UPDATE: Being a Singapore Tourist-Costly

There has been a resolution to the scandal that hit the Newton Circus Food Centre here in Singapore. I will begin by recapping the story. Last week a report came out the that a group of American tourist went to the hawker center at Newton Circus. They ordered 8 large Prawns and were charged S$239.00 which is about S$30 a prawn. Their total bill was S$491 at a outdoor hawker center where the average through Singapore is S$2 to S$3 a plate of food. This is a tourist attraction because it was features as one of the 1001 places to see before you die in the book of the similar title.

The stall owners were accused of overcharging and then intimidating the patrons in order to collect payment. This resulted in the patrons filing a formal complaint.

Another article ran on the 18th of March in the Straits Times which was an attempt to explain why the stall owners had not cheated anyone. It was reported that the tourist were served prawns weighing over 400 grams. And that the price for a prawn that size was warranted because it was rare. Also they denied the intimidating the patrons.

RESULTS:

The Singapore Government is quick to react. I have to commend them on that.

Channel News Asia reported that The National Environment Agency (NEA) said it had investigated the incident of overcharging of American Michael Rigby who was billed a total of S$491, including S$239 for eight tiger prawns.

The article went on to explain that Stall No. 43 (Tanglin’s Best BBQ Seafood Stall) at Singapore’s Newton Hawker Centre has had its licence suspended for three months for overcharging. And that the stall assistant involved in the incident will be barred from working at the Newton Food Centre for over a year.

My Comments:

I think the bottom line is the Stall owner failed to solve this problem when they had the chance. They probably could have made their case to the tourist but in the end maybe charge for one or two less prawns. It may had satified the tourist enough not to file a report and then this would never have built into such a big story. The tourist may have never came back but at least the bad taste that is lingering in the mind of everyone would not be there.

NEA decision was quick and reactive to the situation. Singapore is not about to allow negative press to stay on the front page expecially when everyone from Thailand, Malaysia, Hong Kong, and Indonesia are fightin for every last tourist. My only complaint would be more of a question. Why was the stall worker banned longer than the stall owner? Shouldn't the stall owner be held more accountable for the actions of their employees?

This could be a cultural reaction to a problem by saying the main cause was the stall assistant. I would put forth that the stall owner of #43 was the major cause of the problem. First by not training properly. Second either not watching their operation or watching and not caring about how they did business. The Stall owner reaps the profit but the stall assistant only gets paid a portion of the windfall. If it was better to be a stall assistant then I too would be a stall assistant.

Being a Tourist in Singapore-- Costly!!!

Something for everyone to be aware of in the downturn, some people get very desperate to earn a buck. An article posted on www.soshiok.com/articles/12091/ tells the story of some visitors to a Newton Stall. It does not say if it was the Newton Circus but I would no doubt it if it was.

The American tourist and his family were charged $239 for 8 tiger prawns. Do the math.... yes $30 for each prawn. The whole meal for four people came in around $500. I know the there is a book 1000 places to go before I die but this may be put on the list of 1000 places I went to and would never return!!!

Beware, Keep your eyes open the good deal is coming.

Industrial Property Costs Move Singapore into 5th Place

A Business Times Article reported "SINGAPORE has emerged as the world's fifth most expensive location for industrial property occupancy costs in the latest 2009 ranking by Cushman & Wakefield, up from 12th position in the 2008 ranking"

The article quoted Cushman & Wakefield Singapore managing director Donald Han saying: 'Singapore's rise up the world ranking is partly due to countries which used to be more costly moving down. In terms of rental growth, Singapore remained stable in 2008.

The article noted that Singapore's economy is export driven so forecast for he next 12 months is a dramatic reduction in demand. This reduction will no doubtly effect costs.

The next 9 to 12 months will definitely be something to watch in all segments of the property market. Articles in the past have sited take rates as steady but near the mid part of 2009 there will be several projects that will be releasing their units to their buyers which in turn will flood the market with rentals and sales. Keep your eyes open, the deals are coming!!!

Why Come to Singapore-- Few More Reasons:

Creative buzz at Mediapolis - Emilyn Yap reported that Mediapolis will be the Centre for interactive digital media, computer-generated imagery, games, and animation and more. Not due until 2020, IMAGINE flashing billboards, colourful media screens, film shootings on the streets and red carpet activities galore. This is not downtown Manhattan nor Tokyo but Singapore. Mediapolis will be a self-contained media ecosystem comprising sound stages with green screen capabilities, digital production and broadcast facilities and media schools. "I can't wait because we may be able to see some of the 'great' local broadcasts done with the latest technology" RP
Global media giants such as Lucasfilm, Linden Lab, EA, Ubisoft and Rainbow SpA have also set foot here.


Singapore Among the top in tourism
Improvements in areas like infocomms, infrastructure help it rise six places in WEF report
By Lim Wei Chean - There is no doubt that as Singapore seeks to improve it's nation in all areas, more and more people will come to visit. This will be vital in keeping businesses coming and the population on the increase. Because Singapore has the innate urge to be the best, I don't see any let in the future.

Recent Headlines Here in Singapore

Mohamed Sultan Road building sold for $35.8m- A member of the family that developed International Plaza has used his company to buy the freehold Le Mercier House on Mohamed Sultan Road. It is reported by the Business times here in Singapore. The buyer's company also owns the building right next door. Analyst quoted in the article say
hat the $35.8 million sale price works out to about $900 per square foot per plot ratio based on a 2.8 plot ratio - hence a maximum GFA of about 39,000 sq ft.

Savills pre-tax profit slides 61% to £33.2m- It is reported by the Business Times that
The London-listed agent, which has more than 200 offices and affiliates worldwide, said that a collapse in real estate transaction volumes had forced it to recommend a reduced final dividend of 3 pence per share, slashing its full 2008 dividend to 9 pence versus 18 pence in 2007. Lack of inventory is also contributing to the drop in profit. Many property on the market are the distressed variety but as these go the consumers that can are thinking they should hold onto their homes instead of selling.

In the new US property market, old guys are hot- Out of New York the reports are experienced but retired agents are coming back to the front in property selling. Many of the property specialist that currently practice real estate have never dealt with a declining market so these veterans of past crisis will be the go to agents for a while. Business Times

I still can't get it out of my head that if anyone has cash that they don't need currently to live on, should look into investing into a long term property investment vehicle. It would be tragic to have this type of crisis occur in the near future but all past records indicate that it should not happen again at least in our lifetime. Opportunity is Knocking!!!!

Singapore IR is due to open end '09

March 4, 2009

Las Vegas-Singapore, LAS Vegas Sands, billionaire Sheldon Adelson's gaming company, said it's working 'aggressively' to meet its target to open a Singapore integrated resort by the end of the year, Bloomberg News reported.

Though there are definte signs that the project will be able to attain this goal, there are several internal rumblings from the other IR project that lead me to believe that if the Sands does manage to open this casino, it will be at a very minimum.

The three 55 -story hotel towers have reached the halfway point and are due to be 'topped out' in July. When the Sands Corporation opened the Palazzo in Las Vegas at the end on 2008, many of the room, including most of the 'High Roller' suites were not completed, according to manager at the Venetian (located next to the Palazzo).

The project also includes a convention centre and my guess is this will definitely b redy for use if Sheldon Adelson has any say in, which I believe he will. His history shows he knows about convention business and how can add to all facets of the Casino's growth and health.

The company also suspended all construction in Macau and work on its St. Regis condominium on the Las Vegas Strip to conserve cash and finish the Singapore resort and a Bethlehem, Pennsylvania casino.

Singapore is counting on the Sands resort and a competing project by Genting International to help achieve its goal of luring 17 million visitors and tripling annual tourism revenue to $30 billion by 2015.

The government has predicted visitor arrivals to fall as much as 10 per cent this year, the first annual decline since the 2003 outbreak of severe acute respiratory syndrome, or Sars, disrupted travel in the region.

MGM Mirage says it may default on debt

This is an AP Story

MGM Mirage says it may default on debt


LAS VEGAS - MGM Mirage Inc, the gambling company of billionaire investor Kirk Kerkorian, said Tuesday that it may default on its debt amid development of its biggest casino project ever, the US$8.6 billion CityCentre in Las Vegas.
Unless the economy turns around and more people start gambling again, the Las Vegas-based casino company believes it will break its loan agreements this year, it said in a filing with the Securities and Exchange Commission.
That would mean a default on its senior credit facility, which it says it has asked to modify.
MGM Mirage will delay filing its annual report until March 17 because it is still assessing its financial position and liquidity needs, the company said in Tuesday's unscheduled filing. One factor in the delay, the company reported, was its decision last week to tap US$842 million of its US$4.5 billion senior revolving credit agreement to cover general expenses.
As of the end September 2008, MGM Mirage had US$13.29 billion in long-term debt.
Many US casino companies borrowed huge sums in the last few years to develop resorts in the United States and abroad. But several are having trouble making payments on that debt because their revenue has fallen sharply over the past year as fewer patrons have spent less money on gambling and services.
Chief executive Jim Murren, who took over late last year, has said the company is exploring a half-dozen deals around the world in which MGM Mirage would lend its name and expertise to generate income.
It sold the Treasure Island casino on the Las Vegas Strip to Kansas billionaire Phil Ruffin for US$775 million and has since been shopping other properties, including nearly 300 acres of land in Nevada and Atlantic City, New Jersey, and two airplanes.
MGM Mirage has not reported on its financial position since September or posted its earnings for the quarter that ended Dec 31.
The March 17 report is to include an auditor's assessment of whether MGM Mirage can continue as a company.
Shares of MGM Mirage dropped 30 cents, 11.5 per cent, in trading after hours Tuesday. It ended the regular trading day at US$2.62, down 43 cents from its previous close, 96 per cent below its highest close in the last year, of US$64.73 last March 25.
Between that peak and Tuesday, the 91-year-old Mr Kerkorian's majority stake in the company shrank in value from US$9.6 billion to US$390 million.
MGM Mirage's profit during the first three quarters of 2008 fell 59 per cent compared with the same period in 2007, from US$712.21 million to US$292.7 million.
Mr Kerkorian's Tracinda Corp, based in Beverly Hills, California, also holds stakes in Ford Motor Co and Delta Petroleum Corp.
Tracinda sold part of its stake in Ford in October, taking millions of dollars in losses. Mr Kerkorian, a longtime casino and hotel developer, has a mixed track record with the other two major US automakers, including an unsuccessful US$4.5 billion cash offer for Chrysler last year and his push for General Motors Corp. to form an alliance with Nissan Motor Co. and Renault SA in 2006.
Tracinda also was Chrysler's largest shareholder at the time of its 1998 combination with Daimler-Benz. -- AP

Grade A Office Rents Slide In Singapore, Q4

Business times reported that Singapore Office rents for Grade A/Prime space in Singapore fell a steep 14 per cent in Q408 on a year-on-year (yoy) basis, the sharpest fall in Asia.

Tokyo also fell a huge 13.4% compared to the previous Q4 of last year.

In my hindsight, the worst is still coming. Rental of office space last year was extremely strong, along with the housing market, Singapore and most cities in Asia look to continued growth. I spent countless hours listening to local business owners say that " Not Singapore, We are a different market. We have an internal machine that will help us bypass an decline."

This goes to show that event he most confident and brightest of Singapore had no clue this was coming. During a Lunch meeting last year with a Keppel Land manager, He gave no indication that there would be any slow down in his sector.

Though I see small report of positive gains, I still wonder, as does the rest of the world, "Is this just false blip on the heart machine of the economy?"

The information and picture was from the Business Times in Singapore.

http://www.businesstimes.com.sg/sub/suite/story/0,4574,321755,00.html