Singapore Economic News

[luckystar]

Major shareholders who have controlling stakes don't mind share prices keep dropping. When prices fell low enough, they will do a rights issue to secure more shares cheaply, then after some time, make a lowball offer to "rescue" minority shareholders. The current law allows them to do so. This is not likely to change as long as the new law is not enacted to give more power to minority shareholders.

So who want to invest in small/mid caps?

[karlmarx]

Unit owners of Normanton Park and shareholders of CWT were some of the lucky individuals to benefit from Chinese largesse.

Why Hong Kong-linked Kingsford Development can’t sell flats on a US$600 million Singapore property

Kingsford Huray Development paid a hefty S$830 million (US$612 million) in 2017 to buy the ageing Normanton Park estate at well above the asking price in a collective sale, and that was before paying over S$500 million more in redevelopment fees and to top up its lease to 99 years.

But this year, authorities blocked it from selling the project’s nearly 1,900 new units until it proves they are in a fit state to be released.

https://www.scmp.com/week-asia/economics...sell-flats

[specuvestor]

Major shareholders who have controlling stakes don't mind share prices keep dropping. When prices fell low enough, they will do a rights issue to secure more shares cheaply, then after some time, make a lowball offer to "rescue" minority shareholders.

True if they no longer need the capital markets which is also a sign for mid sized companies that they cannot or not keen to grow the company anymore.

[Roberto76]

What do you think is causing the lack of IPOs?

[specuvestor]

In my opinion the issue is structural

1) We dont have a big domestic economy or sizable entrepeneurial businesses. Our MNC model since 1965 worked bit too well

2) We have a strict regulatory environment that dampens speculation and also animal spirit which are the liquidity providers. Same person will be pro former or latter depending which end of the stick he is staring at. Listing of SGX also set in motion a tilt to the latter and future "break down" just as MRT listing... it doesn't happen overnight. But we can already see or feel the impact of the recent set up of SGX Regco which will tilt back to the former. As usual I think it has to be a balance

3) Non internationalisation of SGD. We even need to spend money to create a yield curve cause government dont need to issue bonds.

On the contrary look at HKEX which has a large hinterland which is why they had been doing so well. But it is circumstantial as China wanted strong HK financial markets as a test bed for their capital markets reform. With gradual liberalisation of RMB and rise of Shanghai, the downside will be much further for them since they have climbed so high. 爬得越高，掉的越深。 Singapore listed Hutch Port is a good preamble of things to come but it will be a much longer slow motion train wreck next 28 years

So in general unless 1) our domestic economy grow larger (hint 7.9m population) 2) investors able to balance risk and return rather than just socialise loss and capitalise gains cause we still have the notion that govt should protect us when we fall but dont nag us when we run 3) introduce more volatility and risk to our little red dot within a much larger peninisular and archipelago; that probably strings together and summarises what I see the govt is trying to play around with its policies.

We shouldn't try to pit against the strength of our neighbours but the strength of our system, admin, process, language, tolerance etc. Which is why I think the drive to welcome S-chip was a mistake in the first place and the panic reaction to curb SESDAQ was ill conceived monkey see monkey do overreaction which killed the animal spirit, whatever was left.

Slow and steady upwards should be SGX goal because of our constraints, rather than "visions of grandeur" or participating in the next big thing

What do you think is causing the lack of IPOs?

[brattzz]

1) singapore's gov vision is for sgx to be a cultured ground, where government sponsered/backed companies with long term interests are welcome to ipo/list in sg...
2) The S-chips sagas are really a lost in focus and mgmt's fortel,

[dreamybear]

Signs of looming bad times or isolated car industry only ?

It wld be quite surprising if BM did not cut commissions even in AFC or GFC as the economy was definitely worse off compared to now.

Car population doesn't seem to have a sharp drop through the years also
https://data.gov.sg/dataset/annual-motor...a-category

What gives ?

------------------------------------------------------------------------------------------------------
Borneo Motors plans to cut commissions, raise sales targets
StraitsTimes May 8, 2019, 5:00 am SGT

Toyota agent Borneo Motors has not had a sales commission cut before, according to two previous managing directors. It remains one of UK-listed Inchcape's top profit generators.

Premium Article : https://www.straitstimes.com/singapore/t...es-targets

[BlueKelah]

Singapore PMI drops below 50 for first time in almost 3 years

https://sg.finance.yahoo.com/news/singap...00712.html

Trade war effects showing but US market is up again, looks like more optimism for trade negotiations to resume at G20.

[karlmarx]

The struggle for global economic and political dominance between East and West has forced many smaller nations to rethink their allegiances. After a number of recent diplomatic faux pas, Singapore has now made clear the side that it is taking, as it rediscover/rewrite its own historical narrative.

The source underlying most of the 'new narrative' -- pre 1800 Singapore -- the Sejarah Melayu, has been published and studied for decades. But its contents of a thriving Singapore before British arrival were not made mainstream knowledge, until now. It seems that the reasons that was found objectionable for mainstream consumption in the past, perhaps because it would contradict the 'old narrative' of a Singapore that was nothing more than a bunch of huts and sampans before British arrival, does not matter now.

What was once an island of Western 'parentage' has now abandoned those old ties, and come to accept -- and probably take pride in -- its Asian origins.

https://graphics.straitstimes.com/STI/ST...index.html

http://interactive.zaobao.com/2019/treasures-before-us/

https://www.scmp.com/lifestyle/arts-cult...es-ups-and

[blackclock]

Karl, the fight for dominance between China & US has caused China to be more careful.
China wants to develop its own supply chain & trade route. The focus is now on pumping up Malaysia as a storage, trading & tranship hub

Of course the British isn't dumb. They want the pie as well

According to Nikkei, HSBC will setup its Regional HQ in KL
https://asia.nikkei.com/Business/HSBC-to...adquarters

Prudential join in the party as well
https://trx.my/city/dynamic-design-marks...-hq-in-trx

Lucky that Dyson & Jardines choose to stay. But if the trend continues, it's better to diversify the "parentage"