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Archive for November 3rd, 2008

Rental rates for mid-range retail space likely to fall

Posted by luxuryasiahome on November 3, 2008

Mid-range retail spaces in Singapore are likely to see a fall in rental rates, due to a drop in tourist arrivals and slowing domestic spending.

Properties which are having rental rates renegotiated in the midst of the current economic downturn are likely to be the most vulnerable. Experts said landlords will have to rent out their spaces for less as retailers are hit by lower earnings.

Eugene Lim, associate director, ERA Asia Pacific, said: “For the whole of this year, we will probably see a 5 per cent increase for the retail sector in terms of rent. Next year, quite possibly, we will see less increases and the market will probably be flat for coming quarters.”

But rents for high-end properties in prime shopping belts like Orchard Road, as well as low-end suburban mall space, are expected to be more resilient.

High-end tenants, such as luxury goods boutiques, would resist giving up top locations and are likely to be willing to pay more. Tenants in lower-end properties traditionally sell basic necessities which are still in demand, despite the economic slowdown.

Suburban malls also face the least pressure from new retail space supply next year. Only 20 per cent of the new retail space is in suburban locations. The remaining 80 per cent is located in the city centre.

Source : Channel NewsAsia – 3 Nov 2008

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JTC reports drop in Q3 net allocation of prepared industrial land

Posted by luxuryasiahome on November 3, 2008

JTC Corporation reported a 38.5 per cent drop in net allocation of prepared industrial land (PIL) for the third-quarter 2008, on a year-on-year basis.

Third quarter figures stood at 34.5 hectares, similar to the previous quarter but lower than the 56.2 hectares seen in the same period last year.

Property consultancy Jones Lang LaSalle told Channel NewsAsia the contraction reflects the weakening of manufacturing demand from overseas as a result of the slowdown in the global economy.

Looking ahead, it expects demand for industrial facilities to continue to moderate downwards.

JTC said the gross allocation of PIL also moderated from 64.1 hectares in the second quarter to 56.7 hectares in the third quarter.

But it noted that termination has dropped from 30.1 hectares to 22.2 hectares.

During the period, the company also completed the divestment of a portfolio of ready-built facilities (RBF) to Mapletree on 1 July 2008.

JTC said that even though the net allocation for its remaining RBF portfolio fell into negative territory of 500 sqm, the RBF occupancy level remained very healthy at 95.6 per cent.

Source : Channel NewsAsia – 3 Nov 2008

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Plan to develop eco-park on Semakau Landfill expected early 2009

Posted by luxuryasiahome on November 3, 2008

Semakau Landfill is set to get a new lease of life.

Jurong Consultants, as well as RSP Architects and Planners, are expected to come back with a master plan by early 2009.

The aim is to determine whether part of the area can be turned into an eco-park that runs on its own water and energy.

A growing population means a growing mound of rubbish. Waste disposal has increased six-fold in Singapore between 1970 and 2000.

Created in 1999, Semakau Landfill is on an island eight kilometres south of Singapore. It is currently used for the disposal of ash from Singapore’s incinerators.

While recycling efforts have already extended the expected lifespan of Semakau Landfill to beyond 2040, the country still has some way to go. The national recycling rate has increased from 40 per cent in 2000 to 54 per cent in 2007.

The National Environment Agency is now looking at having an eco-park on Semakau Landfill to provide a test bed for renewable and clean energy technologies. It will take up a quarter of the area there.

Environment and Water Resources Minister Yaacob Ibrahim said: “With this, we can create opportunities for research and development, as well as the application of clean technologies.”

Industry players say one advantage of using Semakau Landfill is that testing on the landfill will be much cheaper than on the main island of Singapore.

Chairman of Sustainable Energy Association of Singapore, Edwin Khew, said: “This provides good opportunities (for)… testing out solar panels and even wind, perhaps around the island.

“There are enough waves and currents that can be used and other types of clean energies where you have cheap space to test bed on how useful it is and develop further the (current) technologies.”

General manager of Semakau Landfill, Ong Chong Peng, said: “Our long-term vision is to make Semakau Landfill self-sustainable in energy and water needs.”

The announcement was made on Monday at a waste management congress – where companies such as Asia-Pacific Breweries, which reduced packaging cost, received awards.

Source : Channel NewsAsia – 3 Nov 2008

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ARA reports higher Q3 ‘08 profit

Posted by luxuryasiahome on November 3, 2008

ARA Asset Management Limited on Monday posted net profit of S$27.2 million for the three quarters ended 30 September 2008, a 138 per cent increase from S$11.4 million a year ago.

Total revenue for the period rose 95 per cent to S$51.8 million from S$26.6 million previously, primarily due to higher REIT management fees from the group’s enlarged REIT portfolio and higher net property income in the REITs managed.

Net margin 3Q 2008 was 52 per cent, up 9 percentage points from 43 per cent a year ago.

As at 30 September 2008, ARA’s total assets under management stood at S$12.0 billion (US$8.4 billion).

Source : Business Times – 3 Nov 2008

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YTL sparks hope in dreary property sector

Posted by luxuryasiahome on November 3, 2008

Malaysian tycoon’s $285 million Reit stake cheers markets

FINDING investors bullish about Singapore’s property market is rather like finding a needle in a haystack these days, so the arrival of Malaysian tycoon Francis Yeoh last week seemed like a godsend.

Mr Yeoh’s ambitious deal-making was one of the few bright spots on the corporate scene devastated by falling markets and jittery investors.

His listed YTL Corp inked a $285 million agreement to take a stake in Macquarie Prime Reit as well as the manager of the Reit (real estate investment trust).

This was the first bit of positive news the property sector had heard for a long time and analysts, market watchers – and journalists – pounced on it with glee.

Macquarie Prime has stakes in Wisma Atria and Ngee Ann City – key landmarks along Orchard Road.

Mr Yeoh paid 82 cents apiece for the units, a very attractive discount of 49 per cent to the Reit’s net asset value.

However, his price was at a 17 per cent premium over the Reit’s 30-day volume-weighted average price and 52 per cent over its last traded price of 54 cents before the deal was announced. Put that down to the global turmoil that has hit Reits and other shares.

And Friday’s close at 52 cents meant Mr Yeoh is looking at a $74 million paper loss.

Such turbulent markets are not for the faint-hearted. The STI is down 48 per cent this year while property stocks have slumped even more.

Reits are so badly hit that their yields have grown wildly attractive. Ascendas India Reit offers a handsome 13 per cent yield.

The Singapore property market is so quiet that local residents have suspended what used to be a favourite pastime – traipsing around showflats.

Collective sale deals have completely died while the Government is removing sites from its confirmed list and putting them on the reserve list. This means the sites will not be released for sale unless there is a bid that manages to trigger the reserve price – a big achievement these days.

Not only is sentiment in the sector poor, but competition is also hotting up. Wisma Atria’s neighbour, the soon-to-open high-end Ion Orchard, will raise the stakes in Orchard Road.

Further down the road is the revamped Mandarin Gallery while developments such as Orchard Central at Somerset are coming along.

Even as competition looms, visitor arrivals have fallen for a fourth straight month, so the ranks of those seeking retail therapy are thinning.

Meanwhile, Mr Yeoh’s fellow tycoons in Singapore look to have gone to ground after the euphoria of last year.

CapitaLand chief executive Liew Mun Leong was quoted recently as saying: ‘There are plenty of opportunities floating in front of us. As I see it now, it’s still not bottoming. You may think it’s cheap but tomorrow, it’ll be cheaper.’

New launches are few and far between as property players dare not risk taking a chance.

Yet, amid all this, Mr Yeoh remains unfazed.

For the brave, the weak equity and credit markets are a chance to buy in at much lower levels than at the start of the year. Star investor Warren Buffett has already said that he will be buying American stocks.

Hopefully, Mr Yeoh’s moves will start the ball rolling in the equity markets.

Hopefully, he is right about Singapore’s structural transformation – that the country is moving into the league of global cities.

And hopefully, too, Singapore’s own property head honchos will start making forays into more investments and listed companies rather than keeping their money under the proverbial mattress.

Source : Straits Times – 3 Nov 2008

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Days of sky-high HDB rents numbered: Analysts

Posted by luxuryasiahome on November 3, 2008

Falling private home rents seen as a major cause

THEY are the next segment of the local property market to be hit by the global financial crisis.

Rents of Housing Board flats, which have been climbing steadily, largely on demand from foreigners squeezed out of the private homes market, are up only slightly in the third quarter even as rents of private homes fell.

But property experts say HDB rents have likely peaked. They will hold steady for the next several months before they begin to crack from the pressure of falling rents in the private homes market.

‘Any decline in private rents is going to contribute to the downward slide in HDB rents, but it may take a few months for the impact to filter down,’ said Knight Frank’s director of research and consultancy Nicholas Mak.

The pressure is already starting to show: Rents for HDB flats have shown smaller increases in the third quarter.

Median rents for five-room flats have risen by $100 every quarter this year to $2,000 in the third. But median rents for three-room flats remained unchanged at $1,500 in the three-month period to Sept 30 while median rents for four-room flats showed a smaller $50 rise to $1,800, from $1,750 in the second quarter and $1,600 in the first.

Private home rents are expected to continue dropping given the weaker economic outlook, particularly as supply is expected to rise next year when more developments are completed, experts say.

HSR Property Group executive director Eric Cheng says HDB rents are likely to stay stable for the next few months until the gap between private home rents and HDB rents starts to narrow.

There are now 21,400 HDB flats approved for subletting, up from 20,200 in the second quarter. But HDB subletting deals fell 4 per cent to 3,960 cases in the third quarter.

ERA Asia-Pacific’s assistant vice-president Eugene Lim said: ‘Next year, when tenancies are up for renewal, you will see rentals coming down.’

If landlords do not lower rents, their tenants may switch over to private apartments as the price differential between the two types of property narrows.

‘It’s the push-down effect as those pushed out of the private market go to the HDB market,’ said ERA’s Mr Lim.

Government data shows private home rents surged dramatically by 41.2 per cent last year, with rents for non-landed homes in suburban areas up 41.9 per cent.

An HDB property agent, who wanted to be known only as Chui, said sentiment in the HDB market has been slightly hit by the gloomy economic outlook and there is more ‘tenant resistance’.

‘HDB rents have come down a bit. For three-room flats, it is still not a problem getting tenants to pay $1,400 to $1,600 a month, but maybe not above that.’

Unit size and location play a big part in determining HDB rents, given that there is a renters’ threshold, said PropNex chief executive Mohamed Ismail.

‘A small three-room flat in a good location can get more than $2,000 but an executive flat in the same location may not command even $3,000,’ he said.

‘The threshold for HDB flats is around $2,500. Beyond that, people will go for condos with facilities.’

HDB flat owners can rent out their entire unit after occupying it for three years. This minimum occupation period rises to five years if they have a subsidy or housing grant.

Mr Alan Wong rented out his 67 sq-m three-room HDB flat in Kallang last month for a whopping $2,100 a month.

‘It’s a family from China. They are permanent residents, professionals, and have a daughter studying in a school nearby,’ he said.

But he is one of the lucky few. HDB data shows median rents for three-room flats in the Kallang/Whampoa area at $1,500.

Currently, three-room flats in the central area, Bukit Merah and Marine Parade command the highest rents among HDB towns.

Still, rents of Marine Parade three-roomers have fallen from $1,750 in the second quarter to $1,700 in the third.

Source : Straits Times – 3 Nov 2008

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Construction industry seen resisting downturn

Posted by luxuryasiahome on November 3, 2008

NatSteel president cites public housing demand, projects

Singapore’s construction industry is unlikely to slump despite the dim economic outlook, according to the head of the biggest steelmaker here.

In a recent interview with The Business Times, NatSteel president TV Narendran pointed out that public housing demand remains firm, and there are still a number of public projects in the pipeline.

‘Early this year, the government postponed about $5 billion worth of projects due to overheating in the market. Even though there may be some slowdown and softening in steel prices, we think the public projects can still make up for the drop in private developments,’ he said.

Mr Narendran’s comments come as Singapore braces for a lean year ahead, with the economy having slipped into a technical recession and likely to end 2008 with about 3 per cent GDP growth.

Given the deteriorating economic climate, the fear among some is that Singapore’s construction industry may go underwater again – after having recently only recovered from a painfully prolonged slump.

However, Mr Narendran is not perturbed, pointing to strong orders and cautious optimism among industry players.

‘Today, the total value of all projects is at $27 billion, while the worst we have seen was $11 billion.

‘The sense we get is that demand may drop to $17-18 billion in the next three years, but this is still higher than the previous bottom.’

Part of this demand, he says, stems from the upcoming integrated resorts and new expressways.

He should know, given that NatSteel now controls more than 60 per cent of the steel market here.

The company, which was bought over by Tata Steel in 2005, derives some 60 per cent of its business from Singapore, and 40 per cent from foreign markets such as Australia.

Plus, Mr Narendran still sees pockets of tightness in the construction sector, given the small number of contractors in the market.

The government earlier said that it will help cushion any slide in demand if the construction sector should get hit by the financial turmoil. This year, domestic construction demand is estimated to reach between $27 billion and $32 billion, and the government stands ready to bring forward the public projects that were earlier deferred.

But Mr Narendran concedes that steel prices have been volatile in recent months, and that means the company has to peg its prices to some underlying index for longer-term contracts. This also eases the pressure on margins.

Business concerns aside, NatSteel remains socially active.

Its charity commitments include pledging $1million to fund community initiatives over the next three years. More than $150,000 have been donated to NatSteel’s adopted charities – St Joseph’s Home and the Society for the Physically Disabled.

In addition, its parent Tata Steel is also the sponsor of a nationwide quiz – Tata Crucible – that offers more than $17,000 worth of cash prize money.

Source : Business Times – 3 Nov 2008

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Firms find business prospects best in China, Singapore

Posted by luxuryasiahome on November 3, 2008

China and Singapore hold the best business prospects for local and foreign firms here in the next six months, say respondents to the latest BT-UniSIM business climate survey.

Of the 154 firms polled, close to three quarters of them have business dealings overseas. Of these, about 22 per cent cited China and 21 per cent picked Singapore as most promising in their line of business.

China was also the top-listed for prospects in this poll a year back. Then, Vietnam was also favoured by firms across the board. Going by the findings, however, Vietnam’s attraction has since waned, with Singapore emerging as a new bright spot.

Says survey project director Chow Kit Boey: ‘This shows that firms are more cautious following the financial crisis, and they see Singapore’s comparative stability as being better for business.’

China was particularly favoured by foreign, and also large, companies, and was most cited among firms from the manufacturing, commerce, and transport and communications sectors. On the other hand, Singapore’s business prospects appear rosier to small or local firms, and particularly those from the construction, and financial and business services sectors.

The third ‘most favoured’ market was Indonesia, which garnered 9.6 per cent of the total number of mentions. Other countries that made the top three, when the responses were broken down by company size, ownership or sector, were Vietnam, India, Japan, Malaysia and the United Arab Emirates.

Ms Chow said the range of countries cited indicated ‘a diversity of views as well as wider knowledge and exposure to more distant and non-traditional trade partners of Singapore’, including Portugal and the Seychelles.

Source : Business Times – 3 Nov 2008

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Going green

Posted by luxuryasiahome on November 3, 2008

What does Singapore need to do to become a model city of the future in terms of its use of energy? How can businesses contribute to this goal?

Cheong-Chua Koon Hean
CEO
Urban Redevelopment Authority

ENSURING energy conservation and efficiency in cities is an essential part of managing global energy use. Cities house half of the world’s population today and account for 75 per cent of global energy consumption, mostly in buildings and transport.

In Singapore, managing our city’s energy use requires a multi-pronged approach. A key strategy is good land use planning. By planning for compact, mixed-use and public transport-oriented developments and self-sufficient towns with essential facilities, we reduce the need to travel and reliance on cars. Energy-efficient infrastructure, such as the district cooling system which we have introduced in Marina Bay, and energy-efficient buildings also reduce cities’ energy use. Passive design strategies including micro-climatic planning such as leveraging on the cooling effects of winds and breezes, the provision of greenery and capitalising on sun-shading within the built environment, are further measures to reduce energy use for artificial ventilation and cooling.

Meeting the energy challenge that the world faces requires everyone to play a role. Businesses can play their part by making energy conservation an important part of their business plan and deciding how they choose to conduct their business.

Individuals also play a part as achieving energy efficiency falls back ultimately on the habits and choices we each make. ‘Green cities’ need ‘green constituents’.

Kwek Leng Joo
Managing Director
City Developments Limited

BEING a small dot on the world map, it is indeed a tall order for Singapore to be a ‘model’ city in terms of energy consumption in the short term. However, businesses and individuals should do their bit to contribute to this goal. CDL, as a developer providing spaces to live, work and play, is firmly committed to conserving the environment and to influencing our stakeholders to do the same. While energy usage is inevitable, the key is to ensure responsible and efficient use of it.

The government can play a key role by providing guidelines to encourage efficient use of energy in industries, offices and perhaps even in homes. Corporations, however, must lead the way by incorporating innovative green technology into the hardware and find solutions within their operations to reduce energy consumption. The solar panel industry can also be encouraged to engage in more R&D, given our tropical climate, to make solar panels more affordable.

As a green developer, we have taken a proactive approach in investing in green features and technology to mitigate the impact of our development on the environment for a few years now. We have been developing low-energy consumption buildings and our vision is to build ‘zero-energy’ buildings in the near future.

For instance, our upcoming development at 9 Tampines Grande will embrace the largest use of photovoltaic panels and hot-water solar panels in Singapore to-date. It will be used to generate renewable energy for basement carpark lighting and lobby air-conditioning. We estimate that we can benefit from energy-savings amounting to 2.7 million kWh per year. Singapore succeeded in closing the water consumption loop and we are confident of closing the energy consumption loop with the strong leadership of government leaders and private sector participation.

Beyond the hardware, users play a vital role in reducing energy consumption be it at home or at work. Numerous outreach programmes such as Project Eco-Office and Green Office Label have been introduced to inculcate good green habits among our office tenants. Last year, as a major landlord, we initiated the innovative pilot programme, 1°C Up, in 11 commercial buildings. We received astounding support from our tenants who make up thousands of office workers. These businesses and their staff have become accustomed to this higher temperature and we hope that they will also make similar changes at home.

Khoo Chin Hean
Chief Executive
Energy Market Authority

SECURITY of supply and competitive energy price will be the twin concerns facing all cities. Balancing these concerns becomes even more challenging as the cost of environmental sustainability is priced into energy. This may have the effect of either driving up costs or limiting the use of traditional fossil fuels or both. On the other hand, it will also open up opportunities for new technologies.

Using energy efficiently is imperative. This can start at the personal level. Each and every consumer can play a part by putting a stop to unnecessary consumption. While helping the environment, the individual consumer will at the same time incur a lower expenditure on energy. In addition, consumers can make a deliberate effort when buying appliances to choose those that are energy efficient. The same applies to businesses.

At the system level, the government has taken measures on a broad front to engineer our city for efficiency. These measures include providing guidelines and recognition through awards to promote energy efficient buildings, recycling and energy efficiency labelling. Even in transportation, the measures taken by the government to prevent congestion will lead to higher efficiencies in energy consumption.

These are fundamentally about attitudes and mindsets of our people and businesses.

Singapore will also have to continually review and ensure its policies and infrastructure are ready to embrace new sustainable technologies when these become cost competitive and commercially viable. Better still, if our businesses are adept in developing such technologies, we will reap commercial and environmental benefits.

Greg Russell
Senior Vice-President, Asia
Telstra International

EVERYONE agrees that environmental conservation is critical to our future and that more can be done to protect our planet. Not only does energy efficiency translate into reduced greenhouse gas emissions, it can also generate significant cost savings, especially in today’s economic climate.

As with all developed countries, commercial buildings are big power-guzzlers and account for a large chunk of power-production related emissions. For example, many customers approach us to look at the entire data centre from an environmental perspective as the high-density servers they host can create significant hotspots, which then leads to increased demands to power and cool the racks. Such increases in power and cooling demands only result in greater electricity consumption.

From a mid- to long-term perspective, businesses need to carve out a clear, phased strategy for the adoption of energy-saving systems – for example, using ISO approved Life Cycle Assessment Models to improve their carbon footprint and also improve productivity. We have helped various companies make the change, and while it is not necessarily easy, the long-term benefits outweigh the short-term investment of mapping out a clear strategy to go green.

Neil McGregor
Managing Director
PowerSeraya

WITH rising concerns over energy security and cost, as well as environmental protection, it is important to adopt an integrated energy strategy that incorporates more sustainable development solutions, especially in resource-constrained Singapore where energy options are, by and large, limited to fossil-based fuels.

Businesses, especially those from the energy-related sectors, can contribute towards this goal by adopting renewable processes to optimise resource use, intensifying efforts in expanding the energy efficiency and environmental benefits of their operations and taking ownership in educating the public on energy conservation.

For example, PowerSeraya has harnessed the use of technology to build the world’s first large-diameter Seawater Reverse Osmosis desalination plant to maximise its operational efficiency and become self-sufficient in water. By next year-end, our new clean burning co-generation plant will also significantly lower our carbon footprint by up to 40 per cent. Energy efficiency training courses for our customers have also been organised through our retail arm, Seraya Energy, so they are aware of the benefits of energy audits.

Francois Lancon
President Asia-Pacific
Nortel

SINGAPORE should require businesses to commit to reducing their corporate carbon footprint and to using more energy efficient products. This has the twin benefit of contributing to environmental sustainability while significantly reducing power consumption – which directly benefits a company’s bottom line.

At Nortel, our engineers globally have been following our ‘Design for Environment’ principles for over a decade to develop energy efficient products. Today, companies can save up to 40 per cent of their energy consumption for data networking equipment by making informed choices. Technology adoption can help businesses large and small play their part. Solutions such as Unified Communications and Telepresence can help companies work more efficiently and reduce travel needs and office space with all the costs and environmental impact they entail.

Derek Goh
Executive Chairman/Group CEO
Serial System Ltd

SINGAPORE as a tropical city state should be a model solar energy city. The tripartite partnership of government, business and community in harnessing solar energy should be forged.

HDB should install solar panels on roof-tops of HDB blocks to tap the solar energy in the day and convert it for use in the night.

JTC could install solar panels for JTC estates/properties to convert solar energy for commercial use within each district park.

Just as we have overcome the water supply issue with Newater, NEA should embark with A*Star on a national solar energy R&D project to commercially generate solar energy to reduce our high dependency on fuel energy.

At the same time, we should also embark on an energy recycle programme to harness energy from waste and other sources.

Lim Soon Hock
Managing Director
PLAN-B ICAG Pte Ltd

SINGAPORE can and will become a model city of the future on the use of energy when all the 3Ps – public, private and people sectors – collectively achieve a quantum leap in using energy right. An important prerequisite must be that this translates into tangible and quantifiable outcomes, that qualify as global benchmarks.

Using energy right not only means conserving energy, using it less and more efficiently, but also adopting innovative ways of recycling and harnessing other forms of energy, to create a sustainable eco-system for energy generation and consumption.

As a country, it is heartening to note that we have begun taking concrete steps, ahead of many others, in pursuit of this worthwhile objective, following the immense efforts put in by our government to promote energy conservation and management, through the various outreach programmes, such as the Efficient Energy Campaign and the BCA Green Mark, through working with key stakeholders, such as the Building and Construction Authority.

I applaud the government for the timely introduction of the 10 per cent Energy Challenge to encourage all companies, households and individuals to cut energy consumption by 10 per cent for now, and hopefully, more in the years to come. While this is a good start, I am confident that Singapore will strive to go beyond this, to explore and invest in more innovative and sustainable ways of generating and consuming energy. Tremendous opportunities exist for the greater exploitation of available resources, such as solar energy, besides oil and natural gas, as well as of technologies, that can tap our existing R&D infrastructure.

Our government can consider establishing Singapore as an Energy Research Centre, which can focus on achieving new breakthroughs in the efficient and more affordable use of solar energy, the only natural resource which we have in abundance. A breakthrough would fast-track the achievement of the goal and put Singapore on the world map on the use of energy, like what we have achieved with Newater.

Businesses can contribute to the goal of Singapore becoming a model city of the future for energy use, by being creative and daring to be so, as an imperative to save costs. Here I am reminded of an article that I read recently concerning Club Watt in Rotterdam; it became the first sustainable dance club which boasts a new type of dance floor that harvests the energy generated by partygoers’ jumps and gyrations and transforms it into electricity that contributes to powering the lighting in the club!

With no natural resources, other than the abundant supply of solar energy, Singapore really has no choice but to embark on this path to become the model future city for energy use. Our open economy and large scale industrialisation also mandate that this challenge be astutely managed for us to continue to remain competitive.

Singapore will have enough energy if all of us play our part to use it the right way: conserve and consume less, and if I may add, in a smart way as well: recycle.

Noboru Oi
Group CEO
Fujitsu Asia Pte Ltd

A FRONT-PAGE story in The Business Times on Oct 24 stated that 70 per cent of Singapore’s electricity demand comes from businesses and industries. Separately, Senoko Power – which received this year’s President’s Award for the Environment – recently said that the power generation industry accounts for about a quarter of global carbon emissions.

Put two and two together, and the implication is obvious. Reducing industrial consumption of electricity is crucial for Singapore to become a model city in terms of optimising energy consumption and reducing greenhouse emissions.

On the governmental level, we ought to encourage more companies to develop or embrace energy-efficient methods of running their front-end, midstream or back-end business processes. At the same time, R&D-focused companies should devote more resources towards engineering and implementing ‘green’ solutions that reduce customers’ carbon footprints. Additionally, end-users must recognise that such applications offer long-term energy and cost savings that thoroughly justify the initial capital outlay.

Large corporations might also consider formulating a global environmental policy that defines long-term goals in energy consumption, greenhouse emissions or other areas. Globally, Fujitsu Limited – Fujitsu Asia’s parent company – has announced a series of initiatives designed to eliminate seven million tons of carbon emissions by 2010, and 30 million tons by 2020. We plan to achieve these targets via developing more “green” products and solutions, improving internal processes (such as materials procurement or manufacturing techniques) and other strategies.

It is also imperative to note that climate change is a global issue and hence a concerted worldwide effort is required to mitigate its effects. Thus, the international community – Singapore included – must eventually formulate and ratify a successor to the Kyoto Protocol, which expires in 2012.

Eric Hoh
Vice-President, Asia South Region and Head of Global Account, Asia-Pacific and Japan geography
Symantec

GOVERNMENTS, businesses and even individuals need to reduce their carbon footprint and use greener and cleaner technologies that are energy-efficient. Singaporeans should realise that while there may be increased short-term costs associated with selecting greener technologies, these are outweighed by the longer-term performance and environmental benefits.

To be a model city, businesses in Singapore have to discover the operational savings achieved by going green, such as containing utility costs, optimising data centre power requirements, and reducing energy inefficiencies from heat-generating equipment. Enterprises running large data centres should consider virtualisation to consolidate their servers and storage hardware. This will maximise storage use, reduce the number of physical servers, and eliminate duplicate data. Going green can also be doing something as simple as turning off office lights during breaks and reducing unnecessary copying or printing.

Here at Symantec, we are committed to reducing our environmental footprint by conserving natural resources – we sell about a third of our consumer products online to avoid packaging altogether. We believe in embracing our technologies and implement green practices in our own data centres, helping us minimise our energy and carbon footprint. Ultimately, environmental responsibility makes good business sense as it results in concrete savings and is an effective tactic for retaining customer loyalty and trust.

Gavin Selkirk
Corporate Senior Vice-President & General Manager
CA Asia Pacific & Japan

IT managers pay close attention to consumption because data centres can use 30 times more energy per square foot than ordinary office space. Implementing IT solutions dramatically reduces an enterprise’s carbon footprint, which is essential to preserving Singapore’s precious natural environment.

Independent research showed that 7 million kilowatts were used globally every hour to drive servers in 2005, while another 7 million kilowatts were burned to cool them.

Another study warns that energy spend will become the second largest operating cost in 70 per cent of data centres by 2009 and that 50 per cent of the world’s data centres will not have enough electricity to meet their power needs by end of 2008.

At CA, we firmly believe that IT holds enormous potential to reduce carbon footprints for business communities and the world.

Howard Hunter
President
Singapore Management University

IN the long term, solar energy offers the best possibilities for Singapore. In the near term, simple conservation methods can be effective.

With modest changes in thermostat settings and the timing of air conditioning usage, we reduced annual electricity costs by about 10 per cent. More aggressive conservation steps are being considered.

Hans-Dieter Bott
Managing Director
Siemens Pte Ltd

SINGAPORE, already a hub for urban solutions, has great potential to become a hub or laboratory of environmental sustainability. But to do so, it needs to create and modify infrastructure elements, to ensure reliable and efficient supplies of energy without contributing to climate changes; as well as offer incentives or perhaps even make some regulatory changes, to make greener lifestyle viable and desirable.

Siemens has been a long-term partner in delivering eco-friendly technologies and solutions to Singapore. Our innovations boost the efficiency of power generation and transmission technologies while substantially reducing CO2 emissions. Even our energy-saving lamps from Osram help to decrease CO2 output. And we continue to develop innovative technologies to produce energy in the most ecologically friendly, cost-effective and efficient way.

One of our latest innovations is the world’s most powerful gas turbine that has a capacity of 340 megawatts, and a combined cycle efficiency of over 60 per cent. And very importantly, it reduces CO2 emission by 212,000 tonnes a year.

We see our constant research and innovation of eco-friendly technologies as a responsible and sustainable way of doing business. It is a simple principle whereby we develop products and solutions with the future and the environment in mind.

Liu Chunlin
CEO
K&C Protective Technologies Pte Ltd

ALTHOUGH oil prices have come down recently, the long-term prognosis is that they will head higher as oil becomes a scarcer commodity with growing population and affluence. We need to be a model tropical city of excellence not just in terms of economic growth and living environment but also the responsible use of energy. This is what I see of Singapore of the future:

Google Earth view of Singapore – green, blue and photovoltaics. That is, lots more greenery and water bodies to keep temperatures down in the face of global warming. It will be three-dimensional green as roof tops and facades are planted with vegetation. And in between the green and blue, we will see more photovoltaics. The price of oil would have gone up and costs of photovoltaics come down to exploit our tropical sun and this technology.

More efficient use of energy in industries, offices and lifestyle – the high oil prices will make efficient usage of energy at the micro-level necessary and worthwhile, for example, in air-conditioning and manufacturing processes. I would see more al fresco activities in a new definition of physical comfort.

A compact city with -

* highly connected public mass transport system. Reliance on cars will not be tenable as it is today, and owning a car will indeed be a luxury.

* a communications infrastructure to make telecommunications and wireless IT communications ubiquitous and cheap. This will reduce the need to move around and will support the high-tech, knowledge-based industries Singapore is developing, including R&D. One will also see more home-offices.

For the above, many businesses will align their activities out of sheer necessity to reduce cost, for example, cut air-conditioning and travel bills. Some businesses will exercise corporate social responsibility by support for currently expensive energy technologies like hybrid cars and photovoltaics.

Ravi Rajendran
General Manager, Asean
Hitachi Data Systems

WHILE data centres are considered the largest consumers of energy, it is here that the highest energy savings can be realised.

With ever-rising energy costs, local companies need to adopt new technology that increases the utilisation and shelf life of their IT infrastructure.

Traditionally, data centres operate with a 30-40 per cent utilisation rate. The challenge here is to increase utilisation rate so that less physical infrastructure is required to maintain the same service levels.

Virtualisation technology dramatically increases utilisation so that unnecessary storage infrastructure can be eliminated.

It is imperative for data centres to implement new technology that can slash energy consumption. For example, supporting external storage devices that spin down when idle can reduce power consumption significantly.

Also, in order for local companies to achieve world-class status in terms of energy management, there needs to be more synergy between IT and facilities planning departments. This will ensure that the space and energy considerations complement the scalability and performance requirements of the IT infrastructure.

Darren Thomson
President & CEO
Manulife

THE Singapore government’s ongoing efforts to urge Singaporeans to embrace green habits are commendable. It has led to a heightened awareness of the need and urgency to conserve energy on a national level.

Although regulations and campaigns have contributed much to increasing energy efficiency and reducing energy usage, there is a lot more that can be done to conserve energy, no matter how small. When it has become second nature to every Singaporean to switch off the lights when they leave the room, share vehicles or take public transport instead, and so on, then we can start to consider moving towards becoming a model city in terms of energy use.

Businesses can reiterate the energy conservation message by reminding staff to switch off lights and computers when they are not in use, encouraging them to submit good ideas on how to reduce energy usage in the office, and rewarding energy saving ideas which help the company to reduce operation costs. In addition, we can save substantially on energy by setting aircon temperature at 25 deg C instead of freezing cold levels very often experienced in our public buildings and public transport.

Charles Reed
CEO
DOCOMO interTouch

SINGAPORE needs to take a leaf out of the experience of model energy-efficient countries like Japan and Hong Kong. Without domestic sources of fossil fuels and volatile oil prices, these countries have successfully diversified their power sources over the years, becoming far less dependent on oil while fostering a culture of conserving. A simple example is the use of hybrid and LPG cars. In Japan, over 20 per cent of all cars on the road are low-emission vehicles while less than one per cent of Singapore’s vehicles come under that category.

While investing funds towards future investment in research, development and technology may be one of the ways to make use of our resources wisely, educating the population on the importance of conserving energy is the first step towards a collaborative effort that would have a long-term and larger effect eventually. More measures need to be put in place that directly impacts the public.

Businesses can also play a part by promoting such energy conservation programmes within their organisations as well as make a more conscious effort to adopt energy efficient technologies and green business practices. At the same time, artificially subsidising alternative energy is not sustainable. I would prefer to see ‘carbon’ tax implemented to ensure that the inefficient users of fuels will pay for their detrimental impact on the environment.

Kanwal Nain Sahney
Managing Director
Specvision

THIS calls for an integrated ‘public-private-corporate’ participative approach, needing profound attitudinal change in our individual outlook towards energy consumption. When conventional energy reserves like oil, gas and coal are fast diminishing, Singapore must foresee this challenge and harness renewable sources like wind, water and nuclear energy for its high density population.

The government must continue to build environment friendly and energy efficient structures like Changi T3, ensuring ‘free-flowing’ traffic with convenient public transport etc.

Individually, we must contribute by using energy efficient electronic/electrical devices, regularly maintaining and judiciously using automobiles and switching off devices when not in use.

Corporates should pitch in by optimising power consumption in office/factory buildings, minimise work-related travel and encourage remote/tele-working, recycle paper/propagate paperless office concept, staff carpooling and efficient production processes.

Energy conservation is a movement needing whole-hearted contribution by every Singaporean to make it a model future city that is truly world class and the envy of the world.

Bill Padfield
Chief Executive Officer
Datacraft Asia Limited

OUR focus has been to reduce carbon emissions, rather than simply reduce energy consumption. The motivation is to become better global citizens rather than simply to reduce costs. As a business we have created Greencraft, which is an initiative to address our own carbon emissions that includes our participation in the Carbon Disclosure Project (CDP6). We scored very well (as part of the global disclosure by our parent company Dimension Data).

It’s a good starting point to measure and publicly declare our emissions. We then have a third-party consultancy group helping us drive these emissions down over the next few years. Our focus has been

1) measure and reduce our own emissions,

2) prepare services and solutions that help our clients do the same,

3) educate and increase awareness among all our employees.

Teng Yeow Heng Michael
Managing Director
Corporate Turnaround Centre Pte Ltd

SINGAPORE needs to protect our limited land and air space from any form of pollution. The clean energy industry sits very well with our overall strategy of environmental cleanliness which should promote the use of solar power, fuel cells, wind power, energy efficiency and carbon services.

Thus, Singapore should position itself as the model city in the use of clean energy. Businesses can support the use of such energy in manufacturing plants and commercial buildings. They should also closely work together with the energy researchers in tertiary institutions, relevant government agencies and the energy policy makers.

Peter Barge
CEO, Asia Pacific
Jones Lang LaSalle

FORTY per cent of greenhouse gases come from buildings, so cities like Singapore can make a significant contribution in this area.

Being a highly urbanised society that has a great track record of being able to embrace and drive change, the city has a great opportunity to be a world leader in green buildings and in the conversion of the current built structures to sustainable environments for its citizens and its visitors to live and work in. Energy usage, conservation and innovation are critical to this challenge.

Lim Kong Puay
President & CEO
Tuas Power Ltd

AS world economies continue to expand, countries need to address the challenge of an ever-increasing demand for energy. Singapore can take the lead in tackling the issue by becoming an advocate of energy efficiency. To become a model city of the future, Singapore can demonstrate its ability to optimise its use of energy.

Businesses can contribute to this goal by conducting regular energy audits to identify ways to improve the energy efficiency of their facilities and equipment. They can also incorporate energy-saving measures into the design of their facilities. Wherever possible, businesses should look at adopting energy-efficient technologies in their processes as well.

Sam Yap S G
Group Executive Chairman
Cherie Hearts Group Int’l Pte Ltd

SINGAPORE’S consumption of energy needs to be tackled using a two-pronged approach, supply side and demand side.

On the supply side, Singapore should leverage on its position as a research and development (R&D) hub to take the lead in exploring and developing next-generation energy solutions, such as solar power. Businesses can play a role to support such initiatives, either through direct commercial investments or via corporate social responsibility efforts like donating money to fund the research.

As for the demand side, Singapore must manage the consumption of energy. For instance, the government could step up efforts to improve our public transport infrastructure, for example, extend MRT lines and monitor the service level of public transport companies more stringently. This will make public transport a more appealing choice for Singaporeans and reduce our consumption of vehicle fuel. On a lighter note, I commend the latest efforts taken to share energy tips on how to reduce household electricity consumption.

Goh Chong Theng
General Manager Singapore
Rabobank International

THE Business Times recently reported that industrial demand accounts for 70 per cent of Singapore’s electricity consumption. Thus, to become a model city of the future in terms of energy usage, we might want to concentrate our efforts towards ‘green’ electricity generation and sustainable power consumption.

I remember that Senoko Power recently announced a major initiative to convert some oil-fired plants to cleaner, gas-fired plants. I think that such plans for ‘green’ electricity generation are laudable because they allow the country to shift its power production capacities from more carbon-intensive fossil fuels to cleaner alternatives.

To encourage sustainable power consumption, Singapore could perhaps find more ways to exploit the incentives provided by the United Nations’ Clean Development Mechanism (CDM). The CDM allows countries to earn Certified Emission Reduction (CER) credits, which can be bought by other nations that have committed to emission reduction targets under the Kyoto Protocol.

Rabobank has been performing CER transactions under the CDM mechanism for over two years. Recently, we expanded our sustainable energy and carbon credits businesses to Singapore and the region because of the opportunities – for both business growth and social contribution – in these markets. With these in mind, we hope to work with environmentally responsible companies in various sectors in viable energy efficiency projects that contribute towards sustainable energy consumption.

Source : Business Times – 3 Nov 2008

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