Easycity offers rates for as low as $800 per month.

With monthly rents ranging from $800-$2200 per month, co-living spaces provide an alternative housing option for Singaporeans who have long been burdened by the costly housing market in the city.

Co-living spaces allow tenants to share rooms and apartments with the aim to build relationships and interactions amongst its tenants as they are made to live with people with the same hobbies and interests. “On the offset, co-living spaces seems like a “privatised” version of communal hostels, and hover somewhere slightly below the traditional full package offered by private home rentals and service apartments,” Huttons Asia head of marketing and communications Hector Tan explained. “Some people may still prefer having the full privacy of common living areas that private apartments offer. There is that level of assuredness and freedom. Whereas in co-living spaces, one may have to share common living areas with other tenants.”

“The co-living concept and lifestyle offers an appealing alternative to millennials and professionals, thus the outlook for co-living concept appears positive," said Ong Choon Fah, CEO of Edmund Tie & Company (ET&Co).

Also read: Singapore expats burdened with lower packages and higher cost of living

This was also echoed by Rohit Hemnani, COO & head of alternatives, capital markets at JLL Asia Pacific. “In the near term, millennial expats are likely to be the main occupiers although the list of users could be expanded to include other groups such as foreign students, or even seniors as the concept could appeal to a broader age spectrum beyond expat or local millennials,” Hemnani said.

“Co-living is becoming a trend as the younger generation cherish memories and experiences as assets rather than physical ones,” Wendy Yap, owner of CP Residences said. 

Singapore Business Review compiled a list of the hottest co-living spaces in the city.

CP Residences

Locations of apartments: Orchard Road
Rate: $1,300 per month
Minimum stay: 3 months

CP Residences mainly attracted startup expats, intern students, medical clients, and some locals with the need for temporary occupancy. Yan said that they pride themselves in becoming a friend to their clients.

“There’s much more to benefit the ecosystem than just customer service because in turn, members too becomes friends between them,” Yap explained.

With 50-60 rooms leased in Singapore, their units are with fully inclusive services including utilities, wifi, weekly cleaning, laundry/ironing, ad hoc & bi-monthly community get togethers, taxes, admin paperwork such as tenancy, and processing recurring payments by various payment methods.

Aside from Singapore, CP Residences also operates co-living spaces Hong Kong and Vietnam.

Easycity

Locations of apartments: Paya Lebar, Pasir Panjang, Geylang
Rate: $800-1,800 per month
Minimum stay: 3 months

Founded in 2016, Easycity claims to be one of the first proptech startups to focus on designing, building, and operating coliving spaces in Singapore. Their property acquisition manager took careful note in choosing apartments located at city-fringe areas which are just few minutes away from the Central Business District that will be convenient for commuting and is close to eateries and other places of interests.

“Our members are mix of expats, entrepreneurs and students, large percentage of them are from the European Union,” Easycity founder Wesley Wen noted. “They are attracted by our spacious and modern spaces, convenient locations, excellent customer services, and word of mouth among their friends and co-workers.”

Easycity’s apartments have living spaces, a balcony or roof terrace to allow for a spacious layout. They also have fully equipped kitchen which is supported by maintenance and housekeeping services as well as amenities including swimming pool, gymnasium room, function room, barbeque area and 24 hours security.

Hmlet

Locations of apartments: Paya Lebar, Pasir Panjang, Geylang

Rate: starts at $1,500 (for master rooms in the East) per month

Minimum stay: 3 months

By June 2019, Hmlet will have more than 1,000 rooms opened for tenancy, Kamalski revealed to Singapore Business Review.

With common spaces such as a lounge, a pool or a rooftop, the CEO also revealed that they organise events to enable their members who are mostly expats to start their own social initiatives, from a simple Sunday brunch to birthday parties.

“For most of them, it’s their first time moving to Singapore or Asia with little to zero connections to anyone they know,” Kamalski said. “Having said that, we are seeing a growing number of locals joining our community in the last year.”

Login

Locations of apartments: Queenstown/Redhill, Novena, East
Rates: $1,200-2,200 per month
Minimum of stay: 3 months

Login takes pride in offering affordable spaces which are a good 5-8 minutes of walking away from MRT stations. Their services include weekly housekeeping and a community manager support that undertakes all tenant management issues within the spaces.

According to Sim, their apartments have been home to Asian and European expats in 20s and 30s, as well as Singapore millenials.

Also read: Takeup rate of locals rise in co-living spaces

“The Singaporeans we have in our mix are either couples waiting for their BTO to be ready or those who have spent time abroad studying, have enjoyed that independence and freedom, and now returned to Singapore to work,” Sim noted.

The Shophouse Series

Location of apartments: Geylang
Rates: $2,200 onwards per month
Minimum stay of months: 3 months

The Shophouse Series looks to offer the experience of living in a heritage home to its tenants. With approximately 750 sqft of space and an ensuite bathroom, every shophouse has a spacious fully-equipped shared kitchen and living room area on the ground floor.

“Our rates are also all-inclusive of utilities, Wi-Fi, electricity, and a membership fee for monthly community events that we curate and organise according to our tenant mix at the time,” the co-living operator said.

They noted that their tenant mix include expats from the age of 23 to 45 years old. Aside from them, the Shophouse Series have also hosted artists from Southeast Asia in Singapore for Singapore Art Week/Art After Dark at Gilman Barracks, and soccer coaches in Singapore for training.

Find out what EY, Deloitte, KPMG, and PwC have to say about the Budget.

Finance minister Heng Swee Keat has set forth an expansionary Budget 2019 with the goal of building and maintaining "strong, united Singapore" against heightening economic uncertainties. These include higher spending on defence and security, setting aside $6.1b to cover the full cost of the Merdeka Generation Package (MGP), and an increase in excise duties for diesel. The government will continue to invest in building the digital capabilities of SMEs through the launch and extension of initiatives like Scale-up SG programme and Automation Support Package (ASP). 

Singapore also tightened rules for foreign workers as it adjusted the foreign worker dependency ratio ceiling from the current 40% to 38% on January 1, 2020 and to 35% on January 1, 2021. The SPass of the services sector will also be reduced from 15% to 13% and then to 10%. The government is also striving to retain workers past their prime through the Work Fair and Silver Support schemes.

SIngapore will also tighten import relief for travellers and alcohol duty-free concessions as it implements the GST hike. The government is also studying the use of debt as part of the financing mix for long-term infrastructure projects as Heng announces that the Changi Airport Group will take up loans to develop Changi East and the government will provide a guarantee for Changi's borrowings. 

The Community Health Assistance Scheme (CHAS) will also be extended to cover all Singaporeans for all chronic conditions regardless of income whilst an Elder Fund will be launched in 2020 to help low-income Singaporeans who need additional financing for long-term care.

Overall, Singapore had a budget surplus of $2.1b or 0.4% of GDP and a budget deficit of $7.1b or 1.4% of GDP. 

Here's what The Big 4 have to say:

EY

Ms. Soh Pui Ming, Head of Tax Services, Ernst & Young Solutions LLP says:
“Transformation is a journey, not a destination. Budget 2019 recognises this, and continues to provide support to help Singapore enterprises to deepen capabilities, innovate and internationalise in order to compete in the new global economy.”

Chester Wee, Partner, International Tax Services Leader, Ernst & Young Solutions LLP says:
“Finance Minister said that Singapore needs to be nimble like a mousedeer. This mousedeer needs also the boldness of a lion to do things differently, wisdom of an owl to cut through the complexity of the new economy and the care of the mother hen to leave no one behind.”

Strengthening economic competitiveness

Building deep enterprise capabilities

Mr. Chester Wee, Partner, International Tax Services Leader, Ernst & Young Solutions LLP says:

“Singapore Budget 2019 continues to recognise the challenges faced by SMEs to innovate and expand overseas. Measures such as Scale-up SG and SME Co-Investment Fund III help to level the playing field and ensure that no one get lefts behind as Singapore seeks to remain competitive.”

Mr. Chia Seng Chye, Partner, Tax Services, Ernst & Young Solutions LLP says:
“The simplified Enterprise Financing Scheme is a welcomed move to provide additional support to local startups and emerging enterprises to meet their funding needs and help manage their cash flow.”

Mr. Chester Wee, Partner, International Tax Services Leader, Ernst & Young Solutions LLP says:
“The streamlining of the existing financing schemes into a single Enterprise Financing Scheme is a welcomed move. It will reduce administrative costs for SMEs, and hopefully help them to gain quicker access to funds needed for their expansion plans.”

Building deep worker capabilities

Mr. Samir Bedi, Partner, People Advisory Services, Ernst & Young Advisory Pte. Ltd. says:
“The outcomes achieved with the industry transformation efforts thus far validates the country’s persistence to deepen enterprise and worker capabilities.”

He adds:
“Redesigning jobs and reskilling our people are central to this year’s Budget. A nice sweetener would have been an additional SkillsFuture credit top-up – this could have further accelerated our lifelong learning culture.”

New Professional Conversion Programme

Ms. Tan Bin Eng, Partner, Business Incentives Advisory Leader, Ernst & Young Solutions LLP says:
“Industry 4.0 is a tidal wave that cannot be ignored by all companies and workers. The imperative to retrain workers has never been more urgent than before. The extension of the Professional Conversion Programmes into more areas will be appreciated by companies and partially alleviate the costs of retraining staff in this uncertain economic environment.”

Streamlining and digitisation of trade processes

Mr. Adrian Ball, EY Asia-Pacific Indirect Tax Leader and Partner, Ernst & Young Solutions LLP says:
“It has long been perceived that the main beneficiaries of Singapore’s comprehensive network of free trade agreements (FTA) are existing multinational corporations, so it is very welcomed that the government is intensifying efforts to streamline and digitise trade processes to allow SMEs easier access to the same FTA benefits. This will help SMEs in expanding beyond Singapore’s borders.”

Building Singapore’s position as Global-Asia node of technology, innovation and enterprise

Ms. Tan Bin Eng, Partner, Business Incentives Advisory Leader, Ernst & Young Solutions LLP says:
“It is heartening to hear of the continued emphasis on the importance of companies leading R&D efforts. The large number of corporate R& YoungD centres set up in Singapore is reflective of the strong ecosystem that Singapore has built up over the years.”

Mr. Chester Wee, Partner, International Tax Services Leader, Ernst & Young Solutions LLP says:
“For Singapore to develop as a Global-Asia node, Singapore needs talents with broad global experience. The efforts to provide Singaporeans with increased overseas exposure through exchange programmes will bring out the best in our people.”

Mr. Chester Wee, Partner, International Tax Services Leader, Ernst & Young Solutions LLP says:
“Just as Singapore enjoys success in its roots as a port, being the ‘Asia 101’ for global multinational corporations (MNC) is in our DNA as well. The proximity, similar time zones and strong talent pool has put Singapore in an advantageous position. The next step will be to continue to stay relevant and competitive.”

Building a caring society

Personal tax rebate

Mr. Chester Wee, Partner, International Tax Services Leader, Ernst & Young Solutions LLP says:
“The personal tax rebate is huge in percentage but small in cap. It reflects a better policy to share the country’s surpluses in a more targeted fashion to help those with greater need.”

Merdeka Generation package

Mr. Panneer Selvam, Partner, People Advisory Services – Mobility (Tax), Ernst & Young Solutions LLP says:
“As anticipated, this year's Budget was filled with a generous dose of health care benefits for all Singaporeans. In particular, the Merdeka Generation can have peace of mind for their long-term care support, which also covers additional subsidies for outpatient care.”

SG cares

Ms. Sandie Wun, Partner, Transaction Tax, Ernst & Young Solutions LLP says:
“The government leads by example in encouraging all public officers to volunteer as part of Public Service Cares initiative. Together with the one-stop platform for donations, Giving.sg, these are great initiatives in the spirit of giving back as the nation marks the Singapore Bicentennial.”

Ensuring a sustainable environment for all

Zero Waste Masterplan

Ms. Sandie Wun, Partner, Transaction Tax, Ernst & Young Solutions LLP says:
“It comes as a surprise that vehicle taxes would be reduced in Singapore. Budget 2019 however announced that as part of the Zero Waste Masterplan, diesel taxes will be restructured, including the reduction of road taxes for diesel taxis and commercial vehicles.”

GST Import Relief
Mr. Yeo Kai Eng, Partner, Indirect Tax Services Leader, Ernst & Young Solutions LLP says:
“The reduction of the GST import relief for travellers does not come as a surprise. It remains to be seen if there will be a step up in enforcement action by the authorities.”

PwC

Keeping Singapore safe and secure

Peter Le Huray, Global Tax Markets Leader, PwC, says:
The Finance Minister sees an external environment with continuing geopolitical uncertainty, a continuation of the digital revolution and slowing global growth. The Budget response is a focus on security, particularly cyber security and a targeted approach to expediting digital skills and re-skilling the workforce with less reliance on foreign manpower.

Richard Skinner, Strategy Leader, PwC Singapore, says:
Setting up a Centre of Innovation in Aquaculture is a step towards increasing food security. As fish stocks decline, fish farming becomes essential as fish is as an efficient source of protein. In addition, innovations in aquaculture could also lead to new businesses and exports for Singapore. There are some very exciting technological developments in aquaculture (including in agriculture tech) and Singapore is in a great position to help develop these further.

Skilled workforce, innovative firms, and a vibrant economy

Chris Woo, Tax Leader, PwC Singapore, says:
The Singapore Government is willing to make a longer term investment to further compel business to improve productivity. The reduction to the Dependency Ratio Ceiling (DRC) is the necessary medicine in the medium term. It will force enterprises to further invest in new technology, re-skill their existing workforce, and reduce the reliance on cheaper foreign labour.

Abhijit Ghosh, Tax Markets Leader, Healthcare Leader, PwC Singapore, says:
The Enterprise Financing Scheme will enable Small Medium Enterprises (SMEs) to overcome the financial hurdles and expand rapidly and encourage budding entrepreneurs to embark on innovative ventures.

Irene Tai, Corporate Tax Director, PwC Singapore, says:
The streamlining of financing schemes with Enterprise Singapore should be very much welcomed by companies as this would improve access to information on financial support options and allow them to select those that are most relevant to their business needs. This centralised approach should also allow Enterprise Singapore to channel the funds to where they are most needed.

Lennon Lee, Entrepreneurial & Private Clients Tax Leader, PwC Singapore, says:
Local firms are at different phases of growth and competencies. Customised support programmes such as Scale-up SG and Innovation Agents programmes introduced in this Budget will help high growth local firms in deepening their capabilities, strategising how they should venture in new growth markets and introduce innovative products and services so that they can compete globally.

Anuj Kagalwala, Asset & Wealth Management Tax Leader, PwC Singapore, says:
The Government's mention of attracting patient capital should be music to the ears of the fund management community, especially venture capital and private equity managers. The Government has set aside an additional $100 million for investment in SMEs as co-investment with private sector investment. Big or small, all this shows the Government's positive intent and direction. Such investments have a direct co-relation to investments and employment in Singapore.

Girish Vikas Naik, Global Mobility Director, PwC International Assignment Services, says:
The re-calibration of foreign manpower policy is a timely wake-up call to the services sector that industry re-design transformation is central; undue reliance on cheap foreign labour will soon be a thing of the past. Businesses will need to accelerate industry transformation with a focus on automation, redesigning worker skillsets and employing older Singapore workers.

A global city and home for all

Richard Skinner, Strategy Leader, PwC Singapore, says:
While the vision for Singapore to be a Global 101 city is not new, given Singapore's need to be relevant to MNCs globally, this is definitely in the right direction as a way for people and firms to associate Singapore as a key node to invest in and as a springboard. Effective and efficient execution of the tactics is what is crucial, be it through extra funding or dedicated government support and advice for SMEs and start-ups.

A fiscally sustainable future

Kor Bing Keong, GST Leader, PwC Singapore, says
GST rate increase between 2021 to 2025 has become more certain than ever. A GST rate hike will increase the cost of non-compliance. It will also increase the costs for businesses which cannot claim the GST on their expenses in full especially with the implementation of the reverse charge regime from 1st January 2020.

Kor adds:
The revision of the concessions for travellers seem to signal an intention to adopt a more active approach to policing imports by travellers.

Lim Maan Huey, Real Estate & Hospitality Tax Leader, PwC Singapore, says:
APAC assets under management is set to grow faster than any other region globally. PwC expects it to rise from USD 15.1 trillion in 2017 to USD 29.6 trillion in 2025. The proposed extension of the Funds Tax Exemption Schemes (13CA/13R/13X) in Budget 2019 to 31 December 2025 and the various refinements to the tax schemes will position Singapore strongly to have a big bite of this growth. These tax changes for the asset management sectors are the results of a trusted and strong partnership between the MAS and industry players.

Koh Soo How, Asia Pacific Indirect Taxes Network Leader, PwC Singapore, says:
Apart from minor tweaks to the GST import reliefs for travellers and the extension of existing reliefs for qualifying trusts and funds, the GST takes a relatively back seat in Budget 2019 following last year's announcements on the rate hike and the GST on imported services. Having said that, the reduction in the import relief quantums could set the scene for the Government to expand the taxation of the digital economy to cover GST on the import of low-value goods below the relief thresholds in future budgets. It would also be interesting to see if the changes would mean increased examination by the customs officer on goods being brought into Singapore given the regular reminders to declare the value of goods purchased from overseas. In the meantime, the government's push for the small and medium-sized enterprises (SMEs) to adopt digital technologies and expand into e-commerce has a two-pronged benefit in terms of helping local businesses expand into new areas, and having the knock-on effect of growing the digital economy which can contribute to the GST collections from imported services from 1 January 2020.

Koh adds:
The expansionary budgetary needs in Budget 2019 and increased funding required for the Bicentennial Bonus and Merdeka Generation package could see the GST rate hike implemented earlier than later in the period 2021 to 2025, although the higher spending costs would be mitigated by the overall budget surplus of $2.1 billion for FY18 . However, we should note that the rate hike is only expected to bring in an additional $3.2 billion in tax revenues which just covers the additional $3.1 billion funding for the Long-Term Care Support Fund. Finance Minister's assertion that our GST is not high by international standards even after the planned increase to 9 per cent gives room for future increases.

The digitalising of trade documents and secure exchange of electronic trade documents would be welcomed by import-export businesses which currently need to incur costs for storage and retrieval of trade documents when they are asked to produce the documents upon audits by the tax authorities to support the figures reported in the GST returns.

KPMG

Building the digital capabilities of SMEs 

Leong Kok Keong, Head of Financial Services, KPMG in Singapore, says:
“Banks have been digitising their consumer banking operations rapidly over the past few years. This Budget’s continued push for SMEs to adopt digital technology should see SME business banking go digital as well, especially in areas of digital payments and trade/cash management.”

Jonathan Ho, Head of Enterprise Market, KPMG in Singapore, says:
"The government’s taking up to 70% risk on bank loans to companies less than 5 years old, and the extension of SME working capital loan scheme will help catalyse start-ups with innovative ideas, as these companies may need a certain amount of gestation period.”

Tay Hong Beng, Head of Tax, KPMG in Singapore, says:
In deepening enterprise capabilities, it’s important that the Government has recognised the need to provide and tailor-make support and assistance to businesses based on their differing stages of development and needs. This is a good departure from the traditional broad brush approach which may not meet the needs of businesses.

Leong Kok Leong, Head of Financial Services, KPMG in Singapore, says:
Peer to peer lending platforms have been emerging as a new class of lending; it is unfortunate that loans made by them to SMEs will not be covered by the Enterprise Financing scheme. It is thus anticipated that these P2P fintechs would form partnerships with banks in order to avail themselves to this scheme.

Daryl Pereira, Head of Cyber Security, Management Consulting, KPMG in Singapore, says:
The measures to support digitalisation of business is welcome, but the freedom and convenience provided by digital transformation comes at a price – the widening of the digital surface increases the likelihood of cyber-attacks. The measures to transform the private security industry will help, but government support could also have been extended to help businesses address cyber threats through tax incentives or grants to adopt stronger cyber security practices.

Jonathan Ho, Head of Enterprise Market, KPMG in Singapore, says:
The expansion of SMEs Go Digital Programme and the extension of the Automation Support Package by another 2 years will further entrench digital capabilities in our enterprises. This is provided that there are increased levels of awareness, including helping SMEs to road-map their digital journey.

Juvanus Tjandra, Head of Technology, Media & Telecommunications, KPMG in Singapore, says:
Singapore has to provide an enhanced and differentiated experience to attract enterprises and technology players to Singapore. The Global Asia Node programme is truly a programme that differentiates us – we build up the capabilities of Singapore companies, and then our people will be able to export this talent globally.

Government use of debt for infrastructure financing 

Sharad Somani, Head of Infrastructure, KPMG in Singapore
"For major projects like Changi East Airport, Government will provide guarantees to Changi Airport Group for debt issuance, thereby bringing down borrowing costs. This is an important step to ensure accountability, while benefiting the project with sovereign support."

Somani adds:
"Provision of government debt as part of a financing mix for long term infrastructure projects implemented by the government and statutory boards would bring more financial prudence. Also, the government should consider tapping on private sector financing to complement the government infrastructure delivery. Furthermore, as more and more statutory boards that build infrastructure need to raise funds to finance projects, there is a need to further strengthen systems and processes – risk management, reporting and treasury - in these statutory boards. "

Workforce developments

Jeya Poh Wan Suppiah, Head of Consumer and Retail, KPMG in Singapore, says:
“The Consumer & Retail industry must build deep capabilities to upskill and transform its staff capabilities to stay resilient as Singapore advances as a node of technology, reducing the reliance on foreign talent which may not be sustainable over the longer term.”

Chiu Wu Hong, Head of Tax Market & Solutions, KPMG in Singapore, says:
"The reduction in the Dependency Ratio Ceiling (DRC) and S-Pass quota for the services sector over the next two years means that businesses would need to adjust to a lesser reliance on foreign workers. The early announcement would allow businesses in the services sector time to plan for upskilling of existing employees, redesigning work processes and investing in automation. The extended funding support on the Enterprise Development Grant and Productivity Solutions Grant should help SMEs cope with this proposed change."

Ageing and healthcare costs 

Karen Lee, Head of Healthcare, KPMG in Singapore, says:
“The Merdeka Generation Package comes in timely for this resilient and independent group of Singaporeans. It will help them defray healthcare costs, and give them a sense of comfort and protection.”

Sustainable urban development 

Toh Boon Ngee, Partner, Tax, KPMG in Singapore, says:
"The Budget highlighted the need to incorporate environmental factors such as air quality, climate change, waste management, etc. into the longer term Singapore urban development plan. One will expect that such factors will also contribute to the eventual evolution of the Singapore taxation system, changes of tax base and design of tax incentives. For example, the immediate visible effect is that carbon tax system is being fine-tuned in the drive to achieve better air quality. "

Tay Hong Beng, Head of Real Estate, KPMG in Singapore, says:
“Buildings are one of the major contributors to carbon emission in the country. Green buildings are highly relevant to Singapore’s sustainability initiatives as it aims to have 80% of its buildings to be green by 2030. It is a bit of a let-down that the Budget does not provide any impetus to directly stimulate the demand and supply for green buildings. It is only when we are able to establish a direct correlation between building sustainability and its occupancy, rental and valuation that greening of buildings can be driven by market forces rather than a top-down approach by the government.”

Deloitte

Total Defence

Low Hwee Chua, Regional Managing Partner for Tax at Deloitte Singapore and Southeast Asia, says:
“As the Finance Minister promised, SG Budget 2019 is progressive and builds on the measures and initiatives put in place in the past couple years. It continues the recent focus on driving enterprise innovation and growth; increasing productivity of Singaporean workers and strengthening the social framework. The Budget also recognises the on-going challenges that impact Singapore’s security and liveability, and this can be seen from the attention paid towards strengthening our total defence, steps to tackle climate change, and measures to help the lower income and elderly, in particular in terms of healthcare and subsidising the cost of living.”

Thio Tse Gan, Cyber Risk Leader for Deloitte Southeast Asia, says
“As Singapore transforms and embraces Industry 4.0, a strong digital defence is critical. By making digital defence the sixth pillar of the nation’s Total Defence, along with the announcement of the Home Team Science & Technology Agency and significant investments to support our defence, security and diplomacy efforts, it will allow Singapore to strengthen its capabilities and safeguard itself against both physical and cyber threats.”

Tax 

Richard Mackender, Tax Partner and Indirect Tax Leader at Deloitte Singapore and Southeast Asia, says:
"The reduction in the value of goods that travellers can import into Singapore from S$150 to S$100 if the trip is 48hrs and from S$600 to S$500 if the trip is longer is expected. Travellers should be aware that Singapore Customs will be paying close attention over the coming holiday season.”

He adds:
“The Minister has confirmed the proposed increase in GST to 9% between 2021 and 2025, while highlighting that 9% is low compared to many other countries. The Government shows that it hears public concern on the increase of GST, but also offers a bigger picture view on rates elsewhere. It is pertinent that the Minister mentioned that the Government will continue to absorb GST on subsidised health and education costs, so helping to reduce the overall impact of the eventual increase. It is clear that the Government remains committed to the rate increase after 2021.”
 

Sabrina Sia, Tax Partner and Leader of Global Employer Services at Deloitte Singapore, says:
“The announcement of the 50% personal income tax rebate, subject to a cap of S$200, for the Year of Assessment 2019 was interesting. The cap of S$200 is the lowest in the history of individual tax rebates granted, and really demonstrates the intention to ensure and enhance the progressivity of the tax system, since the middle income earners will be the biggest beneficiaries of the rebate.”

She adds:
“The key focus of Budget 2019 is really on transformation - transformation of the workforce, transformation of SMEs, transformation of organisations to cope with techologies in the new digital world. While the Government will help Singapore and Singaporeans cope with the tide of transformation, it is important that Singapore and Singaporeans stay relevant to keep up with the times.”

“The lapsing of the Not Ordinarily Resident (NOR) is unexpected as that was a scheme which was introduced in Budget 2002 with the objective of attracting foreign talent with regional and global responsibilities to relocate to Singapore. As Singaporeans and Singapore Permanent Residents (SPRs) typically do not benefit from the tax savings available under the NOR scheme, it has been in our Budget wishlist for the Government to consider allowing Singaporeans and SPRs with similar roles to enjoy such concession, so as to provide incentives for them to step up to similar roles. Interestingly, the Government has levelled the playing field for all by removing the NOR tax concessions. This is probably in line with the Government’s intention to ensure and enhance the progressivity of the tax system, as well as to ensure that the foreign workforce acts as a complement to the local workforce.”

Lee Tiong Heng, Tax Partner and Leader of Global Investment and Innovation Incentives at Deloitte Singapore and Southeast Asia, says:
"The extension of writing down allowances on qualifying IPRs for another five years will certainly aid in deepening Singapore’s IP capabilities and maintaining its attractiveness as a hub for innovation. Though businesses would be a bit disappointed that the scope of qualifying IPRs has not been widened to, for example, include customer lists which are quite critical for digital businesses, and also that there is no automatic waiver of legal ownership requirement. "

Daniel Ho, Tax Partner and Tax Leader for Public Sector at Deloitte Singapore, says:
“The government’s initiative to provide dollar-for-dollar matching for donations made to IPCs in FY 2019 under the Bicentennial Community fund is expected to motivate organisations to give more generously back to society, as every dollar of their donations made will translate to twice the amount given to IPCs, while continuing to enjoy 2.5 times tax deduction on the amount donated. Although the 2.5 times tax deduction for qualifying donations made was extended in the Budget 2018, perhaps more could be done by also increasing such tax deduction to 300%, similar to the 2015 SG50 budget, to further encourage corporations to donate. This would then certainly be a win-win-win situation for organsations, IPCs and beneficiaries alike.”

Ho adds:
"As the economy marches towards a digital future, the emphasis on developing a world class workforce cannot be understated. The Minister’s attention to both ends of the workforce spectrum in this budget: local and overseas internship opportunities for young students and emphasis on redesigning jobs and reskilling older workers for the digital economy are testament to the fact that the Minister is indeed walking the talk."

“The extension of the fund incentives is expected, but the inclusion of Singapore sourced interest income as qualifying income is welcomed as it provides an added incentive for PE or VC funds to provide loans to Singapore-based borrowers and is in line with the Government's intention to support such companies to innovate and grow internationally.”

Wong Meng Yew, Tax Partner and Global Trade Advisory Leader at Deloitte Singapore and Southeast Asia, says:
“As Mr Heng has aptly pointed out, responsibility of a sustainable future is on both Singapore’s corporate and individual citizens. Although the increase in excise duty rate on diesel will result in increased costs for businesses and individuals, it is a step towards ensuring that Singapore’s current green cover is not taken for granted. This measure will also complement Singapore’s efforts to further build and rely on the public transportation infrastructure.”

Low Hwee Chua, Regional Managing Partner for Tax & Legal at Deloitte Singapore and Southeast Asia, says:
“As the Finance Minister promised, SG Budget 2019 is progressive and builds on the measures and initiatives put in place in the past couple years. It continues the recent focus on driving enterprise innovation and growth; increasing productivity of Singaporean workers and strengthening the social framework. The Budget also recognises the on-going challenges that impact Singapore’s security and liveability, and this can be seen from the attention paid towards strengthening our total defence, steps to tackle climate change, and measures to help the lower income and elderly, in particular in terms of healthcare and subsidising the cost of living.”

Keeping Singapore safe and secure

Thio Tse Gan, Cyber Risk Leader for Deloitte Southeast Asia, says:
“As Singapore transforms and embraces Industry 4.0, a strong digital defence is critical. By making digital defence the sixth pillar of the nation’s Total Defence, along with the announcement of the Home Team Science & Technology Agency and significant investments to support our defence, security and diplomacy efforts, it will allow Singapore to strengthen its capabilities and safeguard itself against both physical and cyber threats.”

Skilled workforce, innovative firms, and a vibrant economy
Lee Chew Chiat, Government & Public Services Industry Leader at Deloitte Southeast Asia, says:
“To reduce dependency on foreign manpower, companies must adopt a transformative mindset. The government can fund one-off initiatives to cushion cost impact on the companies. However in order for work processes to change, these companies must challenge their current operating model. For example, they should think about not having, say half of their manpower, and what changes must take place to continue their business.”

Lee adds:
"The government is one of the largest employers in Singapore. The government should also transform itself and reduce dependency on manpower where possible.”
 

Lee Tiong Heng, Tax Partner and Leader of Global Investment and Innovation Incentives at Deloitte Singapore and Southeast Asia, says:
"The extension of writing down allowances on qualifying IPRs for another five years will certainly aid in deepening Singapore’s IP capabilities and maintaining its attractiveness as a hub for innovation. Though businesses would be a bit disappointed that the scope of qualifying IPRs has not been widened to, for example, include customer lists which are quite critical for digital businesses, and also that there is no automatic waiver of legal ownership requirement."

Sabrina Sia, Tax Partner and Leader of Global Employer Services at Deloitte Singapore, says:
“The key focus of Budget 2019 is really on transformation - transformation of the workforce, transformation of SMEs, transformation of organisations to cope with technologies in the new digital world. While the Government will help Singapore and Singaporeans cope with the tide of transformation, it is important that Singapore and Singaporeans stay relevant to keep up with the times.”

Sia adds:
“The lapsing of the Not Ordinarily Resident (NOR) is unexpected as that was a scheme which was introduced in Budget 2002 with the objective of attracting foreign talent with regional and global responsibilities to relocate to Singapore. As Singaporeans and Singapore Permanent Residents (SPRs) typically do not benefit from the tax savings available under the NOR scheme, it has been in our Budget wishlist for the Government to consider allowing Singaporeans and SPRs with similar roles to enjoy such concession, so as to provide incentives for them to step up to similar roles. Interestingly, the Government has levelled the playing field for all by removing the NOR tax concessions. This is probably in line with the Government’s intention to ensure and enhance the progressivity of the tax system, as well as to ensure that the foreign workforce acts as a complement to the local workforce.”

Rohan Solapurkar, Tax Partner, and Consumer Industry Tax Co-Leader Deloitte Singapore, says:
"The Dependency Ratio Ceiling (DRC) will be phased from the current 40% to 35% by 2021 under a two-stepped approach. In order to assist corporations to adjust to these changes in the foreign worker policy, the Government has enhanced the level of funding support through the Enterprise Development Grant and expanding the scope of the Productivity Solutions Grant.

Solapurkar adds:
While it is laudable that the Government recognises that reliance on foreign workforce needs to be reduced in the long term and action steps need to be put into place to mitigate the impact of the reduction address the issue, the Government should perhaps also look beyond these measures and consider how to encourage corporations to shift Singaporeans’ perception and attitude towards working in certain industries currently not commonly taken up by Singaporeans, e.g. via re-designing certain jobs, or deploying technology to increase efficiency, and accord further tax deduction/allowances on costs incurred in this respect. ”

Daniel Ho, Tax Partner and Tax Leader for Public Sector at Deloitte Singapore, says:
"As the economy marches towards a digital future, the emphasis on developing a world class workforce cannot be understated. The Minister’s attention to both ends of the workforce spectrum in this budget: local and overseas internship opportunities for young students and emphasis on redesigning jobs and reskilling older workers for the digital economy are testament to the fact that the Minister is indeed walking the talk."
 

Ho adds:
“The extension of the fund incentives is expected, but the inclusion of Singapore sourced interest income as qualifying income is welcomed as it provides an added incentive for PE or VC funds to provide loans to Singapore-based borrowers and is in line with the Government's intention to support such companies to innovate and grow internationally.”

A caring and inclusive society

Ong Siok Peng, Tax Partner and Tax Leader for Transportation, Hospitality & Services sector at Deloitte Singapore, says:
“The extension of Special Employment Credit (SEC)/ Additional SEC signifies the government support for our ageing workforce, to allow them to stay employable and ride together in the fourth industrial revolution. This also ties in well with the Merdeka Generation Package initiatives.”

Lee Chew Chiat, Government & Public Services Industry Leader at Deloitte Southeast Asia, says:
“The Social Ministry spending has doubled in last decade. To be more effective, the government should take the view of health and social together – meaning from citizen’s and family’s standpoint. A family with disadvantaged person typically has more pronounced healthcare expenditures.”
 

Lee adds:
“First we had Pioneer Generation Package to honour the pioneers who built SG. Now, we have Merdeka Generation Package to recognise those who were the first few batches to serve NS, built the public services and modernised our economy. Will Singaporeans expect other “packages” in the future? The country can only afford these if our economy continues to thrive and our people are valued in this ever-changing world.”

Richard Mackender, Tax Partner and Indirect Tax Leader at Deloitte Singapore and Southeast Asia, says:
“The Minister has confirmed the proposed increase in GST to 9% between 2021 and 2025, while highlighting that 9% is low compared to many other countries. The Government shows that it hears public concern on the increase of GST, but also offers a bigger picture view on rates elsewhere. It is pertinent that the Minister mentioned that the Government will continue to absorb GST on subsidised health and education costs, so helping to reduce the overall impact of the eventual increase. It is clear that the Government remains committed to the rate increase after 2021.”

Daniel Ho, Tax Partner and Tax Leader for Government & Public Services Industry at Deloitte Singapore, says:
“The government’s initiative to provide dollar-for-dollar matching for donations made to IPCs in FY 2019 under the Bicentennial Community fund is expected to motivate organisations to give more generously back to society, as every dollar of their donations made will translate to twice the amount given to IPCs, while continuing to enjoy 2.5 times tax deduction on the amount donated. Although the 2.5 times tax deduction for qualifying donations made was extended in the Budget 2018, perhaps more could be done by also increasing such tax deduction to 300%, similar to the 2015 SG50 budget, to further encourage corporations to donate. This would then certainly be a win-win-win situation for organsations, IPCs and beneficiaries alike.”

Sabrina Sia, Tax Partner and Leader of Global Employer Services at Deloitte Singapore, says:
“The announcement of the 50% personal income tax rebate, subject to a cap of S$200, for the Year of Assessment 2019 was interesting. The cap of S$200 is the lowest in the history of individual tax rebates granted, and really demonstrates the intention to ensure and enhance the progressivity of the tax system, since the middle income earners will be the biggest beneficiaries of the rebate.”

A global city and home for all

Wong Meng Yew, Tax Partner and Global Trade Advisory Leader at Deloitte Singapore and Southeast Asia, says:

“The increase in excise duty rate for diesel is significant and will weigh in on business operators and diesel car owners’ decisions on whether to make a switch to petrol vehicle ownership. Taking an example of private vehicle owners who have vehicles with full tank capacity of 45 litres to 65 litres, a $0.10 increase will amount to an additional $4.50 to $6.50 per full tank filled. Assuming further a full tank of diesel a week, this works out to between $18.00 to $26.00 per month or $216.00 to $312.00 a year. Whilst this may not immediately push a private vehicle owner to switch out his diesel vehicle, this increase will certainly become a factor to consider during the next vehicle purchase. In relation to taxi companies, the financial impact of the increase will be compounded due to the number of vehicles operated and refueling frequency. However, there is already a trend of taxi companies moving towards more energy efficient and less polluting vehicles, due to various factors (e.g. additional costs of ownership though the tariff structure and maintenance costs) and as such, the increase in excise duty rates will now likely further accelerate the preference to shift out of diesel cars."

Wong adds:
The reduction in annual special tax for diesel cars and taxis is likely meant as a cushion against the impact of the increase in excise duty rates. However, since the increase in excise duty rate is significant (i.e. a 100% increase), the reduction in annual special tax will cushion only a minor cost arising from the overall annual increase in costs, especially for commercial vehicle operators. The reduction in annual special tax is however a welcomed move towards helping diesel vehicle owners transition out to more energy efficient and less polluting vehicles during the interim period.”

“As Mr Heng has aptly pointed out, responsibility of a sustainable future is on both Singapore’s corporate and individual citizens. Although the increase in excise duty rate on diesel will result in increased costs for businesses and individuals, it is a step towards ensuring that Singapore’s current green cover is not taken for granted. This measure will also complement Singapore’s efforts to further build and rely on the public transportation infrastructure.”

A fiscally sustainable future

Richard Mackender, Tax Partner and Indirect Tax Leader at Deloitte Singapore and Southeast Asia and Danny Koh, Tax Partner Deloitte Singapore, says:
“The extension of the GST remission for expenses incurred by S-REITS and Singapore listed RBTs and for expenses incurred by qualifying funds managed by prescribed fund managers in Singapore, beyond March 2019 to 31 December 2024 and 31 December 2025 respectively will be welcomed by the Financial Services Industry. The extension shows Singapore's continued focus on ensuring a competitive environment for funds and fund managers.”

Mackender adds:
“For e-commerce taxes on goods, whilst there was no announcement in the budget, we understand that IRAS is continuing to look into the best way to effect any change. Countries such as Australia have removed the low value import threshold completely, but Singapore is studying the options to make sure that any change can be effectively administered and policed. It is notable that the travelers GST free allowance was reduced in this budget, so it would seem likely that any change will be by way of a reduction and not an easement in the threshold values.”

“The reduction in the value of goods that travellers can import into Singapore from S$150 to S$100 if the trip is 48hrs and from S$600 to S$500 if the trip is longer is expected. Travellers should be aware that Singapore Customs will be paying close attention over the coming holiday season.” 

Deals by homegrown firms hit a four-year high at $46.19b in the first half of 2018.

Singapore's M&A scene remained abuzz with activity as a steady number of deals from the tech and real estate sector bucked the increasingly dismal market environment. In fact, M&A activities by Singapore firms hit a historic four-year high as it climbed 19.1% to $46.19b (US$33.8b) in the first half of 2018, data from Thomson Reuters show. 

State entities GIC and Temasek led Singapore’s outbound M&A activities, Clifford Chance partner Satbir Walia told Singapore Business Review. Notable deals include GIC and Temasek jointly backing Ant Financial as they acquired an undisclosed stake for its subsidiary in a funding round that hit about $19.14b (US$14b). Temasek also subscribed for an approximately 3.6% interest in Bayer AG for about $5.06b.

“Singapore continues to be the hub for investments into South East Asia,” Walia said, adding that Q2 witnessed a greater number of deals compared to Q1 and Q3.

Private firms also made their presence known with Grab buying 27.5% stake in its competitor, Uber, emerging as the talk of town, and even drawing a penalty from Singapore’s competition watchdog months later.

Grab has also raised more than US$2b from the likes of Toyota, OppernheimerFunds, Microsoft, and Ping An, noted Walia, in addition to forging a collaboration with various global and regional players across different sectors to helped achieve its superapp ambitions. 

On the property market, CapitaLand’s US buying spree worth $1.14b (US$835m) was amongst the biggest deals, Walia observed. The transaction earmarked the firm’s foray into the multifamily asset class in the US which is seeing a growing demand for long term rental housing.

Also read: CapitaLand buys 16 US properties for $1.14b

Meanwhile, also worth noting in the M&A scene is Golden Spring Group selling 75% of its stake in one of Asia’s major pure-play animal feed manufacturer, Gold Coin, to Pilmico International which is a subsidiary of Philippine conglomerate Aboitiz group for $683.83m (US$550m).

For Matthew Gorman, partner, at Reed Smith LLP, the steady surge in M&A activities come as no surprise given the inherently limited domestic market in Singapore. 

"The rationale could be that firms in Singapore are aiming to widen their company profile to a global scale – Singapore remains a relatively small market in global terms,” he explained. “Furthermore, the Singaporean government has previously encouraged companies to expand their network abroad to further enhance the country’s profile and status as a hub for international business.”

The year also witnessed a lot of consolidation plays, observed UOB group investment banking head of mergers and acquisitions Tan Chee Yang. Such transactions include the privatisation of Wheelock Properties as well as the pre-conditional general offer by Keppel and Singapore Press Holdings (SPH) for M1.

Also read: Keppel-SPH buyout offer extends lifeline to embattled M1

“There were controlling shareholders who were keen to increase their shareholdings in subsidiaries and associated companies to have greater management control and flexibility to drive the firm’s business plans,” he explained. “There were also acquirers keen to buy over firms in the same business to consolidate their presence in the sector further.”

Despite the colourful year for M&A activities by Singapore firms, Walia notes that multiple headwinds have challenged firms as competition watchdogs intensify oversight in transactions such as the Grab-Uber merger. “This increased scrutiny may have an impact on M&A activity,” she cautioned. 

"Although currency devaluation can make assets more attractive, it can also create uncertainty for investors," Walia explained. "Higher US dollar, rising US Federal interest rate and rising oil prices, may put further pressure on the currencies of some of the countries neighbouring Singapore."

The launch of US$40m VisVires New Protein (VVNP) fund with its niche focus on the global food and feed system attests to the growing investor appetite for foodtech startups.

Although the foodtech scene was once limited to pioneering delivery applications such as foodpanda and Deliveroo, the budding space is gradually heating up as players tapping on the complex food supply chain jostle for a larger slice of Singapore’s profitable foodtech pie.

Grab which earlier acquired UberEats, Honestbee, WhyQ, food delivery provider Plum are some of the big-ticket names that have joined the city state’s foodtech fray in recent months, data from EY show. Restaurant booking platform Chope was also able to raise US$13m for its funding needs in October 2017 in a deal that drew Square Peg Capital, C31 Ventures and Moelis Australia, attesting to the growing shift in investor palate towards startups disrupting the food supply chain.

“This space is fast becoming saturated as competition intensifies. More recently, the Singapore government has released its blueprint to develop Singapore into a leading food and nutrition hub in Asia by 2025. Since then, we have seen rapid development in various fronts that appeal to foodtech players,” Sarah Cheah, Associate Professor, Department of Management & Organisation at NUS Business School told Singapore Business Review.

Also read: Will GrabFood devour Singapore's food delivery companies?

Investors have poured nearly US$2.5b into the restaurant tech segment globally since 2012 over 600 deals, according to data from startup insights provider CB Insights. 

“In the near-term, we should see more share of investor funding, especially with more startups with deep technology and strong intellectual property being created (e.g. Alchemy Foodtech’s 5ibrePlusTM technology that tackles diabetes), new government schemes to de-risk by co-investment with private investors in foodtech (e.g. Seeds Capital’s co-investment with Heritas Capital Management in Alchemy Foodtech), and new venture capital funds being launched that focus on the future of food (e.g. US$40m VisVires New Protein fund),” added Cheah.

Enterprise Singapore has also called for interested investors in foodtech to apply for co-matching funding to help plug gaps in sector knowledge and experience in the budding foodtech sector, noted Wang Yunming, venture partner at Quest Ventures.

"Singapore's weakness is in the marketing of its abilities, and the seemingly inability of local investment firms to support local food companies. For example, there are already companies in Singapore that can do what Silicon Valley-based companies such as Impossible Foods do. From our vantage point in China, where local investment firms heavily support indigenous companies, this lack of local support in Singapore is odd and an unhappy and probably false indication that local companies cannot meet the expectations of local investors," he explained. 

Food fight  
Despite its limited domestic market, culinary-loving and tech-savvy Singapore is increasingly positioning itself at the centre of the global food market that is poised to grow by over US$250b by 2022 as the Lion City serves as fertile ground for foodtech startups testing the limits of public and investor appetite for their product and service offerings.

“Six years ago when foodpanda was looking to launch, Singapore was a natural first choice. Singapore’s market size makes it an ideal location to pilot new schemes and technologies,” said Luc Andreani, Managing Director, foodpanda Singapore. Now, the foodtech firm delivers from over 6,000 food outlets through its fleet of 6,000 riders.

The firm recently launched a pick-up feature allowing customers to pre-order food and collect their orders directly from restaurants without incurring delivery fees and adhering to minimum order values or geographical restrictions. 

"Innovation is a key theme as foodtech players continue to evolve. At foodpanda, we embrace innovation to stay ahead of the curve and maintain our market-leading position," added Andreani. 

Also read: Online food delivery and grocery goes physical: is it worth it?

On its part, London-based Deliveroo, who entered the Singapore market in mid-2015, is banking on the relentless expansion of its culinary and tech capabilities to stay relevant in the toughening market environment.

To this end, the firm has deployed a predictive algorithm dubbed Frank which evaluates the most efficient way to distribute orders based on the location of restaurants, riders and customers so that delivery times are up to 20% faster. 

“As the food delivery sector grows, and technology and automation become increasingly accessible and integrated into consumers habits and lifestyles, we will continue to see ways in which brands leverage this for the benefit and convenience of their users," said Deliveroo general manager Siddharth Shanker. "We will continue to see businesses leveraging big data and making smarter use of this to optimise and tailor offerings to the consumer." 

Deliveroo Singapore now has 6,000 riders and 4,000 restaurant partners in 2017, according to a press release.

Despite glowing numbers, Justin Hall, partner at Golden Gate Ventures believes that food delivery has less to do with the actual food and more about logistics and supply chain ecosystem. This naturally gives edge to ‘superapp’ aspirants like Grab and GO-Jek who started out as ride-hailing services but have since tapped on their logistics expertise to expand into food delivery, effectively edging out dedicated foodtech startups with only restaurant listings and delivery to offer.

Also read: Grab may be spreading itself too thin as it guns for dominance in Southeast Asia

“As mentioned, food delivery is less about food, more about logistics, and these transportation networks own the logistics market. They will be able to squeeze out other players through their last-mile delivery networks, whether by more efficient management or even eating the costs of driver/delivery subsidies -- often times offset through their other business lines -- to ensure market share.”

"I see interest in restaurant listings and delivery continuing to wane, and service- or product-enabling technologies, such as POS systems and SaaS tools getting more traction," added Hall. 

EY echoed the sentiment as the ownership of delivery capabilities is likely to boost the bottomline for foodtech firms in the long run as an in-house delivery model increases the likelihood of profitability than a third-party or independent contractor model which bodes well for Grab and GO-Jek. “Going forward, ride hailing players and marketing platforms are likely to gain market share from captive players [restaurant chains like KFC and McDelivery], as captive players are likely to outsource their delivery to online aggregators.” 

Photo from foodpanda's Facebook page

Barracks Hotel will open in 2019 with 40 guest rooms.

Old buildings in Singapore are getting a new lease on life as they get repurposed into classrooms, and even hotels.

Take for example an old cinema house which has been transformed into discussion rooms by PSB Academy in their City Campus at the Marina Square.

“The open areas we saw were perfect for holding classrooms and also offer wide shared spaces and walkways that would be suitable for students to hold team meetings and discussions,” PSB Academy CEO Derrick Chang told Singapore Business Review. “The old cinema halls already had configurations that would be conducive for lectures, with their tier structure, wide walls for projection screenings,and wheelchair-accessible features.”

These features, according to Chang, made PSB and their landlord Marina Square Holdings see the chance to revive a large and quiet corner of the shopping mall, at the same time offering students the non-curricular facilities they need like food and entertainment, as well as convenience to the city centre.

Architects 61 which handled the refurbishment of the said discussion rooms had to take over a pre-existing cinema, a bowling alley, a pool and billiards centre, as well as an office to combine the units into a singular, cohesive school campus within Marina Square Shopping Centre. The firm narrated that one of the issues of the site was its very limited exposure to daylight due to the project site’s large floor plate and limited windows. This was largely brought about by the design of the existing building and the original purpose for which it was designed for - a cinema.

With this, the firm integrated dynamic lighting into the Town Hall located in the heart of the campus.

Also read: Here are three new Sentosa hotels to watch out for in 2019

“The pre-existing cinema screening halls have been converted to lecture theatres catering to different audience size and requirements,” the firm explained. “Retaining the acoustic properties of the screening halls, the interior finishes, chairs and AV provisions have been replaced to meet the needs of a lecture theatre.”

With the burgeoning demand for space in Singapore, ideas like PSB's redevelopment may provide a relief for the land-starved city. Currently, Singapore’s land area is confined to around 700 sq km. In this case, Hong Kong, with a total land area of 2,754 sq km can fit in around three Singapores.

Seeing what can be repurposed
In Singapore, there are generally two categories for repurposed buildings, explained Architects 61.

Conservation buildings situated generally in prime areas belong to the first category. “Its repurpose is made possible when Urban Redevelopment Authority (URA) allows other usage for the buildings, e.g. for commercial, cultural usage,” the firm explained. “The sustainable value to refurbish and revive the heritage buildings can either be or a combination of commercial and cultural.” Meanwhile, the second category will be driven primarily by cost-benefit analysis.

“Cost-benefit analysis will be looked at from various aspects like condition of the buildings, structural integrity, structural layout, extent of refurbishment required, locality, commercial value, long term maintenance, remaining lease period etc to determine the feasibility of repurposing the property,” they explained.

In Sentosa, a new swanky hotel slated to open in 2019 became another product of repurposing. Far East Hospitality’s upcoming Barracks Hotel was originally built as a British military outpost until after the World War 2. Later on, the First Singapore Regiment Royal Artillery (1FSRRA) was established and assembled in the area by 1948, according to the hotel operator.

Photo from Far East Hospitality.

It was in 2012 when Far East Organisation made a bid for the site to develop into a hotel. In the course of the property’s development, the architects had to tap on a consulting services engineer to groom the building into serviceablility conditions whilst taking into account the original integrity of the heritage buildings, said Arc Studio Architecture +Urbanism director Laurence Liew.

“We had deliberately kept the exterior appearance as close to the original as possible because we felt it was the best way to manifest its heritage and its structured simplicity underscoring the military-linked lineage,” he explained, citing the hotel’s recreated Parade Lawn which has been the historical space where officers marched and assembled.

Photo from Far East Hospitality.

With 40 guest rooms where rooms on the ground floor offer direct access to the pool and jacuzzi, Barracks Hotel is zeroing in on international visitors especially those coming from Australia, China, Germany, India, Japan, Russia, UK, and US.

Moving forward and transformation
Refurbishments have not only been tried for large-scale developments such as that of PSB Academy’s discussion rooms and the upcoming Barracks hotel. In fact, a cluster of old shop houses have been refurbished into hotels, restaurants, offices, and retail shops in Clarke Quay, Boat Quay, Chinatown and Tanjong Pagar, Architects 61 said.

“For heritage buildings sited in prime city areas, developers are motivated to repurpose them for higher value commercial usage and these buildings continue to remain as activated spaces from a city planning point of view,” they explained.

In the case of PSB Academy’s discussion rooms, Chang said that the students appreciate the non-conventional use of a shopping mall for their learning and development.

Also read: Hotel supply plunges to 10 year low in 2018 as land shortage bites

“Most appreciate the campus’ closeness to the CBD as many live and work nearby,” he said, noting that the facilities have witnessed ceremonies to performances and even TED Talks. “We love that they can use the space so creatively and to the benefit of the larger student community.”

More than upgrading higher value for old developments, Architects 61 also believes that repurposing properties extends the life cycle of a building when it has outlived its intended purpose and can result in a lower carbon footprint, making the process aligned with Singapore’s push to be a sustainable nation.

“Repurposing of existing buildings contributes to the gentrification of neighbourhoods. For a fast-paced, ever changing economy like Singapore, it allows for quick turnaround for SMEs to adapt, whilst having a reduced impact to the existing built environment,” the firm added.

Against the backdrop of increasingly old buildings, Architects 61 thinks that more cases of repurposing will unfold in the future as Singapore continues to builds and re-build its story as a nation.

“Especially so for heritage buildings that are historically, culturally, architecturally significant and valuable but their original intended purpose has been obsoleted, these buildings need to be appropriated to present-day needs to continue to remain relevant as part of Singapore’s built environment,” they explained. 

Find out which accelerator offers $120,000 in cash for promising start ups.

When an entrepreneur has an idea for a new business, there are special programmes that offer mentorship and funding to jumpstart their venture. Accelerator programmes are offered for a certain period, with varying areas of focus, and investment/equity stake. Increasingly, this new trend is emerging in the business ecosystem. Straight from leading venture capital firms, here are eight of the most promising accelerators in the city. They are arranged in no particular order.

Oracle Startup Cloud Accelerator

Duration: 6 months, with two-year extension option for the Oracle Cloud credits, 5 to 6 per batch
Areas of focus: IT
Investment/equity stake: Zero investment due to Oracle providing facilities, expertise, technical advice, and cloud services access.

Startups can gain access to Oracle Cloud services’ 420,000-strong global customer network. It believes in a pay-it-forward model where startups are provided key resources to support success without needing to grab equity. Alumni include farebond.com, a data science and analytics firm that provides dynamic price locks to hold airfares for undecided travelers; NiYOyo Solutions, a Fintech startup focussed on alternate payment mechanisms.

Entrepreneur First (EF) 

Duration: 3-9 months, 100 individuals per batch
Areas of focus: Deep technology, science, engineering
Investment/equity stake: $5,000 per month per founder for 3 months; $25,000 per company after 3 months. Commitment to invest in seed round and Series A funding with EF investing $55,000, partner SGInnovate investing $45,000, and Sparklabs giving $40,000 as capital

EF (Entrepreneur First) wants to bring outliers together and form teams from individuals that join in their network so businesses can be built together from the ground up. It brings strangers together to work and establish businesses through programme courses. Its notable alumni include London-based startup Magic Pony, a startup that uses machine-learning technology to improve the quality of images and video footages, which was acquired by Twitter for US$150m on June 2016. The acquisition is expected to boost Twitter’s live and video services such as Periscope and Vine. For Singapore’s first cohort, notable alumni also include Transcelestial Technologies that raised $2.5m in seed to build a laser communications network using satellites and MicroSec, who raised $1.5m working with IoT security.

muru-D

Duration: 6 months, 10 startups per batch from 15 country pool
Areas of focus: Digital and deep technology startups across all verticals
Investment/equity stake: S$75,000 in investment with access to global network of mentors, alumni, investors, and partners including a guided trip to Silicon Valley

Backed by Australian telecommunications giant Telstra, muru-D recently launched its third wave of startups where 4 out of 10 were from Singapore, including    Carepod, which aims to make travel more pet-friendly, and VR Labs, which allow real estate transactions in virtual reality. Its notable alumni include Apvera, which  offers security intelligence services that has raised over $1.6m in seed funding, and Sendhelper, a mobile domestic services provider for households.

PayPal Incubator 

Duration: 9 months, 3 to 5 per batch
Areas of focus: Fintech
Investment/equity stake: No specific breakdown of investments, not profit- driven.

Startups can gain access to PayPal’s expansive list of contacts and capital, a coworking space in Singapore Technology Centre, industry expertise, access to funding and infrastructure and mentorship by PayPal executives. PayPal Innovation Lab is an initiative to take Singapore to the next frontier in digital commerce and payments, and is not profit- driven. Inaugural batch includes InvoiceInterchange, a P2P invoice trading marketplace named one of the top 40 Fintech companies in Singapore by the Monetary Authority of Singapore. In March 2017, TenX raised $1m from famous investors like Fenbushi Capital with Bo Shen and Vitalik Buterin.

NUS Start-Up Runway

Duration: Depends on stage of journey
Areas of focus: Technology-related
Investment/equity stake: NUS Enterprise bundles: Startup SG Founder grant of $30,000 with $20,000 cash funding to first- time entrepreneurs; Lotus-NUS grants $25,000 to social enterprises; NUS Alumni Startup Catalyst is a $10,000 validation grant to alumni; and Overseas Launchpad reimburses up to 70% of approved expenses for expansion to overseas markets.

NUS Startup Runway offers a suite of initiatives and activities tailored to support startups at any point of their entreprenurial journey from pre-incubation, incubation, acceleration, to global scaling. They provide incubation support, ideation and validation initiatives, accelerator programmes, access to NUS tech, community and even access to overseas markets. It has nurtured startups like Carousell, Shopback, 99.co and has pioneered Modern Aging Singapore, the first elder market focused accelerator program.

Startup Bootcamp Fintech Singapore

Duration: 3 months, 10 to12 startups per batch
Areas of focus: Fintech
Investment/equity stake: $25,000, 6% equity

Startupbootcamp boasts of a global reach that links startups to key information, communities, industries, and investors essential for global expansion. It provides startups access to corporate partners, industry mentors, and its global networks. The accelerator is also a part of Rainmaking, a global cooperative of entrepreneurs whose vision is to create positive change through entrepreneurship, running startups and projects in more than 40 countries.
Each year, Rainmaking facilitates more than 1,250 startup events with 100,000 participants globally. Its notable alumni include Jumper. ai, which offers a unified AI interface for payments and transaction for e-commerce shops, and Boundlss, an Australian-based AI health bot that won Best InsurTech Startup of the Year award.

DBS Hotspot Pre-Accelerator

Duration: 3-month programme, 10 teams per batch with 8 weeks of bootcamp and workshops
Areas of focus: Fintech
Investment/equity stake: DBS and NEST offer 3 months free support, with warrant system allowing both to potentially invest in startup after programme. $25,000 (US$18,000) with zero equity.

The startup, which offers a collaborative working space, fields a lineup of executive mentors including Adam Lawrence, managing director for IBM Global Financial Services; Gina Heng, CEO of Marvelstone Group; and Alex Hutchinson of Deloitte Digital, among many other industry experts that will help startups grow their brand. Its notable alumni include Inncee and SushiVid.

The FinLab 

Duration: 100 days, around 10 startups per batch
Investment/equity stake: $120,000 in cash and services such as exhibitions, networking, and office space for 6 months; post-programme support; convertible note with a valuation cap
Areas of focus: Fintech, SME and commercial banking space, regulatory technology, data analytics, AI and machine learning

A joint venture between SGInnovate and United Overseas Bank Ltd, The FinLab enables selected companies to access mentorship and entrepreneurship support from both private and public sectors as well as a wide network of contacts. This carves out a path to faster business growth and easier entry to larger markets in Asia. Alumni include Transficc, Turnkey Lender, Tookitaki and HelloGold.

 

Meet OCBC and DBS's chatbots.

The next time you are looking to talk with a banker about a home loan, you may just end up being redirected to an online chatbot instead. OCBC has launched two bots; Emma who does home loans and Buddy who is an internal HR chatbot.

Your correspondent tried Emma and whilst she could answer simple questions like “can i get a home loan,” when questions got a bit more complex one was directed to contact a mortgage specialist. Perhaps the best way to describe OCBC’s chatbot is as an interactive FAQ, which saves the reader time to read through a whole list of questions. Nevertheless, simple as it may be, the use of chatbots to save bankers and clients time in answering repetitive questions is in its infancy and will only grow in the coming months and years. Since OCBC launched Emma in early January, Emma has responded to over 39,000 queries from 5,400 chat sessions with 11% converting to $30m in loans.

Pranav Seth, OCBC Bank’s head of e-business, business transformation and fintech and innovation group, said Emma is able to help customers determine how much they can borrow to purchase a property by asking the same questions a Mortgage Specialist would. “When computing affordability for a home loan or giving a step-by-step guide on applying for a renovation loan, ‘Emma’ can do so within its chat window. This way, ‘Emma’ will not need to direct the consumer to a separate website, where they have to sieve out the information," he said.

Other functionalities include a Total Debt Servicing Ratio (TDSR) calculator and it employs a narrowing down technique to understand the query better. Seth said that it took three months for Emma to be fully-trained to address all possible questions asked by consumers about home and renovation loans.

DBS’s chatbot efforts are through POSB Bank's dVA (digital Virtual Assistant) which is only on its Facebook Page. Customers can enquire about the bank’s products and services like locating nearby ATMs or knowing the opening hours of a certain branch just by sending quick message using the Facebook Messenger app.

DBS Bank head of consumer banking group Jeremy Soo said this is especially useful given that the bank is already serving close to 5 million consumers who demand seamless customer experience across platforms. "We know that our customers are spending time conversing on their favourite mobile messaging apps, and we are immersing ourselves in the customer journey by making it easier and more convenient for them to engage us. Customers can also soon look forward to conducting their banking transactions via this service,” he said.

Whilst OCBC does not yet have a chatbot that can answer general banking inquiries like DBS, it has instead developed Singapore's first HR Mobile App for its employees. The app includes an AI-powered chatbot named Buddy that is integrated with the Bank's human resources information system.

OCBC Bank senior vice president for group operations and technology Praveen Raina said Buddy can be asked a range of HR-related questions including mandatory leave requirements or status of an expense claim.

"The HR app which ‘Buddy’ is a part of, was launched on 23 May 2017 for Singapore employees. It actually came about from internal feedback; our colleagues shared that they wanted to be able to access HR information and perform HR-related matters without having to contact the HR team or be seated at their desks," he explained.

Creation of the bots

The development of the chatbots took some time especially POSB's dVA, which took developers 11,000 hours to train. Since September 2016, POSB trained dVA with actual questions and responses taken from the bank’s customer centre. The team has put up an annotation team to ensure that responses are kept valid and succinct. It also has learning abilities that makes it able to respond more accurately.

OCBC's Emma was developed by the home loans team and startup CogniCor, one of the firms under OCBC Bank’s FinTech accelerator programme. The startup specialises in chatbot solutions and, together with OCBC Bank’s expertise and knowledge in the home and renovation loans business, both teams were able to develop a customised chatbot through a rigorous programming and testing process.

Buddy took a shorter time before it was rolled out. Raina said it was developed by in-house team of five mobile developers in collaboration with the HR team. Both the HR app and the chatbot were completed within two months. "This efficiency can be attributed to the team’s adoption of the Agile project management approach, which gave them the flexibility to continuously improve and respond to changes or feedback instead of following fixed processes," he added.

Bots' future

Technology firm Juniper Network reckons that chatbots will be responsible for cost savings of over $8b per annum by 2022 globally, up from $20m this year.

By 2022, banking and healthcare services utilising bots can expect average time savings of just over four minutes per enquiry, which equates to average cost savings in the range of $0.50 to $0.70 per interaction.

The author of the Juniper report, Lauren Foye, said, "The advantages are that chatbots can save time, both for consumers and for customer service operatives, with many interactions streamlined to be instant, and thus far more efficient than traditional phone enquiries."

Being one of the chatbot pioneers in the financial industry, OCBC's Seth sees the ability to learn on the job as a critical part of the technology's improvement. "Majority of tech giants are already investing considerable amount of money into building chatbots and we are certain that one, or two, universally-accepted brand/form of chatbot will dominate the market. Currently, majority of chatbots work on a text-based conversation, but we are certain that the future of chatbots lies in their ability to converse with the user verbally. This will allow for more personal conversations and more tailored responses from the chatbots," he said.
 

In Photo (L-R): Pranav Seth, Praveen Raina, and Lauren Foye.

As the city-state remains amongst the costliest cities to live in.

Twenty-eight-year-old Kieran Hughes had high hopes when he decided to move to Singapore to be with his partner a year ago. In the United Kingdom, Hughes worked as a professional broadcast engineer earning an equivalent of $96,000 a year, enough to pay the mortgage and buy his own car there. With a strong professional background, he thought finding a job in Singapore with the same competitive pay would be easy. But when he started working in an audio-visual firm as a project manager, he suddenly realised that he bought himself a one-way ticket to dismal pay conditions.

Hughes now earns $4,000 a month – just enough to pay his rent in a tiny dwelling and to cover for necessities. He describes living in Singapore as "barely living" and was nowhere near the life that he had back in the UK. "I have a three-bedroom house in the UK with a big garden front and back and I rent it out for approx. $1,000 dollars a month. Here in Singapore, you can barely get a bedroom in a shared apartment for that kind of price," he recalled.

Hughes is amongst the 1.3 million foreigners struggling to make a living in Singapore. And whilst Singapore continues to be the most generous when it comes to expat salaries and benefit packages, it is almost like survival of the fittest for many of the expats like Hughes.

Benefits consulting firm ECA International found that expat packages in Singapore fell 6% in 2017 to $316,600 per annum, inclusive of salary, tax, and benefits. Meanwhile, in its closest rival Hong Kong, expat packages declined 2% to $356,800 per annum. Over the past five years, the gap has widened between Singapore and Hong Kong for the total cost of an expatriate package offered to middle managers.

ECA International regional director Lee Quane said, “Expatriates in Singapore have some or all of their cash and benefits determined in SGD values. For the purpose of our cross-border comparison, we have converted values into USD. As the value of the SGD has fallen against the USD in the past 12 months, USD values of expatriate packages in Singapore have suffered.”

He added that the costs associated with some of the benefits that have been provided to Singapore-based expatriates have fallen in the past 12 months. This led to accommodation costs in areas commonly inhabited by expatriate staff to fall in the past year, reducing the housing assistance provided to expatriates.

However, Quane argued that this would not affect Singapore's attractiveness when it comes to luring talent. "Despite a fall in the value of typical expatriate packages for middle managers, salaries are at their highest level in SGD terms for five years. Low tax rates also mean it remains an attractive location. Beyond salary incentives, Singapore will continue to be attractive to international talent as it is an attractive place to live and work," he reckoned.

Aon Hewitt Partner for Southeast Asia Kumar Subramanian concurred, noting how the declining value of expat packages seem to indicate that Singapore does not need to fork out significant pay premiums to attract expats.

"The value of working in a regional location, and the experience of working in Asia are significant non-monetary factors that global talent find attractive. In addition, a decline in wage increases in Western markets, as well as a greater pool of skilled talent including local Singaporeans and expatriates from emerging markets such as India and China, have moderated increases in expat packages," Subramanian said.

Fabio Fasolo, a 29-year old Italian shared that he is aware of how different it is to work in Singapore than in other rival cities in the region. He served as an assistant manager in Cé La Vi, an upscale restaurant on top of Marina Bay Sands. He received a decent salary for two years since he started working in June 2013 and then moved to Hong Kong.

"In terms of standard quality of living, Singapore has definitely something more to offer--very clean and safe environment, bigger spaces and more new building with many facilities," Fasolo said, noting that his $3,000 could only get him a very small studio in a not well-equipped building in Hong Kong then.

This living condition in Hong Kong pushed him to take his chances in Taiwan where he started working in September last year as the director of restaurants operations in Il Mercato Taipei. And whilst he finds Taipei way behind Singapore when it comes to modernisation and financial power, he said the cost of living in the said city is much lower by almost half.

"Overall, the purchasing power in Singapore for the middle class is higher, but as a foreigner, if you are able to get in Taiwan a good package you can have an amazing quality of living," Fasolo said.

For an expat to survive the high cost of living in Singapore, Fasolo reckoned that one should have a fair monthly salary of about $7,000.

Daniel Deeb Badr, Expat.SG founder said expat salaries and packages are really worsening, mainly in industries where the government got a long term masterplan, such as service industries including food & beverage and retail.

"As long you do not pay more than 1/3 of your salary for rental, the package should be fine. Public transportation is very fast & cheap, and in times of Uber & Grab you do not need a car. Also, food is cheap, in Europe you don't even have the possibility to buy a lunch or dinner for $3," he explained.

Whilst expat salaries are seen to be worsening, Robert Half Singapore managing director Matthieu Imbert-Bouchard said Singapore is still a prime city for expats to relocate to.

He said the reason for the worsening expat salaries was due to the declining cost of accommodation and airfares which may have contributed to the declining value of expat packages in terms of the benefits offered.

"Also, some expats are very willing to relocate to Singapore and may offer to pay for relocation expenses themselves. This, combined with the rising competitiveness of the local workforce, could contribute to the declining value of expat packages," Imbert-Bouchard explained.

However, this should not tarnish the city-state's reputation as an attractive site for skilled professionals. He added that more banking and finance professionals are going to Singapore as visitors and exploring job opportunities whilst they are there. "If people are willing to cover the cost of relocation, then Singapore will continue to be a highly attractive destination for expats," he said.

In the end, companies need to up their game to make sure they retain their staff and offset the impact of skills shortage. Whilst there has been a downtrend in overall expat salaries, more businesses still offer attractive remuneration packages to senior professionals in order to persuade them to make the move to the city-state. But clearly, the days when Singapore was a fully paid expat posting with full benefits are fast coming to an end for all except the most senior executives.
 

Occupancy cap was slashed to six.

Subdividing apartments into small sublets has been a mainstay of the cheaper end of the housing market in Singapore, but has drawn the ire of neighbours who are faced with a lot of people crammed next door. To alleviate overcrowding in apartments, the Urban Redevelopment Authority (URA) decided to reduce the maximum occupancy in private dwellings from eight to six unrelated people effective May 15. Apart from reducing the demand for bunk beds in Singapore, will this have an effect on rents and how hard will it be to enforce?

ERA Realty Network key executive officer Eugene Lim notes there has been an oversupply situation in the private residential leasing market over the last two years due to the large number of newly completed projects as well as the restructuring of the economy to become less reliant on foreign manpower. SRX Property estimates 3,653 non-landed Private Residential units were rented in April 2017, representing an 18.7% decrease from 4,493 units rented in March 2017. On a yearly basis, rental volume in April 2017 was 15.8% lower than 4,336 units rented in April 2016.

The decrease in rental volumes could be due to landlords subletting individual rooms within their units instead of renting out whole units. “Some of them have installed internal partitioning to create more rooms. There could be instances whereby a 3-bedroom apartment could evolve into a 6-8 bedroom apartment,” Lim explained.

Another scenario could be the landlord renting out his whole apartment to a company to house their workers. “To save costs, these companies could have packed as many occupants as they can into the apartment; especially if they work on shifts,” he said.

JLL Singapore head of residential leasing Juliann Teo said this move by the government is to ensure that the players do not churn out nano-apartments as they do in uber-expensive Hong Kong.

“Over the years, the size of residential properties is trending smaller. The slash on occupancy cap is likely to ensure that overcrowding and its associated hazards do not become a norm,” Teo explained, noting that this will also spur take up for smaller studio unit-types and one-bedroom apartments. Teo added demand for private properties may likely see an increase and could perhaps uplift rents, given that from a mathematical perspective, those housing units with eight occupants would have to displace two to keep up with the limit.

Landlords with five-bedroom units would have to rent out their properties to families as they are not affected by the occupancy cap. “It is a good move in view that the rental market environment is seeing an oversupply and “desperate” landlords rent out rooms instead of the whole unit,” ERA’s Lim argued.

PropNex Realty CEO Ismail Gafoor noted that the recently-imposed cap of six is a reasonable number, taking into consideration the smaller sizes of condominiums in recent years due to the quantum involved.

“In fact, in our opinion, this limit of the number of tenants has its advantages. Private properties are meant to be exclusive, with owners of the development having the quiet enjoyment of the facilities and lifestyle offered. In order to maintain this exclusivity, the cap of six tenants is reasonable to begin with,” he said.

Policing the policy changes may prove challenging, but the squeeze on landlords has begun and for tenants they will get to enjoy more space. 

In photo (L-R): PropNex's CEO Ismail Gafoor, ERA KEO Eugene Lim, and JLL Singapore head of residential leasing Juliann Teo

Food delivery firms battle for sustainability.

Singapore’s love for home delivered food is growing fast, with an estimated $250 million a year dispatched to hungry diners’ homes this year and could grow to $600 million by 2021. Amidst the growth, there are still a few cautionary tales and questions on the long-term sustainability of home delivered meals. Take food delivery company hawker.today for example.

When the firm delivered its first order in late 2015, it became an instant hit, growing 400% month-on-month and employing eight full-time employees with 60 delivery riders. Yet eight months after its launch, hawker.today shut down, a victim of a pricing failure that founder Jonathan Faynop said was due to delivery charges that Singaporeans ultimately were not prepared to stomach. When it launched, the firm had a delivery charge of $4.50 for a minimum order of $8. This fee was then amended with a surcharge of $3 for orders under $12, meaning that an order under $12 would attract a $7 surcharge. The firm felt the fees were necessary to pay the riders, who often had to ride a long distance, but customer feedback was that the delivery fees were too expensive. "Like any startup, we had fundraising milestones, we had a very great investment deal on the table, but was unfortunately lost after a deadlock," he said, also citing differences between the founders.

Now Faynop is back at it again, rebranding the business to Yihawker hoping to rise like a sweet and sour braised phoenix out of the ashes and leftovers of his last business. This time his concept is e-hawker centre and handles deliveries from Bedok 85 hawker centre in East Zone, covering Pasir Ris all the way to Paya Lebar. In April it launched partnerships with over 30 hawker stalls available for Central Business District and employed 20 riders. Around 90% of its hawker stalls are exclusive. "We started seeing break even on the delivery operations. A combination of experience, new team and many hard lessons learnt, including speaking to VCs way earlier this time, allowed me and my team to gear towards a stricter direction," Faynop said. Yihawker is just one of several niche players up against the two dominant players, Foodpanda and Deliveroo.

Delivery giants

Foodpanda started in Singapore in 2012 and delivers from more than 3,000 food outlets with its fleet of 2,500 riders delivering up to 20,000 orders a day. Foodpanda Singapore managing director Aspa Lekka cited saturation as a concern for the years to come, given the large shift towards e-commerce from traditional retail, but it has not reached that point yet.

"As food delivery is still a nascent market, even in Singapore, and new customer acquisition cost remains high, having our competitors spending in building up our market is in our long-term interest," said Lekka.

Foodpanda uses a proprietary dispatching software in processing orders which is particularly useful in segregating orders from halal and non-halal restaurants, Lekka explained. "It utilises algorithms to determine best delivery routes, including non-halal journeys to ensure halal riders do not encounter non-halal restaurants on their shifts; restaurant applications to notify restaurants of orders placed, and also provide sales & transactional history for their own reconciliation." It has also jumped on the drone-delivery bandwagon, testing out deliveries through unmanned aircraft in Singapore. The goal is to reduce delivery time to under 30 minutes. Deliveroo is the other big international delivery boy on the block and has been in Singapore since mid-2015. 

Dark kitchens

Deliveroo is helping well-known restaurants establish separate “dark kitchens” in different locations which exist solely to cook for the delivery market, with no walk-in customers or dining room. The firm pioneered this concept dubbed as Deliveroo Editions in London and now has its own pop up kitchen in Katong, where it houses four restaurants under one roof including Muchachos, Sacha & Sons, Blu Kouzina, and Pho Stop. These four do not have a physical store in Katong but they still receive a high demand for delivery orders.

"It's a combination of logistics, technology, and data. Based on data we are able to predict what customers in a certain area will like, which restaurants will mostly do well in an area. We are able to understand what kind of cuisine gaps are there. With all these information we are able to hand-pick restaurants," Deliveroo Singapore general manager Siddharth Shanker explained, noting that their biggest asset is their collection of customer data.

What niche players lack in technology and muscle, they are trying to make up for with service and product differentiation. Take the online platform Alcohol Delivery which is one of the best examples of firms who found their place in the business. A brainchild of siblings Travis and Suzanne Chia, this firm offers alcohol and beverage delivery and has just turned profitable after growing revenues five-fold since 2012 with six full-time and four part-time drivers. Its services are currently available via an online platform, which lets customers pick from over 600 items ranging from cocktails packages that come with bar tools to snacks and drinking games. Orders above $50 waive delivery charges. Its standard delivery fee for orders below $50 is $10.

“To date, we have been receiving a steady flow of orders and on a daily basis and we find ourselves delivering to homes and offices and the products range from cans of beer, bottles of wine as well as various spirits,” said Travis, adding that 95% of their orders are delivered within just one hour.

Tech and delivery

Alcohol Delivery is at the early stage of ramping up its tech but is pushing efforts to automate more of their internal processes. "This system will also be able to track the real-time location of the delivery progress and capable of formulating the total time and distance into a monetary value for salary calculation. As long as you’re in a tech-based industry, you will always have to keep up with the evolving technology. Food vendors have an intrinsic role to play when it comes to the quality of the food, which is half of the battle itself. If delivery companies do not keep up and keep their platforms fresh and relevant, not even a Michelin-starred vendor can save the platform and likewise, no state-of-the-art platform can do well without a quality vendor," said Travis of Alcohol Delivery.

It is this type of technology power that smaller food delivery startups have to contend with. Yihawker’s Faynop said he is differentiating his company from its competitors as Go-Jek did with Uber in Indonesia. Right now, Yihawker utilises Google Firebase tech which allows them to iterate and make changes, back to front end in real-time. "I think the future of sustainable and impactful businesses is not in the single or linear approach. It’s going to be dynamic, unpredictable and complicated. I think Yihawker is in a very sweet spot for innovation that can value add to the dynamics of Southeast Asia."

Exclusive deals

Technology is not the only issue facing food delivery companies as they struggle to compete for customers. Last year several food delivery companies drew the attention of regulators when it was revealed they had signed exclusive delivery arrangements with restaurants, something which could breach competition laws. After an investigation, Competition Commission of Singapore chief executive Toh Han Li said the use of exclusive agreements with online food delivery providers is just one method to attain market shares, and not as anti-competitive others deemed them to be.

“In the event that the online food delivery provider becomes dominant, the presence of such exclusive agreements risk infringing competition law as it would affect the competitive state of the market. Instead of relying on exclusive business practices, businesses should compete on merit, leading to a more vibrant market with more choices for restaurants and consumers,” Toh said.

Foodpanda’s Lekka said, "We do not enforce any exclusivity contracts on our vendors. As a player in the industry, we see that it's very unfair to expect restaurant partners to limit their business in order to benefit ourselves."

But Deliveroo has a different take on this. Shanker noted that restaurants have a choice to take on such deals or not. “Nobody can and nobody is forcing restaurants to take on exclusivity deals. The restaurants choose to do so because they feel that certain service providers can give them better service.”

For Alcohol Delivery's Travis, such deals allow food delivery companies dominate all existing customer base of the restaurant, increasing the brand awareness of the food delivery company thus increasing their revenue. “Whilst it is definitely to a certain extent anti-competitive, but competition in the whole industry would not be affected too much as there are a plethora of food companies available. After all, it might also force competitors to innovate even further to come up with creative ways to gain back the market share.”

“In terms of consequences for the F&B sector, every operator now needs to be able to think beyond the walk-in customer and realise that they now have easy access to a Singapore-wide platform. This could have an impact on their menu assortment, on their promotions, and on their operations – as they are also now competing not just locally but Singapore-wide. They should constantly monitor the entry of new players in the delivery business, and new restaurants that have joined specific platforms. Restaurants that have their own proprietary delivery systems may wish to reconsider if they can afford, from a quality perspective, to outsource their deliveries to one or more of these new companies,” said associate professor of marketing education at Singapore Management University Seshan Ramaswami.

As the delivery whales battle it out and the niche minnows try to grow without being eaten, the one sure winner is Singapore’s diners who continue to enjoy almost any food or drink delivered to their homes.

And check out what StarHub and M1 have to say about the potential new telco.

After 15 years of being a triopoly between Singtel, StarHub, and M1, the telco market may soon see one potential player change its game.

The Info-communications Media Development Authority of Singapore has shortlisted potential new telco players to a battle between Australia's TPG Telecom and MyRepublic, leaving the neophyte airYotta out of the game for not meeting the auction requirements. The two will be participating in the New Entrant Spectrum Auction, with 60 MHz of spectrum from the 900 MHz and 2.3 GHz bands up for grabs. The winning telco will be awarded before the end of the year, but should the incumbent telcos be worried?

Not immediately is the answer, according to analysts the Singapore Business Review spoke with. A spokesperson from RHB says the new operator would have to go by a tedious process in order to gain traction in its first few years.

RHB explained that the new operator will have to observe strict rollout obligations such as ensuring street level coverage within 18 months of the license award, which is by end of September 2018, and it has until end of September 2019 to establish tunnel and in-building coverage.

"This is easier said than done when access to buildings and sites are limited and domestic roaming is not mandated by the IMDA," said the firm’s spokesperson.

Eugene Chua of OCBC Investment Research concurs, noting that in the 54 months that it has to build up its network coverage, it would have to incur costs and record large cash burns.

"I think surely they will have to start to try to gain scale right from the start. Telco business is highly dependent on scale mainly due to high fixed costs. It would be ideal if they can gain scale quickly as a result to help offset some of these costs," Chua argues.

Who stands a better chance of becoming Singapore’s next top telco

In terms of experience and financial capabilities, RHB thinks that TPG could give its rival a run for its money, given that it is already listed in the Australian Stock Exchange.

"TPG has evolved via a series of M&As and is financially capable. It is the second largest broadband provider Down Under and owns/runs key infrastructure assets such as fiber," the brokerage firm says. TPG already has the grasp and expertise of being a mobile virtual network operator, being that of Optus and VHA.

"It is also a MVNO (Mobile Virtual Network Operator) of Optus and VHA. TPG does have the expertise (both fixed and mobile) and track record of commercial execution, and could prove to be a credible threat if it gains the fourth license," RHB furthers.

But in terms of being already immersed in Singapore, MyRepublic has the advantage. OCBC's Chua argues that its broadband service coverage in Singapore may come in handy.

"If it should win, I believe it will be able to immediately bundle and offer its existing broadband customers attractive mobile plans, something TPG can’t do yet. Bundling makes customers stickier and usually provide better value to consumers," he cites.

How will the new player affect the telco Goliaths

Should the fourth telco gain enough strength to take on its bigger firms, the two lesser Goliaths will then be the most impacted. Chua cites M1 to be the most vulnerable, since it has 100% exposure to Singapore, with around 85% of its revenues derived from the mobile telecom segment.

"We believe M1 will be the most impacted if a 4th Telco entrance does materialise, especially since it does not have an enterprise business to mitigate such an impact," Chua explains.

M1 had a 24.7% share in the postpaid mobile market and 22.2% in the prepaid mobile market in Q3 with 1.2m and 0.8m postpaid and prepaid subscribers, respectively. Its director for corporate communications Ivan Lim says the group is confident that they can retain their market share, given their lists of feat in the industry. 

He said that it was M1 who launched the first 4G service, SIM-only plans, and unique data passport service. This is where customers can use the local data bundle overseas in 48 countries at $10 per country per month. Singtel and StarHub have launched theirs just recently.

The other telco giant, StarHub, would also have to brace for earnings cuts with its 100% exposure to Singapore. It has a mobile subscriber base of around 2.3m, 60% of which are postpaid customers. Compared to M1, StarHub only has around 50% of its revenues accounted to mobile service.

"While we await results of the new entrant spectrum auction, our focus remains the same, that is on our customers and shareholders. No matter the outcome, we will continue to work hard to provide our customers with quality service and reliable network, and drive returns for our shareholders," StarHub corporate communications senior executive Philemon Foo said.

Why Singtel can shrug off the new competition

Unlike the two incumbents, Singtel is the most comfortable with the added competition. It should not have a problem losing some of its 4.1m customers that reflect 49% of the overall mobile market.

Aside from its wholly-owned subsidiary Optus in Australia, it has shares in different telcos across Asia Pacific including the Philippines, India, Thailand, and Indonesia. It also has shares in telcos spread in African countries. Overall, it has 630m mobile customers - proof that the entry of a fourth telco is nothing but a scratch to the telco giant.

However, a Singtel spokesperson notes that the telco market in Singapore does not need a fourth player.

In an emailed statement, Singtel says, "The competition amongst the current three players is already intense which means we are already innovating to bring the best services to our customers at the best possible prices. We have given our customers more pricing options and higher data allowances and raised the bar when it comes to our customer service, network reliability and quality and innovative services.”

Soon Singapore will find out whether the hometown favourite MyRepublic will win or whether the Aussie giant will get the license. Until then, expect local players to continue to fight hard for customers.
 

And checkout how they adopt Japanese ready meals mix trend.

Self service checkouts are something people are only used to seeing in supermarkets, but now Singapore’s convenience stores are also trialling similar technology to cope with the debilitating manpower crunch.

The two biggest convenience store chains in Singapore recently launched new technologies to compensate for their staffing needs and increase productivity.

7-Eleven Singapore, which has 438 stores island-wide and processes 9 million transactions monthly, is in the midst of launching 7-Connect Kiosk, a self-help machine for quicker and more efficient bill payment. They also employed tap-and-go payment such as PayWave to reduce cash transactions.

7-Eleven is ramping up self-service tech such as 7-Connect Kiosks.

“Understaffing is a constant issue within any retail industry. We are in the process of implementing pertinent services such as a self-service check out kiosk and bill payment kiosks,” 7-Eleven Singapore chief operating officer Steven Lye says.

Lye shares that 7-Eleven is in the process of retrofitting its stores to be more contemporary, and new outlets will include seating areas and parcel collection points. Putting seating areas and tables inside convenience stores is popular in countries like the Philippines where more food is served up, but relatively new to Singapore.

As a result of the new designs, future 7-Eleven stores will need a footprint of at least 800 sq ft. This could mean that smaller hole in the wall convenience stores will be under pressure.

These moves were no different for 7-Eleven’s rival, Cheers. The store chain’s general manager Victor Cheong has opted for the iCash System to streamline the company’s 3 million monthly transactions. iCash involves the customer putting cash into a machine and the machine then dispenses change, meaning the cashier never has to touch the money.

“This takes the burden of handling cash away from staff, increases accuracy in accepting and dispensing change, which in turn improves customer satisfaction,” Cheong stresses, “The system also eliminates the need for staff to manually count cash at the end of each shift, thereby saving up to 30 minutes each day.”

This technology is installed in 25 of their 152 outlets island wide. Cheers also deployed NETs self-service kiosks that provide convenience to consumers with a wide range of financial services such as bill payments and top‐ups.

 With 154 convenience stores all across Singapore, shoppers can be sure to find a treat that adds more to their life anytime of the day.

“Through innovation and automation, service staff are able to lighten their load while focusing on more value-added work such customer service. These allows us to enhance the convenience store experience for customers without taxing manpower staff, closing the manpower shortage gap,” Cheong explains.

But there may also be a limit to technology in convenience stores, with complete self service checkout solutions like those at supermarkets harder to implement, argues Euromonitor International research manager Adhitya Nugroho. “Although self-serving counters are becoming more visible in supermarkets/hypermarkets in Singapore, convenience stores have its own challenges to implementing such technology,” he states.

Cheers has also been busy revamping its service station concept, which started with Esso 14 years ago. Its FairPrice Xpress and Cheers stores at Esso service stations have partnered TCGC Pte Ltd, a consortium of local brands, to provide a new line of ready-to-eat meals that are of good quality and value. “We will be looking to also bring this new range of ready-to-eat meals to the rest of our stand alone convenience stores,” Cheong says.

Ready, Set, Eat: Convenience stores turning their menus Japanese 

But it’s in food where the two biggest convenience store chains in Singapore are really changing their offering. With their respective taglines, “Adds more to life,” at Cheers and “There’s always 7-Eleven,” only one thing was running in their minds: How can they attract people who are always on the go?

As it turned out, the answer was easy. Euromonitor International’s Nugroho points out that convenience stores in Singapore are following the footsteps of other countries especially Japan, where ready meals mix have gained traction.

“Due to higher volume of ready meals sales, the players are able to price its offering to be more competitive with other food service providers such as fast foods and hawker centres as an alternative place to buy food and beverages, particularly in the wee hours,” Nugroho explains.

Although the two convenience store chains are already offering some ready-to-eat meals, it was only recently when they adopted Japan’s ready meals mix trend.

Lye shares that his local team is closely working with 7-Eleven’s Japan arm to develop ready-to-eat meals. They launched this line just last month.

“They are the best team to advise us on the transition as they have been bringing quality pre-packaged meals to their customers for many years,” Lye says, stressing that the new trend will form a significant portion of their total store sales.

Singapore’s largest convenience store chain launches new positioning and business direction to capture larger and more diverse customer following.

Currently, their 438 outlets offer a myriad of ready-to-eat meals in local flavours such as Hainanese Chicken Rice, Braised Duck Rice, Butter Chicken Biryani, and Carrot Cake.

“We also have a premium range of Japanese pastas – Spaghetti Al Funghi with Mentaiko, Spaghetti Neapolitan, and Vegetarian Spaghetti. For dessert, we also have a Chocolate Lava Cake which has proven to be very popular. Other items include fresh chilled sandwiches and Japanese onigiri,” Lye mentions.

It is not so different with Cheers, which has partnered with TCGC Pte. Ltd. in November this year to provide consumers with convenient and ready-to-eat meals. With the partnership, Cheers is able to offer ready-to-eat meals from The Common Good Company, The Soup Spoon, Udders, PastaMania, and &Will to its 154 outlets across the city-state.

Cheong notes that Cheers is utilising the vacuum skin packaging technology, which ensures preserved flavour and colour, keeps portions fresh and unmixed on the tray, and extends shelf life with no compromise on nutrition.

Cheers revamped convenience stores has transformed into a lifestyle destination with quality and affordable ready-to-eat meals, snacks and courier services all in one convenient location.

“The offerings serve to change mindsets of RTE meals in the industry as an alternative quality meal occasion, through tapping on state-of-the-art technology and innovation,” he stresses.

As the concept of ready-to-eat meals gains popularity in the city-state, Nugroho suggests that the two convenience stores could also tap into offering freshly brewed coffee, as Singapore consumes one of the highest total volumes per capita for coffee in Asia. 7-Eleven currently has 7-cuppa machines in its outlets, which offers a cup of coffee for $1.90.

“Convenience stores in Singapore could tap into this exciting area by offering value for money freshly brewed coffee in the stores. Freshly brewed coffee is quite a common offering in other developed countries such as Taiwan, South Korea, Japan,” he suggests.  

Millennials demand faster and easier ways to pay.

It seemed awkward at first, as J.D Power Director Gordon Shields recalls it, having to pay using his phone at a local supermarket in Singapore. He tells how the checkout assistant confusingly shouted "Apple Pie, Apple Pie" across the store when he handed her his iPhone in an attempt to pay using the mobile app Apple Pay at that time.

"It makes you wary of trying the payment option again," he says, although the cashier team finally managed to make it work.

Launched in just May by Apple and followed in June by Samsung and Android, mobile wallets have now been adopted by one in four Singaporeans but one in three millennials. Shields said that as mobile wallets allow transactions to be made quickly and also for notifications to be registered on the mobile phone, this allows cardholders to have access to their most recent account activities, as well as to receive any alerts or messages from the card issuer on their account.

“It also helps to improve overall transparency over the account and can work to provide greater control on spending – either for someone who wants to manage their spend on certain categories, or others who may be working towards a certain cashback or rewards spend target,” he says.

He adds, “In essence, as consumers like to have greater transparency over their accounts and prefer quicker access and control, without going through certain hurdles with OTPs or hard tokens, mobile wallets offer a good solution. However, the barriers to usage are multifold, including acceptance level across merchants, perception of fraud or misuse by cardholders, as well as the simple awkwardness for some users when trying the first time.” 

Contactless payments using mobile phones in Singapore have gained popularity only this year with more than 30,000 retail points in Singapore have enabled payment through apps such as Apple Pay, Samsung Pay, and Android Pay.

"We expect overall usage to increase, as people move more to having their cards and loyalty programmes on the smartphone rather than in the physical wallet. However, how fast the growth will be still remains unclear," he explains.

A certain way to gauge how fast mobile wallet will gain more traction is by looking at how banks in Singapore embrace the innovation. OCBC Bank says it has seen over 35% growth in contactless payments for the past year.

"It was an easy decision to embrace digital wallets, be it Apple Pay, Samsung Pay or Android Pay, as we want to make this convenient payment method available to as many OCBC customers as possible," says OCBC lifestyle financing group head Desmond Tan.

For Usman Khalid, Standard Chartered Singapore’s payments head, mobile wallets dissolve friction from payments.

“Customers have strongly embraced these platforms as part of their lifestyles, with our customer engagement metrics showing a positive increase. We are also seeing significant growth in customers’ overall contactless spends,” he notes.

Standard Chartered says it is the only international bank in Singapore to have launched services in three mobile wallets for its clients. As the technology cuts across all three mobile phone operating systems, Khalid said they have seen consumers use mobile wallets for small ticket size “everyday spend” categories such as supermarkets, coffee shops and fast food restaurants.

Meanwhile, Maybank Singapore Community Financial Services Head Choong Wai Hong notes that their card members have the option to pay using Samsung Pay app. More than the ease of using one, Choong says customers could rely on the added security the technology offers.

"The mobile wallet is also safe to carry and use. While some consumers may forget to bring their cards or wallets when leaving home, they rarely forget their mobile phones. Hence it provides the added comfort that they have their wallets with them even when they forget to bring their physical cards," he underscores.

Choong stresses that one challenge for banks is to get more customers to adopt the new mode of payment.

"Another challenge is that not all models of mobile handsets support the respective mobile payment apps, so we have seen cases where customers want to embrace this form of digital payment, but their current mobile handsets are not compatible," he says.

Out of all the apps, only Android Pay can be used by older NFC-enabled mobile phones. Samsung Pay and Apple Pay support only the latest handsets of their respective brands.

But for users who had positive experience using mobile wallets, Choong acknowlodges it is likely that there will be high penetration of mobile wallets in the long run.

"In the short to medium term, what’s more likely is the scenario of consumers using a combination of physical card payment and mobile payment. Furthermore, physical cards are still necessary for payment in other countries where there is no or low mobile payment acceptance," he says.

OCBC’s Tan has the same sentiment, adding that financial institutions should speed up their innovation process or risk becoming a laggard in this rapidly-changing world of payments.

“We are expecting digital wallets to lead the next revolution in the rapidly growing world of payments,” he foresees.

Some banks have gone so far as creating contactless ATMs. UOB, aside from launching Asia Pacific’s first contactless payment option through its UOB Mighty app, has promised to roll out 60 contactless ATMs around the city-state by January next year. It ambitiously eyes to replace all of its 634 ATMs with NFC-enabled ones by the end of 2018.

UOB Head for Personal Financial services Dennis Khoo says the bank even worked with partners to introduce contactless mobile payments at all MRT stations in Singapore.

“This means that UOB cardmembers can now simply top up their EZ-Link cards at any General Ticketing Machine with a tap of their smartphone,” he notes. “It is as important to grow acceptance points in areas that are most relevant to our customers’ lives, from retail and groceries to transit. “

He, like Shields, believes that it will be millennials who will advance the adoption of mobile wallet technology in Singapore.

“We have noticed that they are generally early adopters of new innovations such as contactless mobile payments. As they will soon make up the largest demographic of consumers in Singapore, it is natural that they will continue to influence and shape the consumer landscape in Singapore,” he concludes.

In photo: (L-R) Maybank Singapore Head of Community Financial Services Choong Wai Hong, J.D Power Director Gordon Shields, UOB Head for Payments Dennis Khoo

Most are targeted for completion in 2018.

Rents are moderating in the second half of the year--an opportune moment for companies which have been waiting on the sidelines to jump into the market and secure premium spaces at favourable rents.

Data from Cushman & Wakefield (C&W) show that in the second quarter, the overall Grade A CBD vacancy rate dipped 0.4 percentage points to 4.2%. Marina Bay’s vacancy rate declined to 5.5%, down from 6.0%. Similarly, the vacancy rate in Raffles Place decreased to 2.9%, down from 3.7% in the previous quarter.

As a result, the overall Grade A CBD rent moderated by 1.1% to S$8.86 per square foot per month (psf/mo) in the second quarter. Marina Bay rents declined by 1.4% during the quarter to S$9.56 psf/mo, while rents in Raffles Place slid 2.0% to S$9.13 psf/mo.

As rents are still relatively cheaper when projects are yet to be completed, below is a list from C&W of the upcoming projects to help companies looking for affordable premium spaces.

In order to boost spending, reduce wage inflation.

Market watchers are always racing ahead of each other when it comes to predicting when policymakers will lift property cooling measures. But now a report by Maybank Kim Eng has posed a previously unthinkable question: What if buying curbs become permanent?

The report argued that unless property prices plunge suddenly and dramatically, buying curbs may not be lifted in order to substantially reduce Singapore's unhealthy fixation with real estate.

"Singapore households have SGD840b of capital or 209% of GDP tied up in residential property. This has resulted in lower disposable income which has impeded consumer spending and muzzled entrepreneurship. Another less obvious implication of property 'overinvestment' is that home-price appreciation fuels wage inflation, reducing Singapore’s cost competitiveness," said the report.

Residential properties also remain a wildly popular investment class despite paltry returns in recent years, with investors stashing away bulk of their savings in the expectation that they can one day snap up homes once house prices eventually drop.

"Singapore households are sitting on a cash pile of SGD374b, which has surged since property curbs were rolled out in 2009. We believe that residential properties are sucking in surplus capital, with an increasing number of Singaporeans buying their second and third properties. This is economically non-productive," said the report.

The report argued that the economy will be better off if this idle capital is deployed elsewhere, such as by boosting entrepreneurship and improving consumer spending. Maybank Kim Eng also noted that higher home prices are driving wage inflation, which will impinge on Singapore's labour competitiveness.

Maybank Kim Eng argued that Singaporeans need to be weaned from their age-old aspirations of being landlords earning passive rental income. Investors also need to shed their deeply entrenched belief that investment properties are the best assrt class to hold.

“To ensure Singapore’s long-term survival, we believe that the government should not remove property-cooling measures. A sustained and gradual easing of property prices is necessary to restore business competitiveness, in our view. If part of the monies that has been locked away in anticipation of a bottoming of the property cycle flows towards productive assets or even consumption, we believe entrepreneurship can be enhanced and thrive,” Maybank Kim Eng noted.  

They offer up to 15% discount.

While Singapore's luxury market saw  price increased for the first time in non-landed properties in CCR in three years last April, many analysts believe that it is too early to consider it as the turnaround. Many say that a sustainable recovery is only possible should sentiment improves, and if potential relaxation of property policies materialises.

Amidst a rather difficult environment for the high-end segment projects,  RHB's ground check, show that more luxury projects are seen dangling discounts to entice buyers. Some of which are as follows:

Tech firms are higly targeted.

A flurry of offers for listed companies has gripped the Singapore market lately. OCBC Investment Research said that given how much share prices have declined and how attractive valuations are for certain companies out there, it is not surprising that bargain hunters are once again on the prowl for good deals.

At the same time, OCBC added that world flush with liquidity has meant that capital costs have remained low, especially for stronger corporates and individuals.

To obtain a list of potential candidates for privatisation, OCBC screen for stocks that are unloved and trading with low Price/NTA ratios. From this list, it searched for companies that are net cash, have large shareholders that are able (and perhaps willing) to control the entire entity, for reasons such as greater operational flexibility and the opportunity to relist in the future (either in Singapore or overseas) at better valuations. Also, considering the huge ownership, moves to trigger a privatisation should not be too difficult, if a decision to do so is made.

OCBC also looks out for companies whose insiders have been scooping up shares recently. To broaden the search, it also soughts a list of companies that have been undertaking more share buy backs recently.

Below are the companies that are more likely to be privatised or taken over, according to OCBC's screening: