And find out which REIT is capitalising on the favourable US office market.

From PropertyGuru: Global engineering companies Systra and Meinhardt have been awarded two Reference Design Consultant (RDC) contracts by MyHSR Corporation, and is responsible for implementing the Singapore-Kuala Lumpur High-Speed Rail (HSR) project in Malaysia, reported Today Online. This comes three months after American company Aecom was awarded the contract to design the Singapore infrastructure for the HSR project. 

From The Motley Fool: As Asia’s leading agribusiness group, Wilmar is engaged in a variety of businesses. According to its corporate profile, the company has 500 manufacturing facilities and a distribution network which spans some 50 countries. These businesses are divided into four main business segments: Tropical Oils, Oilseeds and Grains, Sugar, and Others.

From CNBC via Yahoo!: The improving business climate in the United States has fueled greater demand for offices in the country at a time when supply is still short — a trend that one Singapore -listed real estate investment trust has benefited from. Manulife U.S. REIT, whose portfolio comprises three freehold office buildings in Los Angeles, Irvine and Atlanta, said the favourable conditions have led to a 5 to 7 percent increase in rents over the last 12 months.

Robust petrol service stations sales boosted overall output.

The spotlight was on petrol service stations segment in March as it boosted retail sales index to 2.1% YoY.

For the said month, petrol services stations recorded the highest sales growth of 11.3%. Watches and jewellery closed the second highest sales growth of 7.8%. Motor vehicles sales came next with the 6.9% growth.

Excluding motor vehicles, growth would have been a measly 0.7%.

On a monthly basis, retail sales went down 0.3% in March. This would be due to the month-on-month slump in food retailers sales at 6.6%.

Check out the retail sales index table below:

The lower gross profit margin is partly to blame.

Ezion Holdings reported a slump in revenues for the past quarter, down 16.4% to US$68.6m.

The lower gross profit margin of 12.8%, as well as US$13.3m net foreign exchange loss resulted to a net loss of US$12.7m ($17.9m) for the group.

OCBC Investment Research said the strengthening of the SGD against the USD resulted in forex losses on the group’s notes payable.

"Whilst not expecting the charter rates for its fleet to recover quickly, management is seeking to improve the utilisation of its fleet in 2H17. It is also working with potential partners on co-ownership of some assets," the brokerage firm said.
 

Allowable tenants will be reduced from 8 to 6 unrelated persons.

A report from PropertyGuru reported that the Urban Redevelopment Authority (URA) has reduced its cap on allowable tenants for private properties.

The new rule cuts the current number of allowable tenants from eight to six unrelated persons. URA noted that whilst the new rule will take effect starting on Monday, it will still allow existing tenancy agreements with seven or eight tenants to run its course until 15 May 2019.

Read the rest of the story here.
 

Due to the absence of the contribution from Twin Fountains EC in Singapore.

Frasers Centrepoint Limited reported lower revenues and earnings for the past quarter, down 21.4% and 42.2%, respectively.

The group achieved $705.8m revenues and $71.2m profit, compared to last year's revenue of $897.9m and attributable profit of $123.3m.

"The lower revenue and PBIT compared to the same period last year were primarily due to the absence of the contribution from the Twin Fountains executive condominium in Singapore, which was completed in the corresponding period last year," the group noted.

Here's more from the group:

On a half year basis, revenue climbed 7% year-on-year (“y-o-y”) to S$1,677 million and PBIT rose 17% y-o-y to S$510 million in 1H FY17.

The increases were underpinned by a higher level of settlement of
residential projects in Australia compared to last year, as well as earnings recognition from the completion of Phase 3C1 of Baitang One Suzhou, China.

In line with the improved performance, 1H FY17 APBFE and attributable profit grew 26% and 17% y-o-y to S$253 million and S$259 million, respectively.

The funding was given to Sunseap Group.

Singapore banking giant United Overseas Bank (UOB) lent $15m to Sunseap Group for a series of solar projects in Singapore.

The projects include the 9.5 MegaWatt peak (MWp) solar photovoltaic (PV) system at Jurong Port, the world’s largest solar PV system installed in a port, and the 2.4 MWp solar PV system at consumer electronics company Panasonic.

UOB head of group commercial banking Eric Tham said the bank is supportive of clean technology projects.

"UOB is committed to supporting investments, such as clean technology projects, that contribute to the sustainable development of economies and communities. We are pleased to be funding solar-powered initiatives that will help reduce the carbon footprint of companies in Singapore,” he said.

Sunseap director and co-founder Lawrence Wu said the loan demonstrates UOB’s confidence in the solar industry in general.

“We are optimistic of the prospects for renewable energy in Singapore and the region, and believe that more enterprises in Singapore will embark on green initiatives,” he noted.
 

The index was at 51.6 at the end of the month.

This chart from the Singapore Institute of Purchasing & Materials Management (SIPMM) shows that the Electronics Sector Purchasing Managers' Index (PMI) has eased 0.2 point from the previous month to post a slower expansion at 51.6.

The slower rate of expansion was attributed to slower growth rates in the key indicators of new electronics orders, electronics factory output, and electronics inventory level.

The stocks of finished goods recorded a first-time contraction after 7 months of expansion. Electronics imports and supplier deliveries also recorded slower rates of expansion.

However, faster growth rates were recorded in the key indicator of electronics employment, as well as input prices, and order backlog. The electronics sector has now recorded its 9th month of consecutive expansion.
 

Almost 1 in 4 have yet to record any revenue.

If the new study by the National University of Singapore’s Entrepreneurship Centre is anything to go by then it seems like Singapore startups are finding it hard to record bottom line gains.

The study revealed that almost one in four or 24% of startups in Singapore has not recorded any revenue for the past year.

The study also noted that 29% are revenue-positive but cashflow-negative. This points out to 53% of the startups not getting any net profits.

Interestingly, 23% have achieved positive cashflow and the remaining 24% are at the self-sustaining growth stage, meaning the cashflow generated by the firm is sufficient to sustain their future growth.

Meanwhile, overall sales growth of start-ups for the past three years averaged at around 44.9%. As many as 1 in 4 young start-ups has achieved more than 100% annual sales growth over the last 3 years while only 1 in 10 mature start-ups are able to maintain more than 100% sales growth.

Blame the fall in beverages revenue.

Food and beverage player Fraser and Neave's net profit ended the quarter at $8.5m, down by 29% YoY on the back of 5.8% YoY drop in revenue.

According to DBS Group Research, the group's beverage revenue dropped 21.5% YoY in 2Q17 to $113.6m due to lower sales in Singapore and Malaysia, mitigated partially by vending business acquired in July 2016, commencement of third party brands, and distribution network expansion in Myanmar.

Meanwhile, the business segment posted a pretax loss of S$5.2m due to weak performances from Malaysia and Singapore, arising
from weaker volumes, higher raw material prices and weaker Malaysian Ringgit.

It was the opposite for the group's dairies segment, as it posted 41.7% YoY growth in profit before interest and tax to $39.8m due to lower commodity costs.

Dairies’ revenue increased by 2.4% to $271.6m, aided by domestic sales in Singapore (chilled products, yoghurt), Myanmar (Teapot brand), and Thailand (Teapot, Carnation brands). However, this was offset partially by 11.9% drop in revenue in Malaysia due to weaker consumer sentiment and competition.  

But it is expected to remain stable until 2020.

The number of HDB flats in the market increased from 880,000 units in 2006 to around 1.01m units in 2016, National Development Minister Lawrence Wong said.

However, its ratio to the number of private properties is apparently going down, falling from 78% in 2006 to 73% 10 years after.

Meanwhile, the number of private properties, including landed ones, rose from 243,000 to 372,000. This brings their share of the total housing units from 22% to 27%.

But from this year until 2020, Wong noted that the proportion of HDB flats to non-HDB flats will remain stable at 72% to 28%. 

Whilst resale prices remained unchanged.

Non-landed Private Residential Resale prices remain unchanged at 0.0% in April compared to March, the latest report from SRX Property shows.

In individual sectors, RCR and OCR recorded a price increase of 1.2%, 0.1% respectively, while in CCR recorded a price decrease by 1.2%.

On a yearly basis, prices in April increased by 1.8% from April 2016. In individual sectors, CCR, RCR, and OCR recorded a year-on-year price increase of 4.6%, 1.6%, 0.5% respectively. Prices for the month were down by 5.4% from the recent peak in January 2014.

The price change came with the slump in resale volume, with only 907 units resold compared to the previous month's 1148.

Year-on-year resale volume in April was 48.0% higher compared to 613 units resold in April 2016. However, it was down by 55.8% compared to its peak of 2,050 units resold in April 2010.
 

It’s the only non-OIC country in the global top 10 Muslim travel destinations.

According to Mastercard-CrescentRating Global Muslim Travel Index (GMTI) 2017, Muslim travel market revenues are expected to amount to US$220b by 2020.

Singapore remains as the only non-member of the Organization of Islamic Cooperation (OIC) that made it to the overall top 10 list of Muslim travel destinations out of 130 participating countries. Malaysia was ranked first in the OIC and overall list.

Currently, Singapore holds the top position in the list of non-OIC countries around the world. Thailand, UK, South Africa and Hong Kong make up the top five for the non-OIC destinations, with Japan moving up two places to take the sixth spot and Spain entering the top 10 for the first time.

Asia has remained the leading region in the world in terms of attractiveness to Muslim tourists with an average GMTI score of 57.6, with Africa coming in second place at 47.0, followed by Oceania (43.8), Europe (39.9) and the Americas (33.7)

Despite losing 1.1 points from 2016, Singapore still managed to hold its ranking for the third consecutive year. “Although Singapore has maintained its top spot there is pressure now from other destinations who are adapting their offering to service this sector,” said Fazal Bahardeen, CEO of CrescentRating & HalalTrip.

According to Bahardeen, there is an influence a new breed of young travellers, millennials and Gen Z who are combining technology with a real desire to explore the world while still adhering to their faith-based needs.

This will be the driving force for the next phase in growth in every destination. “Singapore must recognise and implement measures accordingly to satisfy and maintain its top spot going forward,” Bahardeen added.

GMTI research showed that the Muslim travel market will continue to grow to $300b by 2026. An estimated 121m Muslim visitors arrived globally in 2016. This is up from the 117m tourists in the previous year. GMTI predicted Muslim tourists to amount to 156m by 2020.
 

This thinking is most prevalent amongst IT workers.

Whilst Singapore still has a highly-skilled workforce, some of the workers worry that their skillsets are becoming obsolete.

The 2017 Kelly Services and Capita Salary Guide revealed that whilst Singapore workers may be confident of their market power today, uncertain economic conditions, the anticipated rise in overall unemployment to 2.3%, and the steady increase in redundancies since 2010 has given rise to concerns about their future.

Around seven in 10 workers mentioned that their top concern is of their knowledge and skills becoming obsolete.

This thinking was seen the most amongst IT workers, with 64% of them saying so. Meanwhile, this concern is also apparent to 58% of professionals, managers, executives and technicians (PMETs), 61% of engineers, and 59% of finance and accounting workers.

The concern is also higher among Gen Y workers (74%) as compared to Gen X workers (63%) where almost 4 in 10 workers (37%) cited being more concerned about layoffs. Approximately three in 10 Singapore workers indicated layoffs as their biggest concern.

Kelly Services said Singapore’s workers are seeking ways to be as resilient as possible. More than 8 in 10 workers (83%) indicated a desire to grow their skill set and recognised that their skills and knowledge will need to continue to evolve and grow. This is consistent across both Gen Y (84%) and Gen X (83%) workers and employees around the globe, with workers in APAC (82%), Americas (80%) and Europe, Middle East and Africa (86%) echoing a similar sentiment.

Foo See Yang, managing director and country head for Kelly Services Singapore said whilst industries experiencing high growth are in a better position to provide competitive remuneration, employee engagement and retention goes beyond the employee’s pay packet.

“Employers who empower their people, and provide learning opportunities that build skills and competencies will be able to better attract and retain their top talent. Job seekers who are looking to diversify their skills may also want to consider growing industries where the need for talent is stronger," he noted.

Around 3,800 subscribers were affected.

The internet outage in Jurong in the past month was, as it turned out, caused by a cable cut, affecting around 3,800 subscribers.

Speaking before the parliament, Minister for Communications and Information Yaacob Ibrahim said the incident that happened on April 11 was caused by construction works being done involving an HDB project in the Jurong area.

"Investigations into past cable cut incidents revealed that most incidents occurred because contractors did not follow established standard operating procedures (SOPs). These contractors were also not careful and failed to exercise due diligence when undertaking earthworks," Ibrahim explained.

The minister noted that the Info-communications Media Development Authority has been carrying out regular dialogue sessions with relevant government agencies and their contractors on preventive measures. IMDA has also circulated Dos and Don’ts in multiple languages at worksites to alert workers on the need to exercise due care and caution when carrying out earthworks.

"Cable cut incidents impose significant costs on operators, consumers, and businesses. I am told that the telcos’ repair costs alone can sometimes exceed half a million dollars. These costs exclude those incurred by consumers and businesses. IMDA will continue to work closely with all parties involved to ensure that the number of such cable cut incidents is minimised," he reassured.
 

Thanks to strong performances from its three properties.

OUE Commercial REIT reported higher yields for the past quarter, thanks to the robust performance of its three properties: OUE Bayfront, One Raffles Place, and Lippo Plaza.

For 1Q17, its revenue jumped 4.4% to $44.8m whilst its net property income increased 4.2% to $34.6m.

The amount available for distribution of $16.6m in 1Q17 was lower compared to the same period last year, mainly due to an adjustment for the amount set aside for the transfer of China-sourced profits from Lippo Plaza to statutory reserve.

“Against a backdrop of subdued macroeconomic and office market conditions, we are pleased to announce a commendable set of results," OUE Commercial REIT manager CEO Tan Shu Lino said.

She noted that the trust achieved this with the steady revenue and net property income growth was driven by higher occupancy at OUE Bayfront and One Raffles Place, as well as continued rental growth at Lippo Plaza.
 

It plans to support 12 startups.

Hewlett Packard Enterprise (HPE) unveiled a three-year programme in collaboration with the Singapore Economic Development Board (EDB) to tap local technology startups and aid enterprise customers.

The project involves helping in the development and commercialisation solutions across a variety of industries, including manufacturing, distribution, financial services, communications, media and entertainment and the public sector.

According to the group, the program, dubbed as InnovateNext, increases HPE’s investment in Singapore to U$140m over the next five years.

“With our new InnovateNext program, HPE will now be able to provide our best-in-class technology and global partner ecosystem to promising technology startups in Singapore to help them turn ideas into commercially viable enterprise technologies solutions they can offer to prospective customers," said Meg Whitman, president and chief executive officer of HPE.

The InnovateNext program plans to support 12 startups, with the goal of developing solutions that are market viable around the world.

Additionally, HPE aims to co-innovate and develop 10 vertical solutions with enterprise customers, over the next three years.
 

It has the second largest container port and the biggest centre for commodities trading.

In a Bloomberg Benchmark Podcast, Singapore was tagged as a global trade colossus for a number of reasons.

According to Bloomberg, Singapore is the world's easiest place to do business, the second-largest container port and the biggest centre for commodities trading. There's a lot more to Singapore than a ban on chewing gum, which is mostly honoured in the breach.

Click here to read the full story and to listen to the podcast.