Author Topic: SINGAPORE  (Read 7719 times)

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Re: SINGAPORE
« Reply #150 on: July 09, 2017, 02:36:47 PM »



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SGX – A shrinking capital market

TOPICS:SGX

JULY 6, 2017
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The SGX continues to shrink. Companies are being delisted, trading volume is down, liquidity is waning and it struggles to compete with regional alternatives.

By John Pennington

The Singapore Exchange (SGX) is a shrinking capital market. The decline over recent years has been clear and pronounced. The number of companies listed on the market has dropped. Some listed elsewhere. Others went private, snapped up by bigger corporations or controlling shareholders. There were 27 privatisations in 2016 which lost the SGX an estimated S$15.5 billion.



Source: SGX

The SGX lost a number of high-profile companies in 2016 and already in 2017, 10 companies have delisted, 10 more have confirmed acquisition offers or do not meet listing rules. On the other hand, there have been just four Initial Public Offerings (IPOs) this year.

Companies such as Neptune Orient Lines and SMRT Corp bailed out of SGX for a number of reasons including the absence of IPOs, little confidence in the local equities market, and a drop in trading volume. “One can focus purely on the number of listings versus the number of delistings…I think it’s important to look at funds raised as an additional parameter,” SGX chief executive Loh Boon Chye argued. It is a balancing act: while those losses cost the SGX S$13.4 billion (US$9.69 billion) in 2016, the money raised from IPOs amounted to S$13.2 billion (US$.9.55 billion).

Foreign companies are also waving SGX goodbye

Foreign companies also delisted from the SGX. Among them were Chinese start-ups that wanted to save compliance costs and management resources. Some Chinese firms favoured the Hong Kong stock exchange instead. Listing in Shanghai or Hong Kong helps them build brand and product recognition closer to home, particularly if the stocks generated little interest in Singapore.

The drop in trading volume had a knock-on effect. “Weak economic growth has pressured corporate earnings growth, which dampened investor interest, which then hurt valuation and turned away IPOs (initial public offerings),” explained IG market analyst Bernard Aw. “The market is locked in a vicious circle now,” he added.

Fees are uncompetitive

Changes to fees were introduced in 2014 to raise liquidity. Those changes came after the penny stock crash of 2013, where S$8 billion (US$5.74 billion) of market value was lost. The SGX proposed measures designed to prevent a repeat and to try to prevent a loss of confidence in the market. Confidence in the market is still low.

An Ernst & Young report from 2012 showed that even then, in comparison with the Hong Kong exchange (HKEx), fees to list on the SGX were higher.

Hong Kong

Singapore

2012 Equity market listing fees

US$18,590-US$152,308

US$36,159-US$144,634

2016 Equity market listing fees

US$18,572-US$152,162

US$72,318-US$144,634


Sources: Ernst & Young  and HKEx 

Trading fees for traders and retail traders are also higher. In addition to a clearing fee of 0.0325%, the current trading fee on the SGX is 0.0075% of contract value, higher than the 0.005% charged by the HKEx and the 0.00487% charged by the Shanghai Stock Exchange. Furthermore, most trading platforms such as Phillip Securities (POEMS), UOB Kay Hian and and CIMB Securities have a minimum brokerage fee of $25, excluding GST. Thus, these higher fees also contribute to a lack of liquidity.

Listing Fees were hiked again in 2013 so the minimum equity market listing fee stood at US$72,318 while the fees to list on the HKEx remained the same. The result of continual delisting, low trading volume, and barriers to entry is that the firms that are still listed are weakened and generally what can be termed as ‘Old Economy’ firms. Without big IPOs to excite interest, the exchange is static.

The SGX now faces increased competition

China, Hong Kong, the US (NASDAQ), and other exchanges are now more attractive options than the SGX because their barriers to entry are often lower, they have more companies listed and they trade in bigger volumes. The mutual trading link between Hong Kong and China further strengthens their proposition over Singapore’s.

No longer one of the world’s biggest bourses, the SGX has fallen to be the ninth biggest in Asia. Emerging stock markets such as those in Indonesia, Malaysia, and Thailand are growing rapidly and instead of listing on the SGX, firms are listing in their own countries.





Source: Sustainable Stock Exchanges Initiative (December 2016)

IPOs are up, but it may not be enough for the SGX

The lack of IPOs on the SGX is one factor companies cited when delisting. However, globally, the volume of IPOs is on the up. The number of IPOs in the first two quarters of 2017 is higher than it was at the same point last year. Hence, Loh is optimistic, adding, “I cannot look forward to know how many delistings there will be. I can tell you my pipeline of potential IPOs is better than what it was, so that’s the relative comparison.”

IPOs on the SGX raised S$454 million (US$329 million) in the first two quarters of 2017, and experts say the total for the year will surpass that of last year. “Singapore’s first-half 2017 numbers suggest that, apart from REITs and business trusts, niche sectors in the consumer space and professional services will be the next big growth opportunity for the local exchange,” predicted Tham Tuck Seng, Capital Markets Leader at PwC Singapore.



Sources: Business Times and Today Online 

The volume of IPOs may be up, but it is not just about quantity. They will not guarantee investment, particularly if the IPOs are not attractive enough, and not big enough.

Dual-class shares could push SGX into a better position

The SGX launched a dual-class share consultation which ended earlier this year. Although this could make the exchange a more attractive option, it is not without pitfalls. Hong Kong plans to introduce a third exchange with dual-class share options. It is a race to get to the market first.

Although dual-class shares could open up a “global race to the bottom” by diluting investor rights, the SGX will demand more regulatory control than other bourses, which could deter firms from listing. “I don’t think what we have envisaged for dual-class share structure is until that extent, where investors are merely financial investors and have no say in the direction of the company,” SGX head of capital market development Mohammed Nasser Ismail said.

SGX might try to engage companies early

In Thailand, there is a platform enabling the trading of start-ups while in Indonesia, start-ups are guided towards going for IPOs. The SGX has started to work with companies in the early stages in the hope of getting them listed when they are ready.

It is an approach that could bear fruit, although only in the long-term. “Ultimately, local entrepreneurial companies have a penchant to list on SGX as a platform for growth,” Loh believed. “The sectors with listing potential in Singapore include consumer products, industrials, health care and REITs.”

One option is to look to serve the interests of companies that are not served elsewhere. Trading has moved on from the days when one exchange suited every company. Flexibility and diversity is key. Singapore led the way by developing the real estate investment trust (REIT) market and could do a similar thing by identifying and catering for specific niches.

However, as is true in most areas of business, standing still means the SGX is in fact losing ground on its competitors. If the IPOs Loh talks about do not materialise, or they are not big enough, as other exchanges continue to expand rapidly, then the exchange will shrink even further and fall even further behind regional alternatives.

Malaysia's Biggest Investment Forum

Re: SINGAPORE
« Reply #150 on: July 09, 2017, 02:36:47 PM »

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Re: SINGAPORE
« Reply #151 on: July 12, 2017, 07:08:39 AM »




 
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Home  Featured News  VIDEO: PM Lee’s Awkwardness Around POTUS Trump Caught On Camera
VIDEO: PM Lee’s Awkwardness Around POTUS Trump Caught On Camera
July 11, 20173051
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Following this photo of Singapore Prime Minister Lee Hsien Loong’s awkward handshake with President of the United States Donald Trump going viral, a video of the two world leaders’ first face-to-face meeting at the G20 Leaders’ Summit in Germany has been released.

In the video, PM Lee can be seen fidgeting, moving his hands and legs and looking around shiftily as the POTUS reaffirms the close relationship the US shares with Singapore. He appeared uncomfortable and almost nervous as the POTUS addressed the press, before stating that Singapore hopes to do a lot more under the President’s administration.



The transcript of President Trump and PM Lee’s short conversation was released on the White House’s website:

PRESIDENT TRUMP: Thank you very much, everybody. The Prime Minister of Singapore — we’re very close, the relationship is very close, and we expect to do some excellent things together in many ways. And we have a very big relationship now. It will probably get much bigger. And I thank you very much. Thank you.

PRIME MINISTER LEE: Well, thank you, Mr. President. We have many things going on with the U.S. and we hope to do more under your administration.

The kind of relationship Singapore will have with the US remains to be seen as President Trump formally withdrew the US from the Trans-Pacific Partnership trade pact – a deal which PM Lee and former US president Barack Obama strongly believed in.

Meanwhile, photos showing PM Lee’s awkwardness around other world leaders are going viral on social media. His handshake, especially, has been trending online:

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Re: SINGAPORE
« Reply #152 on: August 11, 2017, 11:23:48 AM »




Chinese rockets-and-radar offer rocks Causeway ties
Jahabar Sadiq
Jahabar Sadiq
Updated about 10 minutes ago · Published on 11 Aug 2017 11:00AM · 0 comments
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Chinese rockets-and-radar offer rocks Causeway ties
China first verbaly offered Malaysia the missile system when Prime Minister Najib Razak visited the country in May. – EPA pic, August 11, 2017.

CHINA's offer to supply Malaysia advanced rocket launchers and a radar system has rocked more than just the military community in the region, it even got the usually staid Singapore to request confirmation of the purchase.

The Malaysian Insight had reported the Chinese offer on Wednesday, and within 24 hours, it is understood that Singapore diplomats were pressing Putrajaya for further details, although none were forthcoming.

Sources said Malaysia's reticence was simple, as the Chinese offer was made at a high-level meeting during Prime Minister Najib Razak's Beijing trip last May.

"The Chinese made the offer with generous terms during the discussions, and the Malaysian side politely said it will be considered.


"Nothing is on paper yet. It hasn't gone beyond the verbal stage between the top leaders," a source told The Malaysian Insight.

"So there's nothing to be excited about. We don't go asking our neighbours if it is true they buy this or that. So what's the fuss about?" he added.

Malaysian officials including Defence deputy minister Johari Baharum were caught off-guard by The Malaysian Insight's report and said they had no knowledge of any offer.

"It is on a need to know basis, and some people don't need to know," said another source from Malaysia.

He pointed out that military purchases were confidential matters although offers are made at all times at various defence trade shows and expos. "People show their products, make offers and we just smile," added the Malaysian source.

On Wednesday, The Malaysian Insight reported that China will offer advanced rocket launchers and a radar system to be based in Johor, reflecting the widening defence and trade ties between both countries in the South China Sea region.

The generous low-interest offer was to be made by a high-level delegation headed by Chinese President Xi Jinping's special envoy during a visit for the East Coast Rail Link (ECRL) launch that day.

"Up to 12 units of the AR3 multiple launch rocket system (MLRS) will be offered to Malaysia in a purchase program with a loan period of 50 years," a source told The Malaysian Insight.

"The MLRS, which has a top range of 220km, will be located in Johor with a radar system," added the source, confirming The Malaysian Insight's report last April about the offer.

The report did not say Putrajaya had confirmed agreeing to the latest offer from China.

"They know we are interested in acquiring further military equipment, so the offer was made verbally in Beijing last May and again in Kuantan this week. That's all," added the source from Malaysia.

Malaysia has previously inked a deal to buy four littoral mission ships from China, its most significant purchase from the Middle Kingdom that was seen as a blow to its traditional defence suppliers in the West. – August 11, 2017.

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Re: SINGAPORE
« Reply #153 on: September 24, 2017, 12:54:20 PM »




The Independent
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Home  Featured News  “Lee Hsien Loong is not as skilled as LKY” – Chinese state...
“Lee Hsien Loong is not as skilled as LKY” – Chinese state media declares amid PM Lee’s visit to China
September 20, 201714328
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As Singapore Prime Minister Lee Hsien Loong makes his first official visit to China in the last three years, the Global Times – a newspaper with links to the Chinese Communist Party – declared that PM Lee “is not as skilled as his father” in balancing ties with China and the United States of America in an opinion piece that also called Singaporeans insecure:

“Singapore was once called a “little red dot” by former Indonesian president Bacharuddin Jusuf Habibie. The term is also adopted by Singaporeans to express their sense of insecurity. It is believed that Singapore has no intention of challenging China and Lee Hsien Loong is just not as skilled as his father in controlling the risks and striking a balance between China and the US.”

Relations between Singapore and China have been fraught with tension in recent years, with the Global Times calling this period the worst in the Sino-Singapore relationship since 2016.

Singapore has been accused of tilting towards Washington in its foreign policy, especially when Singapore sided with Washington and Tokyo during the South China Sea territorial dispute arbitration and when Singapore was the only ASEAN nation to urge all parties to fully respect the tribunal ruling that followed.

Bilateral relations soured even further when a batch of Singapore’s armoured military vehicles were seized in Hong Kong while they were en route from Taiwan and when PM Lee was conspicuously absent from China’s major summit on the “Belt and Road Initiative” – a plan to boost infrastructure and trade links from Asia to Africa in May at Beijing.

However, the news organisation opined that PM Lee’s “surprising” and “unexpected” visit to China in this time, appears to be a bid to adjust its Beijing policy and that Singapore’s decision to rebalance between Beijing and Washington is a welcome one:

“Rebalancing between Beijing and Washington seems to be a new diplomatic design for Singapore. The country has played a positive role in China’s reform and opening up. Despite all the ups and downs, there is reason to be optimistic about the future Sino-Singaporean relationship.”


 
PM Lee expressed gratefulness for the invitation to make an official visit to China as it prepares for its 19th party congress and reaffirmed Singapore’s longstanding ties with China. He said:

“Our relationship has progressed, our cooperation had broadened and deepened, and there are many more things which we are doing together now.”

The Singapore head of government who has been on a three-day-visit in China since 19 September also paid a generous compliment to the country’s vision for the future and agreed to increase parliamentary exchanges with China.


Foreign Affairs Minister Vivian Balakrishnan who accompanied PM Lee on his visit also shared that the visit marks a new chapter in the Sino-Singapore relationship:

“These high level interactions are a strong affirmation of the longstanding, substantive and close ties between our two countries. Singapore and China are old friends, and we have been trustworthy and reliable partners over the decades.

“We had good discussions on our bilateral cooperation, including our three Government-to-Government projects.

“We discussed ways to strengthen ASEAN-China relations as we prepare to take over ASEAN Chairmanship next year.

“We also exchanged views on regional developments, and how both sides can do more together for the benefit of our region.”

Offline zuolun

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Re: SINGAPORE
« Reply #154 on: September 30, 2017, 04:56:04 PM »
屋漏偏逢连夜雨 ,船迟又遇打头风。

ComfortDelGro could lose more drivers, as number keen to jump ship hits over 3,000 ~ 29 Sep 2017
http://www.todayonline.com/singapore/more-3000-comfortdelgro-cabbies-could-join-rival-operators-grab

Jobs as taxi drivers should be reserved for Singaporeans as last line of defence ~ 27 Sep 2017
https://www.theonlinecitizen.com/2017/09/27/jobs-as-taxi-drivers-should-be-reserved-for-singaporeans-as-last-line-of-defence/
Lim is a full-time taxi driver of six-years with Bachelor of Business (Economic and Finance)

新加坡·遭科技研究局解约·博士失业改行驾德士 ~ 19 Aug 2009
http://www.sinchew.com.my/node/1153386

蔡明杰(Cai Ming Jie)博士


Offline zuolun

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Re: SINGAPORE
« Reply #155 on: October 02, 2017, 04:25:34 PM »
GuocoLand - Guoco Group JV submits top bid of $1.62 bil for Beach road police station site ~ 28 Sep 2017
https://www.theedgesingapore.com/guocoland-submits-top-bid-1622-bil-beach-road-police-station-site


Offline zuolun

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Re: SINGAPORE
« Reply #156 on: October 09, 2017, 11:49:02 AM »
City Development and JV partner acquire Amber Park record smashing $906.7million ~ 4 Oct 2017
https://www.theedgesingapore.com/city-developments-and-jv-partner-acquire-amber-park-record-smashing-9067-million
This is Singapore’s largest freehold collective sale by dollar value, and the sale price works out to about $1,515 psf per plot ratio based on the allowable gross plot ratio of 2.8. No development charges are payable for the site.




Offline zuolun

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Re: SINGAPORE
« Reply #157 on: October 13, 2017, 05:50:08 PM »
S’pore economy’s Q3 growth quickens to 4.6%, advance estimates show ~ 13 Oct 2017
http://www.todayonline.com/singapore/singapores-q3-gdp-46-advanced-estimates-show
Those polled in the Monetary Authority of Singapore's survey of professional forecasters revealed last month estimated that Singapore's third-quarter Gross Domestic Product (GDP) would grow 3.1%.

Bumper quarter of mergers and acquisitions ~  15 Sep 2017
http://www.straitstimes.com/business/companies-markets/bumper-quarter-of-mergers-and-acquisitions
Nearly $45b worth of deals racked up, with activity up 31.7% so far this year.

The Matthew effect: What seems high will go higher, what seems low will go lower.
  • When a stock is in a bull-market territory, the last high will be retested and the share price will move much further up, forming a new record high.
  • When a stock is in a bear-market territory, the last low will be retested and the share price will move much further down, forming a new record low..

STI (weekly) ~ Trading in an upward sloping channel, upside biased

STI closed @ 3219.91 on 29 Sep 2017.
.
Immediate support @ 3178, immediate resistance @ 3275.



STI (Jan 1995 to 1 Mar 2017) ~ Trading in an upward sloping channel, upside biased


Offline zuolun

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Re: SINGAPORE
« Reply #158 on: October 14, 2017, 04:13:11 PM »
新加坡曾是海洋大国,1300公里外也有领土 ~ 14 Oct 2017
http://www.sohu.com/a/198044743_457614?_f=index_pagerecom_9
新加坡独立前,它在岛南部还有两处岛屿群。第一处是科科斯群岛(Cocos Islands)又名基林群岛(Keeling Islands),由27个珊瑚岛组成,面积14.2平方公里,位于苏门答腊岛西南方向的印度洋中。第二处是圣诞岛(The Territory of Christmas Island),面积135平方公里,距爪哇岛约340公里,距新加坡约1310公里,距澳洲大陆约1540公里。这两处海岛都是新加坡所在海峡殖民地的领土,二战后的1946年,新加坡从海峡殖民分离出来,科科斯群岛与圣诞岛都是新加坡领土。到了1950年代,新加坡逐渐有独立并加入马来西亚的倾向。于是英国在1955年,强行将科科斯群岛划给澳大利亚。1958年,以290万英镑的低价将圣诞岛卖给澳大利亚,当时新加坡还没独立,这笔钱进了英国统治阶层腰包。


Malaysia's Biggest Investment Forum

Re: SINGAPORE
« Reply #158 on: October 14, 2017, 04:13:11 PM »