Singapore banks. The credit rating agency also revised to stable from negative the bank financial strength ratings and other long term debt ratings for DBS Bank, OCBC Bank and United Overseas Bank. The banks’ short term deposit and commercial paper ratings are not affected and their outlooks remain stable, Moody said in a statement. http://www.corporateobserver.com.sg/news.php?reg_id=551 Thu, 20 May 2010 17:20:24 +0800 SINGAPORE (May 20, 2010) - Singapore-listed Noble Group has decided to withdraw from a Rs 2,500-crore (S$759.9 million) Gopalpur port project in Orissa, throwing the development into jeopardy. Indian daily Financial Express reported that Mr Richard Elman, Noble's executive chairman, has written to the Indian state government, accusing Orissa Stevedores of misusing the Power of Attorney given by the company. In his letter, Mr Elman also sought approval to withdraw from the project. The Noble Group had formed a consortium with Sara International, a textile and infrastructure group and Orissa Stevedores to bid for the expansion, development and operation of the Gopalpur port to turn into an all-weather port. The consortium bagged the port project in June 2006, with a concession agreement subsequently signed between the state government and Gopalpur Port , to set up a special purpose vehicle for the project. In his letter, Mr Elman wrote that the consortium members had issued a Power of Attorney dated July 27, 2005 (PoA) through which Orissa Stevedores was nominated as the lead member of the consortium and was authorised to represent other partners in connection with submission of the bid for the project. Elman alleged that, “subsequently, without our involvement, the PoA was used by the partners to take various steps, including incorporation of the company and allotment of shares of the company in Noble’s name.” http://www.corporateobserver.com.sg/news.php?reg_id=550 Thu, 20 May 2010 17:07:50 +0800 SINGAPORE (May 20, 2010) – The first quarter numbers are in and the spectacular performance outstripped earlier estimates of how well the economy did. But the government is not getting carried away – maintaining its full-year economic growth forecast at between 7 and 9 per cent – citing the eurozone debt crisis and the rising asset prices in Asia as jokers in the pack. The Ministry of Trade and Industry (MTI) announced today that the Singapore economy expanded by 15.5 per cent year-on-year between January and March – exceeding advance estimates of 13.1 per cent, thanks to higher-than-expected industrial production figures in March, and stronger growth in construction and services sectors. On a seasonally adjusted annualised basis, the economy grew 38.6 per cent on quarter-on-quarter, more than 6 percentage points higher than the earlier estimate of 32.1 per cent. In a separate announcement, IE Singapore said total trade during the first quarter amounted to S$210 billion, up 27 per cent from a year ago. Singapore's economy has expanded for three straight quarters as it stages a strong recovery from recession. But while the overall global economic picture appears rosy, MTI warned that downside risks to global economic growth have “intensified” – based on developments in recent weeks. Said MTI : “First, there is heightened market anxiety over the possibility of a sovereign debt default in Europe. While policymakers in the EU have introduced timely and forceful interventions to reduce the downside risk in the near term, significant uncertainties remain beyond the immediate horizon. Second, there continues to be concerns over excessive asset price inflation in emerging Asia. Should investor sentiments wane or if more monetary tightening measures are introduced, sharp asset price corrections could follow.” http://www.corporateobserver.com.sg/news.php?reg_id=549 Thu, 20 May 2010 16:20:00 +0800 SINGAPORE (May 20, 2010) – The falling interbank lending rate, which has hit an all-time low, might feed a red-hot property market. But Mr Ong Chong Tee, deputy managing director at the Monetary Authority of Singapore, reiterated that the decline “should be seen in the context of continued low global low interest rates, especially in the US”. Benchmark three-month Sibor rates stood at 0.52417 per cent yesterday - well below the 0.66 per cent recorded in early April - before the MAS moved to a policy of currency appreciation from a neutral policy last month - and recent highs of over 2 per cent during the 2008 financial crisis. Mr Ong told reporters at a press conference on Singapore’s first quarter economic performance that a fall in so-called Sibor rates partly reflects market expectations of a stronger Singapore dollar. The low Sibor rate could complicate recent government efforts to rein in rising asset prices, in particular a surging real estate market. Singapore private home prices rose 5.6 per cent in the first quarter from the last three months of 2009 despite government policies such as higher down payment requirements for mortgages. http://www.corporateobserver.com.sg/news.php?reg_id=548 Thu, 20 May 2010 15:09:46 +0800 SINGAPORE (May 20, 2010) - Sembcorp Industries is now free to proceed with its takeover of US-listed Dutch water treatment firm Cascal after a New York court threw out the latter’s motion for an injunction on the tender offer. In an regulatory filing posted in the morning, the Singapore-based marine and utilities conglomerate announced that the court hearing yesterday (today, Singapore time) concluded “there was no likelihood of Cascal succeeding on its legal claims”. “The Company is pleased that the court has found no basis for Cascal's claim that the prospective tender offer is in breach of any laws, regulations or contractual obligations and it remains committed to completing the transaction,” said Sembcorp. As at 3.38pm, Sembcorp shares were trading at S$3.99 a piece - a 10.3 per cent drop from a high of S$4.45 a month ago. http://www.corporateobserver.com.sg/news.php?reg_id=547 Thu, 20 May 2010 14:48:19 +0800 SINGAPORE (May 19, 2010) – The civil fraud charges brought by the US Securities and Exchange Commission against Goldman Sachs may have caught worldwide attention. But it is likely to be an isolated situation – it certainly did not occur in Singapore, according to Monetary Authority of Singapore deputy chairman Lim Hng Kiang. Responding to Nominated MP Teo Siong Seng’s question in Parliament today on whether the fraud charges against Goldman had any impact on the Singapore economy, Mr Lim, who is also the Minister for Trade and Industry, pointed out that the charges were “very specific in nature”. Goldman was alleged to have failed to disclose to investors the role that a large hedge fund had played in the portfolio selection process, and the fact that the hedge fund would benefit if the mortgage-backed securities defaulted. Mr Lim noted that the synthetic collateralised debt obligation (CDO) notes, which were linked to the performance of subprime residential mortgage-backed securities, were sold to financial institutions and not to the retail public. While MAS monitors developments in various jurisdictions, not all developments in other jurisdictions will be equally applicable in Singapore, Mr Lim said. Reiterating that MAS “will take appropriate regulatory action” when regulations or laws are breached, Mr Lim said: “MAS has not found a similar situation to have taken place in Singapore. All entities offering securities to the public in Singapore are required to comply with the Securities and Futures Act which, among other things, requires disclosure of all the information that investors and their professional advisers would reasonably require to make an informed assessment of the product.” http://www.corporateobserver.com.sg/news.php?reg_id=546 Wed, 19 May 2010 19:03:40 +0800 SINGAPORE (May 19, 2010) – What was to have been a happy occasion is fast descending into acrimony. Marina Bay Sands (MBS) has served a writ to the organisers of the Inter-Pacific Bar Association (IPBA) 20th annual conference to seek S$300,000 incurred from the event, according to TODAY. The committee, IPBA 2010 Singapore, has responded to say it will defend the claim and will be filing its own claim in Court, seeking compensation. The conference, which was the inaugural major event held at the newly opened MBS last month, was marred by several glitches: Hotel rooms were hit by power failures, delegates were trapped in lifts and a power blackout plunged the conference hall into darkness when the Chief Justice of New South Wales was delivering his address. Details of MBS’ S$300,000 claim were not immediately available. According to TODAY, the amount is part of the total charges of about S$500,000, the rest of which has been paid by IPBA. An IPBA spokesperson was quoted by TODAY saying: "The failures and breaches of MBS with respect to our conference are now well known and undeniable. It adds to our indignation that the party in breach should choose to sue in such a hurry." http://www.corporateobserver.com.sg/news.php?reg_id=545 Wed, 19 May 2010 17:53:32 +0800 Singapore – (May 19, 2010 ) – Viking Offshore and Marine Limited has raised S$7.0 million from the sale of investment holdings in two SGX Catalist-listed companies as it continues to build up a “war chest” for future acquisitions to accelerate its growth in the offshore and marine business. The SGX Catalist-listed leading heating, ventilation, air conditioning and refrigeration (“HVAC&R”) systems solutions provider for the offshore and marine industries said it has entered into a married deal with Goodview Properties Pte Ltd for the sale of 20 million shares in Tung Lok Restaurants (2000) Ltd and 10.3 million shares in Old Chang Kee Ltd . Viking sold the Tung Lok shares on 17 May 2010 at S$0.1875 per share, a 7 per cent premium over the closing market price on 14 May 2010, raising proceeds of S$3.8 million. A day later it sold the shares in Old Chang Kee at S$0.315 (ex-dividend basis) per share; factoring dividends this represent a 7 per cent premium over the closing market price on 17 May 2010. The latter sale raised proceeds of S$3.2 million. http://www.corporateobserver.com.sg/news.php?reg_id=544 Wed, 19 May 2010 17:16:36 +0800 SINGAPORE (May 19, 2010) – Following concerns expressed by the United States government and an influential regional pay-TV group, the Media Development Authority issued a statement yesterday clarifying its position on cross-carriage of exclusive content, reiterating there is "no question of content owners’ rights being disregarded." Casbaa, or the Cable & Satellite Broadcasting Association of Asia, charged last week that the new rules requiring pay-TV providers here to share exclusive content have violated international trade and intellectual property treaties, including the US-Singapore Free Trade Agreement (FTA). Arguing that this is was tantamount to compulsory licensing, Casbaa had said the association's problem with the ruling - known as 'cross carriage' in industry parlance - is that it forces media companies to allow their products to be used without their permission - and at a price set by someone else. But MDA pointed out that its rule does not prohibit the signing of exclusive carriage agreements. What the ruling means is simply that a retailer which signs an exclusive contract, has to ensure subscribers of another retailer can access the content – via its rival’s platform but paying the retailer directly. For example, if StarHub signs up an exclusive contract, the remedy is akin to requiring StarHub to lease network equipment and infrastructure from SingTel, to deliver StarHub's TV content to consumers who prefer to receive it through SingTel’s infrastructure, and vice versa. http://www.corporateobserver.com.sg/news.php?reg_id=543 Wed, 19 May 2010 16:39:34 +0800 SINGAPORE (May 19, 2010) - Petra Foods Limited has gone into a three-party joint venture with France’s Cemoi Group and US-base Blommer Chocolate Company to produce fermented cocoa beans in Africa’s Ivory Coast. The new joint venture company, with an operating subsidiary in the Ivory Coast, will be named PACTS (Processors Alliance for Cocoa Traceability and Sustainability). PACTS’ mission will be to improve the supply of high quality fermented cocoa beans from the Ivory Coast while at the same time improving the livelihoods of the local cocoa farming community http://www.corporateobserver.com.sg/news.php?reg_id=542 Wed, 19 May 2010 16:27:03 +0800 (May 19, 2010) - After a five-week violent face-off between the Red Shirt protesters and the government, the crisis in Thailand appears to have drawn to a bloodied end. The Associated Press reported that seven Red Shirt leaders have surrendered to authorities after a deadly army assault on their fortified encampment. They have been led away by police in central Bangkok. But the decision did not go down well with certain sections of the protesters, who were believed to have set fire to 20 locations, including the Thai Stock Exchange building. And analysts fear that the situation could yet get out of hand - after all, organized protests are easier to quell than anarchy. Mr Kavee Chukitsakem, head of research at Kashikorn Securities, told Reuters: "After the Red Shirt leaders surrender, things are out of control. It's like insects flying around from one place to another, causing irritation. We don't know who they are and why they are doing this." Still, Army spokesman Col Sansern Kaewkamnerd reiterated the "overall situation is under control now". The political turmoil has resulted in massive violence and loss of lives, bringing businesses in Bangkok, as well as Thailand's economy and stock market, to a standstill. The stock exchange was closed for the afternoon trading session today amid tensions in Bangkok. The leaders have asked thousands of supporters in the camp to leave, and to proceed to an area where the government has laid on buses so they can depart the capital. "I ask everyone to go home," said senior Reds figure Nattawut Saikuar in a television interview from the National Police Office where he was in custody. "There will be police guarding the road and providing security for you. I hope that you return home safely," he said. Earlier, Reds leaders had tearfully announced the end of their protest movement in front of a large crowd of emotional supporters, including many women and children. "I know that you are suffering. Some of us are speechless. But we want to stop any more deaths here," said Jatuporn Prompan, "I know that if the military comes here many of you will sacrifice your lives and we cannot stand to see that." "We are ending the protests here," said Nattawut from the main protest stage. "I know this is unacceptable to some of you and some of you do not want to hear but we cannot stand against this cruelty. We will exchange our freedom with your safety. We have tried our best." However, grenades exploded nearby as the Red Shirts announced their decision. Two soldiers and a journalist were injured. Angry protesters, who drove away journalists who tried to film them, tried to set fire to a shopping mall. Apart from the Stock Exchange of Thailand, blazes were also reported at Central World - one of Southeast Asia's largest shopping centres - a branch of an electricity company, a television station and a bank. http://www.corporateobserver.com.sg/news.php?reg_id=541 Wed, 19 May 2010 15:26:16 +0800 SINGAPORE (MAY 19, 2010) - The Institute of Microelectronics (IME), a research institute of the Agency for Science, Technology and Research (A*STAR), and Watchdata Technologies today announced their partnership to develop on mobile payment solutions. With advances in technology, consumers can now purchase goods and services over the Internet using their mobile phones without the use of cash or payment cards. Near Field Communication (NFC) is one of the primary models for mobile payments but it is restricted to specific mobile phones and cannot be widely adopted - which is why IME and Watchdata are coming together to work for a unified solution. The research development will leverage on IME’s innovative ASIC solution and Watchdata’s expertise in system implementation to develop a contactless ASIC for use in SIM card along with SIM IC and microcontroller for contactless payment application. This solution can be implemented and universally used in any mobile phone. Users will be able to use his or her mobile phone to launch contactless applications in order to perform a payment. Through the contact interface, the SIM acts as a standard SIM card to execute subscriber’s identity authentication to the mobile phone. http://www.corporateobserver.com.sg/news.php?reg_id=540 Wed, 19 May 2010 15:02:39 +0800 SINGAPORE (May 19, 2010) – Following the slew of positive official data – from GDP forecast, export figures to tourist arrivals – it is perhaps no surprise that consumer confidence here has returned to levels last seen more than two years ago, when the US credit crunch had not even unravelled. In fact, consumer confidence in Singapore is the second highest in Asia, overtaking China, but still behind Vietnam. According to the latest MasterCard Worldwide Index, consumer confidence here increased by 7.2 points to 86.6. The index was more than double that a year ago when consumer confidence was at a low of 31.2. Consumer confidence last breached the 85-point mark in the first half of 2008, when the score was 87.3. http://www.corporateobserver.com.sg/news.php?reg_id=539 Wed, 19 May 2010 14:57:19 +0800 SINGAPORE (May 19, 2010) - Fujitsu and the Agency for Science, Technology and Research (A*STAR) have announced the official opening of a new research facility in Singapore, Fujitsu Laboratories & R&D Division of Fujitsu Asia. As Fujitsu’s first bio-medical focused research facility in the South East Asia region, the laboratory is part of a comprehensive ecosystem which partners universities and research institutes with industry-relevant capabilities that will further strengthen Singapore’s status as Asia’s research and development (R&D) hub. Fujitsu will work with A*STAR on the development of aptamer technology for diagnostics application and business development trials. Fujitsu Laboratories Singapore will support a number of key research initiatives, working in collaboration with A*STAR, Experimental Therapeutics Centre (ETC), National University of Singapore (NUS), National University Hospital (NUH) and the Cancer Science Institute (CSI) to explore improvements in diagnostics of diseases such as prostate and gastric cancer, cardiovascular diseases and dengue through the development of aptamers. http://www.corporateobserver.com.sg/news.php?reg_id=538 Wed, 19 May 2010 14:51:46 +0800 (May 18, 2010) – Don’t be too hard on your kids when they tell you a fib the next time – a team of Canadian researchers have found that the more plausible the lie, the more quick-witted the children will be in later years and the better their ability to think on their feet. Specifically, the academics found that that the ability to tell lies at the age of two is a sign of a fast-developing brain and means children are more likely to have successful lives, reported UK’s Independent Television News network. Dr Kang Lee, director of the Institute of Child Study at Toronto University who carried out the research, said: "Parents should not be alarmed if their child tells a fib. Almost all children lie. Those who have better cognitive development lie better because they can cover up their tracks. They may make bankers in later life." http://www.corporateobserver.com.sg/news.php?reg_id=537 Tue, 18 May 2010 18:11:16 +0800 SINGAPORE, (MAY 18, 2010) - Robert Kuok’s Allgreen Properties Limited has, through its mainland China associated company, Ruihe Real Estate (Tangshan) Co., Ltd, acquired a small site in Tangshan City, Hebei Province. The new site is adjacent to one of the two existing Tangshan sites (acquired in 2009 for a hotel and residential development) and will be integrated with the existing hotel site for a better configuration of the proposed hotel development. Ruihe is a mainland joint venture company formed by APL together with Kerry Properties Limited and Shangri-La Asia Limited in their respective equity ratio of 25 per cent : 40 per cent : 35 per cent to develop the hotel site. The three companies are part of the Kuok group. http://www.corporateobserver.com.sg/news.php?reg_id=536 Tue, 18 May 2010 18:03:06 +0800 SINGAPORE, (MAY 18, 2010) - The Singapore Environment Council (SEC) and the Singapore Institute of Manufacturing Technology (SIMTech), a research institute of the Agency for Science, Technology and Research (A*STAR) today inked an agreement to launch Singapore’s and South East Asia’s first carbon label. This Carbon Label is a Singapore initiative to support the country’s transition to a recognised low carbon economy by measuring and communicating the carbon content of the products and services we consume and produce, raising the carbon consciousness of governments, businesses and consumers. The carbon label in quantifying and declaring the carbon content is an advancement of the Singapore Green Label. With a formal launch planned for the fourth quarter of 2010, the Singapore Carbon Label will provide a unique set of tools to evaluate, quantify and report for the first time on the carbon footprint of products and services based on rigorous lifecycle analysis, from raw materials to production, from distribution to use. http://www.corporateobserver.com.sg/news.php?reg_id=535 Tue, 18 May 2010 16:53:24 +0800 SINGAPORE, (May 18, 2010) - Singapore Exchange (“SGX”) today signed a Memorandum of Understanding with the State-Owned Assets Supervision and Administration Commission (“SASAC”) of the Chongqing city government to promote the listings of mainland Chinese companies on SGX. The first MOU with a provincial SASAC, SGX said the agreement aims to promote the listing of companies supervised by Chongqing SASAC. Under the MOU, Chongqing SASAC will assist SGX in its profiling efforts to its companies, provide guidance to its companies seeking a listing on SGX, as well as facilitate regulatory processes and approvals from relevant Chinese authorities where necessary. http://www.corporateobserver.com.sg/news.php?reg_id=534 Tue, 18 May 2010 15:44:44 +0800 Singapore, (May 18, 2010) – Singapore Exchange Mainboard-listed industrial fishing company China Fishery China Fishery Group Limited said it has become the sixth largest fishmeal company in Peru following the acquisition of a Peruvian fishing company – Pesquera Alejandria S.A.C.1 (“Alejandria”), for US$95.0 million. Alejandria owns a steam-dried fishmeal processing plant in Peru with a processing capacity of 40 metric tonnes of raw fish per hour, together with about 0.97 per cent quota share in the North of Peru and 3.04 per cent quota share in the South of Peru. With this acquisition, the group’s share of the annual allowable catch of Peruvian Anchovy has reached 6.05 per cent in North of Peru and 10.91 per cent in South of Peru. http://www.corporateobserver.com.sg/news.php?reg_id=533 Tue, 18 May 2010 15:05:37 +0800 SINGAPORE (May 18, 2010) – Veteran banker Sng Seow Wah is being identified to become the new group CEO of Alliance Bank Malaysia, according to Malaysian daily The Star. And the move could be the precursor of an acquisition by DBS Group into the Malaysian Bank, according to unnamed sources quoted by the newspaper. Mr Sng's appointment and DBS' potential entry have purportedly yet to receive the green light from the Malaysian central bank (Bank Negara). A former Citibanker, Mr Sng was formerly head of enterprise banking at OCBC Bank and now heads the human resources, special projects and corporate communications at Fullerton Holdings. Fullerton, which is a wholly-owned Temasek Holdings unit, owns a 29 per cent stake in Alliance Bank's parent company Alliance Financial Group Bhd (AFG). It also owns 68 per cent of PT Bank Danamon in Indonesia, and has interests in banks in India, China, Taiwan, Pakistan and Thailand. Fullerton was also one of the main vendors of Bank Internasional Indonesia (BII) to Malayan Banking Bhd in 2008. ... Due to political sensitivities - Temasek owns a 28-per-cent stake in DBS Group - DBS currently does not have much exposure in the Malaysian market. It runs a licensed offshore bank in Malaysia, the DBS Labuan Branch, and a representative office in Kuala Lumpur. An analyst told The Star that while it makes sense for DBS to enter the Malaysian market via Alliance Bank, “there is still uncertainty that Bank Negara would agree.” http://www.corporateobserver.com.sg/news.php?reg_id=530 Tue, 18 May 2010 12:50:00 +0800 SINGAPORE (May 17, 2010) - Underlining the improved global economic sentiment, Singapore's non-oil domestic exports (NODX) rose 29 per cent on-year in April - higher than the 25 per cent rise seen in March, and beating economists' expectation of a 26 per cent increase. According to figures released by IE Singapore, the increase was attributed to both electronic and non-electronic exports. Exports to Singapore's top 10 trading partners grew on a year-on-year basis, with exports to the US rising by 46 per cent: China by 30 per cent; and Hong Kong by 41 per cent. European Union exports rose 21 per cent, slower than the 25 per cent seen in March. On a month-on-month basis, NODX rose by 2.1 per cent in April after the previous month's 2.9 per cent increase. Total trade expanded by 31 per cent on year in April, one percentage point higher than March. http://www.corporateobserver.com.sg/news.php?reg_id=529 Mon, 17 May 2010 18:31:51 +0800 SINGAPORE (May 17, 2010) - Soon, "red hot" would no longer describe Singapore's private property market - "white hot" more like it. According to latest data from the Urban Redevelopment Authority (URA), 2,207 units were sold last month - the highest number of private homes sold so far this year and the first time that more than 2,000 units were sold since July last year. Private home sales in April were also 25.3 per cent higher than the 1,761 units sold in March. The number of units sold outpaced the number of units launched in April, with only 2,084 units launched last month. Unlike previous months, luxury projects were not the most popular, with mid-priced developments the flavour of the month. However, Mr Li Hiaw Ho, Executive Director of CBRE Research, does not expect the hot streak to continue - noting that the recent news of the eurozone debt crisis "has shaken the global stock markets somewhat". http://www.corporateobserver.com.sg/news.php?reg_id=528 Mon, 17 May 2010 18:25:42 +0800 SINGAPORE (May 17, 2010) - Singapore Airlines (SIA) passenger load factor increased 5.4 percentage points to 77.6 per cent on the back of a capacity (measured in available seat kilometres) reduction of 4.2 per cent. In a regulatory filing on its April operating results, SIA added its systemwide passenger carriage (measured in revenue passenger kilometres) recorded an increase of 2.9 per cent over the same month last year, with the number of passengers carried increasing by 0.5 per cent to 1.3 million. The year-on-year reduction in capacity arose from the planned reduction in frequencies, termination of services to Vancouver (via Incheon), Nanjing and Pakistan, the transfer of Hyderabad and Penang operations to SilkAir, as well as flight cancellations during the closure of the European airspace due to the volcanic activity in Iceland. http://www.corporateobserver.com.sg/news.php?reg_id=527 Mon, 17 May 2010 17:57:34 +0800 SINGAPORE (May 17, 2010) - Singapore-listed global supply chain manager Noble Group have launched an acquisition bid worth a total of US$80 million for certain assets of Northville Product Services (NPS). NPS is a wholly-owned division of NIC Holding, a Melville, Long Island-based international petroleum and renewable fuels trading, marketing and distribution company. Noble's proposed acqusition, through its wholly owned subsidiary Noble Petro, will see Noble acquiring NPS' assets on refined products blending, trading, distribution and marketing business based in Houston, Texas, and Denver, Colorado. In a regulatory filing, Hong Kong-based Noble said it has entered into an agreement for purchase and sale last Friday with NIC Holding. The offer comprises of US$70 million cash - funded through internal cash reserves and bank borrowings - and US$10 million worth of convertible promissory note due 2011. NPS’s renewable fuel business and NIC’s bulk trading in the US Gulf Coast and elsewhere for its non-US Gulf Coast markets will continue. The acquisition is expected to close early June 2010 and includes the employment by Noble of the key management personnel as well as other employees. Noble shares opened at S$1.90 a piece today. Its stock price has been adjusted after a series of new ordinary shares were issued over the weekend. It was previously trading at S$2.98 per share when the markets opened last Friday. As at 3.38pm, Noble shares were trading at S$1.83 a piece. http://www.corporateobserver.com.sg/news.php?reg_id=525 Mon, 17 May 2010 16:14:43 +0800 SINGAPORE (May 17, 2010) - If any confirmation was needed that the world's financial gravitas is shifting, this is it: A recent research found that nearly a third of private equity firms or general partners in the US and Europe said their future fundraising efforts would likely take them for the first time to Asia-Pacific and the Middle East. Conducted between December last year and March this year by BNY Mellon and Private Equity International (PEI), the paper was based on 102 detailed interviews with participants ranging from small niche firms to some of the largest global investing institutions. It also showed 85 per cent of private equity investors in Asia indicating that their allocations to the asset class would increase or remain stable in the coming years. The corresponding figures in Europe and the US are 77 per cent and 44 per cent respectively. The paper corresponds to the recent slew of media reports on private equity firms relocating to or opening new offices in countries in Asia, including Singapore. According to the researchers, the paper "explores the changing relationships between limited partners (LPs) and general partners (GPs) and how this evolving dynamic will impact the market". They added: "While economic events of 2008 to 2009 tested assumptions about private equity performance as well as long-standing relations between LPs and GPs, the research shows that private equity continues to grow as an attractive asset class to Asian investors." The paper noted the trend of Asian LPs having a strong appetite for private equity, with many of them managing "relatively young programs with significant target allocations to put to work". Some GPs have sought out new types of LPs, including sovereign wealth funds and large corporations looking to gain access to new technologies through venture funds – an expansion on the traditional research and development strategy. Asian GPs were the most bullish about the future of the private equity industry with a score of 4.29 out of 5, followed by North America (3.83) and Europe (3.62). Paradoxically, the paper showed that board members at 40 per cent of Asian LP respondents were described as having recently adopted a more negative view of PE - following the recent financial crisis - compared with 25 per cent in Europe and just 14 per cent in North America. http://www.corporateobserver.com.sg/news.php?reg_id=523 Mon, 17 May 2010 13:20:04 +0800 SINGAPORE (May 15, 2010) - With its parent company Sembcorp Industries fending off a US lawsuit over its intended takeover target, Sembcorp Marine has initiated legal proceedings which would thwart Chinese shipbuilder Yangzijiang's bid to buy a 15-per-cent stake in PPL Shipyard. Sembcorp Marine holds the remaining 85-per-cent stake in PPL Shipyard and it announced today in a regulatory filing that it has lodged a legal suit in the High Court against PPL Holdings and its wholly-owned subsidiary E-Interface Holdings for agreeing to sell their stake to Yangzijiang. http://www.corporateobserver.com.sg/news.php?reg_id=521 Sat, 15 May 2010 20:30:55 +0800 SINGAPORE (May 14, 2010) - Reflecting the global economic recovery which was first set in motion late-last year, Fraser & Neave Group has almost doubled its profit between September 1 last year and March 31 this year to S$306 million. F&N, which has business operations in property, printing and food and beverage, also announced today its half-fiscal year revenue in those six months rose about 19 per cent to S$2.8 billion. The earnings were lifted by a stronger showing in the first three months of this year when profit rose 89 per cent to S$170 million. F&N noted that all business units contributed to the group's positive performance. It declared an interim dividend of 5 cents per share, up from 3 cents from the previous year. Moving forward, the conglomerate will "deepen and broaden" its overseas operations and balance its portfolio through greater market diversification both in terms of geographical locations and business sectors. http://www.corporateobserver.com.sg/news.php?reg_id=520 Fri, 14 May 2010 22:34:19 +0800 SINGAPORE (May 14, 2010) – Container shipping and logistics group Neptune Orient Lines (NOL) which is controlled by Temasek Holdings, today reported a US$98 million net loss for the first quarter of 2010 (1Q10). The loss was 60 per cent less than the US$245 million loss for the first quarter of 2009 (1Q09). NOL said the core EBIT loss in the first quarter was US$74 million. Revenue was US$2.1 billion, up 36 per cent from US$1.5 billion a year ago. “The result, while reflecting improvement, still is not satisfactory,” said NOL Group President and CEO Ronald D Widdows. “But the increase in volume and revenue provides a foundation for turning around our performance as the global economy recovers and we begin to see the effects of rate and asset utilization improvement, particularly in the Transpacific trade.” The Group’s container shipping line, APL, reported a 46% increase in 1Q10 volume year-on-year, as global trade demand strengthened. Revenue in 1Q10 was up 39% to US$1.8 billion. The core EBIT loss decreased 55 per cent to US$106 million. Average revenue per FEU (Forty-Foot Equivalent Unit) increased 2 per cent. http://www.corporateobserver.com.sg/news.php?reg_id=519 Fri, 14 May 2010 19:14:07 +0800 SINGAPORE (May 14, 2010) - The recent spate of high profiled withdrawals from the IPO markets by New Century Shipbuilding in Singapore and several big names in Hong Kong have not deterred a new prospect from going ahead with its listing plans here. Consciencefood Holding Ltd. which is a maker of instant and snack noodles, lodged its prospectus with the Singapore Exchange on May 7 a few days after the Chinese ship building firms shocked the Singapore market with a last-minute withdrawal of its listing plans. New Century, slated the biggest China IPO in Singapore this year, pulled its listing plans one day before the close of its fund raising exercise. It was unclear what was the reason behind the cancellation although there had been widespread media reports about possible misreporting in application documents. In Hong Kong, several major IPOs including one by the Swire Properties of the Swire Pacific Group were either cancelled or postponed due to the volatile market conditions in Europe and the US which ravaged the Hong Kong stock market. Conscience food plans to use the proceeds from the listing to fund its expansion of its production capacity. The Indonesian based firm stated in the prospectus that its utilisation rate for its production facilities increased from 43 per cent in 2008 to 60 per cent in 2009. http://www.corporateobserver.com.sg/news.php?reg_id=518 Fri, 14 May 2010 19:00:44 +0800 SINGAPORE (May 14, 2010) - CEL development, a poperty arm of Chip Eng Seng, has been awarded the tender for a residential site on Simei Street 3 after it submitted the highest bid at S$172.68 million. CEL had won the tender which saw the participation of another 17 developers including Hong Leong, Far East and UOL Group. The price worked out to $523 psf ppr, which was higher than analysts’ earlier estimates of $295-$410 when the land parcel was released on March 23. URA announced the results today.' The next highest bid of $148 million, or $507 psf ppr was submitted by Frasers Centrepoint – just three per cent lower than CEL’s bid. http://www.corporateobserver.com.sg/news.php?reg_id=517 Fri, 14 May 2010 18:33:44 +0800 SINGAPORE (May 14, 2010) - Transportation group ComfortDelgro has reported an increase of 3.4 per cent in net profit for the first quarter, the sluggish growth was thanks mainly to higher taxes which rose 43 per cent. In a statement, ComfortDelro said net profit for the three months ended March 31, 2010 totalled S$54.3 million, up from S$52.5 million in the corresponding period in 2009. There was also a writeback of S$5.2 million in deferred taxes in 2009. Operating profit increased 11.2 per cent to S$90.6 million on the back of the growth in revenue. Group’s overseas operations accounted for 42.9 per cent of the revenue, up from 40.3 per cent. First quarter revenue rose 7 per cent due to broad based growth. The bus business led growth by accounting for 60 per cent of the increase in group revenue followed by the taxi business, the automotive engineering services, rail business , the vehicle inspection and testing business and the driving centre business. ComfortDelgro CEO Kua Hong Pak said:”We have continued to gow both our topline and bottomline but we are mindful that the global economic recovery remains fragile and there are significant challenges ahead. We will therefore remain prudent while seeking opportunities for growth.’’ ComfortDelgro shares closed unchanged at S$1.49 apiece. http://www.corporateobserver.com.sg/news.php?reg_id=516 Fri, 14 May 2010 17:54:27 +0800 SINGAPORE (May 14, 2010) - Those who have been concerned about rising prices in Singapore may take comfort from the latest official figures on retail and goods and catering trade. According to the Department of Statistics, catering trade declined by 1.7 per cent and retail sales fell by 1.4 per cent in March. Excluding motor vehicles, retail sales decreased slightly by 0.3 per cent. Sales of motor vehicles dropped by 9 per cent last month. On the contrary, sales of furniture and household equipment, telecommunication apparatus and computers and provision and sundry shops increased between 6.4 per cent and 7.1 per cent last month. Watches and jewelry and department stores also recorded higher sales of 3 per cent and 1.3 per cent during the same period. http://www.corporateobserver.com.sg/news.php?reg_id=515 Fri, 14 May 2010 17:20:31 +0800 By Loh Chee Kong cheekong@corporateobserver.com.sg SINGAPORE (May 14, 2010) - The man behind Singapore's stellar economic growth- masterminding its economic and industrial policies, among his endless list of contributions, as the republic came into its own following independence - died today at the age of 91 after a long battle with illness. Born in Malacca, Dr Goh Keng Swee - dubbed as the "economics wizard" and an alumni of the London School of Economics - was Singapore's former Deputy Prime Minister (DPM) who also helmed the finance, defence and education ministries in his 25-year political career. One of the founding fathers of Singapore and widely seen as its economic architect, Dr Goh retired from politics in 1984 and had shied away from the public eye. From the country's early days, Dr Goh saw the economic imperative of the Singapore society - a central tenet of governance until today. Dr Goh's trenchant thinking on Singapore's economy continues to influence present-day policymakers. He once noted: "For us in Singapore, the road to greater wealth is through thrift, enterprise and hard work. The road to stability lies in prudence and foresight in prosperity, and patience and fortitude in adversity. In the swinging age of the new economies, all this sounds old fashioned and Victorian. No doubt it is, but I think it is unrealistic to expect that doctrines worked out for developed economies, when foreign trade forms a relatively small part of the GNP, would apply in their entirety to the exceptional situation that is ours." ... For all his penchant for hard-nosed economics, Dr Goh could never reconcile the idea of paying high salaries for public officers, including ministers. When he was offered the post of deputy chairman of MAS following his retirement from politics, Dr Goh was offered the same pay that he was drawing as DPM. He asked to be paid half the amount. A firm believer in meritocracy, one of Dr Goh's greatest fears for Singapore is that it could become an "old boys' club". Following his retirement, Dr Goh would find it hard to read the newspapers or watch the news on television - knowing that he no longer had an influence on the nation's affairs. While some may see it a pity that Dr Goh had voluntarily cut short his political career and retreated from the public eye prematurely - so much so that many younger Singaporeans have not heard of him - his wife reiterated that Dr Goh never sought "money, power or glory or even to be honoured". http://www.corporateobserver.com.sg/news.php?reg_id=514 Fri, 14 May 2010 11:50:26 +0800 SINGAPORE (May 13, 2010) - Tiger Airways posted a strong full-year results - thanks to an exceptional fiscal fourth quarter which accounted for 79 per cent of its annual net profit. From January 1 to March 31, Tiger said it made S$22.3 million - a stunning turnaround from the corresponding period last year when it incurred losses of S$17.9 million. For the whole fiscal year, Tiger made S$28.2 million, turning around a S$50.8 million loss in the previous year. The company said the "strong" annual result was supported by revenue growth of 28.6 per cent from S$378 million to S$486.2 million as a result of a 53.8 per cent increase in passenger numbers. Growth in passenger volume outstripped seat capacity growth of 43.5 per cent, leading to a 5.7 percentage point improvement in load factor to 85.1per cent. Mr Tony Davis, president and group CEO of Tiger Airways, said: “No matter how you cut the numbers, these are great results for Tiger Airways. Our Singapore cub recorded its third year of operating profit, and our Australian cub has recorded a breakeven operating result in its second full year of operation, a fantastic achievement." He added: "Following the break-even result from Tiger Australia, we have recognised 50% of the Australian deferred tax asset. The balance remains available for offset against future years’ profits." http://www.corporateobserver.com.sg/news.php?reg_id=513 Thu, 13 May 2010 19:33:55 +0800 SINGAPORE (May 13, 2010) - Straits Trading Group, one of the oldest listed firms in Singapore, reported a S$7.2 million after tax loss between January 1 and March 31 this year - due to staggering impairment provisions of S$20.5 million made largely in respect of its non-tin resources investments. The Group's total revenues went up by 69.4 per cent to S$324.5 million, with the increased revenue coming mainly from higher sales volume and higher tin prices in the resources operations. Excluding the impairment provisions, the Group reported profit before tax and exceptional items of S$11.1 million in Q1 2010 compared with a loss of S$2.5 million in Q1 2009. http://www.corporateobserver.com.sg/news.php?reg_id=512 Thu, 13 May 2010 19:18:41 +0800 SINGAPORE (May 13, 2010) – Thanks to globalization, the world is becoming smaller. Yet it becomes a problem when not everyone speaks the same language – just like the way it is in business. Speaking at the International Financial Reporting Standards (IFRS) Regional Policy Forum, , Mrs Lim Hwee Hua, Second Minister of Finance and Transport , underlined the need for a “single global business reporting language”. Said Mrs Lim: “As the global marketplace adapts and develops from this inter-connectedness and integration of economies, we need a high quality, global business language that can facilitate the acceleration in cross-border movement of goods, services, technology and capital.” She added: “It should be a language that gives investors and stakeholders certainty and confidence to use it in their financial reporting, and ultimately fosters stability in the global financial system.” The wheels have been set in motion: The IFRS is being developed by the International Accounting Standards Board precisely for this purpose. But Mrs Lim reiterated that for IFRS to “live up to its full potential”, it must “demonstrate that financial statements prepared according to the IFRS will provide a ‘true and fair’ view of business operations, and will fully reflect the realities of doing business in any particular domicile in the world”. ... Mrs Lim cited several sticky points that the new accounting principles and conceptual framework should address, including the definitions of assets and liabilities and “when and how revenue is recognised”. An oft-cited example, she pointed out, is fair value accounting, “especially with regard to the valuation of securities”. “From the perspective of an investor in a bank, there is clear merit to fair value accounting, as it is the best indicator of what he indirectly owns, especially when the security has identifiable market value. However, from the perspective of policy makers and regulators, they are more concerned about systemic stability, and that fair value accounting may result in pro-cyclical behaviour,” said Mrs Lim, reiterating the challenge of maintaining a “fine balance”. The legal definition of “control” and the accounting definition under the IFRS also have to be re-examined, said Mrs Lim. She noted that under the common law system, control is linked to voting rights – as enshrined in Singapore’s corporate legislation. However, under the IFRS, control is dependent not only on voting rights but also on other factors such as the ability to direct the activities of the entity. Such a “divergence” would affect a property developer’s decision to tap capital markets to finance growth in the real estate sector in this region, she added. http://www.corporateobserver.com.sg/news.php?reg_id=511 Thu, 13 May 2010 18:36:55 +0800 (May 13, 2010) – It’s beginning to sound like the grim reaper on the prowl. Goldman Sachs was the first. And even with Moody’s purportedly next-in-line, another financial behemoth is fast feeling the noose tightening around its neck. In a climate of mounting voter anger, the United States Securities and Exchange Commission had filed civil fraud charges against Goldman Sachs. It followed that up with a notice warning Moody’s that it could soon find a writ served at its door. Now, there is a fear that Morgan Stanley is next on the hit list. And despite the company reiterating it had “no knowledge” about a reported inquiry into its mortgage securities trading, investors were spooked – sending the firm’s stock tumbling 58 cents, or 2.04 percent, to $27.80. The Wall Street Journal reported that federal prosecutors are investigating whether Morgan Stanley misled investors about its role in a pair of US$200 million derivatives whose performance was tied to mortgage-backed securities. The newspaper said Morgan Stanley sometimes bet against the success of the derivatives, which were underwritten and marketed to investors by Citigroup and UBS AG. "We have no knowledge of a Justice Department investigation into these transactions," the company said in a statement. http://www.corporateobserver.com.sg/news.php?reg_id=510 Thu, 13 May 2010 17:34:33 +0800 SINGAPORE (May 13, 2010) – The ill-fated marriage of Australian miner Macarthur Coal and Noble Group subsidiary Gloucester Coal is officially off. Macarthur, which has received takeover offers from US-based Peabody Energy and Australia's New Hope, said in a statement that it will be not be changing or extending the acquisition agreement with Gloucester. Macarthur’s move hardly come as surprise given that Noble’s shareholders had voted against the move last month – following intense public posturing, particularly from Noble, after a bidding war erupted between several parties which were eyeing Macarthur. A few weeks ago, Noble also rebuffed Macarthur’s advances to renew the deal. http://www.corporateobserver.com.sg/news.php?reg_id=509 Thu, 13 May 2010 16:39:32 +0800 SINGAPORE (May 13, 2010) - Norges Bank Investment Management, which manages the Norwegian Government Pension Fund Global, became the latest fund manager to expand operations to Singapore. The firm, which manages a NOK$2.7 billion (S$610 million) portfolio, announced the move recently, adding that this would allow it to get closer to Asia, where it invests 10 per cent of its funds - specifically in Singapore, China, Japan, South Korea, Malaysia and Thailand. The Singapore office will focus on investment and trading activity in the region and work closely with the firm's office in Shanghai that opened three years ago. http://www.corporateobserver.com.sg/news.php?reg_id=508 Thu, 13 May 2010 14:22:34 +0800 SINGAPORE (May 13, 2010) - New York-listed water services firm Cascal has withdrawn its request for a temporary restraining order against Sembcorp Industries. In return, the Singapore-based marine and utilities conglomerate and its partner Biwaters have agreed not to launch the voluntary tender offer for the remaining shares in Cascal before May 21. Cascal - the subject of a hostile takeover bid by Sembcorp - filed a lawsuit against Sembcorp and its utilities subsidiary on April 30 for allegedly breaching United States securities law and confidentiality agreements. On its part, Sembcorp has maintained the position that it is "not in breach of any laws, regulations or contractual obligations in respect of the transaction and it remains committed to completing the transaction". http://www.corporateobserver.com.sg/news.php?reg_id=507 Thu, 13 May 2010 12:51:11 +0800 SINGAPORE (May 13, 2010) - SingTel, the republic's largest company by market capitalization, unveiled a better-than-expected 12 per cent spike in its fiscal fourth quarter net profits, bouyed by strong showings at home and regional associates. The solid performance saw the telco ending its previous fiscal year on a high - making an annual net profit of S$3.91 billion, up 13.3 per cent - but it cautioned that operating revenue this fiscal year will grow by a single digit percentage due to higher capital outlay in Singapore and Australia. Analysts also pointed out that its associates face increasing competition and some face earnings dilution due to acquisitions and regulatory risks. Between January 1 to March 31, the telco registered a net profit of S$1.02 billion, up from S$903.4 million in the corresponding period last year. Analysts polled by Dow Jones Newswires had tipped a S$997 million net profit in the fourth quarter. Ms Chua Sock Koong, SingTel Group's chief executive, said: "The fourth quarter concluded a successful year for us, despite the global financial crisis. With unrelenting focus on execution, we outperformed the markets in Singapore and Australia and met our guidance for the financial year." SingTel, Southeast Asia's largest telco by revenue, holds significant stakes in six foreign mobile operators: Bharti Airtel; Telkomsel; Advanced Info Service; Pakistan's Warid Telecom; the Philippines' Globe Telecom and Pacific Bangladesh Telecom. ... But the firm said operating revenue in the fiscal year head will be less stellar - particularly in Singapore and Australia. Shares of SingTel, which opened higher on the Singapore Exchange, was trading 1.7 per cent lower at S$2.950 at 12.18pm. A CIMB research note has an Underperform call on SingTel. The note said: "Likely factors to depress the share price are rising content costs in Singapore, regulatory risks in India and earnings dilution from Bharti's acquisition of Zain Africa." http://www.corporateobserver.com.sg/news.php?reg_id=506 Thu, 13 May 2010 12:18:01 +0800 Singapore, (May 12, 2010) - Wee Cho Yaw’s UOL Group today announced sharply lower profits for the first quarter but mostly due to the absence of substantial other gains. In a statement, UOL, the property and hotel arm of the Wee family, said net profit after tax and before minority interests for the quarter fell 71 per cent to S$100.3 million from S$277.7 million previously. Profit after tax and minority interests also decreased 74 per cent to S$87.9 million from S$331.8 million previously. The substantial other gains in the previous year were due mostly to negative goodwill from the acquisition of UIC shares. At the pre-tax level, profit before other gains was up 55 per cent at S$109.5 million. http://www.corporateobserver.com.sg/news.php?reg_id=503 Wed, 12 May 2010 18:32:09 +0800 SINGAPORE (May 12, 2010) – The ailing Sultan of Kelantan is at the centre of a tug-of-war between family members who are at odds over where to ward him for follow-up treatment, Malaysian daily The Star reported. Singapore's thriving medical tourism industry - identified by the government as a growth area and backed by a healthcare sector which is considered to be the best in the region - has seen it become a hot spot for elites from neighbouring countries seeking medical treatment. According to The Star, Sultan Ismail Petra, his consort and his son were prevented from heading to the airport to fly to Singapore for treatment last Tuesday. http://www.corporateobserver.com.sg/news.php?reg_id=502 Wed, 12 May 2010 18:00:20 +0800 SINGAPORE (May 12, 2010) – By the end of the year, Low-cost carrier Jetstar will launch its long-haul service from Singapore’s Changi Airport. Announcing this today, Jetstar chief executive Bruce Buchanan said in a statement the airline's first routes out of Singapore would be announced in coming weeks and would either be into Australia, northern Asia or Europe - most likely Rome or Athens. Jetstar, a subsidiary of Australian airline Qantas, will be the first low-cost carrier to offer long-haul flights from Singapore when it receives the first of two new Airbus A330-200 aircraft in December – its Malaysian rival AirAsia had begun doing so from Kuala Lumpur in 2007. Rome and Athens were selected by a combination of market opportunities and the capabilities of the A330 aircraft, Mr Buchanan said. http://www.corporateobserver.com.sg/news.php?reg_id=501 Wed, 12 May 2010 17:38:50 +0800 (May 12, 2010) – Prudential CEO Tidjane Thiam has reportedly pledged to put his neck on the line to push through the US$35.5 billion takeover of AIG's Asian unit AIA – even as reports emerged that the UK insurer is in talks with AIG to restructure the deal. One of the proposals purportedly including cutting the US$25 bn cash component by US$2 bn. Prudential’s takeover bid hit a snag last week after the Financial Services Authority prevented the insurer from proceeding with a record US$21 bn rights issue. Although Prudential has insisted it can win regulatory approval for the acquisition, its shares dropped another 2.35 per cent yesterday amid continued concerns over management, strategy and regulation. The stock, which closed at 541 pence, is nearly 16 per cent down on the year. http://www.corporateobserver.com.sg/news.php?reg_id=500 Wed, 12 May 2010 16:57:01 +0800 SINGAPORE (May 12, 2010) - Keppel Land is the latest stock to join the MSCI Singapore Index in the latest review of MSCI equity indexes, according to Dow Jones. Under the review, Keppel Land - which was trading at S$3.68 a share as at 4.29pm - will be removed from the MSCI Global Small Cap Index for Singapore. http://www.corporateobserver.com.sg/news.php?reg_id=499 Wed, 12 May 2010 16:30:26 +0800 SINGAPORE, (May 12, 2010) - Singapore’s DBS Bank is one of the five banks that are underwriting a bond issue by Indonesia’s Indosat Palapa Co, a business unit of PT Indosat Tbk. According to media reports, the Indonesian company started building its book for the issue of US$800 million bonds with a 10 years maturity. Half of the bond issuance is for debt refinancing and capital expenditure. The global bonds of Indosat has got Ba1 rating from Moody's Investors Service and BB from Stan-dard & Poor's. Besides DBS, the bonds are underwritten by Citigroup, HSBC, Deutsche Bank and Royal Bank of Scotland. http://www.corporateobserver.com.sg/news.php?reg_id=498 Wed, 12 May 2010 16:27:28 +0800 (May 12, 2010) - The witch hunt continues as the United States Securities and Exchange Commission (SEC) - which brought civil fraud charges against Goldman Sachs last month - turns its attention on ratings agency Moody's. In its quarterly report last Friday, Moody's disclosed that the SEC reportedly issued a Wells notice - the watchdog's way of signalling that it was considering legal action against the company - on March 18, warning that it might sue the ratings agency for making "false and misleading" statements as part of its application as a ratings organization. Moody's added that its Wall Street Analytics unit is cooperating with an investigation by the SEC and the Department of Justice into "certain financial institutions" and the valuations used in "certain financial instruments." Following SEC's decision to take investment bank Goldman Sachs to court, the spotlight has fallen on ratings agencies - which have been criticized for the high grades they affixed to billions of dollars of subprime mortgages that were ultimately rendered worthless. Following the news, share prices for Moody's tumbled 6.8 per cent today. ... Meanwhile, the Washington Post reported today the SEC itself is facing a federal lawsuit for keeping secret the names of dozens of its supervisors, employees and contractors who spent their workdays looking at pornography on their government computers while the financial crisis unravelled. The lawsuit, filed last Friday by a Denver- and Washington-based law firm, accuses the SEC of violating federal open-records law by shielding the identities of more than two dozen current and past porn-snooping workers. "There simply is no privacy right or interest to search pornography on SEC computers, particularly during work hours," says the 17-page complaint, filed in federal court in Denver. http://www.corporateobserver.com.sg/news.php?reg_id=497 Wed, 12 May 2010 16:08:25 +0800 Singapore, (May 12, 2010) – Singapore Telecommunications Limited (SingTel) posted strong growth in customer acquisitions with a combined regional mobile customer base of 293 million as at 31 March 2010, an increase of 17 per cent, or 43 million from a year ago. In the first quarter, it added 8 million more customers from the region. At home, SingTel’s total mobile customer base increased 4.7 per cent to 3.1 million as at 31 March 2010 and maintained its lead position with a market share of 45.2 per cent. SingTel added 25,000 new postpaid customers due to strong demand for its bundled smartphones offerings. Total post paid customer base increased to 1.62 million, representing a leading market share of 46 per cent. Demand for 3G mobile services remained strong with increased penetration of smartphones. SingTel’s total 3G mobile customer base grew steadily by 46,000 in the quarter to 1.45 million as at 31 March 2010. In the prepaid segment, SingTel reduced the validity period of lower value cards to 90 days and deactivated 101,000 customers. This deactivation has no revenue impact and resulted in a net decline of 90,000 customers in the quarter. With a total prepaid customer base of 1.50 million, SingTel continued to lead the market with 44.4 per cent market share. At its global units, Singtel’s Australian-based Optus records the strongest quarter in five years when its added 254,000 new mobile customers, bringing its total mobile base to 8.5 million as at 31 March 2010, an increase of 9.1 per cent from the previous year. http://www.corporateobserver.com.sg/news.php?reg_id=496 Wed, 12 May 2010 15:38:41 +0800 SINGAPORE (May 12, 2010) - The ex-CEO of Singapore-listed AEM-Evertech Holdings has been charged with four counts of graft - allegedly dishing out bribes amounting to S$207,508.10 to advance the company's business interests. Ang Seng Thor, 46, was also the managing director of AEM-Evertech. Together with Tok Kian You, the ex-executive chairman of the firm, Ang was alleged to have given S$50,000 to Tan Gek Chuan, an operations director of Infineon Technologies Malaysia, in January 2004. The money was allegedly handed to to advance the business interests of AEM-Evertech with Infineon. Ang also allegedly bribed Seagate Technology International assistant engineer Ho Sze Kee by giving him a total sum of $157,508.10 on three separate occasions between October 2004 and March 2005. Ang is also accused of two counts of making false declarations to the Immigrations and Checkpoints Authority (ICA) on August 18 - allegedly doing so to help a person obtain permanent resident status in Singapore. http://www.corporateobserver.com.sg/news.php?reg_id=495 Wed, 12 May 2010 13:22:14 +0800 SINGAPORE (May 12, 2010) - Wilmar International, the world’s largest listed palm oil firm, beat market expectations and saw its net profit rise by 5.6 per cent to US$401 million (S$552.6 million) in the first three months of the year - recording one of the highest earnings by a Singapore-listed firm this quarter. The earnings were higher than the average forecast of US$385 million provided by three analysts surveyed by Reuters. Wilmar is founded by Malaysian tycoon Robert Kuok's nephew Kuok Khoon Hong, who is also the firm's chairman and chief executive. The younger Kuok said in a recent media interview that Wilmar, which scrapped plans for a listing of its Chinese operations in Hong Kong due to unfavourable market conditions, would be investing S$1 billion this year as it seeks attractive investment opportunities for the group's future growth. Announcing its Q1 results, Wilmar - the second largest company based in Singapore, after SingTel - reiterated it is positive on growth in Asian markets such as China and Indonesia. http://www.corporateobserver.com.sg/news.php?reg_id=494 Wed, 12 May 2010 13:09:05 +0800 SINGAPORE (May 12, 2010) - Singaporeans hoping to get their hands on the latest Apple gizmo will have to wait unti July. Tech lovers in nine other countries - including only Japan in Asia - will get it first. With none of the fanfare accompanying the launch of the product in January, Apple posted a press release on its website over the weekend that the iPad will be available in Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland and the United Kingdom on May 28. Since Monday, customers in all these nine countries can pre-order all iPad models from Apple’s online store. But customers in Singapore will have to wait. Apple said it plans to release iPad in Austria, Belgium, Hong Kong, Ireland, Luxembourg, Mexico, Netherlands, New Zealand and Singapore only in July. It will announce availability, local pricing and pre-order plans for these nine additional countries at a later date. http://www.corporateobserver.com.sg/news.php?reg_id=493 Wed, 12 May 2010 12:20:42 +0800 SINGAPORE (May 12, 2010) - Marine and utilities conglomerate Sembcorp Industries will file its defence today to an amended lawsuit lodged by New York-listed water services firm Cascal, alleging that the Dutch company has no grounds to file the legal suit and that it had failed to make its case. And even if Cascal - which is the subject of Sembcorp's acquisition bid - was a proper party to the litigation, Sembcorp said it will assert that the non-disclosure agreements "specifically permit the use of the information provided by Cascal for the purposes of a voluntary tender offer made to all of Cascal’s shareholders". In a filing on the Singapore Exchange, it added: "Sembcorp will show that the tender offer should be allowed to proceed to allow the shareholders to make an informed decision concerning their shares." Sembcorp had already sealed a deal last month with British-based Biwater Investments to buy its 58.4-per-cent stake in Cascal - giving Sembcorp a controlling stake whether or not Cascal agrees to the takeover tender. But Cascal subsequently rejected Sembcorp's US$206 million offer outright for being "inadequate, coercive and not in the best interest of all shareholders". And on April 30, Cascal filed a suit against Sembcorp and its utilities subsidiary in a New York District Court, alleging that the Singapore-based firm had violated US securities laws and breached confidentiality agreements. http://www.corporateobserver.com.sg/news.php?reg_id=485 Wed, 12 May 2010 09:51:08 +0800 SINGAPORE, (May 11, 2010) - Singapore Press Holdings (SPH) has been helmed by a former top minister as chairman and an ex-permanent secretary as chief executive - at least for the most of the last 16 years. Now its rival and national broadcaster MediaCorp will soon have an incumbent top civil servant at the helm as well. MediaCorp announced today that Mr Teo Ming Kian, the Permanent Secretary (national research and development) in the Prime Minister's Office, will replace prominent businessman Ho Kwon Ping as its chairman after the annual general meeting scheduled in July. Mr Teo, who was not on MediaCorp's board, has been appointed a director and chairman-designate with immediate effect. Mr Teo is concurrently an advisor at the Ministry of Finance and sits on the boards of the Monetary Authority of Singapore, National Research Foundation and Temasek Holdings. Mr Ho, the founder of hotel and resorts operator Banyan Tree, is stepping down after serving two terms as chairman, since 2004. He is also the chairman of Singapore Management University and Wah Chang Group. http://www.corporateobserver.com.sg/news.php?reg_id=484 Tue, 11 May 2010 18:51:24 +0800 SINGAPORE (May 11, 2010) - Jade Technologies Holdings reported a net quarterly loss of S$596,000, compared to a loss of S$2.06 million over the same period a year ago. During its fiscal second quarter ended March 31 this year, Jade generated S$4.2 million in revenue – attributed solely to its subsidiary Daqing Xinde Chemical Marketing & Distribution, which became fully operation only in January this year. There was no comparison figure for a year ago as the group had no revenue-generating operations in the first half of last year. Jade divested most of its loss-making businesses in 2009 and is now focused on its business in titanium dioxide via Xinde. The firm, which was in the spotlight in 2008 following a botched takeover attempt by its former president Anthony Soh which led to its share price plunging spectacularly, said it is “cautiously optimistic for the second half of 2010”, citing the possibility of cooling measures on the China property market. http://www.corporateobserver.com.sg/news.php?reg_id=483 Tue, 11 May 2010 18:09:37 +0800 (May 11) - China’s inflation accelerated at the fastest pace in 18 months, bank lending exceeded estimates and property prices jumped by a record high – sparking worries that the Chinese economy is overheating. Latest figures from China’s statistics bureau today showed consumer prices rose 2.8 per cent in April from a year earlier – the fastest rate since late-2008 – and property prices jumped 12.8 percent. New lending of 774 billion yuan, announced by the central bank, was more than any of 24 economists forecast. The fresh data saw China's shares ending at their lowest level in nearly a year, as it raised concerns the government could take more tightening measures to cool the economy. However, at the same time, China returned to a modest trade surplus last month after recording a deficit in March. The 87 per cent reduction in the surplus compared with last year could ease some of the pressure on Beijing to appreciate its currency. The surplus was US$1.7 billion in April following the surprise deficit of US$7.2 billionn in March, the first month in six years in which imports exceeded exports. The 2.8-per-cent rise in consumer price index last month - above the median 2.7 per cent rise forecast by 11 economists - comes on the heels of a 2.4 per cent rise in March. The increase in property prices also follows a 11.7 per cent rise in March. Analysts also expect the figures to increase pressure on the government to raise interest rates and let the currency appreciate – but the big question remains when. http://www.corporateobserver.com.sg/news.php?reg_id=482 Tue, 11 May 2010 17:29:03 +0800 SINGAPORE (May 11, 2010) - Overseas Union Enterprise, the property and hotel vehicle of James Riady’s Lippo Group, continued its spectacular climb on the stock market, trading to above S$20 today even as the overall market weakened from mid-day. Easily the best performing property counter this year, the stock closed at S$18.98 apiece, up a hefty S$1.88 from the previous day and more than double what it was trading before the Malaysian partner Ananda Krishnan divested his stake to the Lippo Group. The stock was languishing at around S$9 until the divestment news broke. But it continued its surge after the transaction, prompting a query from the Singapore Exchange for a reason behind the climb. http://www.corporateobserver.com.sg/news.php?reg_id=480 Tue, 11 May 2010 17:24:53 +0800 (May 11, 2010) - The Hong Kong government’s measures to cool the real estate market appeared to have worked as the closely watched government auction for a site today yielded a price that is sharply lower than property experts’ expectations Nan Fung Group, owned by textile and property tycoon Chen Din Hwa, one of the shrewdest businessmen in the territory, won the contest from fellow developers with a modest bid of HK$3.42 billion. Dow Jones had earlier polled six surveyors which produced an average forecast of HK$4.63 billion for the Tung Chung waterfront site near the airport and Disneyland. Bidding interest was reported to be weak with the auctioneer warning many times he would withdraw the site if the reserve price wasn’t met. The final price clinched was only 19 per cent higher than the opening bid of HK$2.876 billion. http://www.corporateobserver.com.sg/news.php?reg_id=479 Tue, 11 May 2010 17:00:38 +0800 SINGAPORE (May 11, 2010) - STX Singapore Offshore now has something – make that two monumental objects - to show for its maiden US$30 million investment in Vietnam. The joint venture between STX Europe and Singapore’s Amanda Shipyard officially launched a new shipyard this month in Vung Tau, Vietnam while also completing and naming the first vessel built at the new yard – the 16,000 BHP advanced anchor handling tug, the Skandi Emerald (picture), which has a bollard pulling power of 200 tons. Mr Graham Bell, chairman of Amanda Shipyards, noted the two projects were “both completed ahead of schedule, at record speed”. Said Mr Bell: “We started early in January 2007 and I am very pleased to see the result from the Vietnam team who have managed a challenging project by building a vessel to the highest international standards while simultaneously having the yard constructed.” http://www.corporateobserver.com.sg/news.php?reg_id=478 Tue, 11 May 2010 16:52:26 +0800 SINGAPORE (May 11, 2010) - The republic’s investment arms Temasek Holdings and Government Investment Corporation of Singapore were both active in the market, making separate moves to increase their portfolios in commodities and healthcare respectively. Temasek acquired US$500 million in convertible preferred stock in New York-listed Chesapeake Energy. The purchase was yet another foray by the Singapore sovereign wealth fund into a commodity related firm. Last year, Temasek stated its intentions to go big on commodities and had since gone into several major deals to acquire stakes in the sector. Under the deal, Hopu Investment Management, a Beijing-based firm, will also buy US$600 million of convertible preferred stock in the leading US producer of natural gas. The investment was disclosed by Chesapeake after the US market closed on Monday as part of its efforts to raise up to US$5 billion over the next two years to reduce debt and attain an investment-grade rating. The funds have an additional 30-day option to acquire a further US$500m of the stock, which they are “highly likely” to exercise alongside other investors, according to the Financial Times quoting people familiar with the matter. FT reported that Temasek’s new affiliate Seatown is likely to invest in a portion of the second tranche, alongside other Asian investors. Hours before the Temasek deal, Indian hospital chain Fortis Healthcare announced that GIC will be buying a 6.58-per-cent stake in a transaction worth about S$116.5 million. The preferential share issue is part of Fortis’ efforts to raise funds for expansion, including its S$959.4 million acquistion of a 23.9-per-cent stake in Singapore healthcare group Parkway Holdings which was announced in March. http://www.corporateobserver.com.sg/news.php?reg_id=477 Tue, 11 May 2010 16:09:47 +0800 SINGAPORE (May 11, 2010) - International Enterprise (IE) Singapore and the Singapore Furniture Industries Council (SFIC) will lead the first-ever business mission for Singapore-based furniture companies to look for growth opportunities in the contract hospitality furniture and furnishing sector from 13 to 21 May. This marks a new thrust by IE Singapore and SFIC to open new channels for Singapore furniture players overseas. While previous efforts have focused on the promotion of overseas sales of residential furniture pieces, IE Singapore and SFIC will also be helping Singapore furniture players gain greater mindshare among hotel owners and operators based in the United States of America (USA). http://www.corporateobserver.com.sg/news.php?reg_id=476 Tue, 11 May 2010 16:03:09 +0800 SINGAPORE, (May 10, 2010) - J.P. Morgan plans to open its first Asian precious metals vault facility in Singapore during the third quarter of 2010 to facilitate trading in gold and other valuable commodities. The vaults will accommodate the trading of physically settled futures contracts on regional exchanges, exchange traded funds (ETFs) as well as physically settled financing transactions in which JP Morgan is involved. http://www.corporateobserver.com.sg/news.php?reg_id=474 Mon, 10 May 2010 21:50:56 +0800 SINGAPORE, (May 10, 2010) - Overseas Union Enterprise, the property and hotel vehicle of James Riady’s Lippo Group, has delivered a set of impressive set of results, a share split scheme and plans to boost its hotel management business – news that very well justified the spectacular performance of the stock in the last couple of months. In an announcement after the company suspended trading of its stock on the Singapore Exchange, OUE said net profit after tax surged 1,367 per cent to S$184.56 million, thanks mostly to revaluation gain and impairment writeback as well as the opening of the Mandarin Gallery. Excluding the two exceptional items, the group reported a 174 per cent rise in pre-tax net profit to S$23.7 million from S$8.6 million. http://www.corporateobserver.com.sg/news.php?reg_id=473 Mon, 10 May 2010 21:36:16 +0800 SINGAPORE, (May 10, 2010 ) - DBS Bank (Hong Kong) Limited (DBS) and JCB International today signed an agreement for merchant acquiring services of JCB cards in Hong Kong and Macau, and that DBS has started to facilitate JCB card acceptance in its merchant network. The partnership with DBS further expands the JCB International merchant network in Hong Kong and Macau, allowing JCB cardmembers to enjoy a wider card acceptance in these two important markets. Through the agreement, DBS also benefits from giving its merchants access to card transactions generated by JCB's over 60 million cardmember base, mainly in Asia. Ms Carol Hung, DBS' senior vice president (cards & unsecured loans) in Hong Kong, said: "We are pleased to announce our co-operation with JCB International as we will be able to provide more comprehensive and improved merchant acquiring services by expanding our acquiring network to include JCB cards. With an extensive network of DBS, we are pleased to work with JCB International to increase the number of JCB merchants in order to offer better acceptance services to JCB cardmembers," http://www.corporateobserver.com.sg/news.php?reg_id=471 Mon, 10 May 2010 18:27:53 +0800 SINGAPORE (May 10, 2010) – In a move that is raising concern among the Taiwanese public, the Singapore Tourism Board (STB) is converting its Taiwan regional office – established in 1984 – to a marketing representative office. The conversion means Taiwan will be dropped from STB's list of regional offices in cities including London, Bangkok, Shanghai, New York and Osaka. With a marketing representative office, Taiwan joins the likes of places such as Buenos Aires, Johannesburg, Melbourne and Sao Paulo. Tipped off by travel agencies which were informed of STB’s move, which will purportedly take place in August, Taiwanese daily Commercial Times reported the development last Thursday – describing STB’s move as a “withdrawal” and raising concerns that other Asian countries will follow suit. Some media reports had stated the STB was closing its Taiwan office and moving to the Mainland but this has been proven to be wide of the mark. When contacted by The Corporate Observer, STB confirmed the move, pointing out that it is part of its regular review of international operations, “so as to ensure the optimization of its resources, while maintaining its ability to respond quickly and effectively to new travel patterns, growth opportunities and changes in the global travel market”. Mr Edward Koh, STB’s regional director (Greater China), said in a statement: “We are currently working with all parties and trade partners to ensure that any necessary transition is smooth. The marketing representatives will continue the promotion of Singapore as a destination for leisure, business travel, MICE and education in the Taiwan market." ... According to the Taiwanese daily, STB’s move follows similar steps by its counterparts in New Zealand, Australia and the Netherlands. This has led to speculations that tourism authorities around the world are focusing their attention on the burgeoning China market – by channelling resources from Taiwan to China. The Commercial Times reported that Taiwanese visitors to Singapore has dropped from an average of 500,000 annually at its peak to current levels of about 200,000 a year. In contrast, visitors from China to Singapore has increased to 1 million a year. The Commercial Times quoted Ms Janice Lai, director-general of the Taiwan Tourism Bureau, as reiterating that STB’s move “had nothing to do with politics” and was a result of “market dynamics”. Positioning itself as a neutral party to Beijing and Taipei, Singapore does not have formal diplomatic relations with Taiwan but it maintains close economic ties with Taiwan. http://www.corporateobserver.com.sg/news.php?reg_id=470 Mon, 10 May 2010 18:12:17 +0800 SINGAPORE, (May 10, 2010) - The recent bloodbath in the global equity markets triggered by the raging economic crisis in Europe and trading chaos in the US has prompted several notable IPO prospects to shelve their plans to raise money on the Hong Kong bourse. The companies - which range from Russian miner to Hong Kong property developer and to Singapore tire marker - are pulling their IPO plans as the Hong Kong equity market crashed amid the turmoils in the global market triggered by the Greece bailout. Among the biggest was Swire Pacific’s plans to list its property arm Swire Properties which had originally planned to raise as much as HK$20 billion in an initial public offer. Swire had pulled the deal only three days after it published its IPO prospectus after the Hang Seng Index fell for the fourth straight week. Explaining the decision, Swire Pacific chairman Christopher Pratt said:”The company is naturally disappointed at this outcome but feels that it would be wrong to proceed with the proposed spinoff. Consideration was given to amending the terms of the global offering but it was felt that this would undervalue the world assets of Swire Properties.’’ One of the latest to join Swire’s withdrawal plan was China Tian Yien Mining, a Chinese privately owned iron ore producer, which decided to delay its listing after watching the Dow Jones Industrial Index crashing during intra-day trading of over 1,000 points in the US market. From Russia, Strikeforce Mining & Resoures PLC, owned by Russian billionaire Oleg Deripaska’s EN+ Group Limited, also called off plans to raise US$150 milion to US$200 million until better market conditions arise. http://www.corporateobserver.com.sg/news.php?reg_id=469 Mon, 10 May 2010 17:45:24 +0800 This is a sample news brief, which will appear in the front-page of the site, if selected as so. Just follow the format shown here, and replace this text, and it will come out fine. The image tag which you see at the beginning of this paragraph corresponds to the respective image, which you will upload below. You can place such image tags wherever in any paragraph, and the corresponding image will appear in that spot in the flow of the article.Do play around to try how it can be used. Sample paragraph 2: Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam remaperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto. beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit. http://www.corporateobserver.com.sg/news.php?reg_id=468 Mon, 10 May 2010 17:19:23 +0800 SINGAPORE (May 10, 2010) - CapitaLand will build its first Raffles City integrated development in Shenzhen, the company announced today. Named Raffles City Shenzhen, the property is located in the commercial district of Shenzhen City’s Nanshan District. According to CapitLand, the development will be a “one-stop dining, shopping and lifestyle destination”. The latest addition brings CapitaLand’s “Raffles City” brand portfolio to eight - with six across China, one in Singapore and another in Bahrain. The brand leverages on the success of Raffles City Singapore, which was designed by world-renowned architect I M Pei and has been in operation for the last 23 years. http://www.corporateobserver.com.sg/news.php?reg_id=467 Mon, 10 May 2010 15:34:27 +0800 SINGAPORE (May 10, 2010) – The Asian stock market bloodbath last week appeared to have been stemmed as the euro strengthened today, following news the European Union finance ministers had agreed to put together a near-US$1 trillion plan to stabilize the euro zone. But political uncertainty in several countries - following adverse election results for incumbents in UK and Germany - could hamper efforts to haul Europe out of its predicament. The huge bailout "proves that we shall defend the euro whatever it takes," Mr Olli Rehn, the European Union's commissioner for economic and monetary affairs, told a press conference after 11 hours of talks in Brussels. The European Central Bank will also implement exceptional measures in support of the bailout package, Mr Rehn said. The breakthrough followed urgent telephone calls Sunday between US President Barack Obama, German Chancellor Angela Merkel and French President Nicolas Sarkozy. Following the announcement of the package, the US Federal Reserve and central banks in Japan, Europe, Britain, Canada and Switzerland said they would intervene to ensure that dollar shortages did not occur in European markets. Singapore's Straits Times Index gained 0.4 per cent, after shedding 5.2 per cent last week to close at to 2821.11 after last Friday’s trading. Japan's Nikkei 225 was up 1.4 per cent and Australia's S&P/ASX 200 was up 1.9 per cent. Hong Kong's Hang Seng Index also rose 1.3 per cent. The three-year defense package comprises €440 bn (US$570 bn) from a series of loans made by EU governments and an additional €60 billion from surplus funds in the EU's 2007 to 2013 budget. A loan from the International Monetary Fund of up to €250 billion was also in the pipeline. The European Central Bank said it would intervene in the euro zone's public and private debt markets to "ensure depth and liquidity in those market segments which are dysfunctional." http://www.corporateobserver.com.sg/news.php?reg_id=466 Mon, 10 May 2010 15:24:22 +0800 SINGAPORE (May 10, 2010) - Marine and utilities conglomerate Sembcorp Industries (Sembcorp), which is embroiled in two potential legal tussles over its acquisition plans, reported a 19 per cent growth in net profit to S$158.8 million for the first three months of the year. Announcing its first quarter results today, Sembcorp said its turnover hit S$2.4 billion, as compared to S$2.1 bn a year ago. Its return on equity stood at a "healthy" 17.5 per cent. The contribution to net profit from its subsidiary Sembcorp Marine grew by 23 per cent, from S$74 million to S$91.1 million, while Sembcorp Utilities accounted for S$56.2 million - a 10-per-cent jump from the first quarter of last year. The firm added that contributions from overseas operations now comprise 39 per cent of Sembcorp Utilities' net profit, with with earnings from China, Vietnam and the United Arab Emirates growing 20 per cent to S$11.6 million in the first quarter. http://www.corporateobserver.com.sg/news.php?reg_id=465 Mon, 10 May 2010 13:32:16 +0800 SINGAPORE (May 10, 2010) - Prudential, which had announced over the weekend that its planned listings in Singapore and Hong Kong will be delayed, would reportedly have to raise extra capital of US$1.5 billion to win the nod from UK regulators for the purchase of AIA. According to The Sunday Telegraph today, the proposed US$35.5 bn acquisition is on a knife-edge after weekend talks with the Financial Services Authority (FSA) appeared on the brink of collapse at one stage. The FSA had last Tuesday blocked Prudential's US$21 bn rights issue to fund the AIA deal, citing concerns over the insurers' capital position. Even if approval is given, investors are still threatening to pull support for the rights issue and could demand a cut in the price. Four leading investors told The Sunday Telegraph that they expect the rights issue to fail. Last Friday (Saturday, Singapore time), Mr Robin Geffen, founder and managing director of Neptune Investment Management which holds US$50m of Pru shares, said he was trying to win support for a resolution to ask chief executive Tidjane Thiam to resign. Prudential was scheduled to list in Singapore and Hong Kong from tomorrow onwards but as The Corporate Observer reported last week, the timeline was under threat due to the regulatory snag. Announcing the delay in the listing plans last Friday, Prudential did not give further details or dates in its statement, other than saying "all aspects of the timetable for the rights issue" will be revised. With its UK investors largely against the rights offering and the AIA deal, Prudential is banking on the listings to attract more Asian investors who favor the AIA transaction. But the listings are contingent on the rights issue being cleared by the UK regulators. ... A collapse of the AIA deal - while a highly possible outcome - would be literally costly for Prudential. In the event the deal collapses, Prudential could be staring at costs estimated around US$920 million - comprising break frees of as much as US$221 million; an additional fee of US$100 million if the deal is not finalized by the end of August; and payments to Credit Suisse and JPMorgan Cazenove, along with Lazard and HSBC, which are advising on the deal. http://www.corporateobserver.com.sg/news.php?reg_id=463 Mon, 10 May 2010 12:42:55 +0800 SINGAPORE (May 7, 2010) - China Aviation Oil (Singapore) Corporation Ltd has come a long way since the days of its near bankruptcy. CAO, the largest purchaser of jet fuel in the Asia Pacific region, has posted a net profit of US$12.9 million in the first quarter of this year, an increase of 213.2 per cent as compared to the corresponding period last year. The significant increase in net profit was mainly due to a sharp reversal of net loss incurred by CAO’s principal associated company, Shanghai Pudong International Airport Aviation Fuel Supply Co in the first quarter of last year. Compared to the last three months of 2009, CAO’s net profit in the first quarter of this year increased 21.8 per cent, mainly due to higher gross profit and lower operating expenses. http://www.corporateobserver.com.sg/news.php?reg_id=462 Sun, 09 May 2010 21:14:03 +0800 By Cheow Xin Yi email@corporateobserver.com.sg SINGAPORE (May 7, 2010) - Imagine paying US$150,000 (S$207,495) – on top of US$3,000 annual fees – for a buffet spread of top-notch luxury villa vacations around the globe, from Bali to Seychelles and Tuscany, Itay. A hefty price tag perhaps for the average Joe, but 40 people here are already part of the exclusive Banyan Tree Private Collection (BTPC) – a luxury destination club arm of Singapore-based hotel and resorts operator Banyan Tree Group. In fact, Singapore clients make up the biggest group among BTPC’s some 200 members around the world, according to BTPC’s managing director Marina Kleiman, an Argentinian based in Hong Kong. But far from your typical jet-setting yuppies, most of the clients are family-oriented C-suite executives in the finance and legal industry – often with grandparents and kids in tow, Ms Kleiman told The Corporate Observer. Launched in 2006, BTPC’s membership comprises largely Asian travellers, with those residing in Singapore, Hong Kong and China accounting for 60 per cent of its clientele. Despite a global economic downturn last year, Ms Kleiman revealed that 2009 was in fact BTPC’s top financial year with the best membership sales. In fact, with revenue jumping 60 per cent last year from the year before, she noted half-in-jest that the 2009 performance would be a hard act to match. On the back of the buoyant performance, membership fees have increased from US$120,000 last year to US$150,000 now, as the destination club added more exotic locations to its portfolio. “People find it attractive and a lot of value in paying a fraction of the price to become a member and have access to a whole collection of villas that you couldn't perhaps afford if you had to own the villas yourself,” she said. “It was not like there was no more money last year, but people were not buying second homes, because of the tightness of the lending market, so this was a very small investment for the lifestyle of a millionaire,” she added. http://www.corporateobserver.com.sg/news.php?reg_id=458 Fri, 07 May 2010 23:17:56 +0800 By Cheow Xin Yi email@corporateobserver.com.sg SINGAPORE (May 7, 2010) - Investors wishing for respite from the global market bloodbath caused by the European debt crisis shouldn't hold their breath. Experts The Corporate Observer spoke to say the market has not bottomed, with fears of a contagion effect on the rest of Europe and a battered Euro continuing to dampen market sentiments next week. After breaching the heady 3,000-mark in mid-April when Singapore unveiled a stellar Q1 economic growth and raised its GDP forecast for the year, the Straits Times Index was brought down to earth this week. The STI closed 0.65 per cent down to 2821.11 after Friday trading, capping a 5.2 per cent loss for the week. Despite Greece getting a €110 billion euro bailout last weekend, fears of a contagion in the European banking system after downgrades of Spanish, Portugese and Italian debts have spooked markets worldwide. The sell-off was exacerbated by a 1000-point tailspin of the Dow caused by an apparent trading glitch. While some had spoke of a technical rebound next week, OCBC Bank’s vice president of wealth management Singapore Vasu Menon said much depends on what action Europe will take to contain the crisis. “It’s not a market driven by fundamentals, but by sentiments, and how sentiments change tomorrow and the day after really lies in the hands of European leaders,” he said. “If they can come up with some unorthodox measures that prevent this rout from continuing, then they may be able to help rescue system.. but right now, they appear to be dragging their feet… brushing the problem under the carpet,” he said, referring to the lack of signal from the European Central Bank on any heightened concern about the debt crisis. http://www.corporateobserver.com.sg/news.php?reg_id=461 Fri, 07 May 2010 19:22:53 +0800 NEWS ANALYSIS By Loh Chee Kong cheekong@corporateobserver.com.sg At the close of the first quarter reporting season for the three local banks, the scorecard reads: UOB, OCBC 1 - DBS 0 Following OCBC’s stellar first quarter performance last week, all eyes were on its rivals UOB and DBS - with both banks unveiling their quarterly results today. And while UOB exceeded market expectations with a S$700 million net profit, the same could not be said for DBS. Not only did DBS, which is the largest bank in Southeast Asia, come in bottom of the class in net earnings – both in terms of absolute amount and relative increase from the previous quarter – its net interest margin, which is already the lowest, is also narrowing at the fastest rate. In fact, DBS net interest income fell by 5 per cent to S$1.07 billion, as compared to the previous quarter – the only bank among the trio to record a drop. DBS also has to watch its expenses. Costs are creeping up: Its cost-to-income ratio increased from 38.4 per cent to 41 per cent, the highest among the three banks. The bank also has its work cut out to achieve its hopes of hitting double-digit return on equity (ROE) in the future – it registered an ROE of just 8.24 per cent, almost half of UOB’s 14.2 per cent and OCBC’s 15.3 per cent. ... The first three months of the year may well have been a busy time for DBS to reposition itself for the upturn, with the bank hogging the headlines with a series of announcements and new initiatives. Could DBS - which has had three CEOs in the last two years - be trying to do too much in too short a period? Or are the series of tactical shifts necessary and urgent distractions? Only time will tell. As the unofficial national bank, DBS’ actions are keenly watched – thanks, too, to its penchant for the dramatic. It retrenched 900 workers at the onset of the crisis, only to go on a hiring binge when the economy got back on its feet. But as OCBC and UOB have shown, stability - particularly during a crisis - pays. http://www.corporateobserver.com.sg/news.php?reg_id=460 Fri, 07 May 2010 18:42:21 +0800 SINGAPORE (May 7, 2010) – Like rival bank OCBC, DBS Group today unveiled a double-digit growth in bottomline for its first quarter results but the banking group was also hit by narrowing net interest margins and saved by stronger performance in non-interest income activities and lower provisions for bad debts. Singapore’s largest banking group which said it hopes to achieve double-digit return on equity in the future managed to clock in an ROE of 8.24 per cent, almost half of OCBC’s 15.3 per cent reported earlier this week. At the bottomline, DBS reported net earnings of S$532 million for first quarter of 2010, up 17 per cent from S$456 million a year ago and 8 per cent from S$493 million the previous quarter. The performance was below the average forecasts polled by Bloomberg earlier which came up to S$576 million. OCBC had outperformed market expectations with a record profit of S$676 million, making it potentially the best performer in Singapore should results of United Overseas Bank Group come in lower. The DBS board declared a first-quarter dividend of 14 cents per share and added it will move back to semi-annual dividend payments from the second half of this year, dropping the quarterly payment schedule while maintaining it has not changed it payout policy. Like OCBC, DBS had to rely on non-lending activities to boost its income amid the falling interest rate environment which affected its position as a mass market deposit collector. Net interest margins fell nine basis points from the previous quarter to 1.93 per cent as a normalising credit environment and increased competition resulted in lower loan yields for housing loans and trade finance. The lower interest margins resulted in net interest income declining 5 per cent from the previous quarter to SGD 1.07 billion. OCBC had also seen net interest margin fall sharply to 2.03 from 2.42 from a year ago. http://www.corporateobserver.com.sg/news.php?reg_id=457 Fri, 07 May 2010 18:35:32 +0800 SINGAPORE (May 7, 2010) – United Overseas Bank posted a 71 per cent jump in its first-quarter net profit due to a one-time gain from the divestment of its insurance asset and higher non-interest income. UOB made a net profit of S$700 million for the three months ended March 31, up from S$409 million a year earlier. The result was higher than the average estimate of S$551.2 million of five analysts polled by Dow Jones Newswires. The bank also made a S$82 million gain from selling UOB Life Assurance. Excluding the gain, net profit would have been up 51 per cent from a year earlier. Net interest income fell 5.2 per cent to S$900 million from S$949 million, while noninterest income rose 38.7 per cent to S$602 million from S$434 million, the company said in a statement. http://www.corporateobserver.com.sg/news.php?reg_id=459 Fri, 07 May 2010 16:38:35 +0800 SINGAPORE (May 6, 2010) - StarHub saw its first quarter net profit halved from a year earlier as higher acquisition costs of the iPhone eroded its earnings. Net profit for the period came in at S$43 million, down 48 per cent from S$82.5 million, while operating revenue grew marginally to S$557 million, up by 5 per cent from a year ago to. StarHub attributed the fall in net profit to "higher investment cost for acquisition and retention for smartphone customers". “Even though the higher investment cost for acquisition and retention for smartphone customers have affected profitability during this quarter, we expect higher benefits to accrue in subsequent periods,” said StarHub CEO Mr Neil Montefiore, adding that the quarter saw a high net addition of 27,000 post-paid mobile customers. http://www.corporateobserver.com.sg/news.php?reg_id=456 Thu, 06 May 2010 19:14:25 +0800 SINGAPORE (May 6, 2010) – Singapore will be setting up a new statutory board to rein in real estate agencies and errant property agents. The Ministry of National Development (MND) announced plans to set up the Council for Estate Agencies (CEA) to raise the professionalism of the real estate industry and to better safeguard consumer interest. CEA will take over the Inland Revenue Authority of Singapore's (IRAS) current role in licensing real estate agencies. The conduct of real estate agencies and their agents came under scrutiny in recent years, with two rogue agents found guilty of fraud and breach of duty last year in a high profile court case. Since 2007, IRAS has received a total of 154 complaints against errant agents. MND had first mooted a new regulatory framework for estate agencies in August last year. According to MND, the proposed statutory board will implement a new regulatory framework, which involves an enhanced licensing of estate agencies, registration of estate agents, new regulations on the conduct of estate agency work, discipline and dispute resolution mechanisms, and public education. Real estate agencies will have to meet more stringent licensing requirements which seek to ensure that the licensees are competent, fulfill fit and proper criteria, and have in place systems and processes to manage the business and supervise their agents well. http://www.corporateobserver.com.sg/news.php?reg_id=455 Thu, 06 May 2010 18:20:37 +0800 SINGAPORE (May 6, 2010) – Hong Kong-based commodity giant Noble Group, which was recently embroiled in a bidding war before dropping its interest for a stake in Australian miner Macarthur, posted Q1 net profit of US$115 million, a 28 per cent increase from the same period last year. The Singapore-listed firm reported record quarterly revenue of US$11.4 billion, almost doubling the US$6.1 bn it raked in last year. Noble said the higher group revenue was led by its energy segment, where revenue rose to US$7.4 bn. Noble chairman Richard Elman said the firm was “beginning to see the positive impact from our investments”. He noted that Noble’s investment in Noble Petro, its US-based oil storage and terminal business, “has performed well”. “In addition, our Timbues and Santos facilities came online in the quarter and will contribute to our business and financial performance over the year,” he added. Mr Elman is known for his colourful public statements – with Noble’s eccentric press statements spicing up the yet-to-be-concluded bidding war which are now down to US-based Peabody and Australian miner New Hope. And true to form, Mr Elman used the analogy of making a choice between going to the gym in the morning and eating scones to underline Noble’s strategy of investing in the long term, at the expense of short-term gain. http://www.corporateobserver.com.sg/news.php?reg_id=454 Thu, 06 May 2010 17:53:23 +0800 This is a sample news brief, which will appear in the front-page of the site, if selected as so. Just follow the format shown here, and replace this text, and it will come out fine. The image tag which you see at the beginning of this paragraph corresponds to the respective image, which you will upload below. You can place such image tags wherever in any paragraph, and the corresponding image will appear in that spot in the flow of the article.Do play around to try how it can be used. Sample paragraph 2: Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam remaperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto. beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit. http://www.corporateobserver.com.sg/news.php?reg_id=453 Thu, 06 May 2010 16:29:59 +0800 SINGAPORE (May 6, 2010) – Singapore government investment arm Temasek Holdings is set to expand its commodities portfolio – this time by an indirect investment in Toronto-listed miner Platmin Ltd. South Africa-based Platmin Ltd, which explores for platinum group metals (PGMs), announced in a regulatory filing that Ridgewood Investments - an indirect subsidiary of Temasek Holdings, Dutch pension fund Algemene Pensioen Groep and Platmin's largest shareholder, Pallinghurst Investor Consortium – will subscribe for US$50 million (S$69.2 million) of common shares, as part of Platnim’s efforts to raise US$250 million through an equity issue. The shares, if purchased by Ridgewood, would be bought directly from Platmin and not underwritten by RBC Capital Markets or Investec Bank Ltd, the underwriters for the offering. The shares represent approximately 6.32 per cent of the issued and outstanding common shares of Platmin after giving effect to the public offering. Temasek's planned equity investment is on top of its March purchase - also through Ridgewood - of US$100 million of convertible debt in Platmin Ltd. http://www.corporateobserver.com.sg/news.php?reg_id=452 Thu, 06 May 2010 15:43:32 +0800 SINGAPORE (May 6, 2010) – Prudential’s scheduled listings in Singapore and Hong Kong – slated for next Tuesday – looks set to be postponed due to regulatory snag but there appears to be no question that they will go ahead. A source in Hong Kong close to the matter told The Corporate Observer that the UK-based insurance giant “remains committed to listing in Hong Kong and Singapore as soon as possible and will provide an update in due course on timing". The source confirmed that, however, the listings are contingent on the prospectus for the US$21 billion rights issue being lodged successfully with the UK regulators. The rights issue will fund Prudential’s US$35.5 bn acquisition of America International Group’s main Asian unit AIA Group. The rights issue prospectus plus the listing document were supposed to be issued yesterday. But according to media reports coming out of London yesterday, the rights issue was postponed indefinitely until the Financial Services Authority (FSA) agree the combined company will have sufficient capital. The delay was said to be over tighter stress testing scenarios by the UK regulators and the overall timing of the AIA transaction was unlikely to be affected. ... For Prudential’s listings on Hong Kong and Singapore to commence as scheduled, it will have to work around the clock to get the FSA’s approval – and get its listing documents in order – by today. But The Times reported that the cash call price and prospectus are now not expected until next week. By convention, the Hong Kong Exchange requires three business days lead time for listing following publication of a listing document. Hong Kong will be Prudential’s primary listing - hence the need for a listing document - while Singapore will be its secondary listing. With the Singapore Exchange still reeling from New Century’s shock IPO pullout, the last thing it needs is to have another heralded listing hitting a snag. http://www.corporateobserver.com.sg/news.php?reg_id=451 Thu, 06 May 2010 13:56:17 +0800 SINGAPORE, (May 5, 2010) - Sino-Singapore Tianjin Eco-City Investment and Development Co (SSTEC) signed an agreement worth about RMB 9 billion with Sunway City Berhad (SunCity), one of Malaysia’s top developers. The collaboration is to jointly develop the first-of-its kind LOHAS development in the Tianjin Eco-City and China. The project encompasses an integrated LOHAS (Lifestyles of Health and Sustainability) community - spanning a gross floor area of more than 0.7 million square metres - for nearly 5,000 households. http://www.corporateobserver.com.sg/news.php?reg_id=445 Wed, 05 May 2010 12:56:00 +0800 SINGAPORE (May 5, 2010) - New York Stock Exchange (NYSE) Euronext sold its stake in India's National Stock Exchange (NSE) to Temasek Holdings for a 52 per cent profit. NYSE Euronext said in a statement yesterday (Wednesday, Singapore time) that it offloaded its entire 5 per cent stake in NSE for US$175 million (S$239.9 million). This deal values NSE at US$3.5 billion. NYSE Euronext had acquired the stake in India’s largest bourse for US$115 million in 2007. According to Reuters, NYSE Euronext chief operating officer Lawrence Leubowitz said his firm sold the investment after three years because "strategic avenues" failed to pan out there. The proceeds would be used by NYSE Euronext to mainly repay debts. Speaking in a conference call with analysts and media, Mr Leibowitz said: "When we first made the investment we thought of it as a strategic investment. We found over time that there weren't a lot of strategic avenues open to us with NSE." He added: "It really looked to us like it was turning into just a financial investment, at which point we said that's really not the business we're in. We thought the best use of our capital would be to cash out and pay down the debt." http://www.corporateobserver.com.sg/news.php?reg_id=443 Wed, 05 May 2010 11:57:01 +0800 SINGAPORE (May 4, 2010) - What was touted as Singapore's biggest initial public offering (IPO) by a China firm - and seen by market watchers as a landmark deal - has been called off at the eleventh hour. In a shock announcement this evening, one day before the IPO was slated to close, China-based New Century Shipbuilding said it is withdrawing the offering. The drastic turn of events is the latest in a series of twists and turns concerning China's fifth largest shipbuilder in terms of orders and deadweight tons. Lodging its preliminary prospectus on April 13, New Century had initially planned to offer 1.46 billion shares, or about 30 per cent of the group's enlarged equity pool in a deal that would have raised as much as S$1.7 billion in a Singapore offering. An IPO of that size would be Singapore's second-biggest listing since CapitaMalls Asia late last year raised S$2 billion in the republic's biggest public offer in six years. But late last Friday, the company said it will raise S$666.4 million - still the largest offering this year - through the IPO, selling 560 million shares at a maximum offer price of S$1.19 per share. It submitted its final prospectus to the Monetary Authority of Singapore a day later, with its shares slated to commence trading on May 11. Sources close to the developments told news outlets then the deal size was reduced due to uncertain "market conditions" arising from sovereign debt-related turmoil in Europe No reasons were given today for cancelling the IPO, which was being managed by UBS and Morgan Stanley. In a terse statement, the company said: "New Century Shipbuilding Limited wishes to announce that it has decided not to go ahead with its planned initial public offering on the SGX-ST at this time. The Company intends to review the situation and will consider joining the SGX-ST at an appropriate time in the near future." It also said that application monies, "without interest or any share of revenue or other benefit arising therefrom", will be refunded to the applicants "within three market days after this announcement" by crediting the sum to their bank accounts or by post. ... Some market observers had even hailed the deal as smashing the perception that Singapore was not the favoured listing ground for large, established China companies. But as the crisis in Europe appeared to make some headway after a rescue package of about €110 billion (S$200 bn) was hammered together over the weekend, New Century has decided to pull the plug - leaving investors puzzled and SGX with eggs on their faces. The biggest question on everyone's mind: What went wrong? http://www.corporateobserver.com.sg/news.php?reg_id=441 Tue, 04 May 2010 22:41:54 +0800 SINGAPORE (May 4, 2010) - Fraser & Neave Group chairman Lee Hsien Yang earned S$1.53 million last year, a 12-per-cent increase compared to a year ago, according to the group's annual report. The group's business spans across food and beverages, properties and publishing and printing. Mr Lee's pay package includes the S$150,000 he is paid as non-executive chairman of Frasers Centrepoint Limited, sitting on the F&B Board Committee and attendance fees for board meetings. In 2007, when Mr Lee was appointed, his basic pay package of S$1.25 million - comprising a salary of S$250,000 plus S$1 million a year in consultancy fees - caused controversy but it was approved by shareholders. F&N Group's net profits fell from S$567.7 million in 2008 to S$442.4 million last year, a 22 per cent dip. Four of the group's top five executives saw their pay reduced from the previous year: Mr Anthony Cheong Fook Seng earned S$1.42 million, down from S$2.04 million; Mr Koh Poh Tiong earned S$2.95 million, down from S$3.51 million; Mr Lim Ee Seng earned S$2.67 million, down from S$3.11 million; and Mr Ng Jui Sia earned S$913,296, down from S$1.07 million. Mr Roland Pirmez, who was appointed as CEO of F&N Group subsidiary Asia Pacific Breweries in October 2008, earned S$1.98 million. http://www.corporateobserver.com.sg/news.php?reg_id=440 Tue, 04 May 2010 17:56:44 +0800 SINGAPORE (May 4, 2010) - Royal Dutch Shell's new flagship complex in Singapore - its largest petrochemicals investment to date - will position the Dutch giant to capitalize on the rebounding petrochemical market. Unveiling the US$3 billion Shell Eastern Petrochemicals Complex (SEPC) today on Jurong Island, Shell CEO Peter Voser told a press conference: "The timing of petrochemical venture startup is extremely good as the market is picking up again." The SEPC is Shell's largest, fully integrated refinery and petrochemicals hub. And Mr Voser said the project "clearly demonstrates Shell's strategy to focus on growth markets and to integrate oil and chemicals manufacturing to gain efficiencies”. http://www.corporateobserver.com.sg/news.php?reg_id=439 Tue, 04 May 2010 16:46:00 +0800 By Loh Chee Kong cheekong@corporateobserver.com.sg SINGAPORE (May 4, 2010)- Marine and utilities conglomerate Sembcorp Industries could be in hot water, after the subject of its takeover bid filed legal proceedings in the United States against it for allegedly violating US securities laws and breach of confidentiality agreements. On its part, Sembcorp Industries reiterated in a stock exchange filing today: "It is our position that we are not in breach of any laws, regulations or contractual obligations in respect of the transaction." The latest legal wrangle sees Sembcorp Industries being put on the defensive even as it tries to go on the offensive against Chinese shipbuilder Yangzijiang's bid to acquire a 15 per-cent stake in PPL Shipyard. Concurrently, lawyers from its subsidiary Sembcorp Marine - which owns the remaining 85 per-cent stake in PPL Shipyard - are purportedly pursuing claims that Yangzijiang's offer had triggered its pre-emption rights. The US lawsuit against Sembcorp was filed by New York-listed Dutch water services firm Cascal last Friday in the New York District Court. In its statement, Sembcorp Industries confirmed: "The summons have been served on the Company and its subsidiary Sembcorp Utilities Pte Ltd. The Company has appointed US lawyers to act on its and its subsidiary's behalf to respond to the claim and will make further announcements as and when appropriate." Sembcorp Industries share price has fallen 8.6 per cent since closing at a high of S$4.44 on April 23. It fell by another 4 cents today to close at S$4.06. http://www.corporateobserver.com.sg/news.php?reg_id=437 Tue, 04 May 2010 14:22:56 +0800 SINGAPORE (May 4, 2010) - Singapore government investment arm Temasek Holdings has swooped for a 5 per cent stake in India's largest stock exchange - the National Stock Exchange (NSE) - capitalising on the rivalry between two of America's top bourses. And according to reports in India, Temasek's acquisition - which is speculated at around US$150 million (S$206 million) - could trigger the exit of Singapore Stock Exchange from another India bourse, Bombay Stock Exchange. Temasek bought the 5 per cent stake directly from the New York Stock Exhange (NYSE) Euronext, just one day after news emerged that it was looking for buyers. The deal represents a 30 per cent profit for NYSE, which had bought the stake in October 2007 for US$115 million, then valuing India's NSE at US$2.3 billion. NSE is now valued at US$3 bn. ... But as Temasek makes its second entry into India in less than a month - in April, it invested US$200 million in GMR Infrastructure's power unit - SGX’s 5 per cent stake in the Bombay Stock Exchange could be under strain, according to India's Economic Times. http://www.corporateobserver.com.sg/news.php?reg_id=436 Tue, 04 May 2010 13:21:23 +0800 SINGAPORE (May 3, 2010) - The stage is set for a titanic tussle between Sembcorp Marine and Chinese shipbuilder Yangzijiang over PPL Shipyard, as the Singapore-based company continues to assert its claims that its pre-emption rights have been triggered. Sembcorp Marine holds an 85-per-cent stake in PPL Shipyard. The remaining 15 per cent stake is held by PPL Holdings, which has signed a deal to be acquired by Yangzijiang. Last Friday, in a bid to jeopardize the PPL Holdings-Yanzijiang deal, Sembcorp Marine put in a S$59.4 million offer for the remaining stake in PPL Shipyard. But Sembcorp Marine's offer was rejected outright by Baker Technology, the parent company of PPL Holdings, which agreed to sell PPL Holdings to Yangzijiang and its partners for US$155 million ($213.2 million). In a filing on the stock exchange today, Baker said Sembcorp Marine is still pursuing its claims. It said it received further letters from Sembcorp Marine and their lawyers "continuing with their assertions" that the proposed deal triggers the pre-emption rights of Sembcorp Marine "as set out in, inter alia, PPL Shipyard’s Articles of Association and have purportedly exercised such rights". http://www.corporateobserver.com.sg/news.php?reg_id=434 Mon, 03 May 2010 17:21:40 +0800 SINGAPORE (May 3, 2010) - DBS Bank has stopped offering loans for third or more homes in China as fears of an asset bubble build up. In an interview with Shanghai Daily last week, DBS Bank (China) CEO Melvin Teo said the bank was adopting a cautious real estate loan policy - following an April 18 statement by the State Council, or China's Cabinet, that in a bid to curb real estate speculation, banks can suspend offering individual housing loans for third homes in places where prices have risen too rapidly and too high. Said Mr Teo: "We studied the latest State Council notice and decided to suspend issuing credit to third or more homes... It's really difficult to define the 'too-rapid and too-high prices' as no set standard can be applied. Our decision is to stop offering mortgages for third or more homes as a precaution." http://www.corporateobserver.com.sg/news.php?reg_id=433 Mon, 03 May 2010 16:47:09 +0800 SINGAPORE (May 3, 2010) - Six commercial banks, including Singapore's UOB Bank, have handed over to the Thai government 49 billion baht (S$2.07 bn) worth of confiscated assets belonging to deposed Thai Premier Thaksin Shinawatra and his family. Thailand's Comptroller General's Department said it has received the assets from the banks following the Supreme Court's order to seize more than half of Thaksin's family fortune. On Jan 26, the Thai court ruled to seize 46.3 bn baht from Thakin's 76 bn baht worth of frozen assets, finding him guilty of amassing wealth through abuse of power during his time in office from 2001 to 2006. According to the Bangkok Post, the seized assets - comprising 46.2 bn baht of principal and 2.81 bn baht of interest - were in 32 accounts and three unit trusts held by the banks, which had transferred all the money to the state on April 30. Another 163 million baht, which is in a SCB Asset Management fund, has not been transferred. The Comptroller General's Department expects to collect the remaining assets in two months, its director Pongpanu Svetarundra said. http://www.corporateobserver.com.sg/news.php?reg_id=431 Mon, 03 May 2010 16:00:28 +0800 SINGAPORE (May 3, 2010) – Rival banks are suggesting that OCBC Bank had paid over the odds in its US$1.5 billion (S$2.05 bn) acquisition of ING Group’s Asian private banking assets, with a chief executive of a European private bank describing the deal as “horrendously expensive”. A Financial Times article on the difficulties faced by foreign private banks to expand through acquisition cited the landmark ING-OCBC deal as inflating the market. OCBC had outbid HSBC and it inked the deal to take over the ING Group unit in October last year. http://www.corporateobserver.com.sg/news.php?reg_id=430 Mon, 03 May 2010 15:34:20 +0800 SINGAPORE (May 3, 2010) - The Greek bailout deal hammered out at the weekend was cold comfort, as the euro and Asian stocks tumbled over doubts about the enormous rescue package that is estimated at around €110 billion (S$200 bn). The loans - put together by the European Union and the International Monetary Fund - are meant to avert a crippling debt default by Greece but are conditional on a swathe of painful cuts and tax rises by Greece. The bailout must now pass through eurozone member parliaments. And the prospects of public resistance to the rescue package runs deep, including in Germany where a major state election is due on Sunday, sent jitters through the global stock markets. According to AFP, Australian stocks also suffered after the government announced plans for a windfall tax on massive profits at mining companies, while fresh measures to curb red-hot property lending in China weighed on Hong Kong. "We still need the German parliament to approve (the bailout) and the other issue is the German election," Philip Wee, a senior currency economist with DBS Group Research in Singapore, told AFP. Ms Thio Chin Loo, a senior currency analyst with BNP Paribas, added: "Although Greece has had a lifeline from the IMF... the market is not assured that the worst has passed." http://www.corporateobserver.com.sg/news.php?reg_id=429 Mon, 03 May 2010 15:03:41 +0800 SINGAPORE (May 3, 2010) - Swiber Holdings, an integrated construction and support services provider to the offshore industry, has snagged a multi-million offshore pipeline contract. In a filing on the stock exchange, mainboard-listed Swiber said the US$148 million contract with a "leading oil and gas operator in South Asia, comprises engineering, procurement, transportation and installation of several pipelines in South Asia including platform modifications. The offshore work will commence in Q4 this year and is expected to be completed by Q2 2011. No further details were provided. Earlier reports said that the Singapore-based contractor had submitted a leading bid in a tender for a subsea pipeline contract - as part of the second phase of Mumbai High North redevelopment - with Oil & Natural Gas Corporation. http://www.corporateobserver.com.sg/news.php?reg_id=425 Mon, 03 May 2010 11:27:29 +0800 SINGAPORE (May 1, 2010) - Two weeks after the labour movement first made the call, the government has increased employers' CPF contribution by 1 per cent. Announcing the move at the May Day Rally, Prime Minister Lee Hsien Loong said the increase will be done in two-steps: The first 0.5 percentage point increase will be implemented on Sept 1 and will be paid into the Medisave Account; while the remaining 0.5 percentage point increase will be effected March 1 next year, and will be paid into the Special Account. Should the economy continue to grow strongly in the next 1 to 2 years, Mr Lee said, the employer CPF contribution will rise further to 16 per cent - the upper limit set by the government in 2003. The Prime Minister added: "When times were hard, workers made sacrifices to keep firms afloat. So in good times, it is fair to give back some to workers." Singapore's economy grew by 13.1 per cent in the the first quarter from a year ago, helped by a recovery in manufacturing, and the government is projecting growth at 7-9 per cent this year. http://www.corporateobserver.com.sg/news.php?reg_id=417 Sat, 01 May 2010 17:33:21 +0800 SINGAPORE (April 30, 2010) – The optimists outnumber pessimists – as far as the manufacturing and services industries are concerned. Still, according to two separate surveys by government agencies, the majority felt the business outlook will remain the “same” for the next six months. Yet, it was hard not to notice how the statisticians were trying to put a positive spin on the data when there was no need to – and the mainstream media unsurprisingly sang the same tune. Following the latest business expectations survey released today by the Economic Development Board (EDB), the headlines screamed that businessmen were “bullish” and “expect buoyant business outlook” for the next six months. The Singapore Department of Statistics conducted a separate survey for the services industry. The retail sector saw the number of firms expecting business outlook to deteriorate outnumbering those that expect conditions to improve. The survey called these firms “less optimistic” – we would think “pessimistic” is a more accurate word. http://www.corporateobserver.com.sg/news.php?reg_id=416 Fri, 30 Apr 2010 19:06:26 +0800 SINGAPORE, (April 30, 2010) - Mark his words. Piyush Gupta is now promising a double-digit return on equity for Singapore's largest banking group. At the bank's annual general meeting today, the recently appointed chief executive officer said the banking group plans to improve on its return on equity and should be able to do so in the next couple of years. We are very confident that getting to double-digit returns over the next couple of years" is achievable, Mr Gupta who took over as chief six months ago told shareholders at the meeting held at the bank's headquarters. His statement was also echoed by outgoing chairman Koh Boon Hwee who said the board intends to boost its return on equity. http://www.corporateobserver.com.sg/news.php?reg_id=415 Fri, 30 Apr 2010 18:23:48 +0800 SINGAPORE, (April 30, 2010) - SMRT Corporation joins the rest in reporting creditable operating results as the mainboard listed firm reported net profit of S$162.9 million for its financial year ended March 31, 2010, almost unchanged from the previous corresponding period. The public transport group saw earnings dip 41.4 per cent in the fourth quarter due to higher tax expenses. Group revenue rose 1.8 per cent during the year, due mainly to higher MRT ridership, Circle Line contribution, higher rental and fees from overseas projects offset by fare reduction. Operating profits were 4.5 per cent higher at $197.2 million in FY2010 as compared to FY2009 due mainly to higher revenue, other operating income and lower energy costs and other operating expenses, partially offset by higher staff and related costs, scheduled repairs and maintenance costs and impairment of goodwill. Consequently, profit after tax was higher by 0.1 per cent at $162.9 million. http://www.corporateobserver.com.sg/news.php?reg_id=414 Fri, 30 Apr 2010 17:55:37 +0800 SINGAPORE (April 30, 2010) - Singapore job situation continues to improve as employment grew strongly in the first quarter of 2010, amid the robust economic recovery. Total employment is estimated to have grown by 34,000 in the first quarter, the third quarterly increase after two quarters of decline in the first half of 2009. The employment growth was slightly lower than the 37,500 in the last quarter of 2009, which was a seasonal high due to the year-end festivities. In contrast, employment fell by 6,200 in the first quarter last year due to the global economic downturn. http://www.corporateobserver.com.sg/news.php?reg_id=413 Fri, 30 Apr 2010 15:15:57 +0800 SINGAPORE (April 30, 2010) - BreadTalk Group, whose bakery chain has become a household name over the last decade, has appointed two big-hitters - a former high-flying banker and a Shell Petroleum general manager - to key positions. Announcing the leadership reshuffle, BreadTalk said it was in line with the restructuring of its businesses into two primary business divisions - the Bakery Division and the Restaurant & Food Atrium Division. Each division will be headed by a CEO who will report directly to the group managing director. Mr Oh Eng Lock, who was most recently a managing director/head of North Asia region with Merrill Lynch Asia Pacific, would take the helm as its group managing director and CEO-designate with effect from June 1. Concurrently. Mr Oh - a familiar face in the local banking community - will also be the interim CEO for the Restaurant & Food Atrium Division while BreadTalk "is actively looking for a suitable professional to lead the business". Mr Henry Chu will be appointed as CEO of the Bakery Division with effect from tomorrow. Mr Chu moved from his previous position as general manager (retail sales & operations) at Shell Eastern Petroleum. http://www.corporateobserver.com.sg/news.php?reg_id=412 Fri, 30 Apr 2010 13:44:36 +0800 SINGAPORE (April 30, 2010) - Singapore-listed Noble Group has dismissed press speculations that it is considering making a new approach to Aussie miner Macarthur Coal. The Australian Financial Review - without attributing the information to any sources - reported that Noble could renew discussions with Macarthur as early as this week. ... In a filing with the stock exchange, Hong Kong-based commodities giant Noble said it "wishes to categorically state it has no interest whatsoever at this juncture in having any discussions regarding this matter, directly or indirectly, with Macarthur". http://www.corporateobserver.com.sg/news.php?reg_id=411 Fri, 30 Apr 2010 13:19:48 +0800 SINGAPORE (April 29, 2010) – DBS Bank has filed a winding-up petition against an Indian retailer in a bid to recover bad debt of around Rs40 crore (S$12.3 million). According to India news portal Livemint, DBS had earlier this week filed a petition in the Delhi high court against Vishal Retail Limited. The petition is the latest in a series of legal attempts by DBS, involving several courts, to recover the dues. It has also approached the debt recovery tribunal in New Delhi. Quoting an unidentified source, Livemint reported that DBS has previously alleged that cheques issued Vishal Retail had bounced. Around 40 cheques amounting to about Rs13 crore (S$4 million) issued by Vishal Retail to DBS were not honoured as the retailer had instructed banks to stop payment. http://www.corporateobserver.com.sg/news.php?reg_id=410 Thu, 29 Apr 2010 19:05:08 +0800 SINGAPORE (April 29, 2010) - Small and medium enterprises here are more positive about business sentiments in the coming six months, if the results of a survey are anything to go by. According to a survey by DP Information Group and the Singapore Business Federation - which tracks both the outlook and level of economic activity of Singapore SMEs each quarter - the index score for Q1 this year is 51, up from 48 in Q42009. The SBF-DP SME Index surveyed owners and management of 3,000 SMEs, covering the commerce, manufacturing, services and transport & storage sectors, which contribute some 60 per cent of Singapore's GDP. The index score is derived from qualitative data on actual financial performance of SMEs, combined with quantitative data which includes tracking companies' turnover and profit as well as credit ratings. http://www.corporateobserver.com.sg/news.php?reg_id=409 Thu, 29 Apr 2010 18:38:53 +0800 This is a sample news brief, which will appear in the front-page of the site, if selected as so. Just follow the format shown here, and replace this text, and it will come out fine. The image tag which you see at the beginning of this paragraph corresponds to the respective image, which you will upload below. You can place such image tags wherever in any paragraph, and the corresponding image will appear in that spot in the flow of the article.Do play around to try how it can be used. Sample paragraph 2: Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam remaperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto. beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit. http://www.corporateobserver.com.sg/news.php?reg_id=408 Thu, 29 Apr 2010 18:13:28 +0800 SINGAPORE (April 29, 2010) – While Europe might be grappling to contain the fallout from Greece’s sovereign debt crisis, its significance to Singapore as a source of foreign direct investments (FDI) continues to grow, according to latest official data. According to a report by the Singapore Department of Statistics, which tracked the investment inflows from 1999 to 2008, FDI from Europe suffered a wobble in 2008 – when the financial crisis began to unravel in the later months – dipping by 2.2 per cent to $193.5 billion. Despite the dip, FDI from Europe continued to outstrip that of Asia ($107.9 bn) and the United States (S$51.8 bn). The total stock of FDI in Singapore as at end-2008 was S$470.3 bn, up 1 per cent from the previous year. Over the last decade, FDI from Europe more than tripled from S$62.8 bn to $193.5 bn, with its share of investment growing from 36.7 per cent in 1999 to 41.1 per cent in 2008. The United Kingdom, Switzerland and the Netherlands were the top three European investors in Singapore, with the trio accounting for 67.9 per cent of European FDI stock inflow. http://www.corporateobserver.com.sg/news.php?reg_id=407 Thu, 29 Apr 2010 17:22:57 +0800 Singapore (April, 29, 2010) - DBS Group expects US interest rates to rise by half a percentage point in the second half of this year. Rival bank United Overseas Bank however is more cautious, predicting no hikes for most of this year. In its daily economic report, DBS said the US economy which still tentative in its recovery would have grown solidly for five quarters by the third quarter and unemployment would have fallen steadily for six to eight months. Inflation would go up instead of down. http://www.corporateobserver.com.sg/news.php?reg_id=406 Thu, 29 Apr 2010 16:07:25 +0800 SINGAPORE (April 29, 2010 ) – DBS Group is hitting the news again - this time with a move to expand its self service banking network by adding another 100 new machines by the end of the year. In a statement, DBS which has been making one news announcement after another since the new CEO Piyush Gupta took over last December, said most of the new ATMs will be located at SMRT MRT stations, including 16 SMRT Circle Line stations. http://www.corporateobserver.com.sg/news.php?reg_id=405 Thu, 29 Apr 2010 15:35:07 +0800 SINGAPORE (April 29, 2010) - Asia’s strong economic recovery, which is outpacing the rest of the world, has prompted the International Monetary Fund to warn that it could overheat. In its latest report on the regional outlook, IMF pointed out that the uneven global recovery is leading to massive capital inflows into Asia which could result in the formation of asset bubbles. The Fund urged regional leaders to return to "more normal" monetary policies after the global financial crisis, and increase the flexibility of their exchange rates to counter speculative funds flowing into their economies. Said IMF: "Brighter economic growth prospects and widening interest rate differentials with advanced economies are likely to attract more capital to the region." It added: "This could lead to overheating in some economies and increase their vulnerability to credit and asset price booms with the risk of subsequent abrupt reversals." ... The IMF said Asian policymakers need to safeguard against the build-up of imbalances in asset and housing markets caused by "excess liquidity", and one way to do this was to adopt more flexible exchange rates. While China has so far resisted pressure to revalue the yuan, some Asian countries including Singapore had decided to let its currency appreciate. "Letting the exchange rate appreciate can forestall short-term inflows," the Fund said, "Without more currency appreciation, the pressure to sterilise the impact on money supply will continue." http://www.corporateobserver.com.sg/news.php?reg_id=404 Thu, 29 Apr 2010 14:06:15 +0800 SINGAPORE (April 29, 2010) - Singapore-listed Noble Group may be considering making a new approach to Aussie miner Macarthur Coal as early as this week, according to the Australian Financial Review. The Review reported this latest development under its Street Talk column without saying where it got the inf