SG Morning Call | Half of Singaporeans Struggle to Buy Their First Home; MAS Reports S$20.8 Million in Penalties

Tiger Newspress2023-09-20

Market Review and Outlook

The Singapore stock market has moved lower in consecutive trading days, sinking almost 40 points or 1.2 percent in that span. The Straits Times Index now sits just above the 3,240-point plateau and it may continue to spin its wheels again on Wednesday.

The global forecast for the Asian markets is one of caution ahead of the Federal Reserve's rate decision and statement later today. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The STI finished modestly lower on Tuesday following losses from the financial shares, property stocks and industrial issues.

For the day, the index lost 22.64 points or 0.69 percent to finish at 3,240.75 after trading between 3,235.96 and 3,266.47.

Local News to Watch

5 in 10 Singaporeans Struggle to Buy Their First Home

Many Singaporeans plan to buy their first home (64%) but are struggling to do so (51%), PropertyGuru revealed.

The challenge of purchasing a home is most evident amongst singles (55%) and married couples with kids (49%).

In terms of property type, Singaporean’s top choices were new build-to-order (BTO) flats (31%), resale HDB flats (25%), and newly launched non-landed private properties (15%).   What makes home buying difficult for most Singaporeans include continued inflation and rising mortgage rates.

MAS Reports S$20.8 Million in Penalties, 39 Convictions From 2022 to Mid-2023

Enforcement actions taken by the Monetary Authority of Singapore (MAS) since January 2022 till June this year led to a total of S$20.8 million in penalties collected, 39 criminal convictions, and 18 prohibition orders issued, among other things.

Of the penalties, S$7.1 million was from composition penalties for anti-money-laundering-related breaches and nearly S$13 million was from civil penalties for market abuse cases. The remainder came from penalties from other breaches.

This represents the highest amount of penalties since MAS began publishing its Enforcement Report in 2019.

New Law Paves Way for Passport-Free, Biometric Clearance for Changi Airport Departures from 2024

From the first half of 2024, passengers departing Changi Airport will go through automated immigration clearance using biometric data, with no passports needed.

This comes after Singapore's parliament on Monday (Sept 18) passed a series of amendments to the Immigration Act.

One key provision is for the Minister for Home Affairs to authorise the disclosure of passenger and crew information to the airport operator, for specific uses such as bag drops and passenger tracing within the airport.

Singapore Expects Rental Pressures to Ease in Coming Quarters

Singapore expects rental pressures to further ease in the coming quarters as more residential units are completed, the Ministry of National Development said in a written response to a parliamentary question on Monday.

Close to 100,000 public and private residential units are expected to be completed from 2023 to 2025, which will add to the rental supply. This will also reduce immediate rental demand as people who are temporarily renting move into their new homes, the ministry said.

In the second quarter, the increase of private and public housing rents moderated to 2.8% and 3% respectively, compared to 7.2% and 4.4% in the previous quarter. “We are watching the rental situation closely and will adjust our policies as necessary,” the ministry said.

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