SG Morning Call | S$1.1 Billion Support Package; DBS Raises Sea’s Target Price

Tiger Newspress2023-09-29

Singapore Plans S$1.1 Billion Aid to Blunt Cost-of-Living

Singapore announced a S$1.1 billion ($800 million) package to shield its citizens from the pain of price increases, even as inflation has been steadily slowing in Southeast Asia’s only developed economy.

The package, which includes assistance to cushion the impact of higher utility bills and an upcoming increase in carbon tax, will provide more support for lower- and middle-income families, according to an official statement, citing Finance Minister Lawrence Wong on Thursday.

“The government is committed to supporting Singaporeans through these uncertain times,” Wong, who is also the city-state’s deputy prime minister, said. The government will not be dipping into past reserves to fund the package, according to the Straits Times newspaper earlier.

Government monitoring businesses to stop them from using increased costs as excuse to profiteer: DPM Wong

The government will monitor businesses to make sure that there is no profiteering, where businesses might use cost increases as an excuse to raise prices more than necessary, said Deputy Prime Minister Lawrence Wong on Thursday (Sep 28).

He was responding to a question about how businesses may be affected by the recent announcements on the increase in the price of water and a switch towards healthier food ingredients. Water prices will rise by about 18 per cent over the next two years in two phases.

Yield on latest Singapore 6-month T-bill jumps to 4.07%

The latest Singapore six-month Treasury bill (T-bill) offered a cut-off yield of 4.07 per cent, in the auction that closed on Thursday.

This is a jump from the cut-off yield of 3.7 per cent for the previous six-month tenor, and the first time that yields have crossed the 4 per cent mark since January.

Demand for the T-bills was down in the latest auction, with a total of $9.3 billion in applications, representing a bid-to-cover ratio of 1.76. The last auction had a bid-to-cover ratio of 2.03, with $11.2 billion in applications against $5.5 billion allotted.

DBS raises Sea’s target price after Indonesia bans social e-commerce

DBS Group Research on Thursday (Sep 28) raised its target price on Sea to US$78 from US$66 after Indonesia banned e-commerce transactions on social media platforms.

The move, which came into effect on Wednesday, aims to protect offline merchants and marketplaces, said Indonesia’s government. It added that predatory pricing on social media platforms is threatening small and medium-sized enterprises.

Such restrictions could throw a spanner in the works regarding the potential success of TikTok Shop in Indonesia.

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