Market Snapshot

Singapore stocks opened flat on Wednesday. STI fell 0.08%; YZJ Shipbldg rose 1.85%; OCBC Bank gained 0.66%; Nio slid 1.8%.

Stocks to Watch

Aims Apac Reit: The industrial and logistics real estate investment trust (Reit) is divesting its warehouse at 3 Toh Tuck Link for S$24.4 million, representing a 32.5 per cent premium over the property’s valuation as at Mar 31, 2024. Net proceeds may be reinvested to support the Reit’s various growth initiatives, including potential new acquisitions. Units of the Reit closed on Tuesday S$0.01 or 0.8 per cent higher at S$1.26, before the news.

Keong Hong Holdings: Its subsidiary Keong Hong Construction has agreed to sell its 20 per cent stake in developer Katong Holdings for S$34.5 million. On Tuesday, the group said net proceeds from the divestment will be used for working capital requirements and potential business opportunities. Shares of watch-listed Keong Hong Holdings closed flat at S$0.095, after the announcement. 

SG Local News

Singapore Real Estate Barons Plan Family Office in Abu Dhabi

Raj Kumar and Kishin RK, the father and son duo behind one of Singapore’s biggest property portfolios, are setting up a family office in Abu Dhabi, joining a growing list of rich people helping to cement the Middle East’s status as a haven for the super wealthy.

The entity will be called RB Family Office and will be located in Abu Dhabi Global Market, a free zone located on Al Maryah Island in the United Arab Emirates’s capital, Kishin said in an interview with Bloomberg News.

Singapore’s Cautious Wealth Fund Takes More Private Markets Risk

After Sam Bankman-Fried started the FTX cryptocurrency exchange in 2019, his company spent countless hours trying to woo GIC Pte Ltd., Singapore’s sovereign wealth fund. As FTX worked back channels via power brokers and attempted to land introductions from other investors, GIC had four opportunities to buy in, according to people familiar with the matter.

Although storied venture capital firms such as Sequoia Capital, as well as the massive Ontario Teachers’ Pension Plan and fellow Singapore state-owned investor Temasek Holdings Pte Ltd., eventually backed the flashy startup, GIC decided to do its own homework. One of its Singaporean analysts noticed FTX’s money seemed to flow through a separate entity called Alameda Research. Many red flags later, a GIC executive sent around a strongly worded letter declaring it a fraud and the work of a con man, two of the people say. The checkbook was closed, well ahead of FTX’s dramatic demise.

Singapore’s New Family Office Framework Will Give Clarity

The upcoming roll-out of Singapore’s single-family office (SFO) framework will likely provide ultra-wealthy families with greater clarity, and attract those seeking certainty and transparency, market observers said.

But the framework may not appeal to wealthy families who want simplicity and the best tax incentives, they noted.

On Nov 6, the Monetary Authority of Singapore (MAS) responded to feedback on its proposed framework for Singapore’s SFOs, with details on the roll-out likely to be announced in due course.

Earning 3% from Singapore T-Bills May Not Last or Be Enough

The yield one can get now from the risk-free Singapore six-month Treasury bill (T-bill) is lower than a few months back. The cut-off yield on the latest issue, with issue date of Dec 10, was 3 per cent per annum, against the 3.74 per cent per annum for the six-month T-bill issued in late June.

Still, the six-month T-bill’s yield today is rich compared to early 2022, when the annual yield was below 1 per cent. 

Putting money in risk-free Singapore dollar fixed deposits or T-bills can be attractive for retirees. The Singapore currency is strong and the nation’s fiscal position is robust, unlike many countries where government spending is ballooning, and the fiscal deficit is growing.