Sembcorp Marine unit clinches US$208m jack-up rig contract

By

Joyce Hooi

        

SEMBCORP Marine's subsidiary PPL Shipyard has received a US$208 million (S$258 million) contract to build a second Pacific Class 400 jack-up rig from Perisai (L) Inc, the group said on Thursday.

Perisai (L) Inc is a wholly subsidiary of Perisai Petroleum Teknologi Bhd.
The rig is scheduled for delivery in the second quarter of 2015. It will have specifications that are similar to the first jack-up unit, now named Perisai Pacific 101.

The contract is not expected to have any material impact on the consolidated net tangible assets and earnings per share of Sembcorp Marine for the year ending December 31, 2013.

Noble reports 2012 net profit up 9 per cent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Read? Noble Presentation slides

 

 

 

 

 

Rotary makes loss of S$18.4m for Q4

By

Angela Teng

         

For the full year of 2012, Rotary's made a loss of S$80.44 million, down from the profit of S$31.02 million made in 2011. Revenue for financial year 2012 fell 16 per cent year-on-year to S$444.47 million - PHOTO: ROTARY ENGINEERING

Rotary Engineering Limited on Thursday posted a loss of S$18.43 million for the fourth quarter ended Dec 31, 2012. Loss per share for the quarter was at 3.2 cents.

The group had recorded a profit of S$8.32 million the same period in 2011.

Revenue for the fourth quarter of 2012 fell 35 per cent year-on-year to S$84.34 million, down from S$129.76 million a year earlier caused due to the delay in commencement of certain projects.

For the full year of 2012, Rotary's made a loss of S$80.44 million, down from the profit of S$31.02 million made in 2011. Revenue for financial year 2012 fell 16 per cent year-on-year to S$444.47 million

DOW : 14,075.37 Up 175.24(1.26%)

Stocks End Up 1%, Back in the Black for Week: Dow Within 100 Points of All-Time High

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

y: JeeYeon Park CNBC.com Writer

                

Stocks soared for a second day to finish near session highs Wednesday, with the Dow within less than 100 points of an all-time closing high, boosted by upbeat earnings and economic reports and as Fed Chairman Ben Bernanke reaffirmed his support of the central bank's stimulus policy.


The Dow Jones Industrial Average soared 175.24 points, or 1.26 percent, to close at 14,075.37, propelled by JPMorgan and Caterpillar. The Dow is now less than 100 points from hitting its all-time closing high of 14,164.53.

The S&P 500 jumped 19.05 points, or 1.27 percent, to finish at 1,515.99. And the Nasdaq advanced 32.61 points, or 1.04 percent, to end at 3,162.26.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, tumbled below 15.

Swiber's full-year net profit up 42%

By

Lee Meixian

         

 

In a separate announcement, Swiber said it had clinched contracts worth US$153 million - its first wins in 2013 - mostly to transport and install pipelines and offshore structures in South-east Asia. - PHOTO: SPH

Swiber Holdings' net profit for the full year ended Dec 31, 2012 rose 42.4 per cent to US$45.7 million (S$56.6 million), on the back of a 45.5 per cent increase in revenue to US$952.2 million from a year ago.

Both its net profit and revenue were the highest since its listing in 2006, the offshore construction and support services provider said on Wednesday.

It did not provide separate figures for its fiscal fourth quarter.

"The strong revenue growth was driven by various offshore construction contract wins in Latin America and South-east Asia," it said.

Keppel FELS adds US$300 million to order book with new contracts

 

Singapore, 27 February 2013– Keppel FELS Ltd (Keppel FELS), a wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M), has secured three contracts worth a combined US$300 million from repeat customers.

The contracts are for the construction of a KFELS B Class jackup rig from Star Drilling Pte Ltd, a Singapore-based company promoted by the companies of D.P. Jindal Group; the upgrading of the semisubmersible ENSCO 5006 for Ensco PLC (Ensco); and the upgrading of the semisubmersible Ocean Patriot for Diamond Offshore.

Mr Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and Managing Director of Keppel FELS said, "We are glad to be able to continue from 2012 into 2013 by adding more contracts to our orderbook. Even as we add to our new orders, we continue to deliver our projects safely, on time and on budget. Just over the last two months, we delivered four newbuild rigs by up to a month ahead of schedule.

"We are honoured to have returning customers come to us for newbuilds as well as repairs and upgrades. With Jindal, this will be their third KFELS B Class jackup rig. We have to-date delivered ten such rigs to Indian customers and look forward to supporting Jindal and their growth in India’s oil and gas market. At the same time, we also have a healthy load of repair and upgrade work and we are grateful that customers like Ensco and Diamond have regularly sent their rigs to us for repairs, upgrades and modifications."

For the contract with Jindal, the jackup rig will be built to Keppel’s proprietary design and customised to meet the owner’s operational needs in water depths of up to 350 feet for deployment in offshore India. The rig will have a drilling depth capability of 30,000 feet. Delivery of the rig is scheduled for 4Q 2014.

Mr Raghav Jindal, Managing Director of Jindal, said, "India is enlarging its sphere in the global oil and gas industry and pushing to reduce its dependence on oil imports.

These factors present tremendous opportunities for exploration and production activities and Jindal is well positioned with high specification rigs to meet this demand. In particular, this new rig order signals our intention to enhance our presence in the sector. The KFELS B Class is a proven design for us as both DISCOVERY I and VIRTUE I jackup rigs have been operating successfully without any downtime in offshore India. We are pleased to be able to work with Keppel FELS again as we can be assured of receiving a high quality rig on time and to our highest satisfaction."

The D.P. Jindal Group of companies has business interests in the oil and gas sector and provides offshore drilling services as well as manufacturing of seamless & ERW pipes.

For the contract with Ensco, Keppel FELS’ major workscope on the ENSCO 5006 includes upgrading of the living quarters, and other contract-specific upgrades for operating in Australia on the INPEX Ichthys Project.

The vessel is expected to arrive at the yard in 1Q 2014 with redelivery in 2Q 2014, after which it will be chartered to INPEX for work in Australia.

For the contract with Diamond Offshore on the Ocean Patriot, Keppel FELS will undertake the fabrication and installation of four 24-foot diameter stability columns and new lower hull inboard pontoon sponsons as well as upgrade the living quarters.

Work on Ocean Patriot is expected to commence in June 2013 with redelivery at end 2013. When completed, the semisubmersible will be chartered to Shell for work at the Fram field in the UK North Sea.

The above contracts are not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.

 

DOW : 13,900.13 Up 115.96(0.84%)

By: JeeYeon Park CNBC.com Writer

                

Stocks ended near their best levels Tuesday, recovering from their worst one-day drop in 2013, following Fed Chairman Ben Bernanke's speech and buoyed by a batch of upbeat economic reports.
 

Major averages initially spiked higher after Bernanke defended the central bank's easy monetary policy, overturning fears from last week that the Fed might scale back its bond-buying program. But stocks gradually pulled back throughout the duration of his speech, with the S&P 500 and Nasdaq dipping into negative territory, as the Chairman failed to offer much new information to excite investors.

"It's standard talk and he didn't really rock the boat—the Fed is going to keep purchasing the bonds the way it is," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research.

The Dow Jones Industrial Average rallied 115.96 points, or 0.84 percent, to end at 13,900.13, led by Home Depot and Intel.

The S&P 500 climbed 9.09 points, or 0.61 percent, to finish at 1,496.94. The Nasdaq gained 13.40 points, or 0.43 percent, to close at 3,129.65. Earlier, the Nasdaq traded at its lowest level since January 15.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, tumbled more than 11 percent to close below 17.

STI : 3,254.26 Down 34.50(1.05%)

 



























SINGAPORE : Stocks in Singapore ended 1.05 per cent lower on Tuesday amid concerns over the political uncertainty in Italy, and the lack of progress in Washington to avoid spending cuts due to take effect on Friday.

The Straits Times Index fell 34.50 points to close at 3,254.26.

Volume was 6.9 billion shares.

Losers led gainers 373 to 127.

Keppel secures S$200 million in contracts from repeat customers

Singapore, 26 February 2013 – Keppel Offshore & Marine Ltd (Keppel O&M), through its subsidiaries – Keppel FELS Brasil S.A. (Keppel FELS Brasil) and Keppel Shipyard Ltd (Keppel Shipyard) – have secured two contracts worth S$200 million from repeat customers.

Keppel FELS Brasil’s contract is with MODEC and Toyo Offshore Production Systems Pte Ltd (MTOPS), a joint-venture company between MODEC, Inc. and Toyo Engineering Corporation (TOYO), to integrate the topside modules of a Floating Production Storage and Offloading (FPSO) unit. This project will be carried out at BrasFELS, Keppel FELS Brasil’s yard in Angra dos Reis, Rio de Janeiro, Brazil.

Over in Singapore, Keppel Shipyard has been engaged by SBM Offshore N.V. (SBM Offshore) to fabricate an internal turret for a newbuild FPSO, which will be installed in the Ichthys Field, in the Browse Basin, offshore of Western Australia.

Mr Tong Chong Heong, Chief Executive Officer of Keppel O&M, shared, "We are pleased to be selected by our customers for repeat projects as these are strong affirmations of the quality of our services. BrasFELS and MTOPS’ first FPSO project was delivered safely and 19 days ahead of schedule; the second project is underway and on track for delivery in 2Q 2014. Keppel Shipyard has collaborated with SBM Offshore on some 17 major conversion and fabrication projects.

"With good rapport and understanding between our yards and their customers, we are confident that both the MODEC FPSO and Ichthys FPSO internal turret projects will be completed to high satisfaction."

The FPSO, a project by MODEC and its partner Schahin Group, has been chartered for operations offshore Brazil for 20 years. Integration works for the FPSO will take place from 3Q 2014 to 3Q 2015. The completed unit will have a production capacity of 150,000 barrels of oil per day and storage capacity of 1,600,000 barrels of oil.


Meanwhile, Keppel Shipyard’s work on the 6,800-tonne Ichthys FPSO turret is scheduled to complete by Q3 2014.

The Ichthys FPSO turret forms a part of the Ichthys LNG Project, which is a joint venture between the field operator INPEX group companies, TOTAL group companies and other participants. The Ichthys LNG Project is expected to produce 8.4 million tonnes of liquefied natural gas (LNG) and 1.6 million tonnes of liquefied petroleum gas (LPG) per annum, along with approximately 100,000 barrels of condensate per day at peak. Gas from the Ichthys Field will undergo preliminary processing offshore to remove water and raw liquids, including condensate, before being exported to onshore processing facilities in Darwin via an 889km pipeline.

Keppel Shipyard’s ongoing projects for SBM Offshore are the conversion of FPSO OSX-2 for Brazil as well as modification and upgrading of FPSO N’Goma for Angola. SBM Offshore is also working with Keppel Singmarine Pte Ltd on the newbuilding of a multi-purpose dive support construction vessel.

The above contracts are not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.

 

SEMBCORP POSTS NET PROFIT OF S$753.3 MILLION IN FY2012

 

Utilities business achieves record net profit of S$374.6 million


Highlights from Sembcorp’s FY2012 Financial Results
Turnover at S$10.2 billion, up 13%
Profit from Operations at S$1,266.2 million

Net Profit at S$753.3 million, down 7%

EPS at 42.2 cents

ROE at 17.5%

Proposing final tax exempt one-tier dividend of 15.0 cents per ordinary share

 

 












Read? SCI 2012 Result Presentation slides

DOW : 13,784.17 Down 216.40(1.55%)

By: JeeYeon Park CNBC.com Writer

Stocks kicked off the week with a big thud with all three major indexes dropping more than 1 percent across the board as investors remained concerned over Italy's election results. The S&P 500 broke below 1,500 and the Dow declined more than 200 points, retreating from its fresh multi-year high.

The Dow Jones Industrial Average tumbled 216.40 points, or 1.55 percent, to close at 13,784.17, shortly after hitting a fresh multi-year high earlier in the session, dragged by Bank of America and Caterpillar. The blue-chip index slumped 154 points just in the final hour of trading. Earlier, the index was within less than 100 points of an all-time closing peak before retreating.

The S&P 500 slumped 27.75 points, or 1.83 percent, to finish at 1,487.85. And the Nasdaq dropped 45.57 points, or 1.44 percent, to end at 3,116.25. Both the Dow and S&P logged their worst one-day drop this year.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, surged more than 30 percent to trade near 19, its biggest one-day percentage gain since last November.
 

Budget 2013: Personal income tax rebates of up to S$1,500

SINGAPORE: The government has introduced a slew of measures to help Singaporeans cope with the rising cost of living.

These measures include income tax rebates, extra GST Voucher and Service & Conservancy Charges rebates.

Taxpayers who are 60 years and above will enjoy a higher income tax rebate of 50 per cent, capped at S$1,500.

Those who are below 60 years old will get a rebate of 30 per cent, which is also capped at S$1,500.
These measures were announced by Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam in his Budget Statement on Monday.

Singaporeans will also get an extra one-off GST Voucher on top of the permanent voucher.
The government will give rebates of one to three months for Service & Conservancy Charges.

One- and two-room HDB households will receive three months of rebates for 2013, while three- and four-room households will get two months of rebates.
The concessionary foreign domestic worker levy will be lowered for families with young children, elderly dependents and persons with disabilities.

The levy will be reduced from S$170 to S$120 per month.

- CNA/fa

Bought Semb Corp at $5.24

Red? Semb Corp: Sold $4.25 ROC 5.0%


Going for Round 53 to test the Sembmarine Effect in the market.


Read? The Sembmarine Effect (2)

The Sembmarine Effect (2)

Read? The Sembmarine Effect

Read? SEMBCORP RECORDS NET PROFIT OF S$548.6 MILLION IN 9M2012


Read? 9M FY12 Result Slides

The Sembmarine Effect. Of course!

But, how much fall should it be???

 

 

 

 

 

Investor two-by-two matrix

 

By Howards Mark

 

The Most Important Thing

 

 

 

The key to this matrix is the symmetry or asymmetry of the performance. Investors who lack skill simply earn the return of the market and the indicates of their style. Without skill, aggressive investors move a lot in both directions, and defensive investors move little in either direction. These investors contribute nothing beyond their choice of style. Each does well when his or her style is in favour but poorly when it isn't.

 

On the other hand, performance of investors who add value is asymmetrical.  The percentage of the market's gain they capture is higher than the percentage of loss they suffer. Aggressive investors with skill do well in the bull markets but don't give it back in the corresponding bear markets, while defensive investors with skill lose relatively little in bear markets but participate reasonably in bull markets.

 

Everything in investing is a two-edged sword and operates symmeterically, with the exception of superior skill. Only skill can be counted on to add more in propitious environments than it costs in hostile ones. This is the investment asymmetry we seek. Superior skill is the prerequisite for it.

 

 

  

Uncle8888 has become Defensive Retail Investor with his revised investing strategies for the next 10-year goals???

 

 

 

 

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Most Important Thing .... for investors. You???

"A man only learns in two ways, one by reading, and the other by association with smarter people." - Will Roger.



Read? The Human Side of Investing


If you like that article, then you should follow up reading this book.





 

DOW : 14,000.57 Up 119.95(0.86%)

Back to 14,000 again!!!

By: JeeYeon Park CNBC.com Writer

                

Stocks finished near session highs Friday, recovering from a two-day slump, lifted by upbeat economic data from Europe and after comments from St. Louis Fed President James Bullard that the central bank's aggressive easy money policy will stay for a "long time."
The Dow eked out a slim weekly gain, avoiding its third-consecutive weekly decline. Meanwhile, the S&P 500 posted its first weekly loss this year, snapping its seven-week win streak.

The Dow Jones Industrial Average rallied 119.95 points, or 0.86 percent, to finish at 14,000.57, led by Hewlett-Packard and Home Depot. Interestingly, the blue-chip index has so far posted a gain every Friday of this year, matching the Friday win streak from July through September of 2012.

The S&P 500 jumped 13.18 points, or 0.88 percent, to close at 1,515.60. And the Nasdaq advanced 30.33 points, or 0.97 percent, to end at 3,161.82.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, fell near 14.

The Sembmarine Effect

 



 

 

 

 

By Michelle Teo

Tang Kin Fei, CEO of Sembcorp Industries, takes much pride in how the company’s mega power plants and water treatment facilities worldwide, which have been painstakingly built up over the years, have been contributing steadily and strongly to the group’s profits. Investors have been taking note, it seems, with confidence in the stock rising and gaining nearly 5% since the beginning of the year.

But that was before its rigbuilding subsidiary Sembcorp Marine’s reported poorer-than-expected results on Feb 21. When trading started again on Feb 22, the stock of both companies lost more than 4% in value by midday.
                                               
For years, Sembmarine, which transitioned from ship repair to building rigs at the beginning of the 2000s in time for the offshore boom, has brought in the lion’s share of profits for Sembcorp. But that has begun to falter. In FY2011, its share of Sembcorp’s total net profits was 55%, compared to a share of 63% in FY2010.

The market will see what that share is now when Sembcorp reports its full-year results on Feb 26. At 9M2012, Marine’s share of the group’s total earnings has fallen to 40%, compared to 55% in 9M2011. Meanwhile, net profit from the Utilities segment for the nine months is $293.5 million, or 96% of FY2011’s.
                       

CW8888: This is what Tang Kin Fei, CEO of Sembcorp Industries trying to tell the market.
 

For FY2012, Sembmarine reported a 28% y-o-y decline in earnings to $538 million for FY2012, despite a 12% increase in turnover to $4.4 billion, as operating profits for rigbuilding projects fell. The company says this is primarily due to the lower margins from the new design rigs – the management were being conservative on costs for the drillship and rigs in the initial stages of building. Analysts say this could mean that margins may improve later.

Sembmarine is currently building seven drillships for Brazilian oil exploration company Petrobras, but analysts are also concerned that as a comparatively new entrant in the drillship segment, the company could face cost overruns, labour shortages, construction delays and other issues related to a new yard in Brazil. Nevertheless, it’s a good start for longer-term growth, says Maybank Kim Eng analyst Yeak Chee Keong. “Sembmarine gets a piece of the drillship market, which has been dominated by the Korean [companies].”

Yeak remains positive on Sembmarine, noting that its outlook is good at $13.6 billion in net orders, of which $900 million were secured this year. While he has cut FY13-15 earnings forecasts by 4%-6% on lower margin assumptions, and lowered the target price accordingly to $5.40, Yeak is keeping the ‘buy’ call on the stock. “Sembmarine could succumb to near-term sell-down from weak margins and there will be opportunity to accumulate at lower levels.”

What about its impact on Sembcorp? As the utilities business strengthens and Sembmarine’s share of earnings contributions diminishes, it raises questions about Sembcorp’s 60.6% stake in the rigbuilder. “It’s a legacy issue,” Yeak says.

Keppel Reits and Keppel Corp sell shares

By

Ven Sreenivasan

         

 

Separately, parent Keppel Corp announced the sale of 75 million Keppel Reits shares at S$1.33 to raise S$99.75 million - PHOTO : KEPPEL

Keppel REIT is raising S$53.2 million via the placement of 40 million new shares at S$1.33 per share. The net proceeds from the placement will be approximately S$52.3 million, after deducting the underwriting and selling commission and other estimated fees and expenses (including professional fees and expenses). The issue price is a discount of 0.64 per cent to the adjusted volume weighted average price of S$1.3385 per unit on February 21. The bulk of the funds raised will be used to repay outstanding borrowings, general corporate and working capital purposes. The placement will increase total traded unit base by 1.52 per cent.

Separately, parent Keppel Corp announced the sale of 75 million Keppel Reits shares at S$1.33 to raise S$99.75 million. The sale will reduce Keppel Corp's interest in Keppel Reits to 71.66 per cent, from 75.59 per cent prior to sale.

DOW : 13,880.62 Down 46.92(0.34%)

Not too scary. No XXX down!

By: JeeYeon Park CNBC.com Writer

Stocks pared their losses in the final hour of trading Thursday to close off their lows, with the S&P 500 clawing back above the widely-watched 1,500 level.

Stocks were sharply lower for most of the session, pressured by disappointing economic reports and amid worries the Federal Reserve might scale back its bond-buying program.


"We overreacted to the Fed news in the last two days, though a healthy correction between 2 and 5 percent would be what investors would want to get back into the market," said Art Hogan, managing director at Lazard Capital Markets.

The Dow Jones Industrial Average slid 46.92 points, or 0.34 percent, to close at 13,880.62, after being down almost triple-digits earlier in the session

The S&P 500 slid 9.53 points, or 0.63 percent, to close at 1,502.42. The Nasdaq dropped 32.92 points, or 1.04 percent, to end at 3,131.49.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, held above 15, trading at its highest level this year.

Hyflux 2012 net profit up 15% at $61m

Water solutions firm Hyflux posted a 2012 net profit of $61 million, up 15 per cent from a year ago, mainly due to higher contributions from projects in Asia excluding China

Revenue for the year was up 42 per cent at $682 million.

A final dividend of 2.5 cents per share was declared, up from 2.1 cents a year ago.

CapitaLand achieves PATMI of S$930.3 million for FY2012

Group revenue up 9.3% to S$3.30 billion; operating EBIT and PATMI up by 13.4% and 4.9% respectively

 

Strong residential sales momentum in China; sustained sales in Singapore

 Proposed ordinary dividend of 7 cents per share, up 1 cent

DOW : 13,927.54 Down 108.13(0.77%)



 

Stocks End at Lows: S&P Logs Worst Day of 2013, Dow Below 14,000; Vix Soars 18%

By: JeeYeon Park CNBC.com Writer

                

Stocks ended near session lows Wednesday, with the S&P 500 and Nasdaq down more than 1 percent each, following the Federal Reserve's meeting minutes and as investors paused a day after all three major averages closed at fresh multi-year highs.


"The selloff started after the Fed minutes–the minutes signaled that the Fed may not continue its bond-buying program down the road," said Keith Bliss, senior vice president at Cuttone & Co. "People have been looking for excuses to sell, but we're going to need a few more days to confirm if this is an actual pullback."

The Dow Jones Industrial Average slumped 108.13 points, or 0.77 percent, to close at 13,927.54, dragged by Bank of America and Alcoa.

The S&P 500 declined 18.99 points, or 1.24 percent, to finish at 1,511.95. The Nasdaq fell 49.19 points, or 1.53 percent, to end at 3,164.41.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, jumped above 14.

Minutes from the Fed's latest meeting showed that policymakers remain divided on the timing and amount of asset purchases, with some members saying that the bond buying program may need to end prior to the achievement of the central bank's previously announced goal of improvement in employment.
In January, policymakers voted to keep its QE3 policy, at a $85 billion monthly pace, while committing to hold interest rates near zero until unemployment reaches 6.5 percent.

"If the economic numbers continue to be good or OK, [the Fed] will try to phase out this asset purchase plan, so I don't think they're going to continue to buy $85 billion a month all the way through December and sometime in 2014, we might see our first rate hike," said David Kelly, chief global strategist at JPMorgan Funds. "[But for now,] this is pretty positive for the equity market—...the Fed feels good about the economy and is committed to keeping rates low."

In addition, traders pointed to rumors that some hedge funds had been forced to sell their positions across several commodities, putting pressure on materials and energy.

So far, the Dow and S&P 500 have gained an impressive 7 percent since the beginning of the year. The S&P 500 is on pace for its eight-straight weekly gain. The Dow within 1 percent of its all-time closing high of 14,164.53 hit on October 9, 2007.
 

Retirement Income for Life??? (7)

Read? Retirement Income for Life??? (6)

Createwealth8888:  Magic number is  $48,773!


A Wealthy Nation That Can't Afford to Retire

By: Rajeshni Naidu-Ghelani Assistant Producer, CNBC

                

                  

Roslan Rahman | AFP | Getty Images

      

The Southeast Asian city-state of Singapore may boast of the highest percentage of millionaires in the world, but retiring in this wealthy financial hub is becoming even more difficult for the common man.

According to a latest study by HSBC, the citizens of this country, which has one of the highest per capita incomes in the world, face the grim prospect of running out of their savings almost halfway through retirement as the high cost of living and increased life expectancy eats into their nest egg.
Singapore has gradually moved up human resources firm Mercer's global rankings of the world's most expensive cities, moving to sixth place in 2012 from eighth in 2011 and eleventh in 2010.

"There is cause for concern from the finding that the retirement savings of people in Singapore will run out after nine years, which is about the time they are entering into frail retirement and a stage of their lives when medical costs and other elderly care expenses are expected to rise," Paul Arrowsmith, head of retail banking and wealth management, HSBC Singapore, said in the report released on Wednesday.

"People are living longer, through tougher economic times, and expectations about their standard of living in retirement have risen," Arrowsmith added.

More than half of the 1,000 Singaporeans interviewed for the survey said that either they were not adequately prepared or not prepared at all for retirement as they expected to continue working beyond the age of 65 to be able to afford their desired lifestyle.

One also needs more money to fund one's retirement in Singapore. According to the study, the annual household income required to lead a "comfortable" retired life in Singapore is the third highest among Asia's major economies, behind Australia and Hong Kong, at $48,773. This figure is 68 percent higher than what was needed in 2011, the survey, which has been running for eight years, found.

The rising cost of living in Singapore has 58-year-old Singaporean Janice Tan worried about her retirement.

"I think the cost of living is really escalating a lot," Tan told CNBC. "During the Chinese New Year season, when I went to buy the goodies, it really shocked me, because the cost is really going up too fast."
 

                  

Bloomberg | Getty Images

      
 

Tan and her husband are currently paying for the education of their two children, including a 21-year-old daughter studying in Perth, Australia. While Tan, an administration professional, hopes to retire soon, she says she knows it might be another 10 years before that happens.
"As human beings we want more - a more comfortable life. That's where the worries come in on whether you will able to survive," Tan said.

According to the study, of those not saving for retirement, nearly half said they were being held back by the cost of day-to-day living.

High costs have become a major cause of discontent among Singapore's residents. This prompted a rare protest over the weekend in which about 3,000 people participated. They were voicing concerns over swelling costs driven by an influx of foreigners.

Foreigners, who account for almost 40 percent of Singapore's 5.3 million people, have been blamed for pushing up housing pricesand taking up jobs in one of Asia's major business centers.

Retirement Fears

The top three fears about retirement cited by Singaporeans were poor health, financial hardship and not having enough money to provide for good healthcare, according to the study.

With retirement savings drying up at a time when Singaporeans are most vulnerable to health problems, funding medical bills could become a big burden, HSBC said.

Tan backed that sentiment, saying that medical bills from a motorcycle accident that her husband was involved in last year have been a drain on their finances.

"As we get older, I realize it [funding health costs] is a more important thing to sort out," said Tan. But the high cost of living is coming in the way. "I can't imagine how much more the cost of living is going to go up to," she added.


 

Another new record: 11th time in 2013

Read? Another new record: 10th time in 2013


3,308.89 13.12(0.40%)

Moment of Happines again!!!
11th new Record set in 2013









Total Return of Uncle8888's Portfolio = 161% at today market closing price.

 

Median household income up 7.5% in 2012

SINGAPORE: The median income from work for households grew in 2012 by 7.5 per cent in nominal terms, and 2.7 per cent in real terms after taking into account inflation.

According to the Department of Statistics' latest report "Key Household Income Trends", household median income rose by S$530 -- from S$7,040 in 2011 to S$7,570 in 2012.

Taking into consideration changes in household size, median monthly household income from work per household member increased by 6.7 per cent in nominal terms, or 1.9 per cent in real terms in 2012.

- CNA/al

Dow is within 1 percent of its all-time closing high of 14,164.53 hit on October 9, 2007.

By: JeeYeon Park CNBC.com Writer

                

Stocks finished modestly higher across the board Tuesday, with the Dow and S&P 500 closing at their best levels since October 2007, lifted by optimism for more M&A deals and after positive economic data from Europe.

U.S. markets were closed on Monday for Presidents Day.

The Dow Jones Industrial Average gained 53.91 points, or 0.39 percent, to end at 14,035.67, led by Cisco and General Electric. The Dow is within 1 percent of its all-time closing high of 14,164.53 hit on October 9, 2007.

The S&P 500 climbed 11.15 points, or 0.73 percent, to finish at 1,530.94. The Nasdaq rose 21.56 points, or 0.68 percent, to close at 3,213.59, finishing at its best level since November 2000.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, slid near 12.

CapitaLand to jointly develop S$3.2b Danga Bay project

By

Carine Lee

         

CapitaLand is making a S$3.2 billion joint acquisition and development of one of the five flagship zones in Johor's Iskandar Malaysia its first direct large-scale township investment and development in the country.

The real estate company said on Tuesday that its wholly owned subsidiary, CapitaLand Malaysia Pte Ltd, had inked a heads of agreement with Iskandar Waterfront Sdn Bhd (IWSB) and Temasek to jointly acquire and develop parcels of land in Danga Bay.

CapitaLand Malaysia, IWSB and Temasek will hold 51 per cent, 40 per cent and 9 per cent stakes respectively in the joint venture.

The joint venture will acquire 3.1 million square feet of freehold net land in Danga Bay for a purchase price of RM811 million (S$324 million).

Lian Beng clinches S$117m condo contract

By

Carine Lee

         

 

Turnover for the period ended Nov 30, 2012 slipped 1.2 per cent to S$234.92 million from S$237.67 million

     

Construction group Lian Beng has, through its wholly-owned subsidiary, Lian Beng Construction (1988) Pte Ltd, bagged a S$117 million condominium development project.

The construction of Skies Miltonia will start in March this year and is expected to be completed in 33 months.

The development, located at the junction of Yishun Ave 1 and Miltonia Close, will have eight 13-storey residential blocks with penthouses and one three-storey residential block, totalling 420 units. It will also have a basement car park, swimming pool, communal facilities and shops.
Lian Beng's order book stands at S$664 million to date.