Latest news with #Tay
The Star
2 days ago
- Business
- The Star
'Medium risk' of severe haze as higher agricultural prices drive deforestation: Singapore researchers
SINGAPORE: There is a 'medium risk' of severe haze affecting Singapore, Malaysia and Indonesia for the rest of 2025, a local think-tank has assessed in its yearly haze outlook. But the assessment by the Singapore Institute of International Affairs (SIIA), released on July 28, noted that in the event of a haze, it should not be prolonged. In 2024, the SIIA had said there was a 'low risk' of transboundary haze. This was assessed based on developments in three areas: markets, weather and policies. The SIIA noted in its report, now in its seventh year, that agricultural commodity prices have been elevated. Agricultural commodities in the region include palm oil and pulp and paper. 'Prices this year are elevated, and estimates show some uptick in deforestation in Indonesia from 2023 to 2024,' the report said. Deforestation by slash-and-burn techniques can cause forest fires that belch out smoke haze. Elevated agricultural prices could be due to rising global and regional demand amid lagging supply, according to the report. Dry weather, and new food and energy projects announced by Indonesia, could also drive forest fires, the report noted. The SIIA assesses transboundary haze risk on a three-level scale of green, amber and red. Green refers to a low risk, and red denotes a high risk. The report said that the medium risk of transboundary haze in 2025 – up from the low risk assessment the year before – is a concerning shift. 'Early in the year, many weather assessments projected a relatively benign haze season,' said Associate Professor Simon Tay, chairman of the SIIA. 'However, as the situation evolved, it has become clear that regional fire and haze risks are rising — not just from weather, but from global economic and policy changes,' he said. 'If this had been assessed a month ago, we might have issued a green rating. But the fires and market conditions warrant caution,' Prof Tay added. The release of SIIA's annual haze outlook comes amid reports of an escalation in hot spots and smoke haze in parts of Sumatra in Indonesia in mid-July. Transboundary haze was observed to have drifted from central Sumatra into parts of Peninsular Malaysia, although Singapore has not been affected due to favourable wind direction. According to Indonesia's Meteorology, Climatology and Geophysics Agency, the number of hot spots – places with intense heat suggesting forest fires – in Sumatra has soared from 94 to more than 1,000 in 10 days in July. Haze pollution in the area has spread to Malaysia, which recorded unhealthy air pollution index readings in four locations on July 22. According to the National Environment Agency (NEA)'s website, dry conditions are forecast to persist over the southern Asean region over the next few days, except for some showers expected over parts of central and southern Sumatra, Java and the north-eastern parts of Borneo. The drier conditions, especially over Borneo, may result in an increase in hotspots and smoke haze, with a chance of transboundary smoke haze, according to NEA. As at July 28, the air quality in different parts of Singapore ranges from good to moderate. Other than commodity prices, the SIIA also assesses haze risk based on weather and governmental policies. Forest fires and the spread of haze can be made worse by dry weather, changes in wind direction, and low rainfall. For example, the last time the SIIA assessed haze risk as being 'red' was in 2023, mainly due to hotter and drier weather expected that year with the onset of El Nino conditions. El Nino is a climate phenomenon that drives warmer weather in South-east Asia. But even without El Nino conditions, South-East Asia typically experiences dry weather between May and September. The SIIA report noted that while there have been a spike in fires in Sumatra, Indonesia in mid-July, the remaining period of the dry season is expected to be milder and shorter than most dry seasons in the past. It added that the peak of the dry season is expected to be in August. 'For now, the weather is relatively benign, and fires can be kept under control unless the situation changes,' the report said. Indonesia's economic policies could also be a driver of smoke haze in the region. Former Indonesian president Joko 'Jokowi' Widodo had during his administration from 2014 to 2024 rolled out numerous policies to prevent forest fires, noted Prof Tay. For example, following the 2015 haze incident, the Indonesian government said that companies involved in burning would have their permits revoked and prosecutions of corporations liable for fires increased significantly, said the report. 'This is no coincidence that we have seen less of this haze problem over this last decade,' said Tay. He said that the current administration under Indonesian President Prabowo Subianto has promised to continue the previous administration's forest management policies. However, there are pressures from overall growth ambitions, Prof Tay said. Indonesia faces a triple challenge in meeting food security, energy and export imperatives, said the report. The growing conflict between using crops for food versus for fuel is rising, especially as the country plans to expand its biodiesel and bioethanol mandates, it added. Biodiesel and bioethanol mandates in Indonesia are government policies that require blending a certain percentage of biofuels into transportation fuels. Currently, Indonesia has a mandatory 35 per cent blend of palm oil-based fuel in biodiesel and is seeking to ramp up to biodiesel containing 40 per cent palm oil to cut its energy imports. This could lead to an increased demand for palm oil. The report added that the Prabowo administration has indicated that agricultural commodities production - and in particular palm oil - will remain a major part of Indonesia's economic strategy. Indonesia is the world's largest palm oil producer. It also noted that Indonesia's food and energy projects could result in more clearing of forests and peatlands, citing NGOs and environmental media organisations. 'Care is needed to ensure that efforts to create new plantations are sustainable, and to increase the efficiency of existing plantations,' it added. Since 2019, there have been no severe transboundary haze events impacting Indonesia, Malaysia, and Singapore, although milder episodes occurred in 2023 and more recently in July 2025, said the report. Singapore last experienced severe haze in September 2019, with air quality entering unhealthy levels on some days then. - The Straits Times/ANN
Borneo Post
6 days ago
- Business
- Borneo Post
Cash aid welcome, but long-term tax reform more vital, says Kuching South councillor
Tay emphasises that empowering citizens through tax reform and income relief mechanisms would have a more lasting impact than one-time cash incentives. – Bernama photo KUCHING (July 25): The Madani government should prioritise long-term, sustainable fiscal strategies over short-term cash handouts when designing aid packages for Malaysians, said Kuching South City Council (MBKS) Councillor Eric Tay. In response to the federal government's recent announcement of a one-off RM100 cash assistance for every Malaysian aged 18 and above, Tay noted that while he does not oppose short-term aid, such measures should be integrated into a broader, more sustainable economic framework. 'A truly caring government doesn't ask how much to give, but ensures how much the people can keep,' Tay said in a statement. He emphasised that empowering citizens through tax reform and income relief mechanisms would have a more lasting impact than one-time cash incentives. 'Winning hearts with handouts is only short-term. Empowering citizens through tax relief could be the real answer,' he said. 'While such assistance may ease short-term burdens, it fails to address long-term financial pressures faced by ordinary citizens,' he added. For that, he called for the government to strengthen fiscal transparency, reform the tax structure, and simplify aid delivery to reduce bureaucracy and wastage. 'RM100 may help in the short term – buying some rice or petrol – but it doesn't solve the structural issue of tax burden,' he noted. 'Instead of cash handouts, the government should focus on meaningful tax reform.' With the Sales and Service Tax (SST) now raised to 8 per cent, Tay pointed out that many in the middle class are facing mounting financial pressure. He proposed gradual tax reductions, including raising income tax thresholds and easing burdens for small and medium-sized enterprises (SMEs), as more effective ways to stimulate economic growth. 'These (steps) would better stimulate the economy and promote long-term self-reliance,' he added. cash handouts Eric Tay SARA
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.
Business Times
6 days ago
- Business
- Business Times
Reits, institutional investors and funds in ‘buy mode' as debt costs ease
[SINGAPORE] Real estate investment trusts (Reits), investors and funds have turned 'more acquisitive' in Singapore this year, even as geopolitical and macroeconomic uncertainties persist. Speaking on Thursday (Jul 24) at the annual property market seminar organised by the Real Estate Developers' Association of Singapore (Redas), CBRE deputy managing director of Singapore advisory and capital markets head Michael Tay noted an overall improvement in buying sentiment across the real estate investment market as interest rates eased. In the year to date, short-term interest rates in Singapore have fallen by 110 basis points, with the 10-year average now standing at 1.3 per cent. At a separate panel discussion during the Redas event, Taimur Baig, DBS chief economist, said: 'Singapore is going through a golden era in terms of capital flows. It is an overwhelming amount of portfolio and foreign direct investment that's coming to Singapore right now.' With almost a trillion dollars of foreign current deposit sitting in Singapore, Baig said: 'All that inflow, all the liquidity, materialised into collapsing the domestic interest rate.' Given the more accretive environment, Tay noted that 'investors are starting to see and feel that it is time to put money back into the Singapore market'. 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 Investors are also drawn to the Republic for its safe-haven status and steady yields, even though the market has seen limited repricing, unlike that of South Korea, China and Australia, said Tay. 'Despite tighter yields, Singapore has become a key component for most (institutional investors') portfolios as they balance risks across the portfolio.' Among Asia-Pacific investment markets, Singapore had the third-highest year-on-year growth in H1 2025, behind Japan and South Korea, said Tay. Investment activity in the city-state is up 7 per cent year on year, with private volumes up 20 per cent on the year. Notable deals include Fraser Centrepoint Trust's purchase of the rest of Northpoint City for around S$1.1 billion in March; IOI Properties' acquisition of a 50.1 per cent stake in the mixed-use project South Beach for S$834.2 million in June; and Mapletree Industrial Trust's divestment of three industrial assets for S$535.3 million to Brookfield Asset Management. In April, Bain Capital also acquired Blackstone's Singapore worker dormitory firm Avery Lodge for S$750 million. CBRE's Investors Intentions Survey in January found Reits, institutional investors and funds signalling more acquisitions in 2025. Net buying intentions from Reits measured at 22 per cent, up from minus 13 per cent in the prior year. That of institutional investors rose from 4 to 12 per cent, and property funds from minus 4 per cent to 10 per cent. Meanwhile, private investors were expected to divest more real estate assets, capitalising on improving market sentiment after acquiring them during a period of price dislocation. Developers were expected to be 'net neutral investors' in the year, with higher construction and labour costs weighing on development decisions, said the report. The industrial and office sectors were top preferred asset classes, with interest in office assets expected to pick up marginally this year due to stabilising or improving leasing activity in some markets. The living sector too, received strong interest with a few notable deals closing in the half year. BlackRock and Malaysia's YTL Corp acquired Citadines Raffles Place for S$280 million in May, and a BlackRock-led consortium bought Momentus Serviced Residences Novena for just over S$100 million in the same month. Earlier in February, an Indonesian tycoon acquired Oakwood Studios Singapore, a freehold serviced apartment block on Mount Elizabeth, for S$152.8 million. In alternative assets, investors are most keen on data centres, with interest also running high in student housing, CBRE's survey found. Despite the upswing in activity, Tay warned of growing concerns over trade wars and a potential recession in the next six months. In Singapore, investors are also worried that interest rate cuts may come slower than expected, he said. Nonetheless, Tay noted strong fundamentals in Singapore as the benchmark stock market index hit record highs. 'In most cycles, the performance of the equities market is a prelude to confidence and buying interest,' he explained. 'There is normally a price gap of anything from six to 12 months, so we feel positively that with the confidence in the equities market… and (what we see) coming through in the first half of this year, stronger interest will come back into Singapore's real estate market across asset classes.'
The Star
6 days ago
- The Star
Over two years' jail for Singapore man who worked with wife to cheat her then-boyfriend of S$220,000
Eric Ong Chee Wei (left) was sentenced to jail for engaging in a conspiracy with his wife, Felicia Tay Bee Ling (right), to cheat her then-boyfriend of S$220,000.- ST/SHIN MIN DAILY NEWS SINGAPORE: A man was sentenced to two years and four months' jail on Thursday (July 24) for engaging in a conspiracy with his wife to cheat her then-boyfriend of S$220,000 via a fake property investment scheme. Eric Ong Chee Wei, who has made restitution of $10,000 to the victim, David Tan, was also ordered to pay a compensation of $210,000. Ong, 50, will have to spend an additional 105 days behind bars should he fail to fork out the amount. His wife, Felicia Tay Bee Ling, 49, who had acted on his instructions, was sentenced to two years and a month in jail on July 24. At the time of the offence, Ong did not know that Tay was having an affair with Tan, 48. Tan, however, was aware that Ong was Tay's husband. Ong and Tay had each pleaded guilty to a cheating charge in June. Court documents did not disclose if they are still married to each other. The two offenders were each offered bail of $40,000 on July 24. They are expected to begin serving their sentences on Aug 18. In earlier proceedings, Deputy Public Prosecutor Kiera Yu told the court that Tay was a housewife, while Ong worked as a property agent from 1999 to 2006 before turning to odd jobs. Tay met Tan in 2010, and they started their affair in 2014. Around September 2015, Ong conspired with Tay to deceive Tan into paying supposed 'security deposits' involving the purported purchase of condominium units as investments. In reality, the two offenders knew that there were no such units for sale. Acting on Ong's instructions, Tay told Tan that she had 'investment opportunities' – she could help him buy seven units at Residences @ Emerald Hill from the developer at discounted rates due to the 'poor property market'. She also claimed that the units could be resold at higher prices and promised Mr Tan that each investment would purportedly yield high returns within three months. In reality, six of the units that he was supposedly buying did not exist at all, while the seventh was not available for sale. The prosecutor said that Tay also sent handwritten records of the 'investments' to him, adding: 'However, no official documents on the sale and purchase of the units were ever provided.' Tan had received only screenshots of option-to-purchase (OTP) forms Tay sent him for the seven units. The forms were purportedly issued through a salesperson under real estate company OrangeTee, who did not know that Ong had used the forms to commit cheating. Tan then handed to Tay $220,000 in total as 'security deposits' over seven occasions from September to November 2015. Tay promised Tan that he would receive profits of more than $1.7 million when the units were sold. But around January 2016, Tan sensed that something was amiss when he received no investment returns. He confronted Tay about the matter, but she did not give him any concrete answers. Tan and Tay broke up in March 2017. The victim finally reached out to OrangeTee on Dec 11, 2019, and the company told him that none of the transactions listed on the OTP forms were legitimate. Tan made a police report the next day and officers arrested the two offenders in June 2022. - The Straits Times/ANN
