Published April 25, 2009

Developers still putting up project plans

URA has received 4 applications to convert space in CBD

By EMILYN YAP

	Email this article
	Print article
	Feedback

THE property market may be subdued, but developers are not sitting still. A check with the Urban Redevelopment Authority shows some are still putting up proposals to convert office space or embark on residential and commercial projects.

URA told BT it has received four applications to convert office space in the central area to other uses since it lifted the ban on doing so in October last year. 'These applications are now being evaluated and are pending final approval,' said a URA spokesman.

In a bid to ease the office space supply crunch that built up during the boom years, URA called a halt to such conversions in May 2007. It later removed the ban as the supply of office space coming on stream started to increase, while the economy began to slow. URA did not identify the buildings involved in the applications, but some property owners have revealed plans to convert office space.

CapitaMall Trust, for instance, said last week that it was 'in talks with the authorities to optimise the integration plan for The Atrium@Orchard and Plaza Singapura' and that work could start by end-2010 subject to market conditions and official approvals.

URA has also granted approval for close to 10 commercial and private residential projects, according to its Q1 2009 real estate statistics released yesterday.

UIC Investments (Properties) received provisional permission in January to develop office and retail space with gross floor areas (GFAs) of 114,500 sq ft and 48,000 sq ft respectively at the UIC Building in Shenton Way. Some 593 residential units could also take shape at the site.

The South Beach consortium - comprising City Developments, a Dubai World unit and Elad Group - has been given the go-ahead to develop 560 hotel rooms across a GFA of 474,100 sq ft at its Beach Road project. The site may include office space with a GFA of more than 632,100 sq ft, and retail space with a GFA of 158,000 sq ft. The project is tipped to receive a temporary occupation permit in 2014.

BT understands there will also be a residential component in the South Beach project, although this did not appear in the URA statistics. The data only shows development approvals for uncompleted private residential projects if they have at least 200 non-landed property units.

YTL Corp, which bought the Westwood Apartments in Orchard Boulevard in 2007, has obtained provisional permission to develop shop space with a GFA of 1,500 sq ft and 39 hotel rooms across 78,200 sq ft at the site. BT understands the residential component similarly did not show up in the URA statistics, because there are less than 200 non-landed units.

In February, UOL Group subsidiary Hotel Plaza got URA's nod to re-use the GFA in The Plaza's podium block to create 273 hotel rooms.

Published April 25, 2009

Record 9,410 workers lost jobs in S'pore in Q4

But 70% of the locals retrenched in Q3 found jobs by Dec

By LEE U-WEN

	Email this article
	Print article
	Feedback

THE latest job numbers are in. And as expected, the economic downturn has not been kind to many workers in Singapore.

Lay-offs surged to a record quarterly high in the final three months of last year, with 9,410 people losing their jobs. This is almost three times the 3,180 laid off in the preceding Q3, according to figures released by the Ministry of Manpower's research and statistics department yesterday.

But there was some good news. Seven out of 10 locals retrenched in Q3 last year had managed to find new jobs by December - higher than the 62 per cent that did so in the previous quarter, and only slightly lower than the 73 per cent in December 2007.

For the whole of 2008, 16,880 workers were made redundant - comprising 13,920 people laid off and 2,970 whose contracts were terminated prematurely. This works out to 11 workers made redundant out of every 1,000 employees - almost double the rate of six per 1,000 in 2007.

Still, the total figure for 2008 remained below the highs reached in 1998 during the Asian financial crisis (32,800, or 33 per 1,000) and the 2001 downturn after the Sept 11 attacks (27,570, or 26 per 1,000).

The MOM report also highlighted the fact that more foreigners were laid off last year, compared with locals.

Redundancies in 2008 rose faster in percentage terms for foreigners (153 per cent) than locals (72 per cent). Although locals formed the majority - 61 per cent of redundancies last year - their share came down from 70 per cent in 2007.

On the flip side, the foreign share of total redundancies rose to a new high of 39 per cent, slightly more than the proportion of foreigners in Singapore's work force, which was 36 per cent as at last December.

The report said companies cited the economic downturn as the top reason for retrenchment, affecting 41 per cent of workers retrenched, followed closely by business restructuring (39 per cent). More than a fifth, or 22 per cent, cited high labour costs, and another 20 per cent gave high operating costs as their reason.

'This was unlike in 2007 when the top reasons for retrenchment were the discontinuation of the production line and business reorganisation,' MOM said.

As a result of the global nature of the recession, the number of workers retrenched in exercises involving businesses relocating overseas fell from 1,520 in 2007 to a record low of 1,260 last year. They accounted for only 9.1 per cent of workers retrenched by private firms, compared with 20 per cent in 2007.

The MOM report said that mature residents with tertiary education were the 'most vulnerable' group last year, 'with above-average risk of retrenchment and below-average re-employment'. This was unlike previous downturns, when the less-educated were the most vulnerable.

Giving his take on the report's findings, Manpower Minister Gan Kim Yong said that it is likely that the redundancy figures for the first quarter of this year would be worse than the last three months of 2008.

'Given the slowdown in economy is going to last for quite a while, the labour market will remain soft for a few more quarters,' he told reporters yesterday. 'I think how long it is going to last, or how deep the recession will be, we do not know yet, but one thing for sure, I think there are still jobs available.'

He cited the example of the two integrated resorts, which will provide 45,000 jobs in the next two years. The public sector will do its part by creating 18,000 jobs.

'Our focus now is to cut costs. We want to help workers to upgrade themselves so that they can keep their jobs and also to make them more competitive. For those that are affected and lose their jobs, we will continue to help them and re-skill them. Make them more employable and help them find jobs - this is our focus. So if we are able to do this right, I think we will be able to manage the redundancy numbers,' he said.

Published April 25, 2009

Lee Boon Yang to be Keppel chairman

Lim Chee Onn stepping down on June 30

By VINCENT WEE

	Email this article
	Print article
	Feedback

CHANGES at the top was the big news of the day at the Keppel Corp annual general meeting yesterday.

LEE BOON YANG Retired from government at the end of last month but continues to serve as MP

Non-executive chairman Lim Chee Onn will step down with effect from June 30, to be succeeded by Lee Boon Yang. Long-serving independent director Lee Tsao Yuan also stepped down to focus on her professional interests and her family. Mrs Lee had also stepped down from OCBC's board for the same reasons.

Mr Lim will, however, continue to be senior adviser to Keppel. When Keppel announced in December that Mr Lim would relinquish his role as CEO but continue as non-executive chairman, the board had then considered it important the company should continue to benefit from Mr Lim's business network and relationships for a period of time so as to ensure a smooth transition in the executive leadership, Keppel said.

'On behalf of the board and management, we would like to extend our deep gratitude and appreciation to Mr Lim for his invaluable contributions to the Keppel Group during the transition period and over the last 25 years of dedicated service when he was part of the executive management of the group,' said lead independent director Tony Chew.

On the appointment of Dr Lee, Mr Lim said: 'Keppel is very privileged that Boon Yang has agreed to accept the appointments as director and chairman of the company. We shall benefit immensely from his vast experience and expertise acquired during his years of service in both the public and private sectors.'

'I thank the Keppel board for appointing me as director and chairman. I shall do my utmost to further Keppel's extensive business interest in the global market and to enhance shareholder value,' said Dr Lee.

'Mr Lim's service and contributions to the Keppel Group are immeasurable and deeply appreciated. His support, advice and strong strategic relationships, both in the political and business arenas, will continue to bring to bear in the group,' said CEO Choo Chiau Beng.

Mr Lim is a member of the Council of Presidential Advisers and has also previously served on the Cabinet as minister without portfolio in the Prime Minister's Office.

Dr Lee has been in politics for over 20 years, leading various ministries. He retired from government at the end of last month but continues to serve as member of parliament for Jalan Besar GRC.