Wilmar Africa has also entered into an agreement with Unilever Ghana
Limited to acquire the “Frytol” cooking oil brand and its oil processing
activities in Ghana.

Impact on Stock

The offer price for the stakes in BOPP is at GHS0.83/share or for a total
consideration of US$20.3m assuming 100% stakes in BOPP. The offer price is
5.1% above BOPP’s last closing price of GHS0.79/share (up from GHS0.66 @
21 May 10).  No information on purchase price disclosed with regards to
the acquisition of “Frytol” cooking oil brand and oil processing from
Unilever Ghana. Financial data for BOPP was not available for comment on
valuation.

BOPP is involved in growing of oil palm and other agricultural products,
processors of oil palm fruits to produce palm oil and palm kernels and
dealers and traders in palm oil, palm kernels and other agricultural
products.  BOPP is in the Mpohor Wassa East District in the Western Region
of Ghana where the plantation is 42km from Takoradi.

These acquisitions of BOPP, cooking brand and oil processing activities in
Ghana are consistent with the Wilmar’s plans to develop a fully integrated
oil palm business in the emerging markets.  Wilmar also owns other oil
palm plantations in Africa through its joint ventures in Uganda and Ivory
Coast. Thus the downstream acquisition would be able to complement its
upstream investment in Uganda and Ivory Coast.

Wilmar investment in Africa is to capture the domestic market, which is
not new to palm oil market. Oil palm was originated from West Africa and
palm oil is widely used as cooking oil in West Africa due to its cost
competitiveness and its availability domestically.

Earnings Impact
No major earnings impact to Wilmar as this is a small acquisitions vs its
current operation in Asia.

Recommendation
We reiterate our BUY call with a lower target price of S$7.40 based on sum-of-the-parts valuation to value its palm-base business at
16x 2011F PE and 20x for its China operations.  We still like Wilmar for
(1) market leader in China consumer cooking oil with pricing power (2)
wide marketing and distribution network enable quick response to take
market opportunity (3) Experience management team.

singapore stock market , singapore market news

Singapore has climbed up one spot in the latest survey conducted by CB Richard Ellis for the world’s most expensive retail locations.

CBRE’s Global MarketView report on the retail sector showed that prime retail rents in the country ranked 17th worldwide as the most expensive location during the first quarter of this year, up from 18th spot in the fourth quarter last year.

According to the report, the average prime retail rent in the country at end-Q1 was US$436 psf per year, down from US$444 psf at the end of last year.

“Singapore has been successful in attracting a sizeable number of global brands and new-to-market concepts due to an abundant choice of prime pipeline supply in the Orchard Road and the Marina Bay areas. That in turn has put some pressure on prime retail rents,” said Letty Lee, director of retail services at CBRE Singapore.

New York, Sydney, Hong Kong, London and Paris kept their positions as the top five most expensive retail markets in the world.

Despite insufficient retail sale growth in most markets, prime retail rents in most of the world’s leading shopping destinations have stabilized and even improved in some major cities during the first quarter.

“Retailers still face uncertain trading conditions and continue to put pressure on landlords to offer incentive packages,” said Ray Torto, global chief economist of CBRE.

“However, market pressures have not stopped retailers from expanding, and demand for prime retail space remains strong in many markets,” he added.

While most of the prime office space appears to be in demand, secondary units around the world are typically experiencing falling rents, lower retailer demand and higher vacancy rates, CBRE said.

Peter Gold, the group’s head of cross-border retail for Middle East, Europe and Africa, said it is too early to predict that the gap will narrow during this year.

Among all regions, Asia seems to appear to be leading in the recovery, with retail markets generally strengthening in the first quarter.

“Thus far, Asia is the only region of the world where economic growth is starting to feed through into retail sales increases, and this is now starting to impact real estate markets,” said CBRE.

Weighted average selling prices rose 6.6% year-on-year due to higher average pricing for both performance fabrics and fabric processing services.

Sales volume jumped 41.5%, driven mainly by the successful launches of new products in 2009.

Orders are pouring in from manufacturers for fast-growing domestic sportswear and casual wear brands in China, such as Metersbonwe, Anta, Xtep, and 361-degrees, according to China Taisan.

The leading Chinese maker of knitted fabrics for sporting apparel has an outstanding order book of about Rmb 247.0 million, which is scheduled for delivery over the next two to three months.

With this order book, the management expects utilization of its production lines to stay above 85% for 2Q2010.

Barring any unforeseen circumstances, the Group is optimistic that the revenue for 2Q10 to be

“2010 would be a very busy and robust year for China Taisan”, said CEO Lin Wen Chang.

Genting Singapore <GENS.SI>, which operates one of the city-state’s two mega casinos, reported its losses rose 12-fold in the three months to March, hurt by impairment losses on its UK casino operations.

Genting Singapore, a unit of Malaysia’s Genting Bhd <GENT.KL>, reported late on Thursday a net loss of S$396 million for the first quarter, widening from S$32 million a year ago.

Resorts World at Sentosa, its $4.8 billion Singapore casino resort which opened on Feb. 14, achieved earnings before interest, tax, depreciation and amortisation of S$109 million.

Resorts World is being opened in stages and currently comprises a casino, four hotels, a few restaurants and shops, and a Universal Studios theme park. When fully completed, the complex will have another two hotels, spas and a maritime park with one of the world’s largest aquaria.

Rival Marina Bay Sands, owned by U.S. casino firm Las Vegas Sands <LVS.N>, opened partially on April 27.

Las Vegas Sands CEO Sheldon Adelson has said he expects the $5.5 billion Singapore property to generate EBITDA of over $1 billion in its first full year of operations

Singapore’s former Deputy Prime Minister and chief economic architect, Dr. Goh Keng Swee, has passed away after a long illness. He was 91.

Dr Goh is best remembered as one of the key architects behind Singapore’s  economic success. His daughter-in-law, Tan Siok Sun described the story of his life in the new book Goh Keng Swee: A Portrait. The biography features many of the key milestones in Singapore’s journey from sleepy backwater to a globalised, First-World city.

He is survived by his wife, son, daughter-in-law, two grandsons and three great grandchildren.

Born into a rich Malacca family, his father, Goh Leng Inn, managed a rubber plantation and his mother was from a family that produced famous Malaysian politicians like Tan Cheng Lock and his son Tan Siew Sin.

Dr. Goh came to Singapore at the age of two, and was later educated at Anglo Chinese School before going on to study economics at Raffles College.

He was active in post-war administration after joining the Department of Social Welfare in 1946. He then tendered his resignation from the civil service to enter politics in 1959.  Elected as the People’s Action Party (PAP)’s representative for the Kreta Ayer Constituency, he only retired from the position in 1984.

In 1959, upon taking up the post of Minister of Finance, he once famously described the state of Singapore’s economy as “wretched”. Thanks to his efforts, however, the economy did not stay that way for long.

Twelve years later, in 1979, Dr. Goh made significant contributions to Singapore’s education system, introducing key policies like religious education and streaming in primary schools.

Apart from his role as the Finance Minister, Dr. Goh also became the Minister for Interior and Defence until 1967 following Singapore’s independence. One of the key policies he is credited for is the creation of National Service.

Due to personal reasons, Dr. Goh stepped down as Deputy Prime Minister in 1984. By then, he had been in the Cabinet for 25 years, serving the last 11 as Deputy Prime Minister.

Famed for his legendary thriftiness, President S.R. Nathan, who once worked with Goh in the defence ministry in the 1970s, observed that he was so averse to the idea of spending that he would carry soap flakes to wash his clothing in the hotel  bathroom whenever he travelled.

Retired civil servant Oon Lye Kim, 70, told Yahoo! Singapore, “Dr. Goh wasn’t much of a talker but he was a brilliant economist. He really laid the foundations for Singapore’s economic success. He was also instrumental in developing Jurong Island, then just a wild jungle, thereby giving jobs to thousands.”

Another retiree, Paul Loh, 63 said, “He was a very tough but also prudent man, especially when Singapore broke away from Malaysia and we were left on our own. People respect him for what he has done.”

My condolences to his family.

Cambodia is engaged in destructive sand exports to fuel Singapore’s rapid expansion despite a supposed government ban on the practice, an environmental watchdog said Tuesday.

London-based Global Witness said Cambodia was making a “mockery of the government’s supposed May 2009 ban on sand-dredging”, risking devastation to its coasts, endangered species, fish stocks and local livelihoods.

“There is no evidence that basic environmental safeguards have been applied, with boats reportedly turning up and dredging sand, often in protected areas, with no local consultation,” said its new report, entitled “Shifting Sands”.

The group, which has made many allegations of Cambodian cronyism in recent years, said Mong Reththy and Ly Yong Phat — senators known to have close ties to premier Hun Sen — have been covertly awarded licences to dredge sand.

“This situation highlights the continued failure of Cambodia’s international donors to use their leverage to hold the small elite surrounding the prime minister to account,” said George Boden, campaigner at Global Witness.

The report said investigators tracked sand-filled boats from Cambodia to Singapore, estimating concessions from southwestern Koh Kong province alone netted 20 million dollars per month for some 796,000 tonnes of sand.

Global Witness added that figures from other concessions along Cambodia’s coast were not known, and there was no way to track whether revenues from sand exports reached the national treasury.

“In addition, Global Witness has seen Cambodian sand dredging and export licences which bear the stamp and signature of a representative of the Singapore Embassy in Cambodia,” the report said.

Cambodian government officials contacted by AFP refused to comment on the allegations, while others told local media that the ban on sand dredging for export was still in place but some was permitted to serve local needs.

Mong Reththy denied exporting sand to Singapore and said he had only conducted dredging to allow passage of ships to his private sea port.

“I have never sold sand (to Singapore). They would not even buy the sand because it is not good quality,” Mong Reththy told AFP.

Singapore’s Ministry of National Development also rejected the Global Witness allegations, saying the government was committed to protection of the environment and did “not condone the illegal export or smuggling of sand.”

“The report suggests that the Singapore government seeks to import sand without due regard to the law or environmental impact of the source country, in this case Cambodia. This is not true,” the ministry said in a statement.

Singapore has expanded its surface area by 22 percent since the 1960s, said the report, requiring vast quantities of imported sand from neighbours in southeast Asia.

Indonesia, Malaysia and Vietnam have halted sand exports to the city-state over concerns the practice depleted fish stocks and caused erosion.

The Cambodian government has banned past reports by Global Witness, which also accused donors of ignoring graft among elites who have allegedly been involved in illegal logging as well as shady oil and mining deals.

CHICAGO: Prime Minister Lee Hsien Loong hopes that Singaporeans based overseas will realise the country’s developments and economic growth particularly after the financial crisis and return home soon.

He was speaking to some 150 Singaporeans who are studying and working in Chicago. Mr Lee was wrapping up his trip to the US, where he had also visited Washington DC.

Mr Lee told Singaporeans in Chicago that Singapore is on a stable platform to transform itself, illustrating that with a slideshow of the country’s latest additions such as Ion Orchard and The Pinnacle@Duxton.

“…..A snapshot of what Singapore is, some of the ’happening’ things which have been going on (which hopefully) give you a feel of what Singapore is like and some nostalgia, homesickness so that you’ll come back and visit (soon),” said Mr Lee.

“I think a lot of the (Singapore) story also has to do with the Singaporeans who are overseas who are studying, working, (they are) part of our community, part of our family. So (do) keep in touch with home, keep in touch with each other,” he added.

Mr Lee later mingled with the crowd of Singaporeans and they were glad they had a rare chance to talk to the Prime Minister.

In fact, some said Mr Lee gave them a sense of optimism about Singapore’s future, while others felt that the Prime Minister could come up with more programmes to help Singaporeans based overseas to better integrate when they return home.

Ricky Tay, a manager of Audit and Enterprise Risk Services at Deloitte and Touche, has been in Chicago for six years. He said, “The Prime Minister has painted a very positive picture and the upside for Singapore is tremendous. I think a lot of students and professionals living overseas will consider returning to Singapore to look for opportunities.”

Chong Siew Gan, a consultant who has been living in Chicago for 10 years, said, “For older Singaporeans who have families here, I think we want more than just a professional job, buildings, shopping and F1 (racing). We need to grow and to have a better quality of life.”

Hatim Thaker, a student, said, “I’m getting a very different perspective here in the US and not being trained in Singapore like everybody else. It gives me a very unique angle, through which I can contribute and participate, as the Prime Minister said, (in) Singapore activities.”

Aktar Thaker, a property investor, said, “It’s quite obvious to me that he (PM Lee) is trying his best to ask fellow Singaporeans to return home and contribute to the country, which is the right thing for him to do but as individuals, it’s also important for us to do the right thing for ourselves.”

Prime Minister Lee also met the president of the University of Chicago, Robert Zimmer, before leaving Chicago after a two—day visit.

Govt ups 2010 GDP growth forecast to 4.5-6.5 pct vs 3-5 pct

* Economy shrank annualised 2.8 pct q/q s/adj in Q4

* Economists expect c.bank to stand pat on policy in Apr

* Inflation outlook lowered slightly due to rebasing of CPI

By Saeed Azhar and Fabian Ng

SINGAPORE, Feb 19 – Singapore raised its economic growth forecast for this year after reporting better-than-expected fourth-quarter data, citing a pickup in trade and industrial production and stable financial markets.

The government now expects gross domestic product to grow by 4.5 percent to 6.5 percent in 2010, up from a forecast of 3 percent to 5 percent made only a month ago, the Ministry of Trade and Industry said on Friday.

The economy shrank 2.8 percent in the fourth quarter on a seasonally adjusted, annualised quarter-on-quarter basis, much better than the initial government estimate of a 6.8 percent contraction made last month.

Economists said the central bank will likely keep its monetary policy unchanged at its next scheduled review in April, citing officials’ concerns about the global economy in the second half of 2010 and benign inflation.

“I don’t think there is an immediate push for them to do anything with monetary policy, given they are still concerned about the second-half outlook,” said Selena Ling, head of treasury research at Oversea-Chinese Banking Corp in Singapore.

The Monetary Authority of Singapore sets policy by managing the value of the Singapore dollar <SGD=> against a secret basket of currencies. The current policy calls for a stable currency.

“We expect the MAS to maintain its neutral FX policy in April and to tighten only in October,” said Standard Chartered Bank economist Alvin Liew.

UNCERTAIN OUTLOOK

The government said its upgrade from the earlier 3.0 percent to 5.0 percent GDP growth forecast reflected “increased strength in the near-term growth momentum”. It brings the official forecast in line with private sector estimates.

“The outlook for the second half of the year remains uncertain. Private final demand in the G3 may remain weak, as there are still few indications that non-policy induced private demand is gaining strength,” it said.

Ravi Menon, a permanent secretary at the Ministry of Trade and Industry, told reporters that he was more concerned about private consumption in the United States than sovereign risks in European countries such as Greece and Spain.

Economists expect Singapore Finance Minister Tharman Shanmugaratnam to announce a number of growth-supporting policies in his 2010/11 budget on Monday.

“Even as the government steps away from the ‘emergency’ mode that the 2009 budget was formulated in, they are likely to retain a ‘better safe than sorry’ stance,” noted Robert Prior-Wandesforde at HSBC in Singapore.

The government raised its 2010 trade growth outlook to a range of 9 percent to 11 percent from an earlier forecast of 7 percent to 9 percent. It expects non-oil domestic exports to rise by 10 percent to 12 percent this year.

It lowered its 2010 inflation forecast to 2 percent to 3 percent from the previous 2.5 percent 3.5 percent due to a rebasing of the consumer price index.

For the whole of 2009, Singapore’s gross domestic product shrank by 2 percent following a revised 1.4 percent rise in 2008.

SINGAPORE: Singapore’s Prime Minister Lee Hsien Loong on Monday identified three areas of priority for the government: restructuring the economy, addressing the population shortfall and updating the political system.

In a wide—ranging speech to the annual Singapore Perspective Conference organised by the Institute of Policy Studies, Mr Lee said Singapore’s economic policies must enable the country’s economy to perform to its limits and help Singaporeans thrive in the new world.

He said the Economic Strategies Committee will publish its recommendations next week and the government will respond to them in the Budget.

On the population shortfall, Mr Lee said Singapore’s birth rates are not improving despite the government’s best efforts.

Last year, there were about 170 fewer live births than in 2008.

This would mean that the total fertility rate would have gone down further.

PM Lee stressed that while the decline could have been due to the global economic downturn, it was still a grave trend. If left unchecked, Singapore will face not just an ageing, but a shrinking population.

Therefore, he said the government needs to encourage Singaporeans to start families with parenthood benefits and other incentives.

However, he added that the country must also top up the population and talent pool with immigration in a measured and calibrated manner.

Turning to the subject of updating the political system, Mr Lee said that while having a sound system is essential, that in itself is not enough to produce political stability and good governance.

He said that the nation is still dependent on having the right people in charge and an able and committed team coming forward to lead the country.

The Prime Minister said a key task for his predecessors and himself has always been to identify promising people to form the next team.

He said good progress has been made in this area but he does not have a complete next team lined up in Cabinet yet.

He is confident that by the next general election, the People’s Action Party (PAP) will field a team which will consist the core of the next generation leadership.

Mr Lee also stressed that leadership renewal will be a major issue in the next general election.

A spokesman for the integrated resort said this is part of an extensive training programme underway for all levels of staff.

Many dealers had been hired to work at the Integrated Resort from July last year.

However, construction woes led to delays in the opening date of Marina Bay Sands and that, in turn, led to uncertainty among employees as to when training and work would start.

That’s changed now.

Dealers MediaCorp spoke to said they’d been asked to turn up for uniform measurements and to get their staff passes done next week, followed by training.

Marina Bay Sands was unable to confirm exactly when the first batch of training started but added that typically, such floor training takes about three months, after which such employees must get a competency certificate.

There is also another hurdle for them to clear.

They also have to be interviewed and clear background checks by the Casino Regulatory Authority.

CRA said, in a statement, that it received the complete casino licence application from Marina Bay Sands in November last year.

It added that processing such applications typically take three months or more but that progress is good.

Marina Bay Sands had previously said that it will open its first phase of the resort in April.