Singapore International Political Economy

The American fast-food chain Wendy’s/Arby’s Group Inc has signed a franchise deal with Kopitiam Investment Pte Ltd in order to operate in Singapore according to Dow Jones.

The Singapore investment will open as many as 35 Wendy’s locations over the next 10 years in the Singapore market.

The key driver of the investment in Singapore by Wendy’s/Arby’s Group Inc is to aggressive competed with rival changes such as McDonalds and Burger King who have a much greater Asian presence.

Singapore exports slid in April for the 12 consecutive month according to Bloomberg.

The poor Singapore trade news make it the longest continuous fall in Singapore exports since 2002 as non-oil exports declined 19.2 percent in April from a year earlier.

Weak overseas demand due to the global recession continues to be the key driver of the slump.

The first quarter unemployment rate in the Singapore economy rose to 3.2 percent ending in March according to Dow Jones.

The biggest impact to jobs in the Singapore economy has been in the manufacturing sector due to falling external demand.

The economic number is up from 2.5 percent for the previous quarter and is clearly a result of the global recession which marks the worst recession for the Singapore economy since its independence in 1965. [Read more →]

The Singapore economy is showing signs of stabilization as the Singapore Purchasing Managers Index (PMI) hit a reading of 49.2 in the month of April according to Reuters.

The positive Singapore economic news comes despite the continued damage to Singapore export from lack of demand due to the global recession.

A reading of above 50 on the Purchasing Managers Index (PMI) suggests growth in the Singapore economy as opposed to contraction with reading below 50. [Read more →]

Inflation in the Singapore economy slowed to 1.6 percent according to Bloomberg

The Singapore economic news puts Singapore’s inflation rate at a 21 month low.

The Monetary Authority of Singapore does not expect the decline in prices to negatively impact the Singapore economy despite the continued threat of a prolonged global recession. [Read more →]

The investors service Moody’s cut its ratings from stable to negative for three Singapore banks as the global recession continues impact the Singapore economy according to Reuters.

The ratings news comes as the Singapore economy shrunk as much as 11.5 percent from a year earlier

The three Singapore bank affected include Oversea-Chinese Banking Corp, United Overseas Bank and DBS Group. [Read more →]

The Singapore economy is expected to decline almost 5 percent in 2009 according to AP.

The dismal Singapore economic news comes as the forecast of 20 economists suggest that Singapore’s GDP will shrink by 4.9 percent in 2009 as the global economic crisis continues to take hold.

Nonetheless, the same economists expect the Singapore economy to recovery in 2010 with suggested Singapore GDP expansion of 3.3 percent. [Read more →]

GE has announced it will invest in Singapore’s Airfoil Technologies International as it agreed to buy Teleflex’s shares for $300 million according to Aviation Week.

The Singapore investment by GE takes a controlling interest stake from the joint venture partner Teleflex and positions the company to protect its proprietary repair processes for an install base of approximately 23,000 commercial aircraft engines.

The GE Singapore investment news come as GE continues to suffer the impact of the current global economic crisis. [Read more →]

Abbott Laboratories, maker of health-care products such as ranging from arthritis drugs to coronary stents, has announced it will invest in Singapore $300 million according to the Dow Jones Newswire.

The key driver of the Singapore investment strategy is to satisfy continued Asian demand for Abbott’s line of pediatric products.

The Abbott Singapore investment news comes just a month after the firm opened a new Singapore pharmaceutical R&D facility. [Read more →]

The Singapore economy declined its most since 1976 as Singapore GDP shrank an annualized 16.4 in Q4.

Key drivers of the decline in growth of the Singapore economy include lack of demand for Singapore exports and the damage to the financial services industry as a result of the current global economic crisis.

As a result the Singapore government has revised its Singapore economic growth forecast for 2009 from a GDP decline of 5 percent as opposed to the initial projection of 2 percent. [Read more →]

Singapore trade fell as much as 34.8 percent from a year early as Singapore exports had its biggest drop in 22 years according to Bloomberg.

The negative Singapore trade news is worse than expectations and continues to plague key sectors such as electronics, petrochemicals and pharmaceuticals.

The single key driver to the Singapore trade decline is the global economy crisis which has all but dried up demand. [Read more →]

The world’s biggest undersea cable operator, Tata Communications, plans to invest in Singapore $180 million according to AP.

The Singapore investment will go towards a data storage center that will also create approximately 50 new jobs and is set for completion in 2010. [Read more →]

Tata Communications, the world’s biggest undersea cable operator, has announced it will invest in Singapore $180 million according to AP.

The Singapore investment will go toward the development a new data storage center as part of Tata’s $2 billion three year plan to expand its global broadband capacity and information technology infrastructure.

The Tata investment in Singapore will generate approximately 50 new jobs. [Read more →]

Singapore visitor arrivals fell 6.9 percent to negatively impact the Singapore economy according to Reuters.

The Singapore economy saw a 7.4 percent decline or a drop of $93.3 million in hotel room booking revenues from a year earlier.

The key driver of the decline is the global economic slowdown as tourist and business travelers continue to stay home. [Read more →]

The Singapore government announced a $13 billion Singapore economic stimulus package according to AFP.

Details of the Singapore economic stimulus package include the following:

• $4.4 billion for infrastructure, education and health care
• $5.8 billion to spur bank lending
• $7.7 billion to help businesses
• $2.6 billion for households

The Singapore economic news comes as the Singapore government continues to struggle to maintain growth as the global economic slowdown continues to drag down Singapore exports. [Read more →]

The Singapore economy is expected to contract by as much as 5 percent in 2009 according to AP.

The poor Singapore economic news comes as the Singapore government has revised its growth forecast for a second time in one month.

The key driver to the decline in Singapore economic growth is slow down of Singapore exports from 11 to 9 percent in the wake of the global economic slowdown.

Singapore non-oil exports make up two-thirds of Singapore GDP. [Read more →]

Retail sales in the Singapore economy dropped 5.2 percent in November according to AP.

The poor Singapore economic news comes as global economic slowdown continues to worry Singapore consumers and force them to think twice about their discretionary spending.

The Singapore government is bracing for a 2 percent decline in GDP which will further impact the Singapore economy. [Read more →]

Singapore trade of non-oil domestic exports declined 2.8 percent in November according to Reuters.

The poor Singapore trade news is inline with the global economic slowdown and the continued slow down in demand for electronics and pharmaceuticals.

Expect poor Singapore manufacturing data for November as well. [Read more →]

The Singapore unemployment rate for Q3 maintains its previous rate of 2.2 percent giving the Singapore economy a positive yet cautious sign according to AP.

While the news is better that other economies that are seeing unemployment rates rise rapidly, the Singapore economic news does concern many economist as they expect the rate to move up as the Singapore economy and the global economy fall into recession. [Read more →]

Singapore trade officials and Costa Rica have begun talks of a bilateral free trade agreement according to AP.

The key areas of Singapore trade discussion include investment in Costa Rica’s ports, telecommunication, services and tourism.

Singapore trade with Costa Rica in 2007 accounted for $26.4 million in exports and $31.5 million in imports.

Currently, the Singapore government has Singapore trade agreements with Peru, Chile and Panama. [Read more →]

The Singapore economy saw its consumer price index hit 6.4 percent in October according to AP.

The deflationary news comes as Singapore’s economy hit a 26 year inflationary high of 7.5 percent back in June.

While the Singapore government likely welcomes the news, the current global economic slowdown is causing concerns over a prolonged period of deflation that would hurt the Singapore economy worse than its initial concern over higher inflation. [Read more →]

October Singapore trade data has shown a drop in non-oil exports for a sixth consecutive month according to AP.

The over all 15 percent fall saw electronics and telecommunications equipment fall 15 percent, non-electronic goods fall by 16 percent and pharmaceuticals dropping 39 percent.

Some analysts now expect the Singapore economy to contract up to 2 percent in 2009. [Read more →]

The Singapore government announced that it will guarantee banks deposits up until 2010 according to AFP.

The move by the Singaporean government comes as the US banking crises continues to spread to other global markets.

Prior to the announcement, the Monetary Authority of Singapore (MAS) only secured up to 20,000 dollars. [Read more →]

For the first time in four years the Singapore economy saw housing prices drop in Q3 according to Bloomberg.

The Singapore economic news signals that the Singapore real estate boom that started in 2004 in now over as home prices declined 1.8 percent.

Analysts expect Singapore private home sales to continue to drop in Q4 as well. [Read more →]

The Singapore economy saw inflation slow for a second month in a row according to Bloomberg.

Singapore’s Department of Statistics stated that the consumer price index moved to 6.4 percent as opposed to gaining 6.5 percent a year ago.

Specific Singapore economic inflation data in August year over year include the following:

• Singapore food prices rose 8.4 percent
• Singapore transport and communication costs rose 2 percent
• Singapore housing costs rose 12.8 percent [Read more →]

Singapore trade of non-oil exports is down 14 percent year over year in August according to International Herald Tribune.

The Singapore trade news shows clear signs that the demand for consumer electronic goods is waning and will likely continue to impact the Singapore economy.

Nonetheless, the drop in Singapore trade of non-oil exports in inline with Singapore government expectations that Singapore economic growth would fall between 4 and 5 percent. [Read more →]

Caterpillar Inc., US based heavy equipment maker, announced plans to invest in Singapore by opening a remanufacturing facility according to AP.

The Singapore investment by Caterpillar expands the company’s global remanufacturing presence in which it has seventeen other facilities in locations such as China, Europe and Mexico.

The move by Caterpillar is geared to increase capacity to fulfill a dramatic increase in Asian demand. The facility is set for a 2010 fully operational target date. [Read more →]

Temasek Holdings, the Singaporean sovereign wealth fund, received the go ahead to invest n additional $3.4 billion in Merrill Lynch by US anti-trust regulators according to AFP.

This initial Singapore investment by Temasek Temasek help a 9 percent stake in Merrill Lynch and the additional stake will raise it to 14 percent. [Read more →]

GIC, the Singapore government sovereign wealth fund investment arm, plans to take a 10 percent stake in Arcil, Asset Reconstruction Company of India, according to The Economic Times.

The Singapore investment deal is subject to India’s Foreign Investment Promotion Board (FIPB) approval and Arcil’s CEO S Khasnobis Arcil declined to comment on the move by GIC.

Arcil is India’s largest asset reconstruction company otherwise known as an ARC. [Read more →]

Inflation in the Singapore economy slowed to 6.5 percent in July according to AFP.

The Singapore inflation rate is down from its July high of 7.5 percent and its 26 year peak reported in April, May and June and is offering some relief to what the Singapore Prime Minister Lee Hsien Loong considers Singapore’s most pressing issue.

Singapore’s central bank raised its 2008 inflation forecast for the Singapore economy late last month from 5 to 6 percent to 6 to 7 percent. [Read more →]