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Tag: Singapore

  • Phantaci makes it real in Singapore

    Phantaci makes it real in Singapore

    Taiwanese streetwear label Phantaci has launched its first overseas boutique, at Orchard Gateway in Singapore.

    Covering 1200 sqft (111 sqm) on the mall’s second floor, the outlet features pink shelving and black-and-white tables echoing a piano keyboard.

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    As well as an in-house collection, Phantaci collaborates on products with such top brands as Casio, Nike and Stussy.

    To mark the opening, Phantaci is offering an exclusive selection of merchandise including a black-and-gold Phantaci shirt and an embroidered cap.

    Phantaci was established in 2006 by MandoPop musician Jay Chou and Ric Chiang.

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  • FairPrice Shop grocer’s new budget banner

    FairPrice Shop grocer’s new budget banner

    Singapore’s largest supermarket operator NTUC FairPrice has unveiled a new budget banner and format today, imaginatively named FairPrice Shop.

    The official opening ceremony of the first store was underway this morning in Eunos Crescent – the store will be called FairPrice Shop@Eunos.

    “As FairPrice continues to serve its social mission to moderate the cost of living in Singapore, it will be launching a new retail format, FairPrice Shop, targeted at budget conscious shoppers,” the company said.

    “The format will feature a more focused range of products offering greater value, including the

    introduction of an exclusive range of housebrand fresh produce, which is five to 10 per cent cheaper than FairPrice’s existing housebrand fresh produce line. FairPrice Shop will be located primarily within mature estates with a higher concentration of low-income families.”

    The store was formally launched by Lim Boon Heng, chairman of NTUC Enterprise, and associate professor Fatimah Lateef, MP for Marine Parade GRC (Geylang Serai), who were hosted by Bobby Chin, chairman, NTUC FairPrice.

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  • Zalora Scholarship is now open

    Zalora Scholarship is now open

    Asian eCommerce company, Zalora, has relaunched its scholarship program, now on its second year.

    The theme for the Zalora Scholarship this year is “Function Vs Fashion: How the Two Coexist in (Major) Trends Over the Decades”.

    The online retailing company says the fashion-meets-function trend is growing rapidly now, more than ever as wearables flood the market. One prime example is the activewear industry as fitness wear becomes more than just clothes for working out.

    The Zalora Scholarship will award six tertiary students from the Philippines, Singapore, Malaysia, Indonesia, Hong Kong and, for the first time, Taiwan, with a grant and internship at Zalora offices.

    Applicants may submit their entry in the form of an essay or infographic. Winning entries will be selected based on creativity, innovation and relevance to the theme as well as analytical skills and academic results.

    Michele Ferrario, CEO of Zalora Group said: “As Asia’s online fashion retailer, we’re dedicated to continuously recognise and support the most promising talents in the region who desire for a career in fashion. We believe this will not only help develop and groom the future leaders of this industry but also contribute to the growth of eCommerce in Asia.”

    Zalora welcomes applicants from all tertiary institutions that fall under Zalora Partner Institutions in Singapore, Hong Kong, Indonesia, Malaysia, Philippines and Taiwan. One student from each of these countries will be offered a scholarship.

    Applications will close at 11:59 PM (GMT) on July 31.

  • Another close shut down in Singapore

    Another close shut down in Singapore

    Streetwear chain 77th Street is about to become another victim of Singapore’s struggling retail scene.

    The home-grown clothing company will close the doors of its last outlet, in Ang Mo Kio, by the end of this month, according to Channel NewsAsia.

    Founder Elim Chew says high rents have forced the closure, with the present rate of $35 a square foot having risen from $9 when she started the business at Far East Plaza in 1988.

    At one point, 77th Street had 16 outlets around Singapore, and was the first Singaporean retailer to set up a shopping mall in China in the early 2000s by opening 77th Street Plaza. This has since closed.

    Chew has now ventured into the logistics industry, setting up the app Fastfast along with Adrian Ng of mobile app and retail technology developer Codigo. The app allows people in between jobs or retirees to become document or package couriers. About 4500 people have signed up to be FastFast drivers, according to The Straits Times.

    Meanwhile, the first six months of this year have seen several retail brands exit Singapore, including Britain’s New Look, French menswear chain Celio, and local label M)Phosis.

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  • The Top 3 Biggest Insurance Risks for SMEs in Singapore

    The Top 3 Biggest Insurance Risks for SMEs in Singapore

    Workplace injury, property damage, and liability are the top 3 biggest insurance risks for small and medium enterprises (SMEs) in Singapore over the next 12 months, according to AIG Asia Pacific Insurance Pte. Ltd.

    SMEs in Singapore face rising business risks as they deal with increasing costs amid an economic slowdown. SMEs claimed more than S$5 million last year, and AIG Singapore expects the claims volume to stay in this range over the next 12 months.

    Claims data from AIG Singapore reveals the top three risks for SMEs in Singapore arise from workplace injuries (56 per cent), fire or water damage to property (20 per cent), and legal liability (20 per cent).

    A particular area of concern is workplace injury, with claims growing by 17 per cent in 2015 compared to 2014. The amount paid for workplace compensation claims is also forecasted to increase by 20 to 30 per cent this year.

    Based on AIG Singapore’s data, the manufacturing industry saw work-related injuries account for 90 per cent of its top claims over the last three years. The top three industries that submitted SME-related claims are food and beverage, retail, and manufacturing.

    AIG Singapore’s Head of SME Packages, Krishna Moorthi Sri Ramalu, said: “With growing awareness of external threats such as cyber attacks and data theft, much attention has been placed on how these external risks can cripple SMEs. While these threats are indeed significant and on the rise, SME owners must not forget their assets are exposed to internal risks every day.

    “AIG Singapore forecasts that the greatest risks SMEs will face in the next 12 months are due to internal factors such as injury to employees and damage to property and equipment.”

    A risk that can’t be ignored

    He added, “Workplace injury claims accounted for over half of AIG Singapore’s claims last year. It is a key risk factor for SMEs that cannot be ignored, particularly with a 10 per cent rise in fatal workplace injuries from 2014 to 2015.

    “Fire breaking out at SMEs’ premises is also a risk that, while not as common, can cause severe and long-term losses that have a huge financial and reputational impact on the business.”

    Krishna highlighted the example of a fire at a major shopping centre earlier this year, which caused the shopping centre to close for around five days. This resulted in 13 potential property damage claims (including seven business interruption claims) from AIG’s SME clients operating in the shopping centre.

    The total estimated cost of these claims is S$241,000, which can be a significant out-of-pocket sum for the SMEs if they do not have any insurance cover.

    In 2015, the average claim made by an SME was around S$6,000, while the highest claim was S$214,000 made by a medical clinic when its water pipe burst and damaged both the clinic and neighbouring retail units.

    “SME owners often do not invest in risk management and contingency planning as they are preoccupied with the day-to-day running of their companies. However, it is precisely because of their smaller scale that SMEs can ill-afford hefty losses caused by business interruptions or closures, loss of income, supply chain delays or damage to neighbouring properties.

    “In fact, this year’s tough economic climate exacerbates the financial impact on SMEs. In the event of incidents such as fires, property damage, or floods, they may be hit with high costs and forced to stop operating for a period of time. SMEs need to look at how they can protect their business operations and get these operations back on track swiftly if incidents occur,” Krishna said.

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  • Paypal now available for iPay88 merchants

    Paypal now available for iPay88 merchants

    Malaysian online payment service iPay88 has entered a collaboration with online payment company PayPal to promote and support cross-border trade for iPay88 merchants.

    For small businesses in particular, cross-border eCommerce provides a chance to sell to the world, and iPay88 believes the collaboration will enable its merchants to leverage PayPal’s 184 million active accounts and presence in more than 200 markets.

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    Executive director KL Chan says iPay88 has nearly 10,000 e-merchants, including SMEs and conglomerates, but there is also a large, untapped market of businesses and companies still considering moving into eCommerce. “This collaboration with PayPal is timely as it will help capture this market effectively by offering both online banking and credit-card payment options.”

    Merchants signing up for a PayPal account can now do so through iPay88. Approvals will be sent to merchants within three working days. Aside from the quick sign-up process, iPay88’s online merchants will also be able to benefit from PayPal’s multi-currency checkout.

    Chan estimates the collaboration will drive extra revenue for iPay88 in 12 months.

    “It has always been a challenge for businesses, especially small ones, to expand and sell overseas,” says PayPal Southeast Asia GM Rahul Shinghal. “PayPal is committed to helping them grow by leveraging the power of eCommerce, which gives them a level playing field when competing with larger export houses.”

    A subsidiary of NTT Data Corporation, iPay88 was set up in Kuala Lumpur in 2006 and has an established presence in Indonesia, Singapore, Thailand, the Philippines and Vietnam.

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  • Gourmet offerings at McDonald’s Singapore flagship

    Gourmet offerings at McDonald’s Singapore flagship

    Sandwiches made with light rye bread, a salad bar and desserts like gula melaka and coconut Swiss roll are among gourmet food options to be offered at McDonald’s Singapore’s new flagship restaurant at East Coast Park in Singapore, which will seat more than 300 diners.

    Opening on July 2, the 8439 sqft (784 sqm) McDonald’s Marine Cove will be a test bed for the chain, says McDonald’s Singapore MD Robert Hunghanfoo. New products will be trialled before being implemented in other outlets in Singapore.

    A recreational and dining enclave, Marine Cove was home to an iconic McDonald’s branch from 1982 until 2012, when it closed for redevelopment.

    At the salad bar, diners can choose from more than 10 ingredients and sauces to add to three types of salad. A dessert bar features in the outdoor seating area, offering sundaes and ice cream with a selection of 17 toppings.

    Hunghanfoo says the menu and research teams took a year to develop the concept, noting food trends and consumer feedback.

    As well as the usual McDonald’s burgers and fries, there will be a trio of premium burgers.

  • Singapore food brands eye Philippines

    Singapore food brands eye Philippines

    With the Philippines’ population of 20 times more than that of Singapore, the city state’s F&B brands are finding an attractive market in the fastest growing economy in Southeast Asia.

    Executives from Singapore food brands flew into Manila this week as they look to expand into the Philippines through franchising.

    During an exclusive business matching event “Master Franchise Meet and Match” yesterday at Le Jardin in Bonifacio Global City, Singapore-based entrepreneurs and business organisations announced their interest in looking for potential partners to penetrate the Filipino market, known for its food enthusiasm.

    Singapore food brands eye PH 3

    Johnny Mayani, CEO of Wing Zone, said one of the reasons for choosing the Philippines is the big percentage of young consumers. He indicated that this market is suitable for their business, which targets the young food enthusiasts willing to customize products and try new flavours. Another reason is the Filipinos’ appreciation for Western food.

    “The Philippines is a very exciting market for us because of the fact that it is very Western concept friendly,” said Mayani.

    Wing Zone is an Atlanta-based restaurant chain which serves hamburgers, french fries, and buffalo wings. It’s headquartered in Singapore to look over its operations in Asia.

    Another DIY brand that expressed interest in the Philippines is BurgerUP, a gourmet burger chain that has branches in Pungol and Yishun in Singapore.

    BurgerUP executive chef Alvin Poon showed the restaurant’s ordering system that uses touchscreen technology. Customers can pick one or more patties, as well as toppings, to go with their burgers – through an app, and pay at the counter with generated QSR codes, avoiding long queues.

    Singapore food brands eye PH 1

    Coffeeshop Joe & Dough serves hand-crafted coffee made with Arabica beans and offers artisan breads and pastries. Asked who will be its biggest competitors in the Philippines, MD Damien Koh said its focus is not in the competition.

    Koh recognises the growing artisanal cafe and bakeshop scene in the country, but he said the company prioritises its philosophy of providing everyone an access to good coffee.

    Other brands that joined the event were Maki-San, considered as Southeast Asia’s first DIY sushi and salad bar where customers can choose from more 70 ingredients; Xiao Pan, which offers innovative soya bean based products for a good and healthy snack; and H20 Life Source, a water filtration systems provider, which plans to have at least 1000 stores in the Philippines in the next three years.

    Gourmet bakeshop Swissbake, restaurant chain Keisuke Ramen, and casual dining restaurant PastaMania also expressed interest in franchising in the Philippines.

    The franchise partnership event was organised by Francorp Philippines, together with U-Franchise Sales and Management, the Philippine Franchise Association, Franchise and Licensing Association (FLA) Singapore, and Astreem Consulting.

  • Singtel teams with SIT to train cybersecurity talent

    Singtel teams with SIT to train cybersecurity talent

    Singtel has announced a new partnership with the Singapore Institute of Technology (SIT) to train cybersecurity talent.

    The work-study program will support SIT students in the areas of Information Security and Software Engineering, which is expected to lead to career pathways such as cyber security R&D, product development, and management, cyber analysis and forensics, operations and cyber architects.

    Singtel country CEO and CEO, Group Enterprise Bill Chang said the undertaking aims to address two critical skills needs locally – the short supply of trained software engineers and the growing worldwide threat posed by cyber threats.

    “The economy is in great need for trained cybersecurity professionals,” he said.

    Under the work-study programs, participating students are trainees of the supporting company. They get to gather meaningful work experiences through industry induction, close mentorship, attachments and capstone projects to deepen industry-relevant skills.

    The students would acquire skills and experience relevant to the needs of the company while the company gains a productive contributor and an avenue to recruit, assess, groom and retain talent.

    Singtel has also worked with the InfoComm Development Authority of Singapore (IDA) on the Cyber Security Associates and Technologists Program.

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  • RIP Ensogo Asia shuts down sites

    RIP Ensogo Asia shuts down sites

    Ensogo Asia has closed down all of its online stores as the online retailer appears on the brink of collapse.

    Following the resignation of its co-founder Kris Marszalek, the Singapore-based tech company said it will cut its financial support to its sales and marketplace business units in Indonesia, Thailand, Hong Kong and the Philippines.

    “These business units will be shut down. All staff have been informed and communications will be made to customers in the coming days,” the company said in a statement.

    Australian internet entrepreneur Patrick Grove founded Ensogo, formerly iBuy. Grove also established the online businesses iProperty and iCar under Catcha Group.

    Recently the company reported growth averaging more than 100 per cent in the first quarter, after the launch of a cross-border marketplace business in January. It said the number of suppliers had skyrocketed from 3141 in the fourth quarter of 2015 to 13,599 in the first quarter of 2016. The first three months saw US$8.2 million in gross merchandise value.

    As of the end of March 2016, however, Ensogo reported A$22.6 million (about US$17 million) in receipts from customers, while total cash was only A$17.6 million, a 64 per cent decline from A$29 million by the end of last year. Earlier this year the company, which is headquartered in Singapore and listed in Australia, laid off employees.

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  • Singapore’s MyRepublic denies reports of funding woes

    Singapore’s MyRepublic denies reports of funding woes

    MyRepublic’s CEO has rejected reports that the company is having difficulty raising funds required to make a bid to become Singapore’s fourth mobile operator, calling the claim “a bold-faced lie.”

    Malcolm Rodrigues told us that the company has already lined up $130 million worth of the $250 million in funding needed to roll out a network.

    Rodrigues was responding to a report stating that the company’s latest financial statement casts doubts onto whether the operator can afford to become a mobile operator.

    The report alleged that it had received a copy of the unlisted operator’s balance sheet that shows that MyRepublic lost S$9.36 million ($6.96 million) in Singapore last year, and has so far raised no funds required for the rollout.

    But Rodrigues denied this claim, asserting that the company has a loan facility for half the required amount, and expects DBS Group and Goldman Sachs to help the operator finish its fundraising for the mobile bid by the end of July.

    MyRepublic will be competing against Consistel, through subsidiary OMGTel, which has reportedly lined up at least S400 million worth of the S$1 billion in funding it plans to commit if it wins the mobile license.

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  • Are These Retail REITs Trading For Less Than What They’re Worth?

    Are These Retail REITs Trading For Less Than What They’re Worth?

    The price-to-book (PB) ratio is a popular way to value a real estate investment trust (REIT).

    The P/B ratio is calculated by dividing the market capitalisation of a REIT with its book value, or net asset value. Theoretically, having a P/B ratio that is less than 1 means that a REIT is trading for less than what it’s worth – an investor who buys the REIT could liquidate all its assets, settle all its obligations, and still end up with a profit.

    A recent report indicated that the average P/B ratio for Singapore’s REIT universe (the local stock market has 27 REITs and six stapled trusts) was 0.9. The list of 33 trusts included eight Retail REITs, as defined by the Global Industry Classification Standard.

    Here’re five quick highlights from the report on the eight Retail REITs (figures as of 8 June 2016, unless otherwise stated):

    1. Lippo Malls Indonesia Retail Trust (SGX: D5IU) has a P/B ratio of 0.9. The REIT is home to 19 retail malls and seven retail spaces in Indonesia and offers a distribution yield of 9.9%. While the REIT’s yield looks high, it’s worth noting that its total returns over the past three years have been a negative 15%.
    2. CapitaLand Retail China Trust (SGX: AU8U) also has a P/B ratio of 0.9. The REIT offers a distribution yield of 6.7% and has recorded a total return of 19.1% over the past three years. It is focused on the ownership of retail malls in China and currently has stakes in 10 shopping malls across six Chinese cities.
    3. Meanwhile, Starhill Global Real Estate Investment Trust (SGX: P40U) is yet another REIT with a P/B ratio of 0.9. The REIT has stakes in Wisma Atria and Ngee Ann City in Singapore. In all, the REIT owns commercial as well as retail properties in four other countries, namely Australia, China, Japan, and Malaysia. Over the past three years, Starhill Global REIT has delivered total returns of 4.9%. The REIT offers a 6.5% distribution yield.
    4. Not all retail REITs are trading below their book values. SPH REIT (SGX: SK6U), whose portfolio only has two properties right now (the retail malls Paragon and Clementi Mall in Singapore), trades at its book value. The REIT offers a distribution yield of 6.0% and has recorded a negative total return of 5.8% over the past year.
    5. CapitaLand Mall Trust (SGX: C38U) is one REIT that has a P/B ratio of over 1 – more specifically, the REIT has a P/B ratio of 1.1. CapitaLand Mall Trust, which owns 16 retail malls here, is the Singapore stock market’s first and oldest REIT. It offers a 5.3% distribution yield and has total returns of 14% over the past three year.

    The P/B ratio represents a starting point for investors who are looking for REITs that may be undervalued. Valuation, though, has to be complemented by understanding a REIT’s asset quality, the performance of the REIT’s portfolio in the past, and its future prospects, among other important things.

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  • Singapore’s SMI eyes expansion into retail, F&B in Myanmar

    Singapore’s SMI eyes expansion into retail, F&B in Myanmar

    SGX Mainboard-listed Singapore Myanmar Investco (SMI) – engaged in consumer products and services in Myanmar – will be looking at investing in the retail and food & beverage vertical in the next three years.

    Late last year, SMI inked an agreement with Royal Golden Sky Co Ltd to operate a retail space at the Yangon International Airport.

    “We will continue to look at retail opportunities in the domestic market (Myanmar). We are in discussions with the Junction City (Shwe Taung Group’s $300-million mixed-used development project) and I think there will be opportunities in both retail and F&B space,” said Mark Bedingham, president and chief executive officer, Singapore Myanmar Investco.

    About 10 international brands will be brought to the domestic market while the Yangon International Airport retail space will sport 30 brands by July 2016.

    SMI is primarily targeting the downtown business district around Kandawgyi lake area and Mandalay for retail opportunities.

    For the food and beverages sector, SMI has signed a franchise agreement with Crystal Jade group to bring in the Chinese restaurant concept and The Coffee Bean and Tea Leaf that will open soon at the new Yangon International Airport terminal.

    “We want to be seen as a progressive company in Myanmar, bringing new products and services that have not been available here before, both for consumers and businesses.”

  • Bigger Is Better for Singapore REITs Facing Consolidation

    Bigger Is Better for Singapore REITs Facing Consolidation

    Singapore’s real estate investment trust market is set to consolidate as smaller vehicles merge to cope with rising regulatory costs, according to Cambridge Industrial Trust.

    “The wave of consolidation for Singapore REITs is about to begin,” Philip Levinson, chief executive officer at Singapore-listed Cambridge Industrial, said. The trust has a market capitalization of S$730.5 million ($536 million) and focuses on industrial real estate assets.

    The city-state’s monetary regulator has tightened rules that could raise costs and lower revenues for REITs, making mergers between such trusts the most viable option for them to thrive, Levinson said. Morgan Stanley last year said consolidation in the Singapore REIT market was “unavoidable and necessary” to develop sufficient scale and stock liquidity for individual REITs to effectively compete on a global scale.

    Since 2002, when they were first started, Singapore REITs have grown into a $48 billion market, the sixth-largest globally by market capitalization, according to data compiled by Bloomberg. More than half of the 35 REITs listed in Singapore have a market capitalization of less than $1 billion, the data show. The city-state’s largest REIT, with assets of $5.6 billion, is the CapitaLand Mall Trust.

    New rules put in place last year by the Monetary Authority of Singapore, requiring higher levels of disclosures, especially on fees, entail higher compliance costs and lower revenue potential for REIT managers. The new rules are especially punitive for smaller-scale REITs and the gradual widening of the gap with larger REITs would make conditions even more conducive to consolidation, Morgan Stanley said.

    REITs that are not part of a broader index are significantly disadvantaged, Levinson said. Markets are bifurcating to such an extent where investors will only look at REITs that are included in indexes, he said.

    Shabby Sheds

    Cambridge Industrial will continue to focus on its Singapore assets and consider selling some to reinvest in other markets such as Australia and Japan, Levinson said.

    “We will look to buy ‘shabby sheds,’ B-grade assets in A-grade locations” in Australia, he said. Yields for its Singapore industrial assets range between 6.6 percent and 6.7 percent, while Australian assets may potentially yield about 7.5 percent to 8 percent, Levinson said.

    “Japan is a very deep market with enormous spreads, but that’s the next step after Australia because it is expensive at the moment,” he said.

    Industrial occupancy and rental rates in Singapore will remain under pressure in 2016 as new supply outpaces demand growth, according to Rachel Chua, a Moody’s analyst. Singapore REITs in the industrial space will continue their overseas acquisition spree in 2016 as they pursue asset growth, yield accretion and portfolio diversification amid challenging business conditions, Moody’s said in January.

    Unit prices of Cambridge Industrial, with 51 properties located across Singapore valued at S$1.4 billion, dropped 17 percent last year and the shares were trading at a roughly 17 percent discount to the net asset value, or NAV, as of Dec. 31. The FTSE Straits Times Real Estate Investment Trust Index slid 11 percent last year, its biggest decline since 2011.

    Levinson, who set up Blackstone Group LP’s Australia operations in 2009 before joining Cambridge Industrial, said he’s been meeting with investors who want to see the REIT work on lifting its unit price and the firm is exploring all options to help achieve that.

    “Our real focus is to bridge the divide, reduce the gap between our current unit price and NAV,” Levinson said.

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  • SingTel to launch VoWiFi in August

    SingTel to launch VoWiFi in August

    SingTel has revealed plans to launch Singapore’s first commercial Voice over Wi-Fi service in August following the success of its recent HetNet trials.

    The trials, conducted in collaboration with IDA Singapore, confirmed that voice calls and texts can be sent over Wi-Fi in areas which are challenging for mobile signals.

    Service continuity can be maintained as smartphones transition between cellular and Wi-Fi networks, without the need of an installed mobile app. SingTel said this will allow its customers to make uninterrupted calls over Wi-Fi in locations including basements and the upper floors of skyscrapers.

    The trials also demonstrated the readiness of SingTel’s HetNet to support the IoT by providing reliable connections to sensors and other connected devices, the operator said.

    “In the near future, with millions of connected devices fuelling data demand, ensuring a consistent experience for multiple mobile customers across different locations is paramount,” SingTel CEO consumer Singapore Yuen Kuan Moon said.

    “With pervasive connectivity and higher data capacity set to become the norm, it was important for us to conduct a HetNet trial to gain further insights.  Given our positive trial results, we are ready to support the Internet of Things with our networks and provide SingTel mobile users with high-quality voice calls and SMS island-wide.”

    IDA co-managing director Gabriel Lim said 90% of HetNet trial users had an improved mobile experience, including superior connectivity, download and upload speeds and transitions between wireless and cellular networks.

    “We will use the lessons from the trial to work with our industry partners to further enhance the experience of Singapore mobile users,” he said.

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