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Tag: Singapore

McDonald’s Singapore introduces mobile phone lockers, table service at Marine Cove outlet
McDonald’s has introduced mobile phone lockers and table service at its flagship Marine Cove outlet in Singapore to help families rediscover quality time together, the fast-food chain said.

The mobile phone locker, the first-of-its-kind in Singapore, encourages parents and children to put their devices away safely and focus on family bonding, it said.

“As a popular restaurant destination for families, we have observed that the use of mobile devices during meal times may sometimes get in the way of family bonding,” said director of brand communications and customer care Linda Ming.

A survey of 302 parents conducted by McDonald’s last month found that 98 per cent of parents and 91 per cent of kids use their mobile devices whenever they are together, with more than two-thirds of respondents using their smartphones during mealtimes.

This is despite most of the parents in the survey saying that the use of mobile devices had decreased their interaction with their loved ones, and that they would like to be more disciplined in staying away from digital distractions during family time, McDonald’s said.

To allow parents to spend more time tending to their children, the fast-food chain is also piloting table service at its Marine Cove outlet, led by “guest experience leaders” whose main role is to engage with families.

Customers can select the table service feature when placing an order at the self-ordering kiosk, it said.

Responding to queries from Channel NewsAsia, McDonald’s said there is no extra charge for customers who use the table service feature, and that the service is open to everyone, not just families or parents.

“We have introduced the service in our Marine Cove flagship restaurant as well as selected restaurants, and have received positive feedback especially from families so far.”

McDonald’s added that mobile phone lockers would be locked with physical keys. To make sure that customers do not forget to retrieve their phones, staff members will remind them about their phones before they leave the restaurant.

The fast food restaurant chain will be “actively gathering feedback” from customers about the new initiatives, to decide on whether to expand them to other restaurants.
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November 13, 2017
OCBC Bank to distribute health insurance via Mobile and Internet Banking
Digitalising the way customers buy health insurance products, OCBC Bank has again launched a first in the digital wealth management space. This first-of-its-kind way of buying a health insurance plan in a few simple clicks via OCBC Bank’s mobile and Internet banking channels makes access to essential health and illness coverage fast and frictionless.

Typically, health insurance plans like critical illness, disability, hospitalisation and surgical are not sold via online channels as they require a health check-up to evaluate the applicant’s medical condition. However, with Early Cancer Care, eligible OCBC Bank customers simply need to make a health declaration with the click of a button.

Early Cancer Care is the first health insurance product to be rolled out on OCBC Bank’s mobile and Internet banking channels, with more non-general insurance plans to be added over time. Underwritten by Great Eastern, it is a cancer insurance plan that provides coverage in the event early or major cancer is detected.

Depending on the plan purchased, upon diagnosis of major cancer, the insured will receive a cancer recovery benefit of up to S$3,000 monthly for six months, and a lump sum benefit of up to S$150,000, which can be used to cover treatment costs. If early-stage cancer is detected first, the insured will receive 40 per cent of the sum assured, cancer recovery benefit for six months, and all future premiums will be waived. The remaining 60 per cent of the sum assured will be paid out if major cancer is diagnosed subsequently.

OCBC Bank has radically simplified the purchase of health insurance by offering Early Cancer Care via the bank’s mobile and Internet banking channels, while keeping the process private and confidential in a secured environment unlike unsecured webpages touting similar products. Once the customer has logged in via two-factor authentication, their personal information will be pre-populated on the insurance product application form, and they can make payment from their OCBC Bank accounts or credit cards.

Mr Aditya Gupta, Head of E-Business Singapore, said: “This is a game changer. So far, our customers in Singapore have had to contend with general insurance products being available for purchase online. By offering our customers access to directly buy insurance solutions like Early Cancer Care via our digital channels, we have upped the ante in meeting their insurance needs simply, quickly and securely. It’s the start of what I call ‘democratisation of insurance’.

Mr Jerry Ng, Head of Bancassurance, said: “Early Cancer Care is probably one of the most important insurance plans you will buy; that’s why we have made buying it easy and paperless for our eligible customers. We will soon be including other insurance products for purchase on our mobile and Internet banking channels. A majority of cancer plans are renewable yearly, with premiums increasing with age. Early Cancer Care provides cancer coverage for both early and major cancer detection, and the premiums do not increase with age throughout the policy term.”

Mr Roy Tan, Head of Bancassurance, Great Eastern Life Singapore, added: “A key focus for us at Great Eastern is to harness advances in digital technology to better enable our channel partners such as OCBC to deliver our product solutions to customers more efficiently. We will continue to collaborate to create greater value and better experience for all our customers.”
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November 13, 2017
Giordano post a “quite okay” result
Third-quarter sales for apparel retailer Giordano International have been edging ahead in most markets, an exception being South Korea, a 48.5 per cent JV with an independent management team.

While e-commerce sales jumped by 17.6 per cent in Mainland China, overall sales growth reached only 2.6 per cent, with a decrease of 2.5 per cent in directly run stores. The company closed 32 non-performing outlets.

Comparative own-store sales grew by 8.4 per cent, with an 0.5-point decline in gross margin because of a change in channel mix as the contribution from the lower-margin e-business.

In Hong Kong and Macau, sales for the three months to the end of September grew by 3.2 per cent.

Gross margin fell 1.6 points as a result of sales promotions to counter an unusually hot and rainy summer and late autumn. These promotions pushed up sales volume by 13.8 per cent while reducing the average selling price by 9.2 per cent.

Comparative-store gross profit rebounded in Taiwan, where sales and gross margin rose by 2.9 per cent and 1.1 points respectively. Giordano says the improvements are sustainable for the rest of the year. Gross margin also benefited from lower product costs on a strong local currency.

In the rest of Asia Pacific sales increased by 5.4 per cent at constant exchange rates. The acquisition of Vietnam business in July contributed to 5.1 per cent of sales in the region.

Unusually strong sales in Thailand last year resulted in an unfavorable year-on-year comparison for the quarter.

Ramadan effect

Indonesia sales rose by 3.5 per cent as a result of shop expansion. While comp-store sales fell by 4.1 per cent and gross profit eased 1.8 per cent as a result of the different timing of Ramadan, comp-store sales from June to September this year increased by 9.7 per cent against the same period last year.

Early Ramadan also affected sales in Malaysia, which grew by 4.3 per cent. Comp-store sales rose by 2.6 per cent while gross profit eased 1.4 per cent. Comp-store sales for June to September strengthened 20.4 per cent compared with the same four-month period last year.

Both comp-store sales and gross profit dropped in Thailand, by 4.9 and 6.3 per cent respectively, against an unusually high base in the same quarter last year.

Sales fell 3.6 per cent in South Korea while gross margin improved by 0.7 points. The decline was mainly because of summer clearance sales and unusually hot weather in September hitting fall/winter merchandise sales.

Overall group sales rose by 3.6 per cent to HK$1.2 billion (US$153.8 million). Group gross profit increased by 3 per cent on improved sales, partially offset by a 0.3-point decline in gross margin.

Giordano attributes this partly to the change in channel mix and selective promotional activities. Group comparable-store sales and comparable-store gross profit for the quarter grew by 2.3 and 1.5 per cent respectively.

At the end of September, the group’s distribution network comprised 2370 stores in more than 30 countries, about half of these being standalone stores. Most stores were in Greater China, South Korea and Southeast Asia.
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November 11, 2017
Courts Singapore getting serious with flagship store
Courts Singapore has redesigned its flagship megastore in Tampines, offering a new immersive experience for customers.

For the upgrade, the retailer of home electronics, IT and furniture products has put a particular focus on the needs of modern apartment living.

With its official grand opening on Saturday, the store offers 136,000sqft (12,600sqm) over three floors, with experiential areas making up most of the space.

In conjunction with the makeover, Courts has also unveiled its relaunched online store which now seamlessly unifies the offline/online shopping experience. The webstore is the largest in its network, offering more than 17,000 SKUs as well as introducing intuitive navigation, search and a faster check-out experience. There is also the option to collect purchases in its physical stores.

“We are making good living and great in-store experiences accessible and affordable to all Singapore homeowners – a vision we’ve stayed true to since we first opened 43 years ago,” says group CEO Dr Terry O’Connor.

$10 million investment

The flagship upgrade is part of Courts Singapore’s S$10 million (US$7.3 million) investment into a series of store refurbishments for the financial year with a focus on new retail concepts and experiential areas. Courts has also launched a new brand slogan, “Better Living, Better Prices”.

“The Courts Megastore transformation is the result of a year of planning and two months of renovation work, combining the expertise of the commercial, visual merchandising and store operations teams,” says Courts Singapore country CEO Ben Tan.

“We’ve curated every aspect of the shopping journey,” he says. This includes online integration, a new range for lifestyle and smart technology trends, complementary furniture customisation and three-week delivery.

With every furniture consultation customers are offered a free cup of artisanal coffee. Bespoke options are available for every furnishing need from sofas, curtains and blinds to wardrobes, bedding and dining tables.

In its bedding department Courts offers more than 1000 types of mattresses from 23 brands. Shoppers can customise their bed frames and headboards. The revamped bedding area has 11 galleries including new brand for healthy living.

Design services

For new homeowners, the Courts Design Studio offers services covering interior design, renovation, furnishing, flexible finance and smart-home connectivity. Consultants are on hand from two award-winning interior-design firms. The studio houses a full-size four-room HDB apartment and studio apartment showroom, integrated with smart-home automation.

On the same level, the new Home Gallery is an adaptable showroom space that will be regularly refreshed with room settings and also doubles up as a furniture photoshoot studio. The showroom has two movable walls.

There is also a Dulux Paint Experience area where shoppers can experiment with colours.

Four new interactive cooking demonstration stations will feature chefs and cooking hosts. Hungry shoppers have the new Mo Cafe for single-origin coffee and cakes, and a Subway with a window overlooking the third level.

Samsung Open House 2.0 is an experiential retail concept offering an interactive and connected smart-home experience. It showcases the brand’s range of digital appliances on a 85in. UHD display, allowing shoppers to visualise how each appliance might look in their home. The neighbouring LG Home Entertainment area showcases a range of setups.

Hands-on gaming

Courts has also expanded its gaming zone with such brands as Acer Predator, Alienware, Asus Republic of Gamers, Lenovo Legion, MSI and Razer. shoppers can try out the latest PC games, and there is a space designed to host multiplayer gaming tournaments.

Also launched at the megastore is Guru, which offers more than 100 repair and maintenance services for more than 20 home-product categories. It will be open 365 days a year with its own in-store service counter as well as a phone hotline, and will also offer home cleaning, painting and fix-it services with warranties.

To mark the flagship’s official opening, a four-week celebration will offer discounts of up to 90 per cent, and deals such as a free Xbox One, worth $499, with the purchase of any gaming laptop computer.

There will also be a celebrity line-up including Arsenal and Liverpool football stars, singer Joanna Dong, Running Man star Kim Jong Kook and Singapore’s first boxing champion, Muhamad Ridhwan.

Free public Wi-Fi as well as complimentary parking are also available.
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November 10, 2017
SingPost to invest S$16 mil in island-wide Smart Post Office network
The redeveloped SingPost Centre in Paya Lebar was officially launched on Monday (Oct 9) with the first “smart” post office and a new FairPrice supermarket that will serve as a testing ground for new initiatives in retail technology.

Located next to the Paya Lebar MRT station, the centre houses a shopping centre, the country’s largest post office and SingPost’s flagship Philatelic Store.

The 5,328 sq ft General Post Office is the first of SingPost’s smart post offices, featuring a dedicated self-service area with POPStation lockers, upgraded SAM machines offering remittance and other postal services and a drop box for registered articles, accessible at all hours.

The new drop box allows customers to skip the queue by weighing their parcels and printing labels at the SAM machines before depositing them, said SingPost head of post office network and digital services Bernard Leong.

Unmanned smart post offices will be rolled out in estates with young families, such as Punggol and Sengkang, in the next one to two years, he added.

Mr Mervyn Lim, SingPost’s deputy group chief executive (corporate services), said: “The launch of SingPost Centre underscores SingPost’s transformation for a future where technology is changing how people shop, dine and play.”

The mall’s committed occupancy rate as at Sept 30 was about 80 per cent, he added.

The five-storey mall, managed by CapitaLand, has 130 tenants including Golden Village, FairPrice, a Kopitiam foodcourt and a rock-climbing gym.

Apart from bubble tea chain Gong Cha’s return to Singapore later this year (2017) with its flagship outlet in the mall, other new F&B concepts include a food hall designed to look like the old Tanjong Pagar Railway Station and Taiwanese hotpot chain Upot.

FairPrice’s 22,000 sq ft supermarket, also launched on Monday, is piloting several new initiatives, including the FairPrice@SingPost mobile app that allows customers to locate products with in-store navigation and check stock availability.

The app, available for download on Apple and Android app stores, also gathers data on shopping habits to deliver user-specific promotions.

The store will integrate the Scan2Go system currently in use at its Bukit Timah Plaza outlet, where customers can scan purchases with a personal handheld scanner as they shop and pay at self-checkout counters.

It is also the first supermarket to feature self-checkout counters that can be converted to cashier-assisted ones in under a minute, to accommodate crowd sizes.

Refrigerated lockers will be piloted at the SingPost Centre branch for the self-collection of online purchases, while an “experiential corner” in the store will allow brands to engage customers using augmented and virtual reality, digital games and interactive booths.

Speaking at the launch, FairPrice chief executive Seah Kian Peng said: “This technology-driven supermarket will serve as a “living lab” to pilot new and innovative retail technologies, designed to revolutionise the grocery shopping experience.”
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November 8, 2017
UnionPay Records Strong Growth in Spending by Cardholders During Singapore Golden Week 2017

UnionPay, the Official Payment Card for Singapore Golden Week (SGW), revealed that total spending by UnionPay Cardholders in Singapore grew 40 percent year-on-year during the 17-day-long event held from 29 September to 15 October 2017. The growth was contributed by a surge in UnionPay card usage by locals and tourists during the SGW 2017 period, and boosted by the increase in participation by merchants and consumers in this year’s SGW.

Into its second edition this year, SGW is a lifestyle event designed to bring fresh new experiences to local consumers and tourists as part of Singapore Retailers Association’s (SRA) efforts to inject vibrancy into the local retail scene. This year, SGW presented a wider range of golden privileges – featuring offers at over 300 participating merchant outlets island wide, up from the 200 participating merchant outlets last year. Shoppers also enjoyed better golden rewards – in the form of shopping e-Coupons redeemable on SRA’s GoSpree mobile app worth a total of S$25,000, up from S$10,000 last year; as well as golden experiences – with over 1,100 complimentary golden taxi rides made available for the public over the three SGW 2017 weekends.

Following the close of SGW 2017 on 15 October, UnionPay revealed that spending by UnionPay Cardholders during the event grew 40 percent year-on-year, spurred by broad increases in spending across luxury goods, department stores, supermarkets, duty-free goods and food & beverage categories. Total spending by local UnionPay Cardholders in particular during the SGW 2017 period also doubled year-on-year, driven by growth in spending in fashion, supermarkets and food & beverage categories.

“With a bigger and better Singapore Golden Week this year, we are delighted to see positive growth in spending by UnionPay Cardholders across the board. We received very positive feedback on SGW from customers and non-customers alike, some even complimented us on Facebook. Our local and overseas Cardholders gave their stamp of approval for SGW via strong spending – all in all we are delighted that this year’s event appealed to a broader range of consumers from different walks of life. UnionPay’s payment products and services have been gaining momentum through our participation in the Great Singapore Sale and Singapore Golden Week, and this will spur us on to continue rolling out programmes that delight our customers, as well as consumers in Singapore,” said Mr. Wenhui Yang, General Manager of UnionPay International Southeast Asia.

“We are happy to see the expansion of SGW’s appeal to both locals and tourists this year. During the SGW 2017 period, SRA’s GoSpree mobile app gained more than 1,500 new members, bringing the total number of GoSpree members to more than 33,000 to date. We also saw a 15 percent increase in downloads of the GoSpree app from Chinese tourists, with over 1,300 e-Coupons redeemed during SGW 2017. As we continue to improve on the event, we hope to see more locals and tourists be part of the Singapore Golden Week festivities,” said Ms. Rose Tong, Executive Director of Singapore Retailers Association.

November 8, 2017
StarHub launches autonomous delivery robot
Singapore’s StarHub has entered a partnership with ST Kinetics to supply autonomous delivery robots to local businesses.

Under the partnership, the companies will deploy Aethon TUG robots to business environments, starting with a roll out in three hotels to streamline the laundry supply chain.

TUG robots (pictured) were designed by ST Engineering’s land systems business Aethon. They are designed to transport materials of up to 635kg per trip.

The robots are integrated with a customer’s Wi-Fi infrastructure, elevator and IT systems to allow it to navigate autonomously on premises, including by opening doors and riding elevators.

TUG will be the second robotics solution introduced by StarHub for corporate customers. The operator is offering managed robotics solutions through an as a service business model, which includes round-the-clock technical support and maintenance services.

In addition, the partnership is part of StarHub’s connected building initiative to provide IoT solutions for companies to solve environmental sustainability, productivity or safety challenges.

“Faced with continued manpower crunch, the hospitality industry is increasingly turning to innovation and automation to drive better business outcomes,” StarHub chief of enterprise Dr Chong Yoke Sin said.

“We are pleased to partner ST Kinetics to offer the TUG to our customers, for tasks involving heavy lifting. This can help reduce lifting hazards and boost productivity, ultimately saving costs for customers.”
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November 8, 2017
Hawkr opens a new branch in Pacific Place
Following its launch in Quarry Bay three months ago, “grab-and-go” eatery Hawkr has expanded to Pacific Place

Hawkr springs from a partnership between Myanmar-based lifestyle concept Pun+Projects founder and restaurateur Ivan Pun and private-equity professional Jake Astor. Pop-up dining chef Mina Park is in charge of the menu which offers original recipes and fresh ingredients without MSG, artificial flavours or preservatives. It was inspired by Southeast Asian fare from such food destinations as Indonesia, Malaysia, Myanmar, Singapore, Thailand and Vietnam.

The second store has an expanded menu including Burmese tealeaf, Isaan beef and Song Que salmon salads, Mamak Mee noodles and roasted pork noodle with coriander pesto,plus tealeaf eggs. Hawkr’s bespoke coffee blend is again a feature, with a resident barista.

Like the Quarry Bay flagship, Hawkr at Pacific Place continues a design theme of neon green signs against a rattan background, and colourful wall pattern inspired by the ikats of Burma and Thailand.

Staff aprons are hand-dyed in indigo from the Isaan region of Thailand.

All menu items are half price after 7pm every day, and the team also plans to work with local charities to ensure any leftover food goes to those in need. Catering menus are also available for corporate events, luncheons and parties.
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November 7, 2017
StarHub Q3 profit falls 11%
Singapore’s StarHub has reported an 11% decline in net profit for the third quarter of 2017 to S$77 million ($56.6 million), partly as a result of lower core service revenue.

Service revenue fell 0.7% to S$545 million, with mobile revenue down 2.3% to S$297 million, broadband revenue declining 1.5% to S$53.2 million and pay TV revenue falling 7.9% to S$85.7 million.

Enterprise fixed line revenue by contrast increased by a healthy 11.1% to S$109.4 million, growing to account for 18.8% of total revenue (including device sales).

This quarter, we are further seeing the fruits of our growth strategy as shown by the encouraging double-digit increase in our enterprise fixed revenue. We will continue investing in the enterprise space to drive our future growth,” StarHub CEO Tan Tong Hai commented.

“We have recently struck Singapore’s first bank-telco strategic partnership with OCBC Bank. By harnessing our collective data insights, we can better understand customers’ needs and deliver even more relevant services to enhance their connected lifestyles.”

For the first nine months of the year, service revenue likewise fell 1% to S$1.62 billion with net profit down 18% to S$235 million. Mobile service, broadband and pay TV revenues declined 0.8%, 1.8% and 7.7% respectively but enterprise fixed service revenue grew 5%.

StarHub’s postpaid mobile customer base decreased by 11,000 year-on-year due to a termination of 23,000 inactive legacy data-only lines. Postpaid ARPU dipped by S$1 to S$69, while prepaid ARPU declined from S$16 to S$15.

Broadband customers meanwhile decreased by around 1,000 to 466,000 but ARPU remained stable at S$37.

For the full year, StarHub is projecting roughly flat revenue, but expects total capex to decrease to around 10% of total revenue.
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November 7, 2017
More Tokyo snack brands in Singapore
Two Tokyo snack brands are setting up shop in Singapore, one opening today and the other in eight days’ time.

Established in 2013, The Maple Mania is ready to roll out the red carpet at Ion Orchard. It is known for its maple butter cookies, maple baumkuchen with a caramelised top, and maple financiers.

With its iconic cow logo, Tokyo Milk Cheese Factory will follow with an outlet at Raffles City. The six-year-old brand is known for its cheese cookies – salt and camembert, honey and gorgonzola, and porcini and gouda. It also offers milk cheesecake, a strawberry milk roll plus its own Cow Cow Ice ice cream in two flavours and a sundae option.

During the festive season, The Maple Mania will sell cookies from Tokyo Milk Cheese Factory as well. Both are sister brands of LeTao, which was brought to Ion Orchard last year by Alvin Ng, the founder of The Rosti Farm and Once Upon a Milkshake, both at Waterway Point in Punggol.

From Hokkaido, LeTao is known for its double fromage, a two-layer cheesecake.
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November 6, 2017
McDonald’s Singapore is turning Japanese
McDonald’s Singapore is turning Japanese, launching a Ninja Burger and reviving its Samurai Burger. To promote the two offerings, it has launched an “Honour Your Appetite” marketing campaign.

Senior director of marketing, menu and digital innovation Agatha Yap says the Ninja Burger expands the brand’s variety of Japan-inspired promotional flavours, which kicked off with the Samurai Burger for a short while only in the late 1990s.

To promote the return of the Samurai Burger, McDonald’s released a commercial featuring a fight between two samurais in a forest.

Meanwhile, McDonald’s Singapore has started using UberEats so customers can order home delivery, which MD Kenneth Chan says will complement the fast-food chain’s 24-hour McDelivery platform.
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November 2, 2017
Terminal 4 brings new retail brands to Changi Airport

Changi Airport retail has received a boost, with some 20 new retail brands making their debut at the new Terminal 4 (T4) which opened yesterday.

The retail mix at the terminal, which was five years in the making, spans 81 shops, 62 of them retail and service outlets and 19 food and beverage operators. About a quarter of them are making their Changi Airport retail debut.

Centrestage are integrated cosmetics and perfumes and liquor and tobacco stores operated by The Shilla Duty Free and DFS respectively. In a first for the airport, shoppers are able to pay for all their purchases from the two stores in a single transaction.

In the departure transit area, there are several “double volume retail outlets” with frontages spanning up to 11 metres high.

One of the main retail attractions at T4 is the Heritage Zone, with its facades of old Singapore shop houses, as well as the row of F&B outlets exuding nostalgia through their local delights and old-school furnishings. They serve up traditional Singaporean breakfast and snack items such as kaya toast, mee siam and kopi. At Live Prata Station, Indian roti is prepared right in front of customers.

“We have received very encouraging feedback from passengers that the offerings curated for T4 are refreshing and bring a new dimension to shopping and dining at Changi Airport,” said Teo Chew Hoon, CAG’s group senior VP for airside concessions.

“Our commercial team has paid attention to bringing in innovative concepts and new experiences for passengers spanning a range of categories, from the live cooking stations for prata and BBQ pork, to the sampling of cocktail mixes and the test-flying of drones. We will continue to work with our tenant partners to create a fun, vibrant and positively surprising experience for passengers and visitors at T4,” she said.

On its first day of operations yesterday, following extensive testing, the terminal handled 19 arrivals and departures, carrying about 4200 passengers. Cathay Pacific and Korean Air are the first two of nine airlines scheduled to use the new facility.

Tan Lye Teck, Changi Airport Group’s executive VP for airport management said the new terminal will increase Changi Airport’s capacity by 16 million passenger movements per annum, taking the total capacity to 82 million.

Japanese theme

Meanwhile, Changi Airport retail welcomed a Japanese Farmers Market to Terminal 3 last month, along with other retailers.

Located in the Departure Hall, the market sells an extensive range of produce including Wagyu beef cuts, fruits, and bento boxes imported from Japan.

Across from the Farmers Market, Kalms’ automated retail machines offer a range of gifts such as flower bouquets, soft toys and jewellery.

And in the public area of T3, local beverage store LiHo opened its first airport outlet last month.

In Terminal 1’s transit area, Michael Kors opened its second Changi Airport store.

November 2, 2017
AirAsia, Singapore’s SATS form ground handling partnership

Airasia is entering into a ground handling services joint venture with Singapore-listed ground handling and in-flight catering services provider SATS Ltd with the aim of growing the operations across the Asean region.

This would be effected through a share swap agreement and a share sale agreement which will see AirAsia and SATS owning a 50% stake each in Ground Team Red Holdings Sdn Bhd (GTRH), the low-cost carrier told Bursa Malaysia.

SATS is swapping an 80% equity interest in unit SATS Ground Services Pte Ltd (SGS Singapore) for an 11.4% stake in AirAsia’s unit GTRH. AirAsia will sell a further 38.6% stake in GTRH to SATS for S$119.3mil (RM370.97mil) in cash.

At the same time with the share exchange, AirAsia will transfer 98% of Ground Team Red Sdn Bhd (GTR Malaysia) – which provides ground handling services in Malaysia – to GTRH, which (as mentioned above) will also hold 80% in SGS Singapore, which will serve SATS’ customers at Changi Airport’s new Terminal 4 (to open Tuesday).

AirAsia will hold directly 2% in GTR Malaysia and 20% in SGS Singapore.

According to AirAsia, it will realise a gain on disposal of RM365.7mil in the fourth quarter of this year following the sale of the GTRH stake.

The airline also said the partnership with SATS would foster greater efficiency and cost savings to its ground handling operations.

“This will facilitate growth of AirAsia, with SATS bringing in the necessary expertise and skills set to create a synergy which will enhance the ground handling business,” it explained.

In a joint press statement, AirAsia and SATS said GTRH would be renamed SATS Ground Team Red Holdings Sdn Bhd.

AirAsia and SATS, responsible for growing the ground handling business in their respective markets, would also explore expansion into Indonesia, the Philippines and Thailand in the near future, the statement said.

AirAsia group chief executive officer Tan Sri Tony Fernandes said: “Today, we are very pleased to announce that two home-grown companies have partnered together to form a new Asean joint venture.

“We believe this joint venture will allow AirAsia to unlock significant value and grow it as we have done with AirAsia Expedia, our aviation academy Asian Aviation Centre of Excellence and later this year, our leasing arm Asia Aviation Capital. Our assets are very valuable and slowly people are beginning to see the true value of AirAsia, as today’s announcement proves.”

SATS, through wholly-owned subsidiary SATS Investments, also has an in-flight catering service partnership with Malaysia Airlines Bhd (MAB).

SATS owns a 49% stake in Brahim’s SATS Investment Holdings Sdn Bhd, which in turn owns 70% in Brahim’s SATS Food Services Sdn Bhd (BSFS). The remaining 30% equity interest in BSFS is held by MAB.

BSFS, whose main customer is MAB, is the principal in-flight catering service provider at both Kuala Lumpur International Airport and Penang International Airport. It also provides cabin handling services covering laundry services for pillows and blankets, filling the cabin trolley with items for in-flight sales as well as providing passenger headsets, newspapers and periodicals.

November 2, 2017
Singapore Christmas village planned for Orchard Road

Drawing inspiration from Europe, a Singapore Christmas village featuring pop-up stores from 25 brands, will make its debut at the annual Orchard Road light-up this year.

Outside Ngee Ann City from November 25 to Christmas Day, the village will feature such brands as Fish & Co, Starbucks and Toast Box, with Singapore’s first-ever duplex carousel.

“Christmas villages are very popular in Europe,” says Orchard Road Business Association (Orba) chairman Mark Shaw. “It will be a good opportunity for retailers to reach out to customers.”

Running from November 11 to January 1, the ninth edition of Christmas on a Great Street will be themed “Endless Wonder”. Highlights will include the event’s highest-ever main arch, reaching 12m, outside Ion Orchard and a 5m Enchanted Tree installation outside Wisma Atria.

Activities along the 2.8km stretch between Plaza Singapura and Tanglin Mall will start earlier this year, at 3pm rather than 6.30. There will be daily performances from bands, carol singers and roving cosplayers.

Shaw says LED lights will enhance the installations even in the afternoon. Each of the 1200 hanging globes to be strung on trees comprise coloured fabric intertwined with LED fairy lights.

Other attractions include the Walk of Wonder, a 12m-high 20m tunnel outside Forum the Shopping Mall made from reflective fabric and fairy lights.

A 4.5m Tree of Time in front of Ngee Ann City will be topped with a countdown-to-Christmas Day clock, and will be the backdrop to a Christmas Eve concert featuring bands and a midnight pyrotechnics show.

Orba expects the event to draw 3.6 million visitors this year. While this appears to be a sharp drop from the 6 million visitors counted last year, the association says it is introducing a new calculation method. In previous years, anyone who entered the event area would be counted as a visitor, but from this year visitors will be asked if they are there specifically for the event.

October 31, 2017
‘Robust’ quarter for Suntec REIT

Suntec Real Estate Investment Trust (Suntec REIT) reports a “robust” third-quarter performance, thanks to offshore properties.

Gross revenue rose 10.6 per cent to S$91.1 million (US$66.7 million) for its third quarter, mainly because of a higher contribution from Suntec Singapore plus a new property in Sydney, says trust manager ARA Trust Management (Suntec).

Net property income rose 11.6 per cent to $63.9 million for the quarter, while for the year to date, gross revenue was up 11.4 per cent to $266.9 million and net property income grew by 13 per cent to $185.1 million.

“While the Singapore assets continued to deliver steady income, the two properties in Australia contributed to our robust performance this quarter,” says ARA Trust Management CEO Chan Kong Leong.

For the Singapore retail portfolio, the overall committed occupancy as at the end of September was 99.1 per cent. The committed occupancy for Suntec City Mall was steady at 99.3 per cent while that for Marina Bay Link Mall stood at 93 per cent.

Chan says Suntec City Mall saw a 12.2 per cent increase in year-to-date footfall while tenant sales per square foot grew by 4.9 per cent.

“We also secured a number of new-to-market brands that will further enhance the city’s retail offerings.”

October 31, 2017