Singapore shares closed higher on Friday (Mar 8), tracking gains in the region. The Straits Times Index (STI) rose 0.4% this week after experiencing fluctuations.
Let's take a look at some noteworthy events in the local area:
Singapore Defends Taylor Swift Payment
An epic start to Taylor Swift’s Singapore run of concerts.
Singapore defended its strategy of offering incentives to secure Taylor Swift’s exclusive concerts in Southeast Asia, saying the economic benefits of doing so outweigh any cost the city-state incurred in the process and that it was ultimately her choice where she wants to perform.
“A deal was reached and so it has turned out to be a very successful arrangement,” Prime Minister Lee Hsien Loong said on Tuesday when asked about the matter during a visit to Australia. “If we had not made such an arrangement would she have come to someplace else in Southeast Asia or more places in Southeast Asia? Maybe, maybe not,” he said.
His comments are the latest in a chorus of government voices that have justified the arrangement, after Southeast Asian neighbors aired their displeasure over the exclusive deal. Thai Prime Minister Srettha Thavisin said that Singapore offered the singer subsidies of up to $3 million for each concert to ensure she doesn’t take her Eras tour anywhere else in the region, while a Philippine lawmaker reportedly urged the Department of Foreign Affairs to raise the issue with Singapore’s envoy in the country.
Sea Limited Posts First Profitable Year Amid Efforts to Defend Market Share Against Lazada, TikTok
Southeast Asian tech giant Sea Limited on Monday posted its first profitable year amid efforts to defend market share against Alibaba-owned Lazada and TikTok.
Net income in 2023 was $162.7 million, as compared to a net loss of $1.7 billion in 2022. There was a net loss of $111.6 million in the fourth quarter of 2023, as compared to net income of $422.8 million in the same period a year ago.
Sea operates in Southeast Asian markets and has businesses in e-commerce (Shopee), financial services (SeaMoney) and gaming (Garena).
Sea's New York-listed shares closed 5.58% higher on Monday. Forrest Li, chairman and CEO of Sea, said the firm expects 2024 to be a profitable year as well.
Singapore to Boost Wage Threshold for Expats
Singapore plans to raise the salary threshold for foreign workers from next year, as it seeks to create better and more job opportunities for locals, the Straits Times reported, citing Manpower Minister Tan See Leng.
From Jan. 1, 2025, foreigners will need to earn a minimum monthly salary of S$5,600 ($4,170) to qualify for an employment pass, up from S$5,000, the newspaper cited Tan as saying in parliament discussing the budget Monday. Financial services professionals will need to earn at least S$6,200 per month, up from S$5,500, in view of the sector’s higher wage norms.
The minimum qualifying salary for EP applicants in their mid-40s will increase to as much as S$10,700, and up to S$11,800 for those in the financial services sector.
Parliament Approves S$131.4B Budget, Provides "Clear Action Plan" to Take Singapore Into the Future
Parliament approved the S$131.4 billion (US$98.3 billion) Budget for this year on Thursday (Mar 7), after nine days of debate.
This is the first time in three years that Members of Parliament from the ruling People’s Action Party and opposition parties have explicitly expressed their support for a Budget, noted Speaker of Parliament Seah Kian Peng in his closing speech.
“And this support came from no less than the leaders of both opposition parties. We all want to build a Singapore for all, and we want to build it for all Singaporeans,” he said.
In a “messier, more dangerous and more unpredictable” world, Budget 2024 “provides a clear action plan to take Singapore forward into the future with optimism and hope”, said Leader of the House Indranee Rajah in her closing speech.
COE Premiums Mostly up in Latest Bidding Exercise, Except for Category B
Certificate of Entitlement (COE) premiums closed mostly higher in the latest bidding exercise on Wednesday (Mar 6).
For Category A cars, or those 1,600cc and below with horsepower not exceeding 130bhp, premiums closed at S$83,000, up from S$76,801 in the last exercise.
Premiums for larger and more powerful cars in Category B fell to S$96,010 from S$97,000.
COEs for commercial vehicles, which include goods vehicles and buses, rose to S$75,599 from S$73,001 in the previous bidding exercise.
Motorcycle premiums closed at S$9,400, up from S$8,911.
Open category COEs, which can be used for any vehicle type but end up being used mainly for large cars, rose to S$95,010 from last month's S$94,006 - the first time it fell below S$100,000 since May 2022.
A total of 4,170 bids were received, with a quota of 2,550 COEs available.
DBS Cuts CEO’s Pay Package in Record Year Hit by Glitches
DBS Group Holdings Ltd. cut Chief Executive Officer Piyush Gupta’s variable pay components in a year which saw disruptions in the bank’s digital services rub some shine off its record profit.
Gupta, one of the highest-paid banking bosses in Asia, received a total compensation of S$11.2 million ($8.3 million) for 2023, down from S$15.4 million a year ago, Singapore’s largest lender said in its annual report published Wednesday. That brought his total pay lower by 27%.
The cut came despite DBS notching an 18% return-on-equity, among the highest for banks in Asia’s developed markets, according to data tracked by Bloomberg News. The higher returns came as the lender’s record profit exceeded S$10 billion.
Singtel Cuts Stake in Bharti Airtel Through $710 Million Sale
Singapore Telecommunications Ltd. trimmed its stake in Indian phone carrier Bharti Airtel Ltd. by selling about S$950 million ($710 million) in stock, gaining funds to invest in areas such as data centers.
The sale, to US investment firm GQG Partners, decreases Singtel’s stake to 29% from 29.8%, it said in a statement Thursday. Singtel will book a gain of about S$700 million, and its remaining holding in Bharti Airtel is valued at an estimated S$33 billion, it said.
Southeast Asia’s biggest telecom operator has been streamlining its portfolio as it focuses on 5G operations and seeks new growth engines such as data centers. It’s been a backer of Bharti Airtel for more than 20 years and previously sold a S$2.54 billion stake in the carrier in 2022.
Singapore Ride-Hailing Firm Ryde to Debut on New York Stock Exchange
Ride-hailing and carpooling firm Ryde joined a growing number of Singapore-based companies listed on the US stock market.
The home-grown start-up is raising US$12 million from its initial public offering (IPO) through the sale of three million ordinary shares priced at USS$4 apiece, the company announced on Mar 6. It declined to comment on its targeted valuation.
The counter traded on the New York Stock Exchange on Mar 6 (10.30pm Singapore time) under the ticker symbol “RYDE”.
The ride-hailing platform, which was founded in 2014, said in its IPO prospectus that it “differentiated” itself from its competitors such as Grab and Uber by focusing on its carpooling service.
Singapore's Temasek in Talks to Invest in OpenAI, FT Reports
Singapore's Temasek Holdings is in discussions to invest in Microsoft-backed artificial intelligence company OpenAI, the Financial Times reported on Tuesday, citing two people familiar with the matter.
Senior executives at Singapore's state investment firm have met ChatGPT maker's CEO, Sam Altman, multiple times in recent months, the report added.
Temasek was interested in investing in Altman's venture capital fund Hydrazine Capital at first, but recent talks included the AI non-profit, the Financial Times reported, citing a separate source.
Comments