Singapore in ‘better shape’ to face crisis

Source : Sunday Times - 12 Oct 2008

Measures put in place after 1997 Asian financial crisis will help S’pore fare better now: Iswaran

SINGAPORE is in a better shape to weather the current downturn, thanks to lessons learnt during the Asian financial crisis.

This is the view of Senior Minister of State for Trade and Industry, Mr S. Iswaran, who spoke to reporters on the sidelines of the Global Indian Diaspora Conference at Suntec City yesterday.

Last Friday, figures from the Ministry of Trade and Industry (MTI) indicated that the economy shrank in the third quarter, declining by 0.5 per cent from a year ago.

The local economy has contracted quarter-on-quarter in three of the last four quarters, making this the first technical recession in Singapore since 2002.

MTI also lowered its forecast for full-year growth to ‘around 3 per cent’, down from 4 to 5 per cent.

But Mr Iswaran reckons that Singapore is prepared to deal with the downturn.

‘If you look at our economic numbers, there are particular sectors that have been affected by the general economic malaise in developed economies, particularly in manufacturing,’ he said.

‘But at the same time, other sectors are holding up. The services sector is doing reasonably well; there are also business services, transport…and so on.’

He cited measures that were put in place to tighten Asia’s financial systems after the Asian financial crisis in 1997, as a critical catalyst that has helped reinforce Asia.

‘And it’s not just the financial systems but also our corporate sector in terms of the level of debt it took on and how it structured its balance sheets. So from that point of view, (we are) more robust,’ he added.

But he also cautioned that Singapore will not be immune and moderation of growth is expected.

‘When there is a downturn in developed markets like the US, Europe and Japan…we cannot be immune,’ he added.

‘The real economic effect will affect us in Singapore, but yes, I think we are in a better position to withstand it, compared to the period of 1997.’

He said MTI will continue to work with other agencies to monitor the situation.

‘We want to keep our hand on the pulse, and make sure that appropriate steps are in place, or taken in good time to facilitate and help the industries where it is needed.’

Tampines site to anchor H2 industrial land sales

Source : Business Times - 2 Jul 2008

Reserve sites comprise new plot in Jurong, six sites rolled over from H1

The Ministry of Trade and Industry (MTI) yesterday unveiled an industrial land sales programme for the second half of 2008 that could yield a total supply quantum that is a tad above that of the first half.

The latest slate has just one site on the confirmed list, at Tampines Industrial Avenue 4 (opposite the wafer fab park and near the Giant, Courts and Ikea outlets) and seven plots on the reserve list, of which only one is new - a plot in Jurong at Pioneer Road North/Soon Lee Road. The other six reserve list plots are being rolled over from H1 2008.

Both new sites at Tampines and in Jurong are being offered on 30-year leasehold tenures and zoned Business 2, which means they can be developed for a wide range of uses such as clean/light industry, general industry and warehouse.

The 5ha Tampines plot on the confirmed list will have minimum floor-plate size and product-type stipulations. ‘The objective of such conditions is to address demand for industrial space for single-users which need larger floor plates,’ MTI said.

Colliers International director (industrial) Tan Boon Leong envisages the plot to be developed into a low-rise industrial facility of at most two and a half storeys (with mezzanine offices) as the site has just a 0.8 plot ratio (ratio of maximum potential gross floor area, or GFA, to land area).

‘Industrialists like low-rise premises so this site should be well sought after by both industrialists and developers,’ Mr Tan reckons. He estimates the site will fetch bids of at least $40-$50 per square foot per plot ratio (psf ppr), or $17.2 million to $21.5 million in absolute terms. The plot, which can have a maximum GFA of about 430,000 sq ft, is slated for launch in November.

Mr Tan expects the Pioneer Road North reserve-list site to fetch around $35-$45 psf ppr. The site will be made available for application in October.

The government releases a site on the reserve list only upon successful application by a developer that undertakes to bid at a minimum price acceptable to the state.

Confirmed list plots on the other hand are launched according to a pre-stated schedule, regardless of demand.

The other six reserve-list plots for H2 2008 that are being rolled over from the H1 list are located at Yishun Avenue 6 (two parcels), Toh Tuck Avenue, Ubi Avenue 4, Kallang Pudding Road and Serangoon North Avenue 4. All six plots are zoned for Business 1 use, meaning they can be developed for clean and light industrial, and warehouse use.

The Toh Tuck plot has 30-year leasehold tenure while the other five are being offered on 60-year leases.

MTI’s H2 2008 sole confirmed list site can potentially generate about 40,000 sq metres GFA, similar to the 42,000 sq m from the only confirmed plot in H1 2008 located at Woodlands Industrial Park E5.

The seven reserve plots in H2 may be developed into some 188,570 sq m GFA, or 8 per cent higher than the 174,570 sq m from the seven plots in the H1 slate.

‘MTI probably wants to keep the status quo in the industrial property market, which has been pretty stable this year,’ Colliers’ Mr Tan suggested.