Singapore

Edward Hadas: Rate rigging costs more than money

19 Jun 2013

In cash terms, the manipulation of supposedly objective reference rates and prices is a petty crime: relatively small gains for a few and microscopic losses for many. Ethically, though, the tolerance of untrustworthy behaviour makes the industry look particularly bad.

Singapore’s creative bank penalty may be a one-off

17 Jun 2013

The city-state is forcing lenders to set aside up to $9.6 bln in extra reserves as punishment for rate-rigging offences. With rates low, the costs will be smaller than recent mega-fines. And proposed new rules mean future misbehaviour will be met with more conventional justice.

Bank rate-rigging was pretty big business

14 Jun 2013

When traders got caught fiddling Libor, their employers blamed a few bad apples. Singapore has found 133 people at 20 banks trying to rig three rates. That sounds more like a rotten barrel. The group announcement spares each bank some headlines, but makes the industry look worse.

Temasek’s $500 mln investment times Markit just so

21 May 2013

Financial “Big Data” is a running theme and the Singapore investor can open doors across Asia for Markit any time. But with Bloomberg on the defensive, it’s a good moment to suggest there’s potential for another competitor – perhaps, before long, another publicly traded one.

Wage subsidy could blunt Singapore’s edge

26 Feb 2013

The city-state’s plan to subsidise 40 percent of pay increases for low-wage earners is the wrong answer to growing inequality and falling margins. Companies will be left with bloated wage bills when the subsidies end in 3 years. A small economy can’t afford such distortions.

Southeast Asia’s growth could lead to credit curbs

21 Feb 2013

The region’s debt-fuelled expansion is reviving memories of the unsustainable mid-1990s boom. But the authorities are reluctant to tighten monetary policy as higher interest rates might attract more foreign capital. Policy makers may prefer to control credit more directly.

Singapore kicks off necessary benchmark rate cull

19 Feb 2013

The city-state is expected to scrap its U.S. dollar Sibor interest rate in order to focus on the weightier local currency benchmark. With alternatives on tap, the switch should be manageable. It will also be a useful test for London’s planned interest rate bonfire.

Asia’s city-states grapple with slowing growth

11 Feb 2013

Singapore and Hong Kong have been regional economic hotspots for decades. Continued expansion requires importing more workers. But popular discontent about crowding and property prices means doors will be less open. Both cities will have to adapt to more pedestrian futures.

Soccer’s betting scam has echoes of Libor scandal

5 Feb 2013

Rigging the sports fixtures is like manipulating interest rates: both require collusion, are hard to detect, and were partly orchestrated in Singapore. Both also undermine confidence. In finance, the solution is to rely less on human judgment. Soccer cannot do away with referees.

Singapore’s demographic engineering on right track

30 Jan 2013

Using immigrants to boost an ageing population by 30 percent is worth a try. The alternative is slowing GDP growth, and a decline in property prices. Voters will be nervous, but the usual fears of overcrowding and loss of national identity are probably overblown.

F&N takeover saga reaches mostly happy ending

22 Jan 2013

The bid battle for the Singaporean conglomerate ended without fireworks. Even so, the $11.2 bln valuation leaves investors with a 40 pct return over seven months, and loser OUE with a $41 mln break fee. The pressure is now on the victorious Thai bidder to prove the numbers work.

Singapore property curbs show Asia’s fear of yen

14 Jan 2013

The city-state is bracing itself for more hot money inflows - this time from Japan. Higher stamp duties and new lending limits are designed to cool Singapore’s soaring real estate market. They may also set the tone for Asian policy makers’ reaction to an abundance of cheap yen.

Singapore property spat may hinge on tax oddity

14 Dec 2012

SC Global’s controlling shareholder has offered to take the high-end apartment developer private. Large investor Wheelock is holding out for a better price. Ending the standoff may require some clarity about Singapore’s discriminatory approach to taxing foreign-owned property.

Swiss chocolate firm switches to junk diet for M&A

12 Dec 2012

Barry Callebaut is splurging nearly $1 bln in Asia, and enduring credit downgrades to “junk”. And all that for a business that’s having a horrid year. But there are real savings and strategic logic. For bold M&A, having patient family backers and a non-euro zone base must help.

Olam’s “Get Shorty” gambit is short-term fix

4 Dec 2012

The commodities trader’s $1.2 bln bond-and-share issue, underwritten by major investor Temasek, eases funding concerns and squeezes short-sellers like critic Muddy Waters. But twisting shareholders’ arms to take part does little to ease the broader concerns about Olam’s business.

Olam should show, not tell in Muddy Waters fight

28 Nov 2012

The commodities trader has rejected the short-seller’s belief that it’s heading for an Enron-style collapse. But claims of solvency may not be enough. To convince creditors, the company could follow the example set by U.S. broker Jefferies and liquidate some of its assets.

Short-seller raises stakes with Singaporean attack

20 Nov 2012

Shares in Olam have been suspended after Muddy Waters founder Carson Block questioned its accounts. His record of exposing Chinese frauds will make investors take notice. But the commodity trader, and largest shareholder Temasek, are bigger game. Both sides have much to lose.

Europe, China holding back Asian export recovery

31 Oct 2012

Gains in September exports have buoyed hopes for a U.S.-led rebound in regional trade. But Asian economies have shifted their focus to Europe and responded to Chinese competition by supplying the manufacturing juggernaut. A U.S. upturn alone won’t revive Asia’s export engine.

Temasek telco trade offers few clues for StanChart

26 Sep 2012

The Singaporean fund sold a $1.1 billion block of shares in landmark holding SingTel. The latest reshuffle raises further expectations that its 18 percent stake in the UK bank will be next. Though both have delivered good returns, offloading StanChart shares will be harder.

Tiger beer sale lobs Thai ball into F&N’s court

19 Sep 2012

Bangkok moguls have blessed Heineken’s bid for Asia Pacific Breweries, clearing the way for a large cash payout to 40 pct shareholder Fraser & Neave. But the Thais still want to buy the rest of the Singaporean conglomerate. Its board needs to convince investors to hold out.