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Straits Times
3 days ago
- Business
- Straits Times
SingPost puts 10 HDB shophouses up for sale and leaseback
Plans are for a sale and leaseback model to maintain current post office services, said SingPost. ST PHOTO: TARYN NG SINGAPORE - Singapore Post has put up for sale 10 Housing Board (HDB) shophouses currently occupied by its post office outlets across Singapore, with the aim of leasing them back. A spokesperson said in response to queries from The Straits Times: 'SingPost is initiating the divestment of 10 HDB shophouses across Singapore, in keeping with the group's plan to divest non-core assets. 'Plans are for a sale and leaseback model to maintain current post office services.' In a sale and leaseback model, an asset is sold to someone else, but then leased back to the initial owner for a certain duration. This occurs especially when the asset can be sold at a higher value than its initial purchase price. It can also allow the seller to raise capital from the proceeds of the sale, without interrupting its business operations. SingPost said in May that its strategic review and restructuring are ongoing. Its group chief financial officer Isaac Mah told the media at a briefing then that the company is engaging the Government to develop a more sustainable operating model, as the post office network is not profitable. SingPost has 42 post offices, of which it owns 21. As part of its efforts to restructure, it also sold its Australian logistics business, Freight Management Holdings (FMH). SingPost completed the sale of FMH for A$1.02 billion (S$853 million) in March. The group has also taken steps to sharpen its focus on its core postal and logistics business, including streamlining its operations to right-size the cost base, it said. In 2024, SingPost said that it is considering selling its flagship retail-commercial mixed development SingPost Centre at Paya Lebar Central, which it also identified as a non-core asset. The SingPost Centre was valued at $1.1 billion as at September 2023. Maybank analyst Jarick Seet said SingPost's sale and leaseback bid for the 10 HDB shophouses is 'not a new thing'. 'In their announcements in 2024, SingPost has said that it wants to monetise its assets and reduce postal centres because there has been a drop in usage,' he told ST. In 2024, it was reported that SingPost closed 12 post offices, or one out of five branches, in the last two years. This was due to declining mail volumes, as people turn to electronic means instead. It also said that letter mail and printed paper volumes in Singapore fell 8.1 per cent on the year to 87.8 million items, from 95.6 million items. But Mr Seet noted that SingPost may also not be allowed to close so many post offices rapidly as people in the various districts still need to use them, which makes the sale and leaseback model a compromise as it can still free up capital without disrupting services. The gains from the sales could also be used to revitalise SingPost's local business, and ultimately be returned to shareholders, he said. SingPost is already investing $30 million in a new automation system to expand processing capacity for small parcels at the regional e-commerce logistics hub facility. In May, it also announced a special dividend of nine cents per share after it booked a net exceptional gain of $222.2 million, largely from the divestment of its Australian business. Mr Seet reiterated his call to 'buy' the stock. 'SingPost owns lots of assets that hold intrinsic value like the HDB shophouses, which are now worth much more than what they were bought for. The same goes for SingPost Centre,' he said. 'If we add the value of all these assets up, it is much more than the market cap of the company today. So SingPost is undervalued, but it depends on the company to unlock value this way.' SingPost shares closed at 57 cents on June 19, up nearly 0.9 per cent from its previous close of 56.5 cents. Sue-Ann Tan is a business correspondent at The Straits Times covering capital markets and sustainable finance. Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
06-06-2025
- Business
- Straits Times
Empty shops, boarded windows: Has Holland Village lost its mojo?
Holland Village is known for its bohemian vibes, trendy cafes, restaurants and a mix of old and new local businesses. ST PHOTO: TARYN NG SINGAPORE – In October 2024, a party celebrating the 10th anniversary of Bynd Artisan – a home-grown brand known for handmade leather and paper gifts – was in full swing at its flagship store in Jalan Merah Saga. The energy was unmistakable as guests mingled, admired the anniversary collection and lined up to personalise keepsakes with the craftsmen. Beneath the conviviality, however, was a quiet sense of finality. After all, this was not just an anniversary bash – it was also a farewell. Four months later, in February, Bynd Artisan joined a list of businesses that had left Holland Village. Well-known names such as Thambi Magazine Store, ice cream parlour Sunday Folks and party paraphernalia shop Khiam Teck shuttered in 2024. 'It was bittersweet,' says Bynd Artisan's co-founder Winnie Chan, 53. She and her husband James Quan set up shop in Chip Bee Gardens in 2015 during Singapore's 50th year of independence. Bynd Artisan's 10th anniversary party in October 2024 was not only a celebration but also a farewell to its flagship store in Jalan Merah Saga. The home-grown brand currently has two outlets – in Ion Orchard and Raffles City Shopping Centre. ST PHOTO: ARIFFIN JAMAR The store was a tribute to Ms Chan's grandfather, one of Singapore's pioneering hand bookbinders. His legacy lived on through the personal touches in the space – most notably, the towering Heidelberg letterpress. For years, the iconic machine stood proudly outside the shop, drawing the curiosity of passers-by who thronged the streets of Holland Village. But foot traffic has dwindled over the years to a point where staying on no longer makes business sense. On a typical weekday afternoon, fewer than 10 people walk past the storefront and only one might step inside. Even on weekends, the numbers barely improve. What led to this decline in foot traffic and whether Holland Village can ever return to its former vibrancy are questions that business owners grapple with. From kampung to trendy hangout Holland Village – spanning Lorong Mambong, Lorong Liput, Holland Avenue and Chip Bee Gardens – is known for its bohemian vibes, trendy cafes, restaurants and a mix of old and new local businesses. It began as a kampung, later giving way to terraced houses and walk-up apartments in Chip Bee Gardens – built as married quarters for the British military – and shophouses that became the defining features of the area. Contrary to popular belief, Holland Village is not named after the Netherlands. It is believed to have been named in the early 1900s after Hugh Holland, an architect and amateur actor who reportedly lived there. An aerial view of the intersection between Lorong Mambong and Lorong Liput. ST PHOTO: TARYN NG Among locals, it was once affectionately called Hue Hng Au, meaning 'behind the garden' in Hokkien, a reference to its proximity to the Botanic Gardens. A turning point came in the 1990s, when nearby Orchard and Tanglin became prime residential zones and there was an influx of Western expatriates. Retail brands moved into Holland Village, transforming the tranquil neighbourhood into a lifestyle destination. Ms Chan fondly remembers Holland Village in its heyday – buzzing with energy and creativity. In 2014, the arrival of lifestyle and magazine brand Monocle in Jalan Kelabu Asap further sealed the neighbourhood's reputation as one of Singapore's hippest enclaves. That spirit peaked in 2018, when Singapore Design Week transformed Holland Village into a mega block party venue celebrating the fusion of arts and community. 'It was very happening,' Ms Chan recalls, saying Holland Village was often featured in guidebooks, attracting mini-tours and crowds of both locals and tourists. The expatriate families also organised their own funfairs, where children ran barefoot on the lawns and in the shaded lanes. The Heidelberg letterpress outside Bynd Artisan's flagship store in Holland Village. The brand's co-founders made the difficult decision of letting the machine go as the business moved out. ST PHOTO: ARIFFIN JAMAR Uniqueness versus survival That lively charm and authenticity has faded in recent years, according to Bynd Artisan's founders. This reflects the challenge of preserving the neighbourhood's unique identity amid current pressures – from rising rents and dwindling foot traffic to inflation and competition from trendier districts. It is a tricky dance – one that Holland Village must master if it hopes to revive the spirit and vitality that once defined the area. 'For those who make the effort to visit Holland Village, there is not enough to convince them it's worth the trip,' says Mr Quan, 57. He draws a comparison with Tokyo's Cat Street and Omotesando neighbourhood, where tourists often head to a particular vintage shop mentioned in guidebooks – only to discover dozens more in the same area, along with hidden restaurants. 'Over here, if a guidebook says Bynd Artisan is in Chip Bee Gardens, and someone makes the trip only to realise it's just that – one shop and nothing else – they may not come back. They'd rather go to a shopping mall where they can get everything in one place,' he says. Bynd Artisan co-founders James Quan and Winnie Chan outside the flagship store in October 2024. The store closed in February 2025. ST PHOTO: ARIFFIN JAMAR Mr Chua Tiang Hee, 74, owner of Fosters Steakhouse, believes the new developments – One Holland Village , which opened in December 2023, and Holland Piazza, launched in 2018 on the site of a former mall that featured an iconic windmill at the top – have diluted the area's uniqueness, making it more like other neighbourhoods with malls housing familiar retail chains. In the past, 'Holland Village had this indescribable charm', Mr Chua recalls. Fosters Steakhouse, located in Holland Avenue, had outdoor seating surrounded by greenery. 'It fits my concept of building an English greenhouse restaurant perfectly. I would sit outside, watching the trees and feeling as though I am not in Singapore.' The British-themed restaurant moved out in October 2022 and reopened three months later, as a modest cafe tucked inside YewTee Point. But in just two years, Mr Chua closed the business for good. Mr Chua Tiang Hee, owner of Fosters Steakhouse, which moved out of Holland Village in 2022. He reopened the business as a modest cafe in YewTee Point, but closed it two years later. ST PHOTO: LIM YAOHUI He misses the old Holland Village that lives in his memory. 'Right now, if you walk around the area, you don't know which shops or restaurants are exactly there because they are constantly moving in and out,' he says. 'Yes, there are new hypes, but they definitely changed the area's appeal, which is now gone.' During a quick walk around Holland Village on June 5, The Straits Times spotted nine vacant shop units along Lorong Mambong and Holland Avenue. High rental costs appear to be driving business turnover. When Fosters moved out of Holland Avenue in 2022, Mr Chua was offered a unit along Lorong Mambong for over $20,000 a month. 'I was flabbergasted when I found out another F&B establishment there was paying $50,000 a month for two floors,' he says. 'I often wonder how these shops can afford the rent. For some of them, I don't even see a lot of customers inside. Maybe they go online, but still, it's challenging.' Fosters Steakhouse was famous for its English scones with clotted cream and jam. ST PHOTO: LIM YAOHUI As at June 5, rental listings on property websites show that shophouse rents range from $13,700 for a 797 sq ft unit to $62,000 for a two-storey corner space measuring 3,468 sq ft. On average, monthly rents hover around $17 to $18 per sq ft – comparable with those in the heart of Orchard Road. 'We want to be here' Some old-time businesses have chosen to stay, holding fast to the spots where they were founded years ago. 'Holland Village has always been in a state of change,' says Mr Michael Hadley, owner of Mediterranean vegetarian restaurant Original Sin. When he opened the restaurant in Chip Bee Gardens in 1997, the surroundings were far from polished. There were no steps or paved roads outside. It was the Euro-chic appeal and relaxed sophistication that drew him and his wife Lorraine to the area. Both passionate food lovers, they dreamt of bringing quality Western cuisine and fine wines to locals – without sky-high prices. Mrs Hadley says they used to host group dinners and wrap wine bottles in foil to let diners guess their value – often surprising the guests that good wines did not always have to come from France and could be affordable. As Original Sin gained popularity, the couple, both in their 50s, would give back to the community by hosting special needs children for free annually. Still, like many other businesses, it has felt the impact of a changing landscape and the area's waning appeal. Mr Michael Hadley opened Mediterranean vegetarian restaurant Original Sin in 1997 to introduce locals to quality wine and meatless cuisine. ST PHOTO: GIN TAY When Holland Village MRT station opened in 2011, there were high hopes that it would draw larger crowds to the area. 'The MRT is great,' says Mrs Hadley. 'But what it really did was take people out of the neighbourhood. There was no boom. Many people left to explore other areas.' The situation worsened in 2019 when two carparks were closed to make way for the One Holland Village development. Parking has long been a nightmare in Holland Village, Mr Hadley notes. Even before the closures, it was common for drivers to circle the area for a spot, often ending up in Chip Bee Gardens and crossing the road to get to the main stretch. This, in turn, deprived visitors to Chip Bee Gardens of parking spaces. Then came the pandemic. 'Covid-19 changed the dynamics of Chip Bee Gardens,' says Mrs Hadley, noting that many expatriate residents left. Although business picked up slightly in the aftermath, the momentum has subsided, according to the couple. The greatest challenge now is whether Original Sin can continue operating in Chip Bee Gardens. Bosco Misto, a popular menu item at Original Sin, features spinach, feta and tofu patties coated in almonds and sesame, served with asparagus and a mushroom plum sauce. PHOTO: COURTESY OF ORIGINAL SIN The terraced houses and walk-up apartments in the precinct are managed by the Singapore Land Authority (SLA). They are let out on a two-year lease via open tenders. This approach aims to promote transparency and ensure that anyone who is interested in renting has an equal opportunity. While the Hadleys emphasise that they are not asking for preferential treatment and agree that the area needs diversity, they hope the authority can offer small businesses – especially those that have long been part of the community – a chance to stay. 'We want to be here,' Mrs Hadley says. 'But we don't know what rental prices they will throw at us... We are not sure how important it is for someone else who wants to rent a space here, but for us, it is important because we have always been here.' A spokesperson for the SLA says it proactively seeks innovative ways to further unlock the potential of state-managed properties. On top of rental prices, tender proposals are also evaluated based on their creativity, contribution to the precinct's vibrancy and incorporation of green and sustainable initiatives. The goal is to enhance community engagement and ensure Chip Bee Gardens remains interesting and relevant to the evolving lifestyles of both locals and internationa l visitors. Terraced houses and walk-up apartments in Chip Bee Gardens are state properties managed by the Singapore Land Authority and are let out on a two-year lease via open tenders. ST PHOTO: ARIFFIN JAMAR Another business that has adapted to the changes is Joo Ann Foh. Nestled within Holland Road Shopping Centre, it has evolved significantly since it was established as a Chinese medicinal hall in 1906. In the 1960s when the British military forces moved into the area, the medicinal hall expanded its offerings to include daily goods and provisions for the new community. This continued until the 1990s, when the second generation took over, turning it into a photography and printing service shop. 'The only constant in Holland Village is change,' says Mr Kenneth Ng, 48, a third-generation owner. 'It's not something we love, but something we have learnt to accommodate.' His younger brother Adam, 46, weighs in: 'We are doing our best to keep the business going because our customers already see us as part of Holland Village... they trust us, and they recommend us to their friends.' Holland Village used to have a laid-back feel, he reminisces. There were shops selling rattan goods, antiques and party supplies – quirky, niche places that made the area special. 'These unique offerings drew people in,' he says. Brothers Adam Ng (left) and Kenneth Ng are the third-generation owners of Joo Ann Foh. ST PHOTO: TARYN NG 'Now, whatever you find here... you can find elsewhere. There is nothing exclusive here to generate foot traffic.' While they understand why landlords lease spaces to big-name chains with deep pockets, they believe this is neither sustainable nor beneficial for the neighbourhood. 'We need to take a broader view,' says Mr Kenneth Ng. 'Imagine: Thambi now reopens at the front of One Holland Village. It is just a modest magazine stand, but it is also a beloved local landmark. So why not consider lowering the rent to bring in more businesses like this to make this place special?' The Ng brothers anticipate further shifts in the area's dynamics following the completion of the mixed-use development. 'It is too early to say exactly how things will change, but we will see a new wave of residents moving in, and the office tower will be filled as well,' says Mr Kenneth Ng. A family photo taken at Joo Ann Foh's original shop in Holland Avenue in the 1980s. A section of the shop carried photography-related products, while another section offered daily provisions. Seen here are business founder Ng Chin Wah (with glasses), second-generation owner Paul Ng and his wife Irene Mah, and the couple's young sons Kenneth Ng (left) and Adam Ng. PHOTO: COURTESY OF JOO ANN FOH Ms Clara Ong, who has a pet corgi with her boyfriend, were regulars at One Holland Village when it first opened as they were attracted by its pet-friendly appeal, but their visits have since tapered off. 'Most stores still require pets to be in carriers or strollers and many restaurants allow them only in the outdoor seating areas,' the 29-year-old marketing executive explains. 'We usually end up going elsewhere like East Coast Park or places with more open space and a more relaxed vibe for pets.' Ms Ong remembers Holland Village as a place once known for its hidden gems. 'Now, it feels too commercial.' Giving the space a chance If uncertainty breeds opportunity, it might explain why Mr Lee Joon Peng, 45, took a leap of faith three years ago in setting up That Wine Place – a restaurant-bar and wine academy – at 261 Holland Avenue. The very same address once housed Palm's Wine Bar, one of the first restaurant-bars in Holland Village, which helped shape its vibrant drinking and dining culture in the 1980s. A 1988 photo of Palm's Wine Bar (right), one of the first restaurant-bars in Holland Village. It helped shape the enclave's vibrant drinking and dining culture. The site is now home to That Wine Place. PHOTO: ST FILE Opening That Wine Place was a blend of two passions – his wife's nostalgic fondness for Holland Village and his love affair with wine bars. 'Holland Village used to be very chill,' Mr Lee recounts, sharing that his wife often lunched here during her PhD days at NUS. Meanwhile, his regular business trips to Taiwan exposed him to the island's buzzing wine bar culture, which inspired him with its warmth and charm. However, what began as a promising venture has become increasingly difficult to sustain. 'Seriously, I also want to know why people are not coming to Holland Village,' Mr Lee says. The busiest times are typically the first and last weeks of each month. 'Midweek is usually quiet, we don't see many people, not even on the road,' he adds. Mr Lee believes the slowdown is part of a broader shift across Singapore's food and beverage (F&B) industry. 'We see the closure of many dining places. For wine, in particular, people are no longer buying them in Singapore, they would prefer to do it overseas.' At the same time, diners are spoilt for choice and rising inflation has made them more price-conscious. It is little wonder, he adds, that some businesses are pulling out of Holland Village altogether or choosing to open second outlets closer to the city centre. Mr Lee Joon Peng says opening That Wine Place was a blend of two passions – his wife's nostalgic fondness for Holland Village and his own love affair with wine bars. ST PHOTO: JASON QUAH 'Most of our customers here are families or couples. At most, they will open one bottle, maybe two,' Mr Lee explains. 'If I have an outlet in town, I could cater to business meetings and company events where we would sell more. Holland Village could do so much better if we manage to attract the office crowds from the nearby Star Vista area.' Like other business owners, Mr Lee feels that the newer developments do not blend well with the character of the original Holland Village, and more importantly, that they lack a strong pull factor. One Holland Village may attract pet owners as a casual hangout, with a few go-to spots like Surrey Hills Grocer or Fireplace by Bedrock, he says. But beyond that, people come and go, and the crowds do not spill over. 'I don't see it's a place that will bring more people in here... because there is nothing new and exciting to make them think, 'Oh, I need to come back again.'' That's why he calls his business venture a bit of a gamble. 'It is a 'hit or miss',' he admits. 'This place is not making a profit, but we are fortunate to have a reasonable landlord. I also believe F&B is the kind of business where you nurture and invest for the long run.' One visitor who finds Holland Village worth discovering is Mr Maro, an Italian business consultant who has been visiting Singapore frequently since 2017. While the area does not draw the kind of crowds he sees at Orchard Road, he believes that has not affected the quality of what is on offer. 'I still remember my first visit here – it was to 2am: dessertbar . The level of creativity and finesse in the desserts was something I had not seen elsewhere,' says the 57-year-old, who did not give his full name. Lorong Mambong, home to a cluster of bars and restaurants. While Holland Village may not buzz with the same energy as Orchard Road, it has not affected the quality of what is on offer, says a regular visitor. ST PHOTO: TARYN NG More recently, he dined at Le Bon Funk and was equally impressed by its curated wine list. 'I cannot speak about what Holland Village used to be, but there are some seriously high-calibre restaurants here – if you know, you know.' Can Holland Village be revived? Mr Lee believes Holland Village still holds a lot of untapped potential. One idea is to spruce up Holland Village Park just outside That Wine Place. Outdoor seating, for example, could make the space more inviting without obstructing foot traffic. 'I once spent an evening under those trees with my friends,' Mr Lee recalls. 'The breeze, the vibe, everything just felt perfect – like the old Holland Village coming back all over.' He adds: 'If we have more places like that, where people could sit, relax and unwind in the space... it could create a brand-new reason for people to stay longer and keep coming back.' Mr Lee hopes outdoor seating can be added to the communal space in front of his restaurant-bar. ST PHOTO: JASON QUAH Some other tenants in Chip Bee Gardens told ST that they have been asking for a sheltered walkway linking the MRT station to the shops for a few years. Instead, they were offered a piecemeal solution: the option of installing standardised clear shelters in front of each store. But the tenants worry these static structures will create new problems – collecting leaves, heating up under the sun and making outdoor seating uncomfortable. Summing up the general frustration, Mr Hadley says: 'If Holland Village is a brand, then right now, no one is managing it.' Mr Lee adds that the lack of serious discussion about the area's commercial direction is hurting businesses and customers alike. As for Mr Quan, he believes the area needs better curation. 'Many of the stores here are service-based. If you were a tourist or a local from another neighbourhood, would you come all the way to visit a dentist, a pet shop, a pilates studio or a kitchen supply store? Probably not.' But he acknowledges the other side of the coin. 'They have been here for 10, 20 years and their loyal customers keep them going. The question then becomes: Should Holland Village be a hub for services or a place for unique small local businesses?' For the Ng brothers, the answer lies in embracing Singapore's retail heritage. Business owners believe there is a lack of serious discussion about the area's commercial direction, and that if Holland Village is a brand, no one is managing it at the moment. ST PHOTO: TAYRN NG 'Some people don't even realise we have been around for so long,' says Mr Kenneth Ng. 'Others come in and tell us they are third-generation customers. That says a lot.' He is committed to business growth, but says there is only so much he and his brother can do. He notes that even some popular home-grown names, like Charles & Keith and TWG, had to reinvent themselves to survive. 'They have gone international and polished up their image, but they don't feel local any more,' he observes. 'They are selling a lifestyle, an idea, rather than holding on to their original identity. 'It seems like this is the reality for local brands – you either pivot, sell the business or franchise, or you risk getting left behind.' Ms Chan says the perception of local brands has changed over the past decade. More Singaporeans now embrace them for their thoughtful design and small-batch craftsmanship. Ironically, this has led to fewer home-grown brands eyeing Holland Village. 'In the past, when there was little awareness of supporting local brands, it was hard for them to enter major shopping malls, so they turned to niche areas like Holland Village. Now, many malls open their doors to local brands, promising them better foot traffic and visibility,' she says. 'So, where do the local brands prefer to be – there or here?' Still, some believe there is room for revival – and it may lie in collaboration. Mr Hadley suggests establishing a merchant association to give business owners a platform to voice concerns, propose improvements and initiate partnerships with others in the neighbourhood. Past efforts fell through due to disagreements between small businesses and franchise operators, which he believes could be resolved by a neutral body – likely a government body – with a clear mandate to represent all parties. Mr Lee has already teamed up with nearby Wala Wala Cafe Bar to run cross-promotions: buy a specific wine at one venue, get perks at the other. 'These are the kinds of ideas that bring energy back to the village,' he says. 'Business owners should be brainstorming together: What do people want and how can we offer it? These innovations will only make Holland Village more lively and exciting.' At Bynd Artisan's 10th anniversary party, Ms Chan had a poignant exchange with her mother, who asked why she was celebrating the closure of the Chip Bee Gardens outlet. Her reply? 'Because there is beauty in difficult moments.' Ms Chan believes such times are exactly when resilient entrepreneurs shine – finding creativity in chaos and growth in challenge. 'Running a business involves more than sentiments. We may not always know how things will turn out, so this chaos – unexpected and demanding as it is – is something we have learnt to relish.' Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
25-05-2025
- Business
- Straits Times
Singtel hits five-year high; no reprieve for Yangzijiang as stock slides further
Singtel has hit more than half of its $6 billion mid-term asset recycling target and is now raising this target to $9 billion. ST PHOTO: TARYN NG SINGAPORE - Shares of Singtel hit a five-year high of $3.99 on May 22, after the company announced it had proposed a final dividend of 10 cents per share for the financial year ended March 31. The proposal brought total dividends for the year to 17 cents, up from 15 cents in the previous year. Singtel also said it will buy back up to $2 billion of its shares over three years to return excess capital to shareholders. It added that the buybacks will be funded by excess capital from the group's asset recycling proceeds. Following its divestment of a 1.2 per cent stake in its Indian associate Bharti Airtel for $2 billion earlier in May, Singtel has hit more than half of its $6 billion mid-term asset recycling target and is now raising this target to $9 billion. The company reported a net profit of $4.02 billion for the financial year, more than five times that of the previous year. This was due to a net exceptional gain of $1.55 billion, mainly from the partial divestment of its Comcentre headquarters, compared with a net exceptional loss of $1.47 billion a year ago. Shares of Singtel were heavily traded through the week, and closed on May 23 at $3.88. Yangzijiang Shipbuilding continued to slide last week. The shipbuilder's shares have been falling ever since a US proposal to impose fees on Chinese-built vessels entering American ports was announced on Feb 21, the same day the shares hit an all-time high of $3.22. In a business update on May 22, Yangzijiang reported securing only six new ship orders worth US$290 million (S$372 million) in the first quarter of 2025 – less than 5 per cent of its US$6 billion annual target. The company attributed the slowdown to ship owners holding back amid uncertainty over US port fees. Yangzijiang also noted that it remains on track to deliver its targeted 56 vessels in 2025 and holds an order book valued at US$23.2 billion, with deliveries scheduled over the next three years. Nevertheless, its shares fell by more than 6 per cent through the week, closing on May 23 at $2.06. Thakral jumps on possible IPO of Australia associate Shares of Thakral Corporation jumped by more than 16 per cent to $1 on May 23, after providing an update on its associate company, GemLife, an over-50s lifestyle resorts business in Australia in which it holds a 31.7 per cent effective stake. Thakral said GemLife has made progress in evaluating its future growth options, including a potential initial public offering (IPO). The update follows an April 7 exchange filing, in which Thakral issued a clarification in response to an article published by the Australian Financial Review on April 2. The article had said that GemLife's owners have appointed financial advisers as well as representatives to arrange introductory meetings with investors as they explore a potential IPO. Thakral stated then that while introductory meetings with investors are being planned regarding GemLife, there is no certainty that any transaction will take place. In its first-quarter business update on May 19, Thakral, which invests in real estate and lifestyle brands, revealed that its revenue for the period had risen by 26.6 per cent year on year to $76 million. Meanwhile, its profit before tax was up 27.6 per cent to $6.3 million over the period, thanks to higher profit contributions from GemLife, which completed 58 new homes in its resorts during the quarter, taking the number of occupied homes it operates to 1,862 as at March 31. Great Eastern gets more time to restore its free float Insurer Great Eastern Holdings said on May 23 that it has been granted a third extension of time to comply with free float requirements under Singapore Exchange listing rules. The insurer now has until June 8 to announce its finalised proposal to comply with the rules and will issue an announcement on the matter 'no later' than that. Great Eastern noted in its stock exchange filing that it has been exploring various options to formulate a proposal that meets the minimum 10 per cent free float requirement and addresses the interests of stakeholders. It added that it has made 'significant progress' on that front. Shares of Great Eastern have been suspended from trading since July 2024, after the company lost its free float following a takeover bid by its majority shareholder OCBC Bank. OCBC in May 2024 made a $1.4 billion voluntary unconditional general offer for the remaining 11.56 per cent stake in Great Eastern that it did not already own. At the close of the offer in July 2024 however, the bank had managed to accumulate just 93.52 per cent of the insurer, falling short of the 95 per cent stake required for compulsory acquisition and delisting. Some minority shareholders, who say OCBC's offer price for Great Eastern of $25.60 per share is below what the insurer is worth, have refused to sell their shares. They have also noted an independent financial adviser's opinion that the offer, while reasonable, is nevertheless unfair. Great Eastern Holdings has been granted a third extension of time to comply with free float requirements under Singapore Exchange listing rules. ST PHOTO: KUA CHEE SIONG Meanwhile, chief executive of Cosmosteel Holdings Ong Tong Hai has been purchasing shares of the steel company in the open market. Between May 20 and May 23, Mr Ong purchased around 6.4 million Cosmosteel shares, raising his stake in the company to 16.98 per cent. Notably, at 21.87 cents to 22 cents each, the price paid by Mr Ong for the shares is higher than an ongoing offer of 20 cents per share made by an entity called 3HA Capital. 3HA Capital comprises parties including Hanwa Singapore, a subsidiary of Tokyo-listed steel trader Hanwa Co, which is Cosmosteel's single largest shareholder with a 31.61 per cent stake. While 3HA Capital's offer price of 20 cents is 48.1 per cent higher than Cosmosteel's share price of 13.5 cents on May 14, it is still a discount to the company's net asset value per share of 29.31 cents as at March 31. 3HA Capital has said that it plans to continue to develop and grow Cosmosteel's existing businesses and keep the company listed. However, if it receives more than 90 per cent of Cosmosteel's shares, it might then exercise the right to compulsorily acquire the remaining shares and delist the company. Other market movers Shares of Metro Holdings, which had initially surged at the start of the week, fell 1.2 per cent to close at 41 cents on May 23, after the real estate investment company reported losses for the year ended March 31. Metro Holdings reported losses for the year ended March 31. PHOTO: ST FILE Metro reported a loss after tax of $224.7 million for the period compared with a profit of $14.6 million in the previous year, due to reductions in the value of its property portfolio in China, where the economy continued to experience a downturn. Group revenue, which was mainly generated by sales at the Metro Paragon and Metro Causeway Point department stores in Singapore, fell by almost 10 per cent year on year to $104.5 million. As a result, the retail division reported a loss after tax of $6.9 million for the year compared with a profit of $1.8 million in the previous year, amid challenges confronting Singapore's retail sector, Metro CEO Yip Hoong Mun said. Shares of Food Empire continued to rise last week. They reached a five-year high of $1.80 on May 20, before closing the week at $1.77. Analysts have turned bullish on Food Empire since the company announced on May 13 higher revenues for the first quarter, driven by strong sales of its instant coffee products in Vietnam. In contrast, they are now less bullish over Thai Beverage, whose shares have lost value due to weaker margins and consumer sentiment in recent years. They closed last week at 46 cents, down by more than 2 per cent. What to look out for this week Shares of Sats could see some trading activity this week, after the company reported on May 23 after the market closed a net profit of $243.8 million for the year ended March 31. The company saw its profit rising by more than four times from a year ago, thanks to 'notable customer wins across (Sats') network, including multiple new cargo and ground handling contracts secured with key customers such as Air India, Emirates and DHL in major airports', CEO Kerry Mok said. Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
22-05-2025
- Business
- Straits Times
Changi Airport Group full-year net profit doubles to $841 million
Passenger movements reached a record 68.4 million. Meanwhile, air traffic movements totalled 371,000, up 8 per cent from a year ago. ST PHOTO: TARYN NG SINGAPORE - Changi Airport Group (CAG) saw its net profit almost double to $841 million for the full year ended March 31, up from $431 million in the year-ago period. The 95 per cent rise in net profit takes into account 'exceptional items', including non-cash revaluation gains and the write-back of provisions by subsidiaries. Excluding these exceptional items, it posted a net profit of $685 million for the full year, the group announced in a bourse filing on May 22. The group's earnings before interest, taxes, depreciation and amortisation, or Ebitda, rose 22 per cent from a year ago to $1.5 billion. Revenue was up 13 per cent at $3.1 billion, from $2.7 billion in the previous year, primarily due to an increase in passenger traffic. 'Growth in concession revenue remained subdued as ongoing global economic uncertainties continued to weigh on consumer sentiments and spending,' CAG said. Passenger movements reached a record 68.4 million. Meanwhile, air traffic movements totalled 371,000, up 8 per cent from a year ago. In the previous financial year, passenger movement came in at 62.5 million, while air traffic movements totalled 344,000. Group operating expenses rose 5 per cent year on year to $1.6 billion. The group said that despite inflationary pressures, it was able to contain its operating expenses through stringent cost management of core operating and maintenance expenses. Mr Yam Kum Weng, chief executive officer of CAG, said the airport's strong financial performance reflects the improvement in air travel during FY2024. Changi Airport benefited from broad-based traffic growth, as well as the launch of services by new airlines and addition of new city links, he added. During the year, the group invested close to $1 billion to refresh and expand airport facilities, as well as to develop Changi East. It also recently broke ground on Terminal 5. With the global economic environment in flux, Mr Yam said that CAG will focus on improving its operational capabilities and efficiency. 'We will also continue to strengthen our collaboration with the aviation ecosystem partners to deliver the best Changi experience for our passengers,' he added. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
19-05-2025
- Business
- Straits Times
SingPost, FedEx deepen partnership with islandwide roll-out of parcel drop-off service
The expanded collaboration aims to streamline the delivery process and enhance service efficiency, particularly for cross-border shipments. ST PHOTO: TARYN NG SINGAPORE - Singapore Post (SingPost) has ramped up its partnership with global transport company FedEx with the extension of FedEx's parcel drop-off services to all post offices islandwide. This raises parcel acceptance points from six to 43, the two companies said in a joint statement on May 19. Customers can now drop off their FedEx parcels at all SingPost post office POPStop counters as well as POPStop@Tampines MRT. After they are dropped off, the parcels are transferred to FedEx on a daily basis with no additional charges or paperwork required. This builds on a pilot programme launched in September 2023, when SingPost signed a memorandum of understanding (MOU) with FedEx Express. Under the MOU, customers could drop-off their FedEx parcels at PopStop counters of six participating post offices – in Punggol, Raffles Place, Tampines, Woodlands, Jurong and Marine Parade – at no extra cost. 'The positive response from customers during the pilot period underscored the demand for greater convenience and accessibility in international shipping,' said SingPost. The expanded collaboration aims to streamline the delivery process and enhance service efficiency, particularly for cross-border shipments, the group added. Ms Neo Su Yin, group chief operating officer at SingPost, said that partnerships with international logistics companies such as FedEx enable SingPost to offer its customers more options for international shipping by 'streamlining logistics' for both businesses. Mr Eric Tan, managing director of FedEx Singapore, said that leveraging SingPost's extensive postal network makes it more convenient for customers to access FedEx services. The initiative is part of FedEx's ongoing efforts to expand its access points and enhance its service offerings through collaborations. The additional SingPost locations bring FedEx's drop-off points across Singapore to more than 410. A full list of the drop-off points and their operating hours can be viewed at or via the SingPost mobile application. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
