Tag Archives: 2017

S’pore economy to grow up to 3.5% in 2017

Singapore’s gross domestic product (GDP) is forecasted to rise between three percent and 3.5 percent for the whole of 2017, while next year could see a growth of 1.5 percent to 3.5 percent, said the Ministry of Trade and Industry (MTI) on Thursday, 23 November 2017.

For the first three quarters of the year, the economy expanded by 3.5 percent on an annual basis. That for Q3 2017 increased by 5.2 percent, surpassing the 2.9 percent gain in the prior quarter.

On a seasonally-adjusted basis, the city-state’s GDP increased by 8.8 percent during the quarter, exceeding the 2.2 percent uptick in Q2 2017.

“The Singapore economy performed better than expected in the third quarter. Growth was primarily supported by externally-oriented sectors such as manufacturing, finance & insurance, wholesale trade and transportation & storage sectors,” it said.

However, the construction industry declined by 7.6 percent year-on-year compared to the 9.1 percent fall in the preceding quarter due to sluggish building activities in both the private and public sectors. On a seasonally-adjusted basis, it contracted by 5.3 percent versus a drop of 5.9 percent during the second quarter.

Likewise, the accommodation & food services segment dipped by 2.1 percent on an annual basis extending the two percent fall in the previous quarter due to weakness in the industry.  Nevertheless, it rose by 4.1 percent on a seasonally-adjusted basis, reversing the 1.1 percent slide in the preceding quarter.

 

This article was edited by Keshia Faculin.

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Aspial Corp records $7.51m in earnings in 9M 2017

Aspial Corporation’s net profit soared by more than five-fold to $ 7.51 million in 9M 2017 compared to $ 1.38 million in the same period a year ago, revealed an SGX filing on Wednesday (8 November).

However, the jewellery seller and property developer’s revenue declined by 19 percent from $ 440.85 million to $ 354.95 million over the same period, while the contribution from its real estate business slumped by 42 percent from S$ 235.9 million to $ 136.7 million.

“The revenue for 9M 2017 was mainly contributed by the progress recognition of sales from CityGate and final recognition of sales from Waterfront@Faber as compared to 9M 2016 where there were higher revenue contributions from The Hillford, Waterfront@Faber, Urban Vista and CityGate.”

“Although the group has made good progress in the sales and construction of its overseas projects, unlike in Singapore, it cannot progressively recognise such revenue until the projects are completed and the units delivered to purchasers.”

For Q3 2017, the company’s revenue fell 33.7 percent to $ 109.4 million from $ 164.99 million, while net earnings slumped by 99 percent from $ 12.72 million to $ 70,000.

Nevertheless, Aspial Corp’s total assets by value increased by about 13 percent to $ 1.94 billion in the quarter ended 30 September versus $ 1.72 billion as of 31 December 2016.

“The increase was mainly due to the increase in development properties, cash and bank balances, investment securities, trade and other receivables, property, plant and equipment, properties held for sale, investment in joint ventures and investment properties, partially offset by decrease in inventories, amount due from associates and investment in associates.”

It added that the rise in development properties was mainly attributable to ongoing overseas real estate projects, but was partially offset by a reclassification of such assets to trade receivables as the group had obtained Temporary Occupation Permit (TOP) for Waterfront@Faber in Q2 2017.

 

This article was edited by Keshia Faculin.

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OUE revenue down 56.6% in Q3 2017

Oakwood Premier OUE Singapore is a 268-unit luxury serviced apartment, located in the heart of Singapore.

Mainboard-listed OUE Limited saw its revenue for the third quarter of 2017 drop 56.6 percent to $ 182 million, due to the absence of $ 205.0 million non-recurring revenue registered on the sale of the extension to Crowne Plaza Changi Airport (CPEX) and lower contribution from the development property division.

The decrease, however, was partially mitigated by higher contribution from its hospitality and healthcare divisions.

In an SGX filing, the company revealed that revenue from its investment properties division and hospitality division increased to $ 67 million and $ 58.6 million, respectively, while revenue from OUE Twin Peaks fell to $ 38.5 million due to fewer sales completed during the period.

Nonetheless, OUE Twin Peaks was fully sold as at October 2017, thanks to the group’s active marketing effort.

Revenue from its healthcare division stood at $ 11.3 million.

Earnings before interest and tax (EBIT) fell 58.3 percent to $ 49.4 million, mainly due to the absence of $ 66.7 million non-recurring gain on disposal of CPEX posted in Q3 2016.

With this, attributable profit plunged 90 percent to $ 10.7 million from $ 107.6 million previously.

Looking ahead, OUE executive chairman Dr Stephen Riady expects the commencement of operations at Downtown Gallery as well as Oakwood Premier OUE Singapore to further increase the group’s “recurring income base and enhance shareholder value, which has always been our focus”.

“We remain committed to delivering stable earnings by identifying new opportunities and exploring potential to unlock synergistic gains,” he added.

 

This article was edited by Keshia Faculin.

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CDL profit down 8.3% in Q3 2017

Lush Acres is a 99-year Leasehold Executive Condominium located at Sengkang West Way/Fernvale in District D28. (Photo: Lush Acres)

City Development Limited’s (CDL) net profit for the third quarter of 2017 fell 8.3 percent to $ 156 million, while revenue dropped 6.5 percent to $ 863 million.

For the first nine months of 2017, net profit and revenue declined by 14.2 percent and 8.7 percent to $ 351.5 million and $ 2.5 billion, respectively.

In an SGX filing, CDL revealed that the Q3 and year-to-date September results were “boosted by a gain following the divestment of a non-core office building in Osaka”.

“In comparison, year-to-date September 2016 results also included a gain from the divestment of the group’s 52.52 percent interest in City e-Solutions Limited and the full recognition of revenue and profit of Lush Acres, a fully sold Executive Condominium (EC).”

Excluding these one-off items, the group’s net profit for year-to-date September 2017 actually increased by 3.5 percent.

CDL executive chairman Kwek Leng Beng noted that the prospects for the local property market are brighter. But with the property cooling measures still in place, the market remains far from its previous peak almost a decade ago.

“We are confident that the government will continue to be nimble and make necessary tweaks to these measures, when the situation warrants.”

With this, he urged the government to review “sooner rather than later” the qualifying certificate (QC) policy to balance supply and demand as well as moderate escalating land prices.

This comes as the policy “prevents land banking for listed property companies, which are typically larger entities”.

“Policies like the QC are an impediment which have resulted in the rush to bid up land prices as land must be acquired and then developed within a limited period, rather than being held on a balance sheet over the longer term, which would moderate escalating prices.”

To date, the group has not been liable for any QC and/or Additional Buyer’s Stamp Duty (ABSD) penalties as it has been able to sell its units within a stipulated period.

 

This article was edited by Keshia Faculin.

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