Tag: Singapore

  • Ikea Singapore plans opening new concept store at Jem mall

    Ikea Singapore plans opening new concept store at Jem mall

    Ikea Singapore is to open Southeast Asia’s first ‘small-store’ concept at Jem mall in the city’s west.

    The announcement today follows news last week that local department store Robinsons was vacating the space. The change of anchor is a perfect example of how consumer shopping preferences – and thus the balance of mall tenancies – is reshaping the modern retail market.

    The new Ikea Singapore store will open next year, taking up about 6500sqm across three floors of Jem, which is managed by Lendlease. It will be the Swedish furniture and home decor chain’s third shop in the city.

    “This store will bring us closer to millions of customers,” said Jaap Doornbos, Ikea retail director for Singapore & Vietnam. “This will be the first time we are establishing a smaller Ikea store format as a tenant within a shopping center in this region.”

    The ‘small-store’ concept is still relatively new globally. Unlike the giant standalone stores Ikea is known for, with their winding pathway layout, the Jem outlet will combine the full Ikea product range into one department. It will not feature a children’s playground, but will include an Ikea restaurant serving Swedish meatballs and fried chicken wings, among other items.

    “We see a bright future ahead for our store at Jem,” said Sebastian Hylving, property & expansion director at Ikea Southeast Asia & Mexico.

    “Jem is one of four malls connected to the Jurong Gateway, linked to public transport. At Jem, Lendlease has curated a combination of great F&B offer with fashion, groceries and entertainment to create an everyday meeting place for the many people.”

    Hylving says the two Ikea big-box stores, located at Tampines and Alexandra, attract almost 7 million visits each year.

    Ikea is reaping the benefits of renewed consumer interest in making homes more comfortable during the Covid-19 era, and the need for furniture and supplies needed for working from home.

    Ng Hsueh Ling, Lendlease Singapore MD and chief investment officer for Asia, said the company looked forward to bringing a first-to-market lifestyle concept to its mall.

    “We are continually rejuvenating our tenancy mix and bringing new experiences to them.”

  • OCBC Quarterly Profits Down

    OCBC Quarterly Profits Down

    Net profits at OCBC plunged 43 percent in the first quarter due to non-operating losses from its insurance arm and increased provisions most notably for oil-linked exposure.

    OCBC posted S$698 million ($494 million) in quarterly net profits – below analyst estimates of $666 million, according to Refinitv data.

    Its insurance contributions nosedived 94 percent year-on-year due to unrealized mark-to-market losses and its total allowances were increased from $176 million to $465 million which includes $195 million set aside for a «Singapore-based corporate customer in the oil trading sector».

    Recently, OCBC was reportedly amongst the lenders to disgraced oil trader Hin Leong, with an estimated exposure of $220 million.

    Driven by fee income wealth management and brokerage units, non-interest income was up 11 percent to $551 million. Net investment gains were also up at $84 million due to the sale of debt securities.

    Net trading income plummeted by more than 90 percent to reach $13 million due to unrealized mark-to-market losses in Great Eastern’s investment portfolio.

    Despite a still stable balance sheet – non-performing loans were up by only 2 bps while net interest margin remained at 1.76 percent – the additional provisions signal further headwinds ahead in light of the effects from the coronavirus pandemic.

    According to OCBC group CEO Samuel Tsien, the coming period is expected to be very difficult for individuals and businesses.

    We paid close watch on our credit portfolio against the market uncertainty, and significantly shored up our allowances on a forward-looking basis, he said.

  • March retail sales in Singapore down

    March retail sales in Singapore down

    March retail sales in Singapore fell 9.7 percent year on year in March 2019, as tourist numbers fell and locals spent less on discretionary items in the wake of the coronavirus pandemic.

    The decline was the largest in a single month in 22 years.

    With motor vehicles included in the total figure, retail sales were down by 13.3 percent, according to Statistics Singapore. March retail sales in Singapore totaled S$3.3 billion (US$2.33 billion).

    Compared to February, however, there was little change in the vehicles-excluded figure, with sales down 1.6 percent in March. In February retail sales excluding motor vehicles fell by 10.2 percent, year on year.

    The impact of the Covid-19 crisis on consumer shopping behavior was evident: online sales accounted for 8.5 percent of total sales, the highest figure ever recorded in the city-state. It followed a 7.4-per-cent share in February.

    Year on year, March retail sales in Singapore of apparel and footwear, food & alcohol, in department stores and of watches & jewelry declined by between 34.4 percent and 41.6 percent – mainly due to the decline in tourists spending.

    However – reflecting the trend towards eating at home more to ensure social distancing during the onset of the pandemic, turnover through supermarkets & hypermarkets rose by 35.9 percent and through mini-marts & convenience stores by 4.7 percent.

    The pandemic’s impact was also highlighted by data from sales of food & beverages. Sales fell 23.7 percent in March, to an estimated $678 million. Of those, online purchases comprised about 15.6 percent.

  • The Shoppes at Marina Bay Sands launches E-commerce concierge

    The Shoppes at Marina Bay Sands launches E-commerce concierge

    The Shoppes at Marina Bay Sands has launched a ‘click-and-deliver’ digital shopping concierge for online shoppers.

    The new service – the first of its kind among Singapore’s luxury shopping malls – features hundreds of selected fashion items that can be delivered free anywhere on the island. It launches with more than 10 participating brands including Bally, Boss, Bottega Veneta, Fendi, Jimmy Choo, Loewe, Manolo Blahnik and Moncler.

    “This new service is an extension of The Shoppes Edit portal,” said Marina Bay Sands VP of retail Hazel Chan. “Beyond simply reserving products online, shoppers can now choose to have them delivered directly to their doorstep. Through this service, we want to make luxury shopping an effortless pursuit for our customers.”

    A shopping voucher promotion is currently on offer to celebrate the launch of the service until May 31.

  • Singapore Press Holdings sells its Buzz convenience-store chain

    Singapore Press Holdings sells its Buzz convenience-store chain

    Singapore Press Holdings has sold its wholly-owned convenience-store chain Buzz Shop to Thai-Pore Enterprise.

    “This divestment of a non-core business will sharpen SPH Group’s strategic focus on its main business segments of media, retail real estate, purpose-built student accommodation, and aged care,” the firm said in a statement. “SPH will continue with its disciplined approach as it reviews its investments and businesses on an ongoing basis to maximize shareholder value.”

    As part of the deal, the price of which was not disclosed, the publisher retains the rights to distribute its publications through the Buzz Shop network.

    The move sees Thai-Pore expanding from its core business of liquor imports into the convenience-store business.

    According to CEO Wee Eng Tee, the acquisition “supports our growth strategy and enhances our presence in the retail market”.

    “We look forward to growing the Buzz brand which SPH has laid a strong foundation (for) in the past decades,” he said.

  • OCBC Fixes Date for Virtual AGM

    OCBC Fixes Date for Virtual AGM

    The bank will pay its final dividend of S$0.28 per share on June 5, after approval at the AGM. OCBC Bank will hold its annual general meeting on May 18 at 2 p.m. as a webcast or audio-only live stream, the bank said in a letter to shareholders.

    Shareholders attending the virtual AGM will not be able to vote online and can do so only by proxy, with the bank encouraging the submission of proxy forms by email, given delays with the postal service.

    The meeting was originally scheduled for 30 April, but had to be postponed following government measures that imposed stricter measures about gathering in public, given the Covid-19 virus outbreak.

    Singapore is currently under a partial lockdown until June 1, with members of the public only allowed to leave their homes to conduct essential activities.

    Singapore Exchange Regulation previously announced an automatic 60-day extension of the deadline for all issuers with financial year-end on or before 31 March 2020 to hold their AGMs, in light of government advisories amid the Covid-19 situation.

    OCBC is the second local bank to announce a virtual AGM after DBS, which rescheduled its meeting from March 31 to April 30.

  • Online retail the ‘silver lining’ in Singapore retail space

    Online retail the ‘silver lining’ in Singapore retail space

    The Singapore retail real estate market has weakened amidst the coronavirus pandemic, according to a quarterly market report released by Edmund Tie.

    Transactions fell across all real estate sectors despite significant support measures passed by the government under its Unity Budget, Resilience and Solidarity Packages.

    In retail, an industry already battling a recession throughout last year, with weak signs of recovery reversed by the outbreak, travel restrictions and social-distancing measures are thought to have largely contributed to a downturn in sales.

    Turnover by retailers in prominent Singapore retail districts such as Chinatown plummeted by as much as 80 percent. Sales at Jewel Changi Airport contracted by as much as 70 percent in the same month.

    “A silver lining in this otherwise gloomy scenario is that the demand for online shopping has surged, as people turned to e-commerce in lieu of physical stores,” said Edmund Tie’s paper. In February, online retail sales accounted for 7.4 percent of total retail transactions, up from 5.5 percent in January.

    “The pandemic will fast-track the adoption of technology, from omnichannel retailing to greater use of data analytics to better understand consumers and their preferences,” said Edmund Tie CEO Ong Choon Fah.

    “New and creative ideas will emerge when the situation stabilizes and we enter a new normal. The diversification of revenue streams arising from adopting an omnichannel approach will make retailers more resilient over the long term.

  • FairPrice launches mobile supermarket in Singapore

    FairPrice launches mobile supermarket in Singapore

    Singapore supermarket chain FairPrice has launched a mobile grocery service dubbed ‘FairPrice on Wheels’, delivering essential groceries closer to customers’ homes.

    With FairPrice on Wheels, customers living far away from supermarkets can now buy products from FairPrice’s vans parked near their home. Essential products include rice, milk, eggs, canned products, vegetables and toiletries. FairPrice has imposed purchase limits on these products as per below:

    “While we encourage everyone to stay home during the circuit breaker period, we also understand that there may be people who do not have the option to have their groceries purchased on their behalf,” said FairPrice Group CEO Seah Kian Peng.

    “Therefore, we aim to bring daily essentials closer to their homes, especially for seniors, so that they do not have to spend too much time away from home.”

    FairPrice on Wheels is available in five locations: Commonwealth Link, Telok Blangah Crescent, Telok Blangah Rise, Kampong Glam Community Club and Jalan Kukoh. More locations will be added soon.

  • Singapore Digital Payment Provider Expands Abroad

    Singapore Digital Payment Provider Expands Abroad

    Digital payment and digital banking solution provider Fomo Pay has opened an office in Kuala Lumpur, Malaysia and has partnered OCBC Bank on a cross-border funds collection service.

    Fomo Pay has made its first overseas foray into Malaysia, and has partnered OCBC Bank (Malaysia) to develop the country’s first merchant cross-border QR code collection service, the Singapore-based firm announced Tuesday on its blog.

    Under the partnership, Malaysia merchants can collect payments from Singapore customers on PayNow via direct QR code payments through OCBC OneCollect. Prior to this, QR code payments in Malaysia could only be done for local ringgit currency transactions.

    The collaboration «opens up opportunities to provide customer support in a larger territory, and signals continued rapid growth for the company in the region,» Fomo Pay said.

    Fomo’s decision to open an office in Kuala Lumpur ties in with the company’s expansion strategy to focus on Southeast Asia and other emerging economies, which are undergoing rapid digital transformation, it said.

    Fomo Pay allows merchants to accept a full suite of new payment methods including WeChat Pay, NETSPay, Grab Pay, SingTel Dash, EZLink Pay, mVISA and more.

    It was launched in 2015 and acquired 4,000 merchants within its first year. Its network now includes Changi Airport, Marina Bay Sands, StarHub, Jumbo, Club 21, Chanel, Singapore Press Holdings and more.

  • Singapore locks down until June

    Singapore locks down until June

    The Singapore government has reduced the list of “essential services” as part of a tougher clampdown on social distancing as it tries to arrest the spread of Covid-19 in the city-state.

    The Ministry of Trade and Industry (MTI) on last night announced a trimmed list essential services applied during the “circuit breaker” period which has been extended for another four weeks and will likely not now end until June 1. Subsequently, more retailers including food and beverage outlets have to temporarily shut down its business – although this is initially going to be enforced only until May 4, subject to extension.

    Here are types of food and beverage retailers that must suspend their operations from today (April 22):

    • All food-and-beverage vending machines located in parks, regardless of what they sell, must be shut. Takeaway and delivery services located in parks are to close.
    • Stores predominantly selling beverages including bubble tea, fruit juice, alcoholic drinks and coffee.
    • Stores predominantly selling packaged snacks and loose snacks including nuts, potato chips, popcorn, bak kwa and cheese.
    • Stores predominantly selling desserts including ice cream, cakes, sweet pastries, grass jelly and red/green bean soup. However, these rules do not apply to hawker centres and food courts. Online retailing of these products is allowed, provided that they are from a licensed central kitchen, manufacturing facility or warehouse of the food-and-beverage company.
    • Optical shops can operate by appointment only, with walk-in customers banned.
    • Pet supplies stores and retail laundry services must close their physical stores, but are permitted to provide online sales and delivery.

    Other food-and-beverage outlets, including those selling hot or cooked snacks, bread or meals, are allowed to continue to sell, but only via takeaway or delivery services during the “circuit breaker” period. Dining-in is not permitted.

    However, the MTI contradicts itself in documentation explaining the new restrictions, possibly due to the rushed pace with which they were prepared. In an appendix, it says that “specialized stores and outlets that predominantly retail” coffee and tea must close. Immediately below that declaration, the MTI says “Only hawker centers, coffee shops and food courts are excluded”.

    So it remains unclear whether coffee chains such as Starbucks are allowed to continue to trade from today. Starbucks had not responded on its Singapore operations before deadline.

    Meanwhile, stores continue to serve hot meals (as well as coffee) may continue to trade – ostensibly selling coffee and meals, but not cakes or sweets (once existing stock runs out). But other media is reporting that stores will be classified by the predominant product they sell, which suggests coffee shops may not continue to trade, as they sell more coffee than meals.

    Inside Retail Asia is awaiting further clarification of this and other points and will update this story as further details come to light.

    Supermarkets and wet markets can continue trading as normal, however social-distancing practices must be observed.

  • OCBC Shutters Investors Hub During Circuit Breaker

    OCBC Shutters Investors Hub During Circuit Breaker

    The bank hopes to encourage more people to stay home and comes in support of stricter social distancing measures implemented by the government to contain the spread of Covid-19.

    OCBC Bank’s wholly-owned brokerage subsidiary, OCBC Securities, will temporarily close its Investors Hub at OCBC Centre South from 20 April to 4 May 2020, it announced in a statement on Friday.

    The bank said customers will be able to continue to trade or make transactions through their trading representatives or on OCBC Securities’ digital platform, iOCBC, as the brokerage will continue to be operational during this time.

    The Monetary Authority of Singapore also urged the public to minimize visits to their premises during the current circuit breaker period.

    «While financial services remain available as one of the essential services exempted from the suspension of activities at workplace premises announced by the Ministry of Trade and Industry (MTI) on 3 April 2020, customers are urged to use digital, email, and telephone channels as far as possible and minimize face-to-face interactions at FI premises,» the regulator said in a statement on Friday.

    About half of the bank branches in Singapore have closed, along with most of the physical service locations of insurers, brokers and fund managers, in view of reduced customer traffic.

  • McDonald’s Singapore shuts all stores

    McDonald’s Singapore shuts all stores

    McDonald’s Singapore has temporarily closed all its restaurants as preventative action during the island’s “circuit breaker” period.

    According to a company statement, McDonald’s Singapore is suspending its restaurant operations, including drive-through and delivery service, until May 4.

    “These are indeed unprecedented times for all of us,” said Kenneth Chan, MD of McDonald’s Singapore. “With the safety of all our customers and employees as top priority, we will do all we can to help Singapore flatten the curve.”

    The company has confirmed staff will be paid as usual during the period of closure.

    The move came on Saturday, a day after the company suspended its takeaways service.

    McDonald’s Singapore had previously closed its store at Changi Airport Terminal 3 and its drive-thru outlet at a Shell petrol kiosk on Tampines Ave 2, after employees tested positive for Covid-19 at each location, taking the number of infected McDonald’s Singapore staff to seven since the coronavirus outbreak first occurred.

  • Singapore E-commerce Programs break barriers to shop online

    Singapore E-commerce Programs break barriers to shop online

    Enterprise Singapore (ESG) has launched the Singapore E-Commerce Programme to support SME retailers with little or no e-commerce experience to commence online trading.

    The group’s program is set up to cover 90 percent of costs up to SGD9000 (US$6300) for retailers to use e-commerce platforms for domestic and/or overseas markets, as well as providing additional manpower if needed.

    The Singapore E-Commerce Programme has been built in collaboration with e-commerce platforms Amazon, Lazada Singapore, Qoo10 and Shopee, which will provide assistance in curating and listing products for up to six months.

    The move aims to assist retailers in upgrading and diversifying their business model beyond traditional brick-and-mortar, of particular relevance during the coronavirus pandemic.

    “It is more crucial now for retailers to diversify revenue streams by using e-commerce channels,” said ESG deputy CEO Ted Tan. “The Singapore E-Commerce Programme primarily helps retailers with little e-commerce knowledge and capabilities to start using online channels. Our partnership with the established e-commerce platforms both in Singapore and overseas ensures a good-sized market for these retailers to tap on. We want to empower all retailers to develop long-term and sustainable e-commerce strategies that will ensure business resilience beyond Covid-19.”

    Eligible retailers are invited to sign up for the package directly with the respective e-commerce platforms by September 30.

  • Google Debuts P2P Fund Transfers in Singapore

    Google Debuts P2P Fund Transfers in Singapore

    With OCBC enabling peer-to-peer (P2P) fund transfers on Google Pay, the city-state becomes the third globally to offer the service, after India and the United States.

    The integration means that OCBC customers can now transfer or receive payments directly from their bank accounts to or from anyone registered to PayNow using the Google Pay app, the bank announced in a statement this week.

    At the same time, bank account holders without credit cards can also Google Pay to make payments to merchants in Singapore.

    We have long rejected the ‘digital wallet’ approach that requires customers to top up an e-wallet and hold funds in one without earning interest. Instead, we put a lot of effort into developing OCBC Pay Anyone as an open-loop payment system, whereby customers literally ‘pay anyone’ directly from their bank accounts, Ching Wei Hong, OCBC head of Global Wealth Management & Consumer Banking, said.

    Introduced in 2017, Singapore’s national e-payments system PayNow enables digital payments directly between customers’ bank accounts and funds transfers using their recipients’ mobile numbers.

    The integration of Google Pay and PayNow is expected to significantly impact the adoption and usage of PayNow in Singapore, which already recorded more than 70 million transactions worth S$12.16 billion in 2019, OCBC noted.

    Google previously said it is looking at adding more banks to Google Pay, including DBS and Standard Chartered, with launches expected by the end of 2020.

  • Jollibee Singapore fined for flouting social-distancing rules

    Jollibee Singapore fined for flouting social-distancing rules

    A Jollibee Singapore outlet is among several businesses fined SG$1000 for breaches of the government’s social distancing mandate.

    Official enforcement measures found the franchise’s Woodlands MRT branch had neglected to ensure queueing customers and food delivery workers maintained one-meter spacing between them, despite issuing previous warnings.

    “The infringements included failure to implement a crowd management system and allowing customers and delivery personnel to crowd together without one-meter spacing between one another,” read a statement by the Singapore Tourism Board and Enterprise Singapore. “If these stores continue to flout the rules, they will face higher fines and can be charged in court.”

    In an official apology, Jollibee explained that a staff member on duty had been unable to control the queue due to “a strong surge in delivery orders and a corresponding increase in third-party delivery riders in the store.”

    The one-meter distance requirement, as well as mandatory wearing of face masks, has been in effect since April 12. Members of the Singapore public are encouraged to report infringements by email to Covid_GoBusiness@mti.gov.sg.