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CityDev
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ETLee8
Master |
19-Feb-2022 19:11
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Here are the winning and losing stocks from Singapore' s BudgetTax changes in Singapore&rsquo s budget are positive for certain retail stocks and firms that are reducing their carbon emissions, but some multinational companies, property developers and luxury vehicle stocks emerge as losers.    Finance Minister Lawrence Wong unveiled a budget on Friday that seeks to rebuild Singapore&rsquo s finances and chart a post-pandemic future by raising taxes on the wealthy and on consumption. The benchmark Straits Times Index closed 0.4% lower, though in the long term analysts said the budget should offer some support.     &ldquo Singapore&rsquo s fiscally smart moves would help boost its status as a country offering stocks that give high income and dividend yields,&rdquo said Nirgunan Tiruchelvam, head of consumer sector equity research at Tellimer.    The benchmark index has risen about 10% this year, with the rotation toward value stocks helping it vie with Saudi Arabia&rsquo s Tadawul All Share Index for the top spot among major global gauges.   Here are details of what analysts see as the main winners and losers from the budget:     See also:  Budget 2022 positive for banks, SGX, says Maybank Securities Singapore   WINNERS Consumer Stocks Singapore&rsquo s move to space out the much anticipated increase in goods and services tax over two years -- increasing it to 8% in 2023 and to 9% in 2024 -- may be positive for consumption-linked companies. Many analysts had expected the government to raise GST, currently 7%, directly to 9%.   Potential beneficiaries are food and beverage maker  Fraser and Neave, grocer  Sheng Siong Group  (picture), and restaurants and food caterers such as  Jumbo Group  and  Kimly. Casino operator  Genting Singapore  and consumption-focused real estate investment trusts such as  Keppel REIT  may also get a lift.   Carbon Neutral Plays  Singapore plans to dramatically increase the tax it levies on greenhouse gas pollution from its biggest emitters from 2024.   The move &ldquo signals the government&rsquo s seriousness to meet its climate goals,&rdquo said Terence Chua, an analyst at Phillip Securities Research Pte. &ldquo Companies such as  Sembcorp Industries  and  Keppel Corp  will benefit from their early push to reduce carbon emissions.&rdquo Conversely, emissions-heavy companies such as  Singapore Airlines  will be affected negatively, Chua added.     See also:  Singapore expected to run fiscal deficit of $5 billion in FY2021 deficit to continue for third year in FY2022     LOSERS Multinational Companies Singapore&rsquo s plan to explore a top up tax for multinational enterprises may weigh on some units of  Jardine Matheson Holdings  group as they get a majority of their revenue from Greater China. Others that may suffer include  City Developments  -- which makes about 8% of its revenue from the Americas and about 10% from Europe, the Middle East and Africa -- and  ComfortDelGro Corp  gets about 23% from EMEA, according to data compiled by Bloomberg.   &ldquo The move may impact some companies even as it is preliminary,&rdquo said Justin Tang, head of Asian research at United First Partners. &ldquo The government clearly has a plan, but it&rsquo s best for investors to take a wait-and-see approach as more details will trickle out over the coming days.&rdquo     Property Developers Real estate stocks took a hit from Singapore&rsquo s move to increase the minimum monthly salary for foreign workers as well as tightened rules for the number of foreign work permit holders.    Shares of City Developments, one of Singapore&rsquo s biggest developers, pared gains of as much as 1% to end the day up 0.4%.  UOL Group  wiped out an advance of as much as 0.7%.   More negatives for developers were the increases in personal income tax rates on the wealthy, and higher levies on residential properties from 2023. That will likely weigh further on City Developments, which counts The Residences at W Singapore Sentosa Cove among its properties, and on other developers.   Wealth Plays Higher taxation rates of 220% on cars, which apply for the portion of open-market value in excess of S$80,000 ($59,000), will affect names such as  Jardine Cycle & Carriage, which owns showrooms.   And the increase in income tax rates for top earners will affect some clients of the wealth management units of  DBS Group Holdings,  Oversea-Chinese Banking Corp  and  United Overseas Bank. 
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cloudy.mountain
Member |
19-Feb-2022 18:59
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government very smart. gave rental rebates for commercial properties during pandemic but claw back on residential properties to cover the budget outflow. REITs dodged a bullet there. |
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fatpig
Senior |
19-Feb-2022 08:45
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Annual value base on average rental of that location. Average tax rate from rental gain is 24% which is higher than company tax.
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slingshotpro
Senior |
19-Feb-2022 08:16
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Annual value is determined by Iras?
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Observers
Elite |
19-Feb-2022 08:02
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How come nobody postulate property investors might switch to equity investing because of rising property taxes? | ||||
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pasttime
Supreme |
18-Feb-2022 23:16
Yells: "gold silver are real money. not others iou." |
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propertyt ax is base on property annual value. i wonder if this will work. get some one to rent out their units at low rent then report tax with this new rent. so from 4% to 16% jumped. then do a 3/4 reduction in rent for 1 year. |
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PhillipTan
Supreme |
18-Feb-2022 20:52
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My estimate is from year 2023 onwards, I will need to pay almost $10 more on my property taxes In other words, from 2023 onwards, every year I will need to skip three lunches to save up money for the increased property tax Ok lah, I was actually just being sarcastic in my replies Just when I was planning to buy a second property, even short-listed a few for viewing, then increase in absd to take effect immediately, really dl at the timing Now I don' t even want to buy anymore, just wait and see if price will start falling because of that News of pending GST increase and now increase in property tax It just feels like the Gov is finding all ways and means to take more from the general populace at large while sugar coating to make it seem like they are really targetting the richer ones It is true that the rich will end up paying more taxes But in actual fact, all these mean nothing at all to the really rich ones but such implementations ironically affects the rest of the population even more  
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PhillipTan
Supreme |
18-Feb-2022 20:35
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Actually LW said impacted not affected Everyone that owns a property will be affected, that is to my understanding Top 7% will be impacted, because the increase in property tax for the top 7% will be the highest In other words, impacted simply means being affected the most Seriously, do you think an increase of 10k or even 50k in property taxes will mean anything to those billionaires or multi-millionaires?  
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Starship
Supreme |
18-Feb-2022 19:58
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According to Lawrence Wong' s chart, Only the Top 7% of Owner Occupied Residential Propertie are Affected by the increase. Definitely no one that I know will be affected.
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PhillipTan
Supreme |
18-Feb-2022 19:37
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Nothing to be happy about It is a flat rate increase meaning all will be affected Not just the rich And those not rich will be even hit harder, the poorer the harder the hit For a more easily understandable comparison, just imagine if there is an increase of GST from 7% to 10% Do you seriously think the rich will feel the pain? Such an increase in amount is just peanuts to the rich, maybe not even peanuts at all But to those who are not rich, it could mean switching from wholemeal bread to white bread  Or fresh milk to UHT milk just to keep up with the increased costs Brown rice to white rice, 3 ply tissue to 2 ply, sunflower or canola oil to vegetable oil This list can go on and on... For the poor, maybe even worse UHT milk to plain water for breakfast Rice to porridge etc    ![]()  
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pasttime
Supreme |
18-Feb-2022 17:49
Yells: "gold silver are real money. not others iou." |
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property tax are base on annual value of the property. ie the estimated gross annual rent of property. higher property tax means the government wants a bigger share of the property income. nothing affecting the fundamentals. property business have systems and team of people to bargain with iras to reduce their  properties taxes. this has nothing to do with the fundamentals of the business. the top line profit before tax not affected.  city is a global property business. singapore alone does not affect the bottom line totally, property development is expected to deliver very good results.  plus the over riding factor now is openning up, expected improvement in hotel operations in the comming months. sell down base on this factor la. many happpy happy waiting for good price to buy.  
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Starship
Supreme |
18-Feb-2022 17:31
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Huge increase in Property Tax for the Rich !!!!! Non-owner occupied fm 10%-20% increased to 12% to 36% Owner occupied fm 4% to 16% increased to 6% to 32%   ![]() |
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Observers
Elite |
18-Feb-2022 17:20
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scare die ppl, rise so much. but I think too the rich this is sup sup water lah.
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ETLee8
Master |
18-Feb-2022 17:18
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Monday heavy sell downs with the huge Tax just announced by Gov.
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pasttime
Supreme |
18-Feb-2022 15:49
Yells: "gold silver are real money. not others iou." |
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western australia finally announce openning of borders on 3 mar. that will be positive for cdl h trust 2 hotels in perth. | ||||
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ETLee8
Master |
18-Feb-2022 13:59
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Anyone knows which property developer default payment of $200M (banks NPL) ??
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pasttime
Supreme |
17-Feb-2022 09:11
Yells: "gold silver are real money. not others iou." |
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good morning bro. thxs for good advice. i m long term. with unfolding events. think it will happen sooner. sats already start running this morning.  
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WBdisciple
Elite |
17-Feb-2022 08:53
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CityDev will likely be beneficiary as social and business activities normalise....they have been laggard for some time...time for Kwek Family Crown Jewel to shine again...pls do your own DD..   Singapore' s move to streamline Covid-19 rules signals confidence in living with virus: observers
SINGAPORE' S move to streamline pandemic measures is an important road marker in its quest to live with Covid-19 as an endemic disease, and sets the stage for further relaxation eventually, observers told The Business Times.
 
On Wednesday (Feb 16), the Republic' s Covid-19 multi-ministry taskforce said it will be scrapping safe-distancing rules in mask-on settings, as part of a wider " reset" of restrictions that the authorities say have become " unwieldy" over time.
 
" We are in a new phase of dealing with the pandemic, and at the same time, the rules have become complex, unwieldy and it' s becoming harder for people to remember or to follow the rules," Finance Minister Lawrence Wong, who co-chairs the taskforce, said during a briefing.
 
Safe-management measures (SMM), accumulated over the past 2 years, will now be distilled into 5 key parameters from Feb 25: group sizes, mask-wearing, workplace requirements, safe distancing and capacity limits, according to a statement by the Ministry of Health (MOH).
 
Besides the ease of remembering, Wong said that having these key parameters will enable the authorities to adjust SMMs more nimbly and responsively.
 
" If we were to ease in the coming weeks, we can ease along these 5 parameters and if ever there is a need to tighten because of the threat of a new deadly variant, we will also be able to tighten along these 5 parameters," said Wong.
 
Rostered routine testing, introduced in August 2020, will be mandatory for fewer sectors from Feb 18. Individuals who have tested positive on at-home antigen rapid tests (ART) will have access to government-funded rapid tests at combined test centres and quick test centres, with their confirmatory results to be recorded in the national HealthHub system.
 
Health Minister Ong Ye Kung, also a co-chair, said employees can show employer these test results to be excused from work. Employers here typically require medical certificates for outpatient sick leave absences.
 
Border measures will also be simplified from 11.59pm on Feb 21, with easier re-entry for long-term pass holders, while travellers using Vaccinated Travel Lanes or from Category 1 countries will no longer need an on-arrival polymerase chain reaction (PCR) test, among other measures.
 
Commenting on the slew of announcements, Hsien-Hsien Lei, chief executive of The American Chamber of Commerce in Singapore, said: " It signals that the Singapore government is confident in being able to manage Covid-19 while at the same time, drive Singapore' s economy forward. It' s just incredibly encouraging."
 
She added that the announcements would " bolster Singapore' s reputation and ability to really be that international business hub - not just in name but in action" .
 
Noting that governments around the world have in recent days taken steps to ease restrictions, CIMB Private Banking economist Song Seng Wun said that Singapore too is moving on to live with Covid-19.
 
" As a city state that depends so much on global trade in goods and services, the calibrated easing will help Singapore be more attractive to businesses," said Song, adding that Singapore would not want to be left behind as a global trade hub.
 
With the measures setting the stage for a broader relaxation in the coming months, Maybank senior economist Chua Hak Bin said this allows businesses and visitors to prepare and plan ahead for events and meetings in Singapore.
 
At the same time, Singapore businesses have been keen to seize new growth opportunities amid the global economic recovery, and the latest measures would help facilitate business travel and growth, said Lam Yi Young, chief executive of the Singapore Business Federation.
 
Still, the taskforce stressed that the announcements do not represent a relaxation of Covid-19 restrictions just yet.
 
" What I' ve just described is streamlining and rationalisation. It is not the time for easing because we are still seeing an increase in our infection - in fact we are seeing very high infection numbers now," said Wong.
 
The announcements come just a day after Singapore saw a record 19,420 new Covid-19 cases, more than double from the day before.
 
" But we are quietly confident in facing this Omicron wave because everyone in Singapore is well protected with vaccinations and boosters," said Wong.
 
Dr Lei, who is also an epidemiologist, said the situation today is no longer the same as 2 years ago, when little was known about the disease and there was insufficient healthcare capacity.
 
Victor Mills, chief executive of the Singapore International Chamber of Commerce, said Wednesday' s announcements are only possible because of Singapore' s high vaccination rate and the less serious nature of the Omicron variant.
 
He said: " They are also important morale boosters and demonstrate, yet again, the carefully calibrated, science-based approach that has characterised Singapore' s management of the pandemic. They are all the more welcome and impressive at a time of rising Omicron cases."
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ETLee8
Master |
16-Feb-2022 23:06
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Bro, it takes time lah.  Reporting is quarterly and money do not come immediately lah. Long term ok, short term still very weak. Be patient, wait for 25 feb results.
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pasttime
Supreme |
16-Feb-2022 16:31
Yells: "gold silver are real money. not others iou." |
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in the next few weeks. guess there will be more reduced restrictions.  many places with has open up with no restrictions and open up their border. first sponsors said that the group&rsquo s european operating hotels showed STRONG signs of recovery in 2H2021 underpinned by strong leisure demand in the summer period. all talks about hotel so bad so bad is history and pass. even fear mongering of russia attack is now over as russia annouce their troops returning to base after exercise. interest rate increased? we see increased oil productions by us , canada, higher target by libya, if iran return to the vienna accord their production can jump up and keep a brake on oil price increased. other commodities prices increased has again attracted china attentions and there maybe actions again soon. reporting results on 25 feb. hope to see at least 12c dividend. |
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