Singapore, Saudi put corporate do-gooders on spot 9 Jun 2016 Banks covet business in Saudi Arabia despite its poor human rights. They can say it’s the direction of travel that counts. Singapore, which just told groups like Goldman Sachs to stop backing a gay and lesbian event, is going backwards. It puts corporate sincerity to the test.
Noble’s cash call will buy it one year 3 Jun 2016 The commodity trader is tapping shareholders for $500 mln days after its CEO resigned. The rights issue and other disposals should cover $2 bln of debt due next year. But Noble is still asking investors to believe its core business will be able to consistently generate cash.
Noble CEO exit signals reduced ambitions 30 May 2016 Yusuf Alireza is leaving the embattled commodity trader after four years in charge. Though Noble has avoided an immediate liquidity crisis, investors still question its long-term viability. Flogging its U.S. energy arm will raise cash at the expense of further shrinkage.
1MDB scandal stings Singapore’s banking pillar 24 May 2016 The city has shut down BSI as Swiss authorities open a criminal probe into the private bank relating to the Malaysian state fund. The battle against illicit money flows is global. But Singapore is only now properly facing up to the risks of its push into wealth management.
Singapore joins global battle against deflation 14 Apr 2016 The city-state has problems others would love to have, including a budget surplus and low unemployment. But falling prices and exposure to weak global trade are a concern. That’s why the monetary authority has unexpectedly eased policy by pledging to keep the currency stable.
Alibaba’s $1 bln Southeast Asia buy tests limits 12 Apr 2016 The Chinese e-commerce giant is taking control of upstart Lazada in its largest overseas deal to date. Countries like Indonesia and Malaysia offer new growth. But widening losses and fierce competition mean expansion is not cheap. It also dilutes Alibaba’s asset-light model.
Pooling data is best weapon for Uber’s rivals 12 Apr 2016 Car-hailing services in the United States and Asia are linking apps. The financial benefits from allowing customers to roam overseas are likely to be small. But sharing data and tech insights could help the quartet fight back harder against Uber in their respective home markets.
Noble’s banks matter more than its credit score 8 Jan 2016 A second rating agency has downgraded the struggling commodity trader to “junk”. That’s a further blow to sentiment. But investors were already wary and the financial impact should be limited. What matters is that Noble’s lenders, acting in their own interests, remain supportive.
Container shipping deal stacks up in multiple ways 7 Dec 2015 French giant CMA CGM is buying Singapore’s ailing Neptune Orient Lines for $2.4 billion plus debt. Offering majority owner Temasek and public shareholders close to book value – a 49 percent premium – looks generous. But the unlisted buyer can chart a course to value creation.
Singapore’s big poll win creates room for economy 14 Sep 2015 Voters gave a thumbs-up to Prime Minister Lee Hsien Loong’s new, slightly left-of-centre policies, but rejected the opposition’s more populist agenda. Business is hurting, and the ageing city-state can’t afford fiscal excesses. It’s time to shift the focus to fading growth.
With strong new backer, Olam gets what Noble needs 28 Aug 2015 Mitsubishi is backing a Singapore-listed trader bashed by short-sellers, paying $1.1 bln at a big premium. Noble needs such a vote of confidence. But the Japanese group is actually endorsing Olam – a firm supported by Temasek that has been spared the worst of the commodity rout.
Noble Group clears first of four comeback hurdles 11 Aug 2015 A detailed review by PwC has gone some way towards reassuring investors about the group’s mark-to-market accounting. Next the embattled commodity trader must adopt the report’s recommendations; reassure shareholders in person - and generate some actual operating cash flow.
Guest view: Shared identity would help Singapore 11 Aug 2015 Despite fifty years of rising prosperity, the city-state’s national psyche remains fragile, writes academic and former law maker Eugene Tan. Nurturing a shared purpose based on aspirational values would better equip Singaporeans for the economic challenges ahead.
E-book: Singapore turns 50 10 Aug 2015 The city-state defied all expectations during its first five decades. Now it faces fresh challenges. As celebrations fade, this collection of views examines Singapore’s prospects including the outlook for its workforce, property market, role as a finance hub, and water supply.
Singapore’s anti-ageing cure will take time 10 Aug 2015 A shrinking labour force and voters’ desire to limit foreign workers could mean slow growth and not enough tax revenue for welfare. The city-state is trying to beat its demographic destiny by boosting productivity. The payoffs will only come when global demand perks up.
Singapore at 50 ought to loosen up 7 Aug 2015 Pragmatic policy and hard work helped the city-state attain a level of prosperity unimaginable five decades ago. Future success depends on dialling back state capitalism and paternalism, and spawning more entrepreneurs. Few will bet against Singapore continuing to defy the odds.
Singapore’s creaking home prices have solid floor 6 Aug 2015 After a breathless rise, property values have dipped. Interest rates are rising even as the economy slows. But prices are unlikely to fall too much further. Population growth plus liberal public spending on infrastructure will boost long-term value, and the supply glut will fade.
Noble could use new backer for confidence shortcut 4 Aug 2015 Attracting a heavyweight investor would show faith in the commodity trader’s accounts. Better yet if this signals Noble is neither desperate for funds nor fully valued by the market. A convertible bond would achieve those aims while minimising the pain for existing shareholders.
Singapore’s easiest days as a finance hub are over 4 Aug 2015 The city remains a gateway to Asia: great for regional HQs, settling lawsuits, and parking money. But investment banks are struggling and IPOs are scarce. From its up-and-coming neighbours to China’s new trade push, the risks that Singapore will be bypassed are mounting.
Singapore could use a fresh approach to water 3 Aug 2015 The city-state built its economic success partly on carefully managing scarce H2O and reducing reliance on foreign sources. Now Singapore wants to be self-sufficient. But with the population set to double, the quest for water independence risks becoming a distracting pipe dream.