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Business Times
6 days ago
- Business
- Business Times
Increasing affluence continues to fuel housing demand and prices, but economic uncertainty could test market: Knight Frank
[SINGAPORE] Interest rate cuts, growing affluence and low unemployment rates spell good news for Singapore's private residential market, but a cocktail of challenges could test the otherwise resilient sector. At a property market seminar organised by the Real Estate Developers' Association (Redas) on Thursday (Jul 24), Knight Frank research head Leonard Tay noted that geopolitical conflicts and ongoing trade tensions threaten to weigh on private housing sentiment this year. 'On the local front, it is more costly to own or keep a property, not only to buy,' said Tay, pointing to higher property tax, as well as increase in seller's stamp duty period and rates. Still, he reckoned that these may be blips in the market's long history of resilience. Between 1980 and 2024, private home prices in the city-state grew almost eight times with a compounded annual growth rate of 5.1 per cent. This came despite various regional and global downturns since the 1980s, from the Asian Financial Crisis in the late 1990s to the global financial crisis in 2008 and the latest Covid-19 pandemic in 2020. The market's resilience is especially evident in the last eight years, Tay said, with private home prices rising 55.3 per cent even as new cooling measures rolled out, on top of a pandemic and global shutdown. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Demand and price growth also continues to be fuelled by steadily improving economic affluence, said Tay. In 2024, the level of household liabilities was around 35 per cent of liquid assets – down from over 50 per cent in the 1990s. Household net worth – that is, liquid assets excluding the value of their homes and Central Provident Fund – has been on the rise over the past two decades and now stands at over S$1 trillion, versus under S$600 billion a decade ago. At the same time, the easing of interest rates means more liquidity for Singapore residents – who form the bulk of housing demand – to purchase homes, said Tay. 'This has brought those who are sitting on the sidelines… back in play.' The overall unemployment rate also remains relatively low, not increasing over 3.6 per cent in the past 30 years, providing a sustainable base for most households, he said. 'However, should Singapore slide into a recession that is accompanied by pay cuts, salary freezes and job losses, potential homebuyers will retreat to defensive positions, resulting in a fall in transaction volume,' said Tay. 'In such a scenario, there is every chance the government will provide some fiscal relief in the form of an off-budget stimulus package top prop up the economy, as in the past.' Growing prices vs affordability A separate study published by Knight Frank on the same day showed that although Singapore homes have grown much more expensive over the years, that was not to say that they were much less affordable. In the private housing sector, the study indicated that the median price of new homes was nearly 19 times that of household incomes in 2024, from being 11.8 times higher in 2019. Much of the price increase was due to pent-up demand during the pandemic, against limited supply. This was further compounded by construction delays and a lack of development land sales during the period, which led developers to bid aggressively for land in most of 2021 and 2022, said Knight Frank. Global inflation also meant higher construction costs, and therefore the elevated new home prices between 2021 and 2024, it said. The private resale market, on the other hand, saw a more consistent price-to-income ratio in the past 15 years – from a low of 9.8 in 2016, to a peak of 13.3 in 2012 and 2013. Most recently in 2024, the ratio was 12.1. Resale prices of private homes were also higher vis-a-vis household incomes over a decade ago, compared with 2024, Knight Frank noted. 'This strongly points to… new sales (being) the main cause of overall price growth in the past five years.' The modest changes in the resale market's price-to-income ratio indicates that 'there are possible affordable options in the resale market', it added. 'Nonetheless, holding and cost of property upkeep have increased in the post-pandemic period of inflation,' said the consultancy. 'Increases in property tax might have also led private homeowners to rationalise and right-size their real estate portfolios.' As for public housing, Knight Frank noted that the average resale price-to-income ratio has been steadily rising since 2019, from 3.8 to 4.6 in 2024. Still, when compared to that of non-landed private homes, Housing & Development Board (HDB) homes remain 'much more affordable', it said. 'Even so, HDB resale prices have increased and show signs of continuing to increase, remaining on the path of reaching the high of 5.1 last recorded in 2013.' Knight Frank's survey found housing prices and affordability were the overriding priorities for the vast majority of Singapore residents when buying a home. 'While price growth has slowed and been reined in, housing affordability remains a pressing issue, particularly for younger buyers or those looking to upgrade,' said Knight Frank.
AllAfrica
14-07-2025
- Politics
- AllAfrica
Mahathir, Anwar and the Final battle against time
[ Editors' note: Former Prime Minister Mahathir Mohmad was hospitalized for fatigue after a 100th birthday picnic, but was released on Sunday.] Having turned 100 on July 10, Mahathir Mohamad remains a potent force in Malaysia's political landscape. To meet him is to confront a paradox: a man who shaped half his nation's history yet discusses past policies with a startling clarity that defies his age. His vitality and sharp mind are not just personal traits; they are the foundation of his enduring relevance. Mahathir's formidable work ethic was forged in his early career as a physician. Working 'day and night,' he learned a discipline that became his leadership's bedrock. 'If someone goes into labor at 3 am, you can't tell them to wait,' he explained, a principle he carried into the Prime Minister's office. His motto is simple: 'Practice work discipline, do not waste TIME.' This urgency comes from a lifelong race against the clock. He initially believed his time in power would be short, as had been his predecessors'. 'Time is not enough because I have many ideas,' he once said in when being interviewed by a local media outlet. 'Time has been a problem for me from the very beginning.' Even as a centenarian, he displays his legendary discipline, supported by an austere lifestyle of no smoking or drinking but constant physical activity. This image of endurance is a powerful political tool, lending weight to his critiques and making him a difficult adversary to dismiss. His legacy is one of grand ambition and nation-building, a narrative he now wields in what may be his final political fight: a court case scheduled to unfold next month. Mahathir's sharp memory is as much a political weapon as his work ethic. I saw this firsthand when I met him at his Perdana Leadership Foundation office in Putrajaya earlier this year. I was deeply impressed by his memory as we discussed the Malaysia-Singapore Water Agreement. He shared interesting facts and recalled intricate details from his tenure with stunning clarity. This mental acuity is legendary. He famously called the original price of 3 cents per thousand gallons 'manifestly ridiculous' and relentlessly pushed for better terms, with his government's asking price escalating dramatically over the years. This sharpness reinforces his image as the architect of modern Malaysia, the visionary behind transformative projects and the ambitious Vision 2020 plan that aimed to make Malaysia a fully developed nation. His handling of the 1997 Asian Financial Crisis, where he defied international advice by imposing capital controls, is seen by many as a masterstroke that saved the economy, though critics argue it also protected politically connected firms. The final confrontation between two titans is set for the Shah Alam High Court in August 2025. Mahathir has filed a RM150 million defamation suit against Prime Minister Anwar Ibrahim, a battle for the soul of their shared history. The suit stems from a speech in which Anwar alluded to a leader who ruled for '22 years and 22 months' and allegedly used that power to enrich his family. Mahathir claims these remarks paint him as corrupt and racist, and he is demanding a full retraction and apology. For Anwar, this is a moment of truth. The allegations of cronyism during Mahathir's rule have been the cornerstone of his Reformasi movement for over two decades. His supporters have long claimed to have 'boxes and boxes of proof,' and now, the court is demanding he present them. The challenge is immense. While critics point to scandals like the multi-billion ringgit Perwaja Steel fiasco as evidence of a system lacking accountability, proving these decades-old claims with legal rigor is another matter entirely. The Malaysian Anti-Corruption Commission (MACC) is also investigating Mahathir's sons, adding another layer to the drama. The legal showdown is a high-stakes game of strategy. Anwar Ibrahim's legal history suggests a playbook of procedural challenges and delays. In a separate civil suit, he recently sought 'qualified immunity' to postpone a trial, arguing it could 'destabilize the government'—a tactic he may well deploy again. For Anwar, a trial is a political minefield. Failing to produce evidence would be a catastrophic admission that his decades-long accusations were baseless. Delay seems the most logical, if cynical, path. From Mahathir's perspective, the lawsuit is a brilliant offensive. It forces his rival onto the defensive and allows him to control the narrative. Every postponement sought by Anwar's team can be framed as an admission of weakness, reinforcing Mahathir's claim that he is the victim of a long-running smear campaign. The final battle between Mahathir Mohamad and Anwar Ibrahim is not just a legal dispute; it is a war against time itself. For decades, Dr. Mahathir has been driven by an almost frantic sense of urgency. He built a nation in a hurry, convinced he had only a short window to enact his grand vision. Now, in a twist of profound irony, his rival's primary legal strategy appears to be buying time. Anwar's attempts to delay court proceedings, whether through immunity bids or other procedural maneuvers, stand in stark contrast to Mahathir's lifelong race against the clock. Can Anwar successfully buy the time he needs? Perhaps. But with each delay, the narrative shifts. The prime minister, who built a movement on promises of exposing past sins, appears unable or unwilling to present his evidence in court. Meanwhile, the centenarian statesman, far from fading away, seems energized by the fight. He remains in the headlines, not as a relic, but as a relentless warrior demanding his day in court. In this ultimate political endgame, TIME—the very element Mahathir always felt he lacked – now appears to be his greatest ally.
New Straits Times
11-07-2025
- Business
- New Straits Times
East Asia Summit to table key declarations in October
KUALA LUMPUR: The 15th East Asia Summit (EAS) has agreed to table several key declarations for adoption this October, in a move aimed at further strengthening the regional platform's role and relevance. Foreign Minister Datuk Seri Mohamad Hasan said the initiative reflected a collective commitment to deepen cooperation among EAS member countries. "This aligns with the call by Prime Minister Datuk Seri Anwar Ibrahim that the region's unity must go beyond mere declarations and be demonstrated through concrete action and firm resolve," he told reporters following the summit, held in conjunction with the 58th Asean Foreign Ministers' Meeting. Mohamad said the EAS, established in 2005 in the wake of the Asian Financial Crisis, now marks its 20th anniversary with a renewed push to revitalise its mission. "We have agreed to bring forward several declarations for consideration and approval this October to further enhance the EAS platform. "The formation of the EAS, in tandem with Asean, was a deliberate initiative to forge closer ties among nations and foster consensus-based cooperation," he said. On Wednesday, Anwar said Asean must face intensifying external pressures and global geopolitical rivalries — including retaliatory tariffs from the United States — with clarity, cohesion, and determination. The prime minister stressed that regional unity must be embodied not just in statements but through resolute and tangible action.
Borneo Post
06-07-2025
- Business
- Borneo Post
Revisiting aeroponics: Cool roots, hot tropics, fresh greens
Today, we revisit a bold agribusiness diversification venture by an oil palm plantation company during the late 1990s, amid the Asian Financial Crisis. While most were still exploring hydroponics, I was immersed in something even more radical: soilless farming. It was a rare opportunity to be at the forefront of agricultural innovation. I worked with a visionary Malaysian agribusiness and a dedicated team, pioneering a groundbreaking farming technology in collaboration with Singapore's Nanyang Technological University. At the time, growing crops without soil was met with skepticism — 'Plants… without soil?' But we weren't just experimenting; we were growing commercially, flipping conventional agriculture on its head. Over four years, we defied the odds by successfully cultivating temperate greens, fruiting vegetables, and culinary herbs in Malaysia's hot tropics using aeroponic technology. Our mission: reduce Malaysia's reliance on imported temperate produce and usher in a new era of precision agriculture. With determination and a lot of mist, we proved that high-value crops could thrive in the most unlikely environments. This is our story. What is Aeroponics? Imagine growing plants with their roots hanging mid-air, sipping a fine mist of nutrients like they're at a spa — that's aeroponics or airponics. The term was coined by Frits Warmolt Went during his aeroponics experiments at Earhart Laboratories in Pasadena, California. Considered the most efficient soilless plant cultivation system, aeroponics conserves water and allows precise control over the root zone atmosphere. In aeroponics, plants are grown without soil. Their roots hang in air, misted with a nutrient-rich solution in timed intervals. Think of it as hydroponics' tech-savvy cousin, with better airflow and no muddy shoes. In recirculating systems, the nutrient solution may be recycled. Why go soilless? For starters, aeroponics uses up to 90% less water than traditional farming — an impressive feat in a world where every drop counts. Plants grow faster, yields are higher, and less manpower and space are needed, with almost architectural precision. Picture vertical farms on city rooftops or high-tech greenhouses growing lush greens in the middle of a concrete jungle. Aeroponics also trims transport time by producing food closer to where it's consumed, like the Klang Valley. This reduces spoilage and brings 'farm-to-table' freshness to a whole new level. Aeroponics in the Tropics: Free Sunshine and Beating the Heat We set out on an ambitious mission: to grow delicate temperate greens in Malaysia's hot, humid lowlands, just a stone's throw from hungry urbanites of Klang Valley. The challenge? These veggies didn't exactly enjoy sunbathing in 35°C heat with 90% humidity. Instead of giving up, we decided to think vertically and aeroponically. Armed with innovation, we combined aeroponics with a clever cooling twist. By misting the roots with chilled, nutrient-rich solutions while letting them dangle in mid-air, we tricked the plants into thinking they were vacationing in a mild European spring. The result? Crisp, vibrant lettuces, brassicas, and herbs that grew faster, tasted better, and had fewer tough fibers. They were tender and tastier. Our produce didn't just look and taste premium — it told a story of innovation in action. Looking back, we weren't just playing with mist and roots; we were rewriting the playbook. At a time when soilless farming and climate-smart agriculture were still considered sci-fi, we were proving it could work. Bold? Yes. Risky? Certainly. Necessary? Absolutely. We were planting the seeds for a more resilient, localised and tech-savvy way to feed the tropics. The big secret? We stumbled upon what felt like a 'big' secret — one that, in hindsight, was hiding in plain sight: what happens below the surface often dictates what flourishes above it. In other words, roots rule. The shoots and leaves may take the spotlight, but it's the roots backstage, calling the shots. We discovered that by cooling the roots, we could grow temperate greens in the sweltering tropics. And while I haven't tried it myself, it stands to reason that the reverse could work too — perhaps warming the roots could coax tropical greens to thrive in chillier climes. Of course, the magic goes well beyond this root-zone sleight of hand. There's an entire symphony of variables to tune: optimal root temperatures, droplet size, misting intervals, nutrient concentrations—you name it. Cracking the code takes patience and a fair bit of trial and error. But it's not rocket science — just root science, empirically. I suspect a good portion of this knowledge is still tucked away in some dusty corner of my brain. What Greens Did We Grow Aeroponically Back Then? What did we grow in our misty, futuristic farm of the late '90s? Let's just say we weren't growing 'just salad' — we were cultivating salad royalty. Our crown jewel? The Golden Butterhead lettuce — tender and charming, it became our flagship crop, the Beyoncé of greens. Alongside it, we grew Romaine, Batavia and a whole entourage of coral lettuces. And who could forget Lollo Rossa, the curly red-leaf diva that strutted into salad bowls with vibrant colour and flair? But we didn't stop at lettuces. We also grew local Brassicas like Kai Lan, Siew Pak Choy and Choy Sum, but with a new experience in taste and texture.t We transforming the ordinary to extraordinary sweeter, crunchier versions with far less bitterness. Then there was kohlrabi. At the time, it was an alien newcomer — many hadn't heard of it. But with high-quality seeds from overseas, we grew a crunchy, juicy and slightly sweet bulb that defied expectations. Feeling adventurous, we also grew Cherry tomatoes — flavour bombs in addition to their cute appearance. Our greenhouse was a botanical theme park for herb lovers, with basil, rosemary, oregano, thyme and varieties of basils like sweet, lemon and cinnamon. The herbs grew so vigorously they practically staged a takeover of the growing troughs. At one point, we even considered branching into medicinal herbs. Plants grown aeroponically were reported to have higher yields and comparable antioxidant properties to soil-grown crops. But before that next chapter could begin, I moved on to other ventures, leaving behind the mist, roots and herbs that never stopped growing. When Life Gives You Wilted Lettuce, Make Juice Anyone who's dealt with the cold chain in Malaysia knows this: lettuces may survive the trip, but not all come out looking pristine. After some time in chilled storage, even the sturdiest greens begin to wilt, curl, and look a bit rough. But peek inside, and the inner leaves remain crisp and vibrant, full of promise. Instead of tossing these moody greens, we got creative. What if lettuce had a second act, not on a plate, but in a glass? And so, Lettucino was born — a healthier, greener cousin of the cappuccino, starring our butterhead lettuce. After some experimentation, we found a winning combination. When paired with a certain icy cordial, the result was unexpectedly delightful — light, slightly sweet and fresh. Voilà — a lettuce-based beverage that was nutritious, novel and strangely addictive. Even the big names took notice. Former Prime Minister Tun Dr Mahathir Mohamad and Siti Hasmah sampled it at exhibitions, giving their ultimate seal of approval: smiles and thumbs-ups. It was a proud moment — turning surplus salad into sippable success, with a side of innovation. Who knew that behind every wilted butterhead was a potential barista? Aeroponic Marketing Struggle in the 90s In the late 1990s, growing aeroponic vegetables was bold, but selling them was the real challenge. While our technology and ambition were ahead of the curve, the market wasn't ready. Introducing premium, soilless produce into a system dominated by lowland and Cameron Highlands-grown vegetables meant constant uphill battles. Malaysia's fresh produce scene was controlled by entrenched importers and highland growers with strong retailer ties and reliable supply chains. We, the newcomers with mist-grown greens, struggled to break into supermarkets and hypermarkets. Buyers stuck to what they knew. Our produce may have been fresher, but to many, we were still 'experimental.' Trial orders were small, and volume commitments rare. Even when we secured orders, delayed payments became a major issue. As a young business, cash flow problems hit hard — perfect crops meant little when payments took months. Retail options were limited too. The hypermarket wave was just beginning, and organic shops or farmers' markets were niche. Restaurants showed interest but placed tiny orders. Infrastructure and demand hadn't caught up with innovation. Consumer education was another hurdle. While we spoke of misting and nutrient precision, shoppers just wanted fresh, cheap sayur. 'Aeroponic' sounded alien. Without clear marketing channels or standards, conveying our value was difficult. Looking back, we weren't just launching a product — we were trying to change mindsets and disrupt a rigid system. A tall order, especially post–Asian Financial Crisis. Today, urban farming trends and sustainability help, but many core challenges remain. Big players still dominate, payment terms are tough, and buyer conservatism persists. Awareness has improved, but entering the mainstream still takes grit. Aeroponics Today: From Farms to Space Stations Fast forward to today, and aeroponics has officially left the lab — and in some cases, the planet. What began as an ambitious experiment has evolved into a high-tech solution reshaping how and where we grow food. In vertical farming, aeroponics towers are thriving — literally and figuratively. Urban farms are transforming repurposed warehouses, high-rise buildings, and shipping containers into leafy green oases. Why aeroponics? It's perfect for the vertical age: no soil, minimal water, and maximum control. With precise nutrient delivery and climate regulation, crops grow faster, cleaner, and with less waste. Companies around the world are producing hyper-local lettuces, herbs, and even strawberries — all within city limits. But the sky isn't the limit. NASA has explored aeroponics for over two decades as a potential solution for long-duration space missions. Growing food in microgravity isn't suited to traditional soil farming. Aeroponics, with its closed-loop systems and water efficiency, offers a clean, low-mass solution for astronauts on the Moon, Mars or wherever humanity ventures next. In fact, aeroponic research is already aboard the International Space Station, where experiments are helping scientists understand how to grow plants in zero gravity — one misted root system at a time. Talk about farm-to-galaxy. Revisiting Aeroponics: A Vision Renewed Looking back on our early aeroponic ventures, it's clear we weren't just experimenting — we were pushing the boundaries of agriculture. But innovation takes time to root. The hurdles were significant: high setup costs, technical complexity, power reliance and the need for skilled operation. What was once cutting-edge became expense decision makers weren't willing to continue. Priorities shifted, the site moved to property development and interest cooled. The project ended — not for lack of potential, but because the world wasn't ready. Yet good ideas don't die; they wait. Today, the landscape has shifted. Urban farming is booming, and precision agriculture, now known as Controlled Environment Agriculture (CEA), is the new norm. Consumers demand not just food, but freshness, traceability and sustainability. And the tech? Leaner, smarter and more accessible. Open-source tools, affordable sensors and modular systems have replaced the clunky prototypes of the past. Aeroponics isn't just relevant — it's primed. The traits that once made it experimental now make it ideal: minimal water use, high space efficiency and proximity to urban markets. Chilled nutrient mist doesn't just boost health; it mimics temperate conditions — opening possibilities in equatorial regions once thought impossible. So here I am, not to relive the past, but to remix it — to inspire others especially the Gen Y to modernise, scale and adapt aeroponics for today's urban challenges amid climate change. This isn't a revival; it's a continuation — a story of resilience, curiosity and belief that sustainable agriculture can feed cities — and quietly, reshape our world. Is the Time Ripe for Aeroponics 2.0? Three decades ago, when we started down the path of CEA, few could have predicted how far it would go. Today, CEA is the sleek, high-tech cousin of traditional farming, using hydroponics or its flashier sibling, aeroponics, to grow plants in tightly controlled, climate-agnostic environments. CEA systems are like five-star hotels for plants: lighting, temperature, humidity, and nutrients are curated to perfection. The result? Optimized growth, minimal waste, and crops that never check the weather forecast. Most commercial CEA farms still rely heavily on hydroponics, with roots chilling in nutrient-rich water. As for aeroponics, where roots dangle in mid-air and are misted like spa guests, it's still waiting for its big commercial breakthrough. Despite the hype, large-scale aeroponics remains more science experiment than supermarket reality. However, with sustainable farming practices and continuous innovation, it could eventually account for 10% of global produce production. For now, it serves as a solid launchpad for growth and future possibilities. That said, CEA has its place, especially in a world where climate change is rewriting the farming playbook and consumer demands are evolving. CEA isn't here to compete with the sun but to fill the gaps. With tech catching up and demand rising, perhaps the mist is ready to go mainstream, offering a promising route to secure, nutritious food in places where nature isn't so cooperative. But for CEA and aeroponics to thrive, they must grow on solid business ground. After all, photosynthesis may be a miracle, but profitability still pays the bills.
The Star
06-06-2025
- Business
- The Star
Hong Kong has all but abandoned the dollar peg
Borrowing costs in Hong Kong have collapsed despite the dollar peg. — Bloomberg INTEREST rates in Hong Kong have been eerily low, raising the question of whether the city's dollar peg is now in name only. Hong Kong surrendered its monetary autonomy decades ago, thanks to a unique mechanism that restricts its currency fluctuation to a narrow band of 7.75 and 7.85 per dollar. That means the city's borrowing costs move in lockstep with those in the United States, which are dictated by the Federal Reserve's (Fed) rate policies. Currency traders have been staring at an anomaly. The one-month Hong Kong interbank offered rate or Hibor, has collapsed since early May. The gap with the US secured overnight financing rate, or SOFR, is at an unprecedented level of more than three percentage points. Investors are now asking what caused this divergence and whether Hibor will stay lower for longer. Borrowing costs in Hong Kong have collapsed despite the dollar peg. The first part of the story is well understood. Last month, the Hong Kong Monetary Authority (HKMA) purchased the greenback amid a global dollar rout to prevent its currency from strengthening beyond 7.75. HKMA's balance sheet ballooned while a flood of new local money pushed down Hibor. But such glaring bifurcation from SOFR should only be temporary. When local funding costs are significantly lower, traders can borrow Hong Kong dollars and sell them against the higher-yielding US counterpart. This, in turn, will lift the city's currency and rates over time. The fact that this rate gap has not narrowed shows there's little appetite to earn dollar carry trades. Wall Street banks are reinforcing their calls that the dollar will weaken further. In addition, there's talk of an Asian Financial Crisis in reverse, marked by a violent rally in local currencies such as the one Taiwan witnessed in early May. What if HKMA all of a sudden decides to move the currency peg to a stronger range? Gains from the carry trade would be instantly wiped out. Investors are right not to lose sight of the big picture. After all, Taiwan dollar's 8% melt-up last month proved painful for under-hedged insurers and exporters. On an economic level, this trend can be a huge boon for a financial hub that is trying to regain its footing. In recent years, businesses have complained about the dollar peg, saying that Fed rate hikes unnecessarily tightened the city's financial conditions and hamstrung its economic recovery. Hong Kong's anaemic residential real estate, for one, could see a rebound if the current trend continues. The prevailing new mortgage rate would be only 2.1%, versus 3.5% in early May. For a 30-year loan with a 70% loan-to-value ratio, monthly payments could be cut by about 15%, according to Bloomberg Intelligence. The value of underwater mortgages would fall as well. — Bloomberg Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. The views expressed here are the writer's own.
