Singapore's financial rise: Going swimmingly. Singapore’s Policy Tightening May Widen Asian Inflation Fight. Singapore’s third monetary policy tightening in a year may prompt Asian central banks to allow further interest-rate and currency gains to prevent surging prices from hurting their economies.
The island’s dollar, the best-performing Asian currency outside Japan in the past year and the nation’s main tool to manage inflation, will be allowed to rise further, the Monetary Authority of Singapore said yesterday. While South Korea and Indonesia refrained from raising rates this month, policy makers signaled they will take steps to curb price gains if needed. “MAS remains well ahead of the curve after aggressive moves last year,” said Vishnu Varathan, an economist in Singapore at Capital Economics (Asia) Pte.
“The other central banks have to ask themselves how much tightening they want to do and how soon they want to do it. There’s still some feet- dragging and they can’t be seen hesitating too much as it will send the wrong signals to the market.” Currency Tool China Inflation Behind the Curve. Li Ka-Shing Turns Phone Unit to Profit After Seven-Year, $20 Billion Loss. Li Ka-shing, Hong Kong’s richest man, said his high-speed mobile-phone business has turned a corner, posting its first profit after losing HK$157 billion ($20 billion) over seven years.
Hutchison Whampoa Ltd. (13), which has invested an estimated $30 billion in its mobile-phone operations in Europe and Australia, said yesterday annual net income rose 47 percent to a three-year high of HK$20 billion, beating estimates. Li said the company’s phone business will make a “positive contribution” from now on after losses through 2009. Hutchison shares jumped the most in almost two months as the company said it will increase dividends after overcoming the biggest drag on earnings in the past decade. The 3G investment has tested the reputation of the 82-year old Li, nicknamed “Superman” by the Hong Kong media for his investing prowess. Best Performer Hutchison shares rose 5.1 percent to close at HK$93.35 in Hong Kong trading, the biggest gain since Feb. 2. ‘Healthy’ Market Beating Estimates. The Rémy Martin Cognac, Called Louis XIII Grande Champagne Très Vieille Age Inconnu, That Sold for $70,155 - Scene Asia.
CapitaMalls Asia Proposes Hong Kong Listing. Telecoms - PCCW seeks ‘business trust’ listing for unit. Markets / Asia-Pacific - Hutchison South China ports offering set to raise $5.5bn. Singapore Plans $5.2 Billion Benefits Package for Citizens, Will Let Currency Rise to Fight Inflation. Hutchison IPO A Big Win for Singapore Exchange. Singapore Plans More Housing Curbs as Prices Rise to Record. Singapore will raise down payment requirements for second mortgages and extend the period homeowners must hold properties to avoid a sales tax as it steps up efforts to curb speculation after prices rose to a record.
Individuals with more than one mortgage can only borrow up to 60 percent of a property’s value, down from 70 percent, the government said in a statement yesterday. On loans to entities other than individuals it will be reduced to 50 percent from 60 percent. Sellers will now have to pay a stamp duty for all homes and land sold within four years of purchase, from three years.
Singapore private home prices climbed to a record as the nation’s fastest economic growth since independence in 1965 overwhelmed government measures to cool the market. The city- state has been attempting to rein in home prices since 2009 when the government barred interest-only loans for some housing projects and stopped allowing developers to cover interest payments for apartments still being built.