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Archive for March 25th, 2008

Workplace fatalities drop but construction boom may see rise in accidents

Posted by luxuryasiahome on March 25, 2008

The number of deaths at the workplace went down by 22 per cent in 2007, compared to the previous year.

This is according to a report released by the Workplace Safety and Health Advisory Committee.

Despite the drop, industry players caution that the boom in the construction industry may mean more workplace-related accidents.

When the crane tower collapsed at the National University of Singapore last month, three were killed and two were injured.

Investigations showed that this could have been avoided if contractors and operators had followed safety regulations.

And that’s the main message from the Workplace Safety and Health Advisory Committee.

It said the number of fatalities at the workplace dropped from 45 in 2006 to 35 in 2007, in key priority areas.

But this downward trend could be reversed given the construction boom.

Heng Chiang Gnee, Deputy Chairman-designate, Workplace Safety and Health Council, said: “A key aspect is also in the area of building a culture that is very much linked to having a safety mindset. So as we move towards a situation where the culture becomes more appropriate, the safety management statistics would reflect a higher level of maturity.”

And one step in that direction is reporting the accidents because this is often not done.

Mr Heng continued: “If it’s done intentionally, then I think the authorities ought to address it differently. If it’s done unintentionally because of ignorance and so on, then the approach would be to educate them.

“It is important for us to actually get accurate data, because it is through such accurate data, that the advisory committee can then look at what are the actions that would be needed to basically address and focus on the right area.”

“The approach towards reporting – there is a certain format that they would have to adopt. Let’s say defining what accidents are reportable, and what are not reportable. And I think if you were to take the safety management philosophy a bit further, companies themselves ought to actually address near-misses.”

Currently, the Workplace and Health Safety Laws stipulate that employers who fail to report accidents as required by regulations could be fined up to S$5,000 for a first offence.

Repeat offenders may be fined up to S$10,000 and jailed up to six months.

Meanwhile, under the new Work Injury Compensation Act which takes effect on 1 April, another 850 thousand employees will be covered and the payouts will be higher.

Currently, the Workmen’s Compensation Act only benefits manual workers who earn less than S$1,600 a month.

But with the new Work Injury Compensation Act, all workers will be covered regardless of their pay-cheques or line of work.

However, uniformed personnel and domestic workers will not be covered under the new Act.

So families of workers who died on the job will receive payouts ranging from S$47,000 to S$140,000.

That’s up from S$37,000 to S$111,000 under the old Workmen’s Compensation Act.

Workers who are permanently disabled will now receive between S$60,000 to S$180,000, up from S$49,000 to S$147,000.

The Work Injury Compensation Act will also cover 95 per cent of hospital charges up to a cap of S$25,000.

Employees can now also make claims for injuries sustained during work under different employers and for work done overseas. – CNA/vm

Source : Channel NewsAsia – 25 Mar 2008

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Workplace fatalities drop but construction boom may see rise in accidents

Posted by luxuryasiahome on March 25, 2008

The number of deaths at the workplace went down by 22 per cent in 2007, compared to the previous year.

This is according to a report released by the Workplace Safety and Health Advisory Committee.

Despite the drop, industry players caution that the boom in the construction industry may mean more workplace-related accidents.

When the crane tower collapsed at the National University of Singapore last month, three were killed and two were injured.

Investigations showed that this could have been avoided if contractors and operators had followed safety regulations.

And that’s the main message from the Workplace Safety and Health Advisory Committee.

It said the number of fatalities at the workplace dropped from 45 in 2006 to 35 in 2007, in key priority areas.

But this downward trend could be reversed given the construction boom.

Heng Chiang Gnee, Deputy Chairman-designate, Workplace Safety and Health Council, said: “A key aspect is also in the area of building a culture that is very much linked to having a safety mindset. So as we move towards a situation where the culture becomes more appropriate, the safety management statistics would reflect a higher level of maturity.”

And one step in that direction is reporting the accidents because this is often not done.

Mr Heng continued: “If it’s done intentionally, then I think the authorities ought to address it differently. If it’s done unintentionally because of ignorance and so on, then the approach would be to educate them.

“It is important for us to actually get accurate data, because it is through such accurate data, that the advisory committee can then look at what are the actions that would be needed to basically address and focus on the right area.”

“The approach towards reporting – there is a certain format that they would have to adopt. Let’s say defining what accidents are reportable, and what are not reportable. And I think if you were to take the safety management philosophy a bit further, companies themselves ought to actually address near-misses.”

Currently, the Workplace and Health Safety Laws stipulate that employers who fail to report accidents as required by regulations could be fined up to S$5,000 for a first offence.

Repeat offenders may be fined up to S$10,000 and jailed up to six months.

Meanwhile, under the new Work Injury Compensation Act which takes effect on 1 April, another 850 thousand employees will be covered and the payouts will be higher.

Currently, the Workmen’s Compensation Act only benefits manual workers who earn less than S$1,600 a month.

But with the new Work Injury Compensation Act, all workers will be covered regardless of their pay-cheques or line of work.

However, uniformed personnel and domestic workers will not be covered under the new Act.

So families of workers who died on the job will receive payouts ranging from S$47,000 to S$140,000.

That’s up from S$37,000 to S$111,000 under the old Workmen’s Compensation Act.

Workers who are permanently disabled will now receive between S$60,000 to S$180,000, up from S$49,000 to S$147,000.

The Work Injury Compensation Act will also cover 95 per cent of hospital charges up to a cap of S$25,000.

Employees can now also make claims for injuries sustained during work under different employers and for work done overseas. – CNA/vm

Source : Channel NewsAsia – 25 Mar 2008

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Pacific Star forms Munich joint venture for property investments in Asia, Europe

Posted by luxuryasiahome on March 25, 2008

Real estate investment house Pacific Star has formed a joint venture in Munich which will help investors park their funds in prime Asian and European properties.

Under the deal, Pacific Star Europe also launched its Asian funds distribution business with targeted assets under management of over US$2 billion.

These will focus on real estate in India, China, Northeast Asia and Southeast Asia.

Pacific Star Europe will also manage a Fund of Funds that invests in global real estate.

The joint venture links Pacific Star with two individuals Dr Matthias Sturmer and Dirk Grosse-Wordemann.

Under the deal, Pacific Star Fund Management Singapore will own 51 percent of the company while the two partners will hold the remaining 49 percent stake.

European institutional investors transacted an estimated US$2.2 billion worth of property deals in Asia in the first half of 2007, according to figures by Jones Lang LaSalle.

At the same time, Asian inflows into European real estate totalled US$3.5 billion. – CNA/ms

Source : Channel NewsAsia – 25 Mar 2008

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Pacific Star forms Munich joint venture for property investments in Asia, Europe

Posted by luxuryasiahome on March 25, 2008

Real estate investment house Pacific Star has formed a joint venture in Munich which will help investors park their funds in prime Asian and European properties.

Under the deal, Pacific Star Europe also launched its Asian funds distribution business with targeted assets under management of over US$2 billion.

These will focus on real estate in India, China, Northeast Asia and Southeast Asia.

Pacific Star Europe will also manage a Fund of Funds that invests in global real estate.

The joint venture links Pacific Star with two individuals Dr Matthias Sturmer and Dirk Grosse-Wordemann.

Under the deal, Pacific Star Fund Management Singapore will own 51 percent of the company while the two partners will hold the remaining 49 percent stake.

European institutional investors transacted an estimated US$2.2 billion worth of property deals in Asia in the first half of 2007, according to figures by Jones Lang LaSalle.

At the same time, Asian inflows into European real estate totalled US$3.5 billion. – CNA/ms

Source : Channel NewsAsia – 25 Mar 2008

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GIC Real Estate forms joint venture with Host Hotels & Resorts

Posted by luxuryasiahome on March 25, 2008

GIC Real Estate has formed a joint venture with New York Stock Exchange-listed Host Hotels & Resorts to explore investment opportunities in Asia and Australia.

The partners have agreed to invest a maximum of US$600 million of equity in the joint venture.

Combined with the anticipated leverage, they will have a potential investment war chest of up to US$2 billion.

GIC will own 75 percent of the joint venture while Host will hold the remaining stake.

An affiliate of Host will provide asset management services and will earn fees for these services.

Host Hotels & Resorts has been described as the largest lodging real estate investment trust and one of the largest owners of luxury and upscale hotels.

GIC Real Estate is the real estate investment company of the Government of Singapore Investment Corporation. – CNA/ms

Source : Channel NewsAsia – 25 Mar 2008

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Hotel room crunch? Stay in HDB, suggests NUS Biz team

Posted by luxuryasiahome on March 25, 2008

Winning team in the Lee Kuan Yew Biz Plan gets US$20,000

THREE university freshmen believe they have the answer to help relieve the hotel room crunch.
The trio, from the National University of Singapore’s Business School, have come up with a plan to have travellers – especially the budget-conscious and those visiting long-term – stay in HDB flats instead of hotels.

The flats, which would offer services similar to bed and breakfasts overseas, would cost about $40 a night – and allow tourists to experience the ‘uniquely Singaporean way of life and culture’, according to team member Liew Foo Kin, 23.

‘We will target housewives and retirees who may have spare rooms for rent,’ he said. ‘This can help with the current hotel room shortage as well as give tourists a chance to see how Singaporeans live.’

With fellow budding entrepreneurs Chua Wen Ling and Chia Xiao Feng, both 20, Mr Liew is confident that his team’s plan – called ‘Be My Guest’ – can make it all the way to the finals of this year’s Lee Kuan Yew Global Business Plan competition.

The biennial competition, organised by Singapore Management University, aims to promote entrepreneurship. Students from any university, college or polytechnic worldwide are eligible to compete.

At a mentoring session hosted by HSBC yesterday morning, 19 industry leaders, including Sat Pal Khattar, chairman of Khattar Holdings, and Philip Ng, chief executive of Far East Organisation, were on hand to advise and critique projects.

Each leader was allotted two teams and given their business plans to read in advance. Each team was then given 20 minutes to discuss its plan and receive feedback.

Contestant Ms Chua said the session was a welcome chance to to get advice from a tourism industry veteran – Banyan Tree Holding’s group managing director Ariel Vera.

‘He suggested charging a seasonal, fluctuating rate, and to standardise amenities such as linen, towels and the breakfast provided so as to maintain a minimum level of quality,’ she said.

Mr Vera said: ‘Their plan could succeed – but they have to look at their expected returns on their investment. Perhaps they could have a tie-up with the Singapore Tourism Board to leverage on its brand name, maybe in the form of certification. That would help the students a lot.’

Other nifty ideas from the 43 shortlisted local teams include a device to allow credit card holders to set their own transaction limits, and a suitcase with a built-in weighing device to let travellers know exactly how much they are carrying to avoid excess baggage charges.

The winning team – to be announced in July – stands to pocket US$20,000 in prize money. The best Singapore team will also get to tap on a $100,000 youth enterprise fund set up by HSBC to invest in its business.

Source : Business Times – 25 Mar 2008

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Waking up to the value of Stamford Land

Posted by luxuryasiahome on March 25, 2008

SAVVY investors appear to have begun to recognise that mainboard-listed Stamford Land is a very much undervalued stock, as the price of its shares surged 17 per cent yesterday to 52.5 cents apiece. Earlier, they had been traded to a high of 55.5 cents a share.

This followed its announcement last Thursday that it had terminated an exclusive agreement with a prospective buyer who had made an unsolicited offer of A$850 million (S$1.06 billion) for the group’s portfolio of eight hotels – seven in Australia’s key cities and one in Auckland, New Zealand.

It did not name the buyer but said it was a ’substantial public group with a diversified international portfolio of investment and residential properties and hotels’.

Stamford said it had entered into an exclusive agreement with the prospective buyer ‘as the offer of A$850 million was at an acceptable valuation and offered an option to unlock shareholders’ value’.

Yet at the same time Stamford said it was not keen to sell and had demanded an ‘unusual and onerous non-refundable deposit’ of A$1.3 million. Its founder and single largest shareholder Ow Chio Kiat explained his reluctance to part with the hotels: ‘I feel very passionate about my hotels because I chose and built the portfolio up myself since 1994.’

The company also noted that: ‘The hotel portfolio with a total net book value of approximately A$382 million, has always been the Group’s core business, producing a steady stream of recurring income. Due to the high and continually rising cost of hotel development in Australia and New Zealand, the Group will not face much competition as there is unlikely to be an oversupply of room stock in the foreseeable future.’

The hotels in Sydney, Melbourne, Adelaide, Brisbane and Auckland are among the best in Australia and have won numerous accolades there and from abroad. The hotels – five purchased in the mid-1990s and the remaining three in 2000 – were bought for a total consideration of about A$480 million. Yet, because of strange accounting rules, shareholders cannot really comprehend their true worth, and as they have to be depreciated annually, their book value is still heading south.

But Mr Ow, who started life as a bumboat operator, seems to be in no hurry to sell as there appears to be no shortage of suitors. The company has disclosed that it has received ‘approaches from other parties for the purchase of the Group’s hotel portfolio’.

According to one observer of the stock, Stamford’s rooms in the books are valued at about A$237,000. By comparison, the Orchard Fund recently purchased the Diamant Hotel in Sydney at a cost of about A$390,000 a room, while the Sheraton Noosa Hotel near the Gold Coast went to other buyers for A$535,000 a room, and the Park Hyatt Sydney was sold at a whopping A$1.25 million a room.

Mr Ow has also been talking of placing the hotels in a real estate investment trust (Reit), where properties are revalued annually.

The company also has a profitable property development arm which is into high-end residences.

Commenting on its property development arm, which leverages on the Stamford brand name and is not part of the recently proposed sale, the company said: ‘This aspect of the development and sale of luxury apartments has done well and will be further expanded upon. Currently, the property development portfolio includes The Stamford Marque in Sydney; The Stamford Residences and The Reynell Terraces in The Rocks, Sydney; The Stamford Residences in Auckland; and a commercial development in Perth.’

At the price ascribed by the just- snubbed buyer of the hotels, net of long-term debts of about $314 million, the company, which has a cash hoard of over $70 million, would have had $800 million in cash or about 94 cents a share.

The property development arm is said to be worth about another 20 cents a share, giving the company a total value of about $1.14 a share.

Yet, despite yesterday’s price spike, the shares were going for less than 56 cents each, and at the closing price of 52.5 cents, Stamford was worth only just over $450 million. A bargain, it appears.

Source : Business Times – 25 Mar 2008

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Creative selling S’pore building for $250m

Posted by luxuryasiahome on March 25, 2008

It expects $200m gain from sale, but warns of Q3 operating loss

CREATIVE Technology could get a bumper cash infusion this June. The company said yesterday it has entered into an agreement with a buyer to sell and lease back its 11-year-old Singapore office building at International Business Park.

The sale price for the proposed transaction is $250 million. Creative will lease back the whole building for five years with an option for additional periods of three and two years, the company said in a statement, without disclosing the identity of the buyer.

Creative said it expects to make a gain of about $200 million from the transaction. It said that in accordance with US accounting standards, this amount will be treated as a deferred gain and will be amortised and recognised in the company’s income statements over the lease term of five years.

The deal, which is subject to regulatory and shareholder approval, is expected to be completed by end-June.

Creative has owned its flagship Singapore building – called Creative Resource – since it was completed in 1997. The MP3 player and PC sound card specialist moved into the building from its Ayer Rajah Industrial Estate premises that year.

Creative Resource houses the company’s headquarters operations and subsidiaries in Singapore.

In another announcement yesterday, Creative said its third-quarter revenue will be ‘below target’.

For its fiscal Q3 that ends on March 31, it expects a revenue of about US$150 million. Revenue in the same quarter last year was US$183.8 million.

As well, operating expenses in Q3 will be higher than the company had forecast. This is mainly due to currency exchange rates, it said.

Creative expects to report an operating loss for the quarter.

However, the company – which this year started selling subscription-based video-conferencing services – is still expecting overall profitability in the period. An investment gain of about US$20 million is expected to boost its bottom line in Q3.

Creative has posted successive profitable quarters for the year so far. In 2007 it posted revenue of US$914.9 million and net income of US$28.2 million, aided by a US$100 million paid-up licence from MP3 market leader Apple Inc.

Source : Business Times – 25 Mar 2008

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Creative selling S’pore building for $250m

Posted by luxuryasiahome on March 25, 2008

It expects $200m gain from sale, but warns of Q3 operating loss

CREATIVE Technology could get a bumper cash infusion this June. The company said yesterday it has entered into an agreement with a buyer to sell and lease back its 11-year-old Singapore office building at International Business Park.

The sale price for the proposed transaction is $250 million. Creative will lease back the whole building for five years with an option for additional periods of three and two years, the company said in a statement, without disclosing the identity of the buyer.

Creative said it expects to make a gain of about $200 million from the transaction. It said that in accordance with US accounting standards, this amount will be treated as a deferred gain and will be amortised and recognised in the company’s income statements over the lease term of five years.

The deal, which is subject to regulatory and shareholder approval, is expected to be completed by end-June.

Creative has owned its flagship Singapore building – called Creative Resource – since it was completed in 1997. The MP3 player and PC sound card specialist moved into the building from its Ayer Rajah Industrial Estate premises that year.

Creative Resource houses the company’s headquarters operations and subsidiaries in Singapore.

In another announcement yesterday, Creative said its third-quarter revenue will be ‘below target’.

For its fiscal Q3 that ends on March 31, it expects a revenue of about US$150 million. Revenue in the same quarter last year was US$183.8 million.

As well, operating expenses in Q3 will be higher than the company had forecast. This is mainly due to currency exchange rates, it said.

Creative expects to report an operating loss for the quarter.

However, the company – which this year started selling subscription-based video-conferencing services – is still expecting overall profitability in the period. An investment gain of about US$20 million is expected to boost its bottom line in Q3.

Creative has posted successive profitable quarters for the year so far. In 2007 it posted revenue of US$914.9 million and net income of US$28.2 million, aided by a US$100 million paid-up licence from MP3 market leader Apple Inc.

Source : Business Times – 25 Mar 2008

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Creative selling S’pore building for $250m

Posted by luxuryasiahome on March 25, 2008

It expects $200m gain from sale, but warns of Q3 operating loss

CREATIVE Technology could get a bumper cash infusion this June. The company said yesterday it has entered into an agreement with a buyer to sell and lease back its 11-year-old Singapore office building at International Business Park.

The sale price for the proposed transaction is $250 million. Creative will lease back the whole building for five years with an option for additional periods of three and two years, the company said in a statement, without disclosing the identity of the buyer.

Creative said it expects to make a gain of about $200 million from the transaction. It said that in accordance with US accounting standards, this amount will be treated as a deferred gain and will be amortised and recognised in the company’s income statements over the lease term of five years.

The deal, which is subject to regulatory and shareholder approval, is expected to be completed by end-June.

Creative has owned its flagship Singapore building – called Creative Resource – since it was completed in 1997. The MP3 player and PC sound card specialist moved into the building from its Ayer Rajah Industrial Estate premises that year.

Creative Resource houses the company’s headquarters operations and subsidiaries in Singapore.

In another announcement yesterday, Creative said its third-quarter revenue will be ‘below target’.

For its fiscal Q3 that ends on March 31, it expects a revenue of about US$150 million. Revenue in the same quarter last year was US$183.8 million.

As well, operating expenses in Q3 will be higher than the company had forecast. This is mainly due to currency exchange rates, it said.

Creative expects to report an operating loss for the quarter.

However, the company – which this year started selling subscription-based video-conferencing services – is still expecting overall profitability in the period. An investment gain of about US$20 million is expected to boost its bottom line in Q3.

Creative has posted successive profitable quarters for the year so far. In 2007 it posted revenue of US$914.9 million and net income of US$28.2 million, aided by a US$100 million paid-up licence from MP3 market leader Apple Inc.

Source : Business Times – 25 Mar 2008

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