Flo Rida – Wild Ones ft. Sia

Sia Kate Isobelle Furler (born 18 December 1975), better known as Sia, is an Australian downtempo, pop, and jazz singer and songwriter. She is vegetarian and participated in an advertisement with her dog Pantera, for PETA Asia-Pacific to encourage pet neutering.

In June 2010, Furler’s official website announced that all scheduled promotional events and shows had been cancelled due to her poor health. She cited extreme lethargy and panic attacks and considered retiring permanently from performing and touring. According to her Twitter account she was diagnosed with Graves’ disease – an autoimmune disorder with an over-active thyroid. Four months later, in an ARIA Awards interview Furler said her health was improving after rest and thyroid hormone replacement therapy. Furler has said she will release an album in the summer of 2012 and will refrain from touring temporarily.

Cedele by Bakery Depot

Interview with Ms. Yeap Cheng Guat, Founder of Cedele By Bakery Depot
by Teo Sok Huang on 28-May-2009

Founded in July 1997 and with the establishment of the brand name Cedele in 1999, this home-grown chain has expanded to 17 stores comprising of bakery cafes, bakeries and all-day dining restaurants. Bakery Depot has been advocating positive eating, attitude and healthy food, made responsibly and with great passion by artisan bakers. With its philosophy of “Eat Well, Be Well”, Bakery Depot has been creating nutritious and wholesome food, handmade from scratch with fresh and natural quality ingredients, without any unhealthy preservatives, trans fat or additives. The company has garnered numerous positive reviews from the media and public.

Interviewer’s Comments:
Ms. Yeap appeared sincere and self-confident throughout the interview. One can see her passion and enthusiasm in providing food of the best quality for the better health of her customers and the environment. Ms. Yeap was candid with how her previous working experience, family life and personal thinking have structured her business philosophy. Her dedication towards her company was evident, as she discussed her plans to further innovate and expand the business in Singapore and overseas. Ms. Yeap wants to take the lead in educating consumers on what good food is, and generating the interests of consumers in what goes into their food and how their food is made.

1. What is the nature of your business?
Bakery Depot started out as a bakery, which will always be the backbone of our business. Additionally, we bake for wholesale business. When we launched the Cedele brand, our proposition was to serve healthful meals. We offer a wide variety of wholesome, sugar- and fat-free freshly baked breads and have up to 8 different types of breads daily for our signature gourmet sandwiches. We were also the first to offer soups and salads made from scratch, which was like an innovation back then. Our vegetarian and meat-based soups are so hearty that most people would find that one bowl is sufficient. Our food has absolutely no trans fat and Cedele was the first in the market to introduce organic unrefined sugar in our cakes, pies, pastries and cookies. To date, we have 17 stores comprising of retail bakery, bakery cafe and all day dining restaurants. We are happy that we have provided an avenue for people to be given a choice to eat better.

2. When and why did you decide to become an entrepreneur / take over your family business? NOTE: If it is not a family business, ask: Do your parents have their own businesses too? Have they inspired you in one way or another? (Select appropriate question according to the entrepreneur being interviewed.)
I decided to be an entrepreneur as I want to make a difference and be free to express myself through my work. I also want to advocate healthy food and positive eating. My parents did have their own business but it is totally different from mine. Education was a priority in our family. My parents worked hard to ensure that their children received an education so that we can make a difference in our lives. My parents taught me virtue, life values, integrity and the value of education.

3. What are your reasons for choosing to do business in this particular industry?
The barrier to entry into the baking business was low. Also, baking is something that I have always done. Cooking and baking are very therapeutic and come as a second nature to me. So I went for cooking lessons and trained. Besides, I have an academic background and am strong in research, so I was confident that I could survive in the business.

4. How did you put together all the resources needed to start your business? For example: getting the start-up capital, hiring staff, doing sales and marketing, advertising, etc.
I try to hire people who are new to the business as they would not have any preconceptions. Also, you must first understand where you are now and what your business format is. I chose the appropriate marketing vehicle based on my budget and an understanding of where my business is. For example, television commercials may not be the best medium for a niche business like Cedele. It is better to find a medium that is more engaging and therefore, we have a website. In my first shop, I provided samples of our food for customers to try. I realized that sampling was one of the best ways to market my business, and calculated that it was cheaper than putting up an advertisement. We then built our customer base by introducing loyalty programmes such as loyalty cards or discounts. Communication is key and we implemented in-store communications posters and leaflets. Some of my thoughts or quotes even ended up on the blackboards in the stores! It is important to be newsworthy and have the press write about us. It is more credible for a third party to talk about us and this free publicity is a powerful vehicle for the public to learn about Cedele. We will also work with other organizations with the same ethos as us for joint promotions to further build the Cedele brand.

5. How did you go about designing the process? Did you have much knowledge regarding this industry when you first started?
I did not really have much knowledge about the F&B industry. I worked in real estate and telecommunications industries before. It was from an FMCG (fast-moving consumer group) multinational company that I learned a lot about business processes. I can resonate with the working style of an FMCG business. Thus I am very process-driven and would inject this discipline into my own business. Being in an FMCG company helped me understand and identify gaps in the market. For example, I noticed that people had to pay a lot for wholemeal bread and only selected groups could afford to buy. Thus I started a bakery business to make wholesome healthy breads more accessible to the public and sold at a reasonable price.

6. I am rather curious, why did you choose the name Cedele?
We started as Bakery Depot, which was essentially a bakery. When we first opened downtown, we decided to serve drinks and meals, alongside our breads, cakes and pastries. However people thought Bakery Depot was just a bakery and it would not be the first place in mind to go to for lunch. Hence we decided to use a different name – Cedele. It represents our retail brand. It does not have any apparent meaning but just sounds like Deli. We had to put a meaning to the Cedele brand in the initial years, as there was quite a lot of press already written about Bakery Depot. After 10 years of building the Cedele brand, landlords recognize and are comfortable with the brand. For the past few years, we have been positioning Cedele on a foothold emphasizing health, hence our “Eat Well, Be Well” proposition.

7. What are some interesting stories you have about your first few customers / first few years in business?
5 years ago, I met a couple who goes to our Frankel Avenue store every weekend. The husband liked to eat cakes and breads but could not as he was diabetic. I created a sugarless cake for him. He also inspired me to do a higher-percentage wholemeal bread and we now have a 100% wholemeal range. I think it is important to know what the customer needs. If a customer has special dietary needs due to medical reasons, we will try to provide a solution if we can at Cedele. Many years ago, I had a customer whose 12-year-old daughter was a recovering cancer patient and had not eaten a birthday cake for 6 years. I made her first birthday cake – a banana-bread cake – where I eliminated the sugar and ripened the bananas. She was so happy! She now regularly buys sugar-free cakes from Cedele. It makes me smile to be able to find happy solutions for my customers.

8. What were some of the challenges you faced when you first went into business?
One of the challenges would be getting the ingredients that we want. It was hard to get people to understand what I am doing, my philosophy and approach to creating and making food. I had peers in the industry who told me that I would fail and it was challenging to get bakers to work for me. For example, my bread recipes exclude fats and sugar.This was against the norm and many bakers did not believe that I could do it.

9. How did you overcome these challenges? Please share some specific examples of the action you took to overcome the challenges.
I did it the hard way by starting from scratch and training my people. I utilized my skills learnt whilst working in the MNCs which were useful in helping me to train my people effectively. I had to let my first baker go after 4 weeks into business as he would want to order improvers, which I do not allow. I also hired a junior baker, who was a cook but knew nothing about baking. Through training and mentoring, he is still with me today.

10. Can you remember your worst day in business or a time when you felt like giving up? What happened that made you feel that way and how did you triumph over it?
People do let me down, such as suppliers and stakeholders in the company. At times, we were unsuccessful in influencing certain people to join our organization or new workers from doing the opposite of what we want. I do get frustrated and start to question whether I should take the easy way out. However, I have never succumbed to such temptations and am clear of what I should do. I rethink how we should improve the shortlisting process and hire different groups of people. The solution is to hire the un-norm people, who have not worked in this industry, to fit into this un-norm business of ours.

11. What are some of your proudest business achievements to date? And why are they so important and meaningful to you?
I believe that it is the journey, rather than a fixed moment, that you can be proud of. Nevertheless, I did feel proud when I recently saw a local bakery truck carrying a label that said “No trans fat”. Years ago, Cedele was one of the first to introduce food with no trans fat, so I felt that I have made a shift by creating awareness and fighting against trans fat. You look back at your achievements, after a period of time in which you try to do the positive and right thing, and you see what has been the impact. Therefore another proud moment would be looking at how some of my staff have grown to be different and better persons compared to the day they first joined us.

12. How do you differentiate your business from your competitors? Please provide specific examples.
Cedele stands out from other cafe / restaurant operators because of our “Eat Well, Be Well” positioning and we translate this philosophy into creating and making of our food. We differentiate ourselves based on how and when we cook our food, how we buy the ingredients and how long they are kept. We continuously pay attention to our product quality and presentation, such that when a customer comes to Cedele, he knows that he will get a great deal, not of a low price but of quality and taste. Customers can be assured that our food has no trans fat since our “No Trans Fat” campaign was launched 4 to 5 years ago. We are the first company to use organic unrefined sugar in our products. We make our breads by hand, without using any pre-mix, improvers and preservatives, which are considered necessary in most bakeries. That is why we are artisan bakers, as we know what we are doing and follow the fundamentals. Our soups are gluten-free and thickened with only vegetables. Our cakes, cookies, pastries are handmade from scratch and we use organic unrefined sugar. We also buy diligently and responsibly. We purchase good quality and natural ingredients, with a focus on freshness. Our company has always been green. With a motto of “Waste Not”, we always recycle and order exactly to the required quantity. We also believe that we must give back to the society if we have an opportunity to build the business in a sustainable way. For example, our organic coffee is fairtrade and we buy from a UK-based company which contributes 60-80% of its profit back to the grower communities.

13. What are some business ideas you have implemented that created great results in your business or the industry as a whole?
I try to empower my customer with information, enabling them to make informed choices. I am pleased to make a difference and shift the thinking of people in their choice of eating better. Our all day dining concept was introduced in 2003 and it is doing very well. We were one of the first to make breakfast popular by serving a hearty breakfast, which is the most important meal of the day, at an accessible price. At our stores, our products have absolutely no trans fat. It has always been my mission to serve all organic foods in the future, and I see this as a natural progression for Cedele. We are one of the first to introduce freshly-baked organic breads in Singapore in 1997. Initially, there were not many organic ingredient suppliers and virtually no demand for organic products. However there are a lot of people buying organic products now. We are also the first to highlight gluten-free food in our menu. We have a wide range of gluten-free soups and salads for people who are looking for a low-gluten diet. Any small contributions matter and it may take awhile to gain acceptance, but Cedele has always been unafraid to take the first steps and make decisions outside the norm.

14. Can you share with us some ideas of how you maintain the high standards?
We have a buying department whose sole purpose is to examine the freshness of our ingredients and ensure the right temperature for storing them. Our storage capacity is small to discourage holding large volumes. My HACCP (Hazard Analysis and Critical Control Points) team helps to enforce proper production processes to ensure that fresh quality, cleanliness and hygiene practices and standards are maintained. They scrutinize our entire process of buying, receiving, storage, production and delivery of our ingredients and foods. We train our workers from the start on the disciplines that must be adhered to. As we are manufacturers, we control the ingredients for most of the food that we make. Hence we are able to shortlist suppliers who offer innovations (eg. organic unrefined sugar, grapeseed oil) and fulfill certain prerequisites such as having no trans fat, artificial preservatives and flavourings. We work with local and overseas suppliers to deliver quality and freshness according to our specifications. We do not compromise on quality and freshness and if our specifications are not met, we will reject the entire shipment. The method in which we cook our food and the ingredients that we put into our food are also important. Again, we emphasize freshness and the quality of our ingredients.

15. Where or who do you get your business ideas from?
I build my business just from listening to customers who tell me what they need. I always design food by thinking about the impact to the health of my customers, and will not do it if it is not good for them. For example, our flour has no mold inhibitor preservatives and I was educated about this from a customer, who is the president for a club for children with disabilities. Through research, I learnt that margarine has trans fat and is cancer-causing. This was enough reason for me to stick with butter and exclude margarine from my recipes.

16. What do you see for your business in the next 5 years, and does it include any plans for expansion?
It is inevitable for a business to expand and the form must change regardless of which way your business expands. Our proposition is relevant in a Western country and may probably be better-received there than in Singapore. It is our dream to bring our business into the West. Cedele, as a brand, will evolve to a different form, if the market conditions are ready. Another of my dream is to have a group of entrepreneurs working for our company in their own divisions. Our future end-state is to be all-organic. We will also be moving towards more fair trade products. The costs are higher but I believe I can bring positive impact to the lives of the growers.

17. As you are currently working with mainly overseas suppliers, do you have any plans to work with local firms as well?
I do purchase from local suppliers currently. I would love to support and work with more local enterprises. However, it is hard to find suppliers in the region who are able to complement our business. I strongly encourage young enterprises to work with us and we will be very happy to share our thoughts and philosophy. Hopefully, we can create a positive footprint. We admire people with a sense of responsibility and reliability, and they are whom we can resonate and work with.

18. What does entrepreneurship mean to you?
I do not think it should just refer to a quality of a person who has his own start-up. It can also mean a person who works for a company and starts his own project, thus building ownership, creativity and thoroughness in the business. If they drop their ego, which is always what stops people in their businesses, they will succeed. It is about having a thought in the beginning and putting them into a tangible form.

19. In your opinion, what does it mean to have the ‘spirit of enterprise’?
Always think out of the box. Give yourself the permission to take risks and apply the processes that you have learnt. If you do not dare to take risks or only have a small appetite, then work for people but still be an entrepreneur within the organization.

20. Who or what motivates and inspires you?
My ex-company was an US-based multi-national company. It was a socially responsible company which gave back to the society. I had an ex-colleague who stuck quotes at my desk. 2 quotes that stayed with me through the years: One was from Confucius, “If you enjoy what you do, you will never work another day in your life.” Another one is, “The best ideas are usually found in the graveyard.” Many people have good ideas but they never execute or share them in their lives, so their ideas go to the grave with them. This is for entrepreneurs who want to do something but never did. I decided not to procrastinate anymore and drove myself to open my bakery business. Even if things did not work out, I could still go back to the corporate world and my resume will look better. One of my professors told me that we will probably not remember what we have learnt after our course. The one thing he wanted us to remember is the importance of research and to apply this in our working life. I am very lucky to have had many mentors in my life and I pay attention to the people I meet, how they can engage and add value to my life, so that I can be more educated. Education never stops until the end of your life.

21. Would you quit your business and go back to the corporate world again?
It depends. I will not mind if any corporation can engage my service and I can add value to them.

22. What are some of your business values and what would you like to pass down to others, particularly the younger generation?
It is our mission to impact our customers positively by providing higher value in terms of better quality food at very accessible prices. I made a pact with myself years ago that when the company expands, we will not cut back on ingredients: we would want to buy higher quality ingredients but at lower prices because of our larger volume. This will enable us to pass these benefits to our customers. If you have a regular customer base, you cannot take them for granted. You must respect your customers. They will know when you try to cut corners, so do not even try. Believe in yourself. You should learn the right skills as you work and they should become your habits. Be very interested in your surroundings. Be observant, hardworking, methodological and organized. Do the right thing. Do not venture into business just for the sake of money. Stay true and focused.

23. Can you share some of the more significant events / incidents that affected or shaped your business philosophy and the way you conduct your business?
The recent economic downturn affected us a little but not significantly, as we have always been very sensible with controlling our costs. Previous major incidents such as 9/11 and SARS did not affect us adversely. In fact, the reverse was true: it affected our wholesale business to a major airline. When the contract ended with this client, it gave me a new opportunity to focus and open more shops. I see every downturn as an opportunity. I have always been a healthy eater who exercises regularly. When my ageing parents became ill, I read a lot on nutrition to nurse them back to health. This period helped me to be clearer about the position of my company – to advocate “Eat Well, Be Well”. As our customers continue to patronize us over time, we will need to introduce product innovations with health benefits, to provide a solution for their lifestyle change. For example, we just launched grapeseed oil to be used in our cakes and at our all-day dining stores. Grapeseed oil is a better oxygen carrier to the brain. With grapeseed oil, we use less oil now, so less calories. We subscribe to the concept of “less is more”, and it is a win-win strategy.

24. With the changes in the market today, do you think it has become harder or easier to succeed in business? Why do you say so?
Change is constant. In business, you must constantly create a niche for yourself and seek opportunities. There is no such thing as the market being too crowded. The probability of competition is endless. There are a lot of ideas and opportunities in the food business.

25. What advice would you give young people who want to do their own business?
You should start a business that you can handle. Otherwise it becomes overwhelming and you have to give it up when it becomes too difficult. It is about awareness. I hope all young people view their lives this way: apprehension will always be there but enjoy the journey and do not be worried. Ask yourself what is your strength and build your career from there. Think about the topic that you can resonate with, what you can positively contribute to society and never waste time. Do everything legal and help people.

www.cedeledepot.com

Quote of the Week

“At present we have this rare and good human life of freedom and fortune, but it won’t last forever. We are certain to die and don’t know when. At death nothing at all but our spiritual practice will be of any use to us. That is the only thing worth doing—everything else is a futile waste of energy. We tire ourselves for the sake of reward and reputation and in our search for the kind of companions we prefer, but we can take none of these with us when we die. They must be left behind and only the imprints of negative actions we have performed in the process of trying to acquire them accompany us to our next rebirth. This is not hard to understand, but we must remember it and think about it till it affects the way we think and feel.”

~ Atisha’s Lamp for the Path to Enlightenment, by Geshe Sonam Rinchen, edited and translated by Ruth Sonam, page 31.

Call it any name other than Pilates

Pilates these days has been modified to such an extent that it is no longer what the founder has intended it to be, says the last of the instructors taught by Joseph Pilates.
By Cheah Ui-Hoon

SOME forms of Pilates being taught around the world today – Singapore included – would have met with the approval of the late Joseph Pilates, who devised the exercise method, but some would not.

‘He’d be absolutely livid with some of them, and then others he’d be happy with,’ says Jay Grimes, in his 70s and the last of the first-generation Pilates teachers who had learnt the exercise directly from Joseph and Clara Pilates.

A former contemporary ballet dancer, Mr Grimes had learnt it from the 1960s onwards for more than 10 years, and is pretty much the last one among his cohort who is still teaching – as he realised recently. Ron Fletcher, another first-generation Pilates teacher who had visited Singapore years ago also to teach at Pilates Bodywork Studio, has passed away.

Mr Grimes, who started teaching Pilates in the 1990s, points out that Pilates isn’t something one could learn in a few months or years. ‘To really know and understand it, you’re looking at a minimum of five to 10 years,’ he says. ‘Someone had once said that it’s like peeling an onion – but in this case, the more you peel the more there is to explore.’

The problem with Pilates getting hip these days, and becoming so widespread since a certification came into place, is that instructors are giving twists to the exercise so that they can stand out among the crowd. ‘They learn the mechanics of the exercise, do gimmicks with it and call it Pilates. And even if some are doing wonderful things with it, they should call it another name rather than Pilates,’ says Mr Grimes.

That’s because each time the regime is modified, he notes, it detracts from the way that its founder had intended it to be – which is to work the body from inside out: the organs and bones; and for people to be aware of their bodies, and use it correctly, to have energy and vigour and be resistant to disease.

The first time Mr Grimes learnt of Stott Pilates, he relates, he was horrified. Later, he was even more flabbergasted to learn that it was one of his students who had devised it. The Stott method has more to do with therapy than exercise, he points out, so it takes a different approach. ‘Pilates wasn’t meant to replace physical therapy, for example.’

Mr Grimes is resigned to the fact that Pilates may not mean the same from one instructor to another now, but still thinks that if people want to use it differently from the original intention, they should call it by another name.

There is a misconception that Pilates had devised the exercise for dancers. Far from it, says Mr Grimes. Joseph Pilates first taught boxing and self-defence, but when he was interned on the Isle of Man during World War I because of his German nationality, he started working with patients in hospital beds.

‘At that time, the mentality was to keep the patients in bed and as inactive as possible, so they weren’t allowed to get up to exercise,’ explains Mr Grimes. Joseph didn’t agree with that idea, so he started devising a system of springs to work with patients in bed. ‘And that was the basis of the cadillac that you see today in Pilates studios,’ he adds.

As for himself, he has the most cliched story of how he started learning Pilates, he admits. He was keen to embark on a professional dance career in New York City and at his first ballet class there, the ballet master immediately spotted the effects of a mild childhood polio case. ‘Go and look for Joseph Pilates at 939, 8th Avenue, she told me,’ he recalls.

He stopped by to check out the studio and thought it was a medical torture chamber and was about to hightail it out of there when Clara Pilates caught hold of him. ‘Can I help you? She says,’ Mr Grimes relates as if it happened yesterday.

They were very disciplined in those days, he laughs, so he signed up. ‘I was also willing to do anything to be able to dance better,’ says Mr Grimes, who later joined the renowned American Ballet Theatre.

Pilates changed his body and dancing tremendously, but as a dancer, he had looked at the exercise as a means to an end, and never thought of being a full-time instructor. ‘Plus you couldn’t make a living from teaching Pilates, not until the 1990s,’ he says.

The confluence of two events worked in his favour: it was time to retire from dancing, and by the 90s, Pilates was well-known enough for him to teach it full time.

Mr Grimes had learnt from Joseph for about three years, and then after he passed away in 1984, he learnt from Clara for about 10 years. He had also learnt from John Winters, Joseph’s right hand man.

Mr Grimes now teaches at a studio in Los Angeles, but has also embarked on a project with two teachers to photograph and film his exercises. ‘That’s an interesting project – as they are also filming other students and second-generation teachers and making it available online,’ he says.

Pilatesology.com was designed for teachers and students alike – with some clips done as demonstrations and others as instructional. Mr Grimes is very much behind the project because it’s like a repository of the best Pilates knowledge, he adds.

For those keen on learning Pilates, his advice is to look at the teachers’ lineage – ‘You should look for a lineage which is as close to Joseph and Clara Pilates as you can, so that it’s ‘purer’,’ he says. It’s inevitable that teachers will bring their own personalities into it, but at least it won’t be too diluted, he concludes.

Jay Grimes was in Singapore last week to give classes at Pilates Bodywork Studio, at 1 Finlayson Green and Holland Village, run by Alvin Giam, the only Gold Certified teacher by the Pilates Method Alliance International in Asia, and who had studied with many first and second-generation Pilates instructors.

Higher starting pay for fresh graduates

By S Ramesh | Posted: 30 July 2012 1419 hrs

SINGAPORE: Global management consulting firm Hay Group believes that despite sentiments of a slowdown emerging in the global economy, fresh graduates will fare better this year, with employers in Singapore offering a higher base salary compared to their 2011 cohorts.

According to the Hay Group’s Fresh Graduate Pay Survey 2012 conducted in June, the average starting monthly pay for degree holders without honours is S$2,678; S$2,766 for those with Honours (Second Lower and below); and S$2,882 for those with Honours (Second Upper and higher).

79 companies across general industries in Singapore took part in the survey.

The results showed that jobs in engineering ranked at the top, commanding the highest average starting salary of S$2,777 per month for degree holders (without honours). This was followed by jobs in research and development (S$2,764 per month) and merchandise operations (S$2,742 per month).

For diploma holders, jobs in merchandise operations commanded the highest average starting salary of S$1,934 per month, with design/creative jobs coming in second (S$1,915 per month) and jobs in research and development following suit (S$1,903 per month).

The average starting pay for diploma holders is S$1,866 per month.

-CNA/ac

The Spinal Column

The Vertebral Column (Spinal Column) supports the head and encloses the spinal cord.

The spinal column is comprised of 26 individual bones, these bones are referred to as vertebrae. The spinal column is divided into 5 different areas containing groups of vertebrae and are grouped as follows:

7 cervical vertebrae in the neck.

12 thoracic vertebrae in the upper back corresponding to each pair of ribs.

5 lumbar vertebrae in the lower back.

5 sacral vertebrae which are fused together to form 1 bone called the sacrum.

4 coccygeal vertebrae that are fused together to form the coccyx or tailbone.

The vertebrae are referred to by their name and number, counting down from the top of the spinal column as follows:

The cervical vertebrae are C1 – C7

The thoracic vertebrae are T1 –T12

The lumbar vertebrae are L1 – L5

The sacrum and coccyx do not have numbers and each is thought of as one bone. Spinal nerves exit the sacrum and coccyx at levels (Foramen) within the main structure of each vertebra.

Economists warn of deep recession for Singapore if euro zone breaks up

Singapore could sink into a deep recession if Greece’s debt crisis leads to a break-up of the euro zone and causes another global downturn.

The warning came from economists on Wednesday who outlined a range of nightmare scenarios that, while appearing unlikely at present, remain possible if events spiral out of control.

The downbeat assessment also dovetailed with a new survey on Wednesday showing that Asia’s top companies are less optimistic about their business outlook.

Credit Suisse economist Robert Prior-Wandesforde painted two gloomy narratives that could result in the European monetary union falling apart in the coming months.

The first is one where Greece leaves the grouping but contagion to other European countries is limited; the second involves Greece leaving and contagion spreading.

If this second scenario transpires, Mr Prior-Wandesforde said Singapore would likely experience a deep recession by the year end with the economy contracting 4.6 per cent in the fourth quarter.

If this happens, the economy would be down 0.6 per cent for the whole year, similar to the 1 per cent fall in gross domestic product experienced in 2009 following the financial crisis.

Singapore is officially expected to grow between 1 per cent and 3 per cent this year, the Trade and Industry Ministry has said, although it too has warned of rising risks over the euro zone crisis.

‘This scenario assumes the most immediate impact, through the trade channels and exports to Europe and the United States,’ said Mr Prior-Wandesforde yesterday.

‘There are likely to be other negative implications as well. These include a drying up of trade finance, as witnessed during the financial crisis, as well as a withdrawal of funds from the Asian region to shore up European balance sheets.’

Bank of America Merrill Lynch economist Chua Hak Bin agreed, saying his model showed that an ‘ugly bear case’ could mean a 1 per cent contraction for Singapore’s economy this year.

‘We are worried about the financial contagion channel, which could see credit freeze up and affect many businesses,’ he added.

Mr Prior-Wandesforde was also less optimistic on the prospect of a quick recovery this time as governments have less financial power for another huge stimulus.

In 2010, Asia saw a quick and remarkable V-shaped recovery from the 2009 recession.

Singapore grew at a rapid 14.8 per cent that year, more than making up for the 1 per cent contraction.

Capital Economics noted that Asian governments are better placed than their Western counterparts to pump prime their economies this time but the region also has less firepower than in 2010.

It noted that both Hong Kong and Singapore have the healthiest fiscal positions in Asia, with large surpluses and reserves.

‘However, as trade-dependent economies with big financial sectors, they are the two places in Asia most vulnerable to a crisis in the euro zone and most exposed to another global downturn,’ it said.

‘As a result, even expansionary fiscal policy is unlikely to prevent these two economies from falling into a deep recession if exports slump.’

Fortunately a Greek exit is unlikely to happen in the next six months. Credit Suisse puts the probability at about 20 per cent while Swiss bank UBS says the chances of Greece leaving the euro zone are less than 10 per cent.

Meanwhile, a recent survey showed that Asia’s top companies are now less upbeat about their business outlook than in the first quarter.

The Thomson Reuters/Insead Asia Business Sentiment Index fell to 69 last month from 74 in March.

A reading above 50 indicates an overall positive outlook.

Of the 177 companies polled, 78 said their business outlook for the next six months was positive, while 87 said it was neutral, and 12 said it was negative, Reuters reported.

The poll was conducted between June 4 and 15.

Asked what the biggest risk factor they faced was, 111 companies said global economic uncertainty, and 28 cited rising costs.

‘Things are looking tougher with what’s happening in the global economy. Asia is not fully insulated but will still do relatively better, given that most governments in the region still have leeway to stimulate domestic economies,’ Aberdeen Asset Management Asia investment manager Kristy Fong told Reuters.

‘Cost pressures are another issue, such as rising inflationary pressures in Singapore (and) infrastructure and logistical bottlenecks in India.’

OCBC Investment Research analyst Carey Wong noted that consumers were turning more cautious in placing orders.

‘As long as customers don’t give them very clear order indications, sentiment won’t be that good. As a business owner, you can’t plan ahead, such as planning capital expenditure.’

Diving Destinations

A friend from Hong Kong asked me for advice on booking a diving trip to Pulau Redang for a holiday. Here is my response.

——————————————————————————————————————

I agree that Pulau Redang is the best diving site in Peninsular Malaysia.
http://en.wikipedia.org/wiki/Redang_Island

But only within Peninsular Malaysia.

It is popular with Malaysians because it is near to Kuala Lumpur so people can take a weekend trip there (and they don’t need to pay airfare, just pack up the kids and drive to the jetty).

For visitors from overseas who are going to fly anyway and can afford more than a US$200 package holiday, there are more beautiful beaches and waters at world class locations like:

Pulau Sipadan, East Malaysia (but probably not within your budget and time)
In his film Borneo: The Ghost of the Sea Turtle (1989) Jacques Cousteau said, “I have seen other places like Sipadan, years ago, but now no more. Now we have found an untouched piece of art.”
http://en.wikipedia.org/wiki/Sipadan
http://adventure4ever.photoshelter.com/gallery/Sipadan-Island-Malaysia-Top-10-Dive-Sites-Worldwide/G0000zh3lEIs9xz0/

Nusa Lembongan / Nusa Penida, Bali, Indonesia
http://wikitravel.org/en/Nusa_Lembongan
http://wikitravel.org/en/Nusa_Penida
http://www.nusapenida.com/

Manado, North Sulawesi, Indonesia
http://en.wikipedia.org/wiki/Manado
One of the only places in the world where the prehistoric Coelacanth still exists
http://en.wikipedia.org/wiki/Coelacanth
I have dived there before – absolutely breathtaking and therapeutic.

Lombok, Nusa Tenggara, Indonesia
http://en.wikipedia.org/wiki/Lombok
http://lombokdiving.com/

Lombok and Manado are available by direct flight from Singapore via Silkair.
http://www.silkair.com/mbe/en_UK/content/destinations/id_manado_orientate.jsp
http://www.silkair.com/mbe/en_UK/content/destinations/id_lombok_orientate.jsp

Bali is accessible by direct flight from Singapore by Singapore Airlines, Garuda and Air Asia (I went there in Jan 2012 and Nov 2011).

Dark chocs 'help cut heart attack risks'

SYDNEY – Dark chocolate has ‘significant’ benefits for high-risk cardiac patients and could prevent heart attacks and strokes, Australian researchers say.

Eating 100g of chocolate with a 70 per cent or higher cocoa content every day was an effective risk reduction measure, according to a study by Melbourne’s Monash University

Lead researcher Ella Zomer said 70 fatal and 15 non-fatal cardiovascular events per 10,000 people could be prevented.

‘Our findings indicate dark chocolate therapy could provide an alternative to or be used to complement drug therapeutics in people at high risk of cardiovascular disease,’ Ms Zomer said of the study published in the British Medical Journal.

Her research partner, Professor Chris Reid, said measurements from the 2,013 Australians studied, all of whom had classic risk factors such as high blood pressure and elevated cholesterol or body weight, were run through epidemiological modelling.

The projections of likely deaths and other non- fatal events between those who consumed dark chocolate and those who did not were compared and there was a notable difference.

High-cocoa chocolate is beneficial because it contains antioxidant chemicals called polyphenols which help keep blood vessels dilated, thereby reducing blood pressure and improving blood flow. However, experts caution that excessive consumption of dark chocolate leads to obesity, itself a cause of cardiovascular disease.

AGENCE FRANCE-PRESSE

Quote of the Week

“Man had always assumed that he was more intelligent than dolphins because he had achieved so much…the wheel, New York, wars and so on…while all the dolphins had ever done was muck about in the water having a good time…

the dolphins had always believed that they were far more intelligent than man… for precisely the same reason.”

~ Douglas Adams

Pale Blue Dot

Consider again that dot. That’s here. That’s home. That’s us. On it everyone you love, everyone you know, everyone you ever heard of, every human being who ever was, lived out their lives. The aggregate of our joy and suffering, thousands of confident religions, ideologies, and economic doctrines, every hunter and forager, every hero and coward, every creator and destroyer of civilization, every king and peasant, every young couple in love, every mother and father, hopeful child, inventor and explorer, every teacher of morals, every corrupt politician, every “superstar”, every “supreme leader”, every saint and sinner in the history of our species lived there – on a mote of dust suspended in a sunbeam.

~ Carl Sagan (1934 – 1996), Pale Blue Dot: A Vision of the Human Future in Space (1994)

HK must kick its property addiction

HK must kick its property addiction
Andy Xie warns that Hong Kong’s dependence on the housing sector to drive economic growth is feeding another asset bubble. When it bursts, he says, the government should resolve to kick the addiction

Apr 23, 2012

Hong Kong did not learn from the property crash and economic collapse of 1998. Instead, it has tried hard to reinflate the bubble. After squeezing supply for over a decade and with the help of the US Federal Reserve’s zero interest rate, the bubble is back. But it is a Pyrrhic victory.
Continue reading “HK must kick its property addiction” →

How Exercise Could Lead to a Better Brain

By GRETCHEN REYNOLDS
New York Times
April 18, 2012

The value of mental-training games may be speculative, as Dan Hurley writes in his article on the quest to make ourselves smarter, but there is another, easy-to-achieve, scientifically proven way to make yourself smarter. Go for a walk or a swim. For more than a decade, neuroscientists and physiologists have been gathering evidence of the beneficial relationship between exercise and brainpower. But the newest findings make it clear that this isn’t just a relationship; it is the relationship. Using sophisticated technologies to examine the workings of individual neurons — and the makeup of brain matter itself — scientists in just the past few months have discovered that exercise appears to build a brain that resists physical shrinkage and enhance cognitive flexibility. Exercise, the latest neuroscience suggests, does more to bolster thinking than thinking does.

The most persuasive evidence comes from several new studies of lab animals living in busy, exciting cages. It has long been known that so-called “enriched” environments — homes filled with toys and engaging, novel tasks — lead to improvements in the brainpower of lab animals. In most instances, such environmental enrichment also includes a running wheel, because mice and rats generally enjoy running. Until recently, there was little research done to tease out the particular effects of running versus those of playing with new toys or engaging the mind in other ways that don’t increase the heart rate.

So, last year a team of researchers led by Justin S. Rhodes, a psychology professor at the Beckman Institute for Advanced Science and Technology at the University of Illinois, gathered four groups of mice and set them into four distinct living arrangements. One group lived in a world of sensual and gustatory plenty, dining on nuts, fruits and cheeses, their food occasionally dusted with cinnamon, all of it washed down with variously flavored waters. Their “beds” were colorful plastic igloos occupying one corner of the cage. Neon-hued balls, plastic tunnels, nibble-able blocks, mirrors and seesaws filled other parts of the cage. Group 2 had access to all of these pleasures, plus they had small disc-shaped running wheels in their cages. A third group’s cages held no embellishments, and they received standard, dull kibble. And the fourth group’s homes contained the running wheels but no other toys or treats.

All the animals completed a series of cognitive tests at the start of the study and were injected with a substance that allows scientists to track changes in their brain structures. Then they ran, played or, if their environment was unenriched, lolled about in their cages for several months.

Afterward, Rhodes’s team put the mice through the same cognitive tests and examined brain tissues. It turned out that the toys and tastes, no matter how stimulating, had not improved the animals’ brains.

“Only one thing had mattered,” Rhodes says, “and that’s whether they had a running wheel.” Animals that exercised, whether or not they had any other enrichments in their cages, had healthier brains and performed significantly better on cognitive tests than the other mice. Animals that didn’t run, no matter how enriched their world was otherwise, did not improve their brainpower in the complex, lasting ways that Rhodes’s team was studying. “They loved the toys,” Rhodes says, and the mice rarely ventured into the empty, quieter portions of their cages. But unless they also exercised, they did not become smarter.

Why would exercise build brainpower in ways that thinking might not? The brain, like all muscles and organs, is a tissue, and its function declines with underuse and age. Beginning in our late 20s, most of us will lose about 1 percent annually of the volume of the hippocampus, a key portion of the brain related to memory and certain types of learning.

Exercise though seems to slow or reverse the brain’s physical decay, much as it does with muscles. Although scientists thought until recently that humans were born with a certain number of brain cells and would never generate more, they now know better. In the 1990s, using a technique that marks newborn cells, researchers determined during autopsies that adult human brains contained quite a few new neurons. Fresh cells were especially prevalent in the hippocampus, indicating that neurogenesis — or the creation of new brain cells — was primarily occurring there. Even more heartening, scientists found that exercise jump-starts neurogenesis. Mice and rats that ran for a few weeks generally had about twice as many new neurons in their hippocampi as sedentary animals. Their brains, like other muscles, were bulking up.

But it was the ineffable effect that exercise had on the functioning of the newly formed neurons that was most startling. Brain cells can improve intellect only if they join the existing neural network, and many do not, instead rattling aimlessly around in the brain for a while before dying.

One way to pull neurons into the network, however, is to learn something. In a 2007 study, new brain cells in mice became looped into the animals’ neural networks if the mice learned to navigate a water maze, a task that is cognitively but not physically taxing. But these brain cells were very limited in what they could do. When the researchers studied brain activity afterward, they found that the newly wired cells fired only when the animals navigated the maze again, not when they practiced other cognitive tasks. The learning encoded in those cells did not transfer to other types of rodent thinking.

Exercise, on the other hand, seems to make neurons nimble. When researchers in a separate study had mice run, the animals’ brains readily wired many new neurons into the neural network. But those neurons didn’t fire later only during running. They also lighted up when the animals practiced cognitive skills, like exploring unfamiliar environments. In the mice, running, unlike learning, had created brain cells that could multitask.

Just how exercise remakes minds on a molecular level is not yet fully understood, but research suggests that exercise prompts increases in something called brain-derived neurotropic factor, or B.D.N.F., a substance that strengthens cells and axons, fortifies the connections among neurons and sparks neurogenesis. Scientists can’t directly study similar effects in human brains, but they have found that after workouts, most people display higher B.D.N.F. levels in their bloodstreams.

Few if any researchers think that more B.D.N.F. explains all of the brain changes associated with exercise. The full process almost certainly involves multiple complex biochemical and genetic cascades. A recent study of the brains of elderly mice, for instance, found 117 genes that were expressed differently in the brains of animals that began a program of running, compared with those that remained sedentary, and the scientists were looking at only a small portion of the many genes that might be expressed differently in the brain by exercise.

Whether any type of exercise will produce these desirable effects is another unanswered and intriguing issue. “It’s not clear if the activity has to be endurance exercise,” says the psychologist and neuroscientist Arthur F. Kramer, director of the Beckman Institute at the University of Illinois and a pre-eminent expert on exercise and the brain. A limited number of studies in the past several years have found cognitive benefits among older people who lifted weights for a year and did not otherwise exercise. But most studies to date, and all animal experiments, have involved running or other aerobic activities.

Whatever the activity, though, an emerging message from the most recent science is that exercise needn’t be exhausting to be effective for the brain. When a group of 120 older men and women were assigned to walking or stretching programs for a major 2011 study, the walkers wound up with larger hippocampi after a year. Meanwhile, the stretchers lost volume to normal atrophy. The walkers also displayed higher levels of B.D.N.F. in their bloodstreams than the stretching group and performed better on cognitive tests.

In effect, the researchers concluded, the walkers had regained two years or more of hippocampal youth. Sixty-five-year-olds had achieved the brains of 63-year-olds simply by walking, which is encouraging news for anyone worried that what we’re all facing as we move into our later years is a life of slow (or not so slow) mental decline.

Set up rainy-day fund before investing

Given uncertainty and higher costs of living, experts advise saving 6 to 12 months of pay
01 Apr 2012
by AARON LOW

One of the most basic rules for personal financial planning is to establish a personal emergency fund for a rainy day. The conventional wisdom is that the emergency fund should comprise between three and six months’ worth of one’s salary. So for instance, if a person earns $4,000 a month, his emergency fund should be built to at least $12,000.

But increasingly, this conventional wisdom is being challenged on many fronts.

For one thing, financial advisers say that the uncertain economic outlook and higher costs of living mean that three months of savings may simply not be enough.

Mr Patrick Lim, director of financial advisory firm PromiseLand, advises his clients to save between six and 12 months of salary as an emergency fund.

“I see a lot of people who, in their 40s, get retrenched, and they can’t find a job easily. They may take up to a year (to find another job) and even then, they may have to face a pay cut,” he says.

“Call me conservative but I prefer to be safe than sorry.”

Mr Christopher Tan, chief executive of financial advisory firm Providend, agrees and adds that it is not surprising that in the United States, financial experts are saying 10 months of expenses should be set aside as emergency funds.

But whether it is six or 12 months, all financial experts say putting aside a sum of money should be a top priority for everyone.

Financial adviser Leong Sze Hian says it is absolutely crucial that people focus on building this fund first, even before thinking of buying a house or car.

“They spend and spend, then they lose their job. They end up having to sell off to pay debts or cashing out on their insurance policy before maturity which will cost them a lot more,” he says.

It is unclear whether Singaporeans have adequate savings for such emergencies, but anecdotal evidence from financial advisers points to an alarming lack of awareness.

Mr Lim and Mr Leong say the majority of people they meet do not consciously set aside such funds, either because they think it is not important or they are unaware that they need to.

Says Mr Leong: “It’s not that difficult to achieve and everyone, whether low-income or high-income, should try to do this.”

For the big spenders, here are five tips to get started on building the emergency fund:

Budget, budget, budget. You can’t start saving until you know how much you spend, says Mr Leong.

“Get your family together to sit down and figure out what money comes in and what goes out. Then you will be able to see what can be cut and how to save,” he says.

Set up an automated transfer that channels part of your salary to a savings account.

Says Mr Tan: “Every month, upon getting your net salary, before you even spend your money, stash away your monthly saving amount to another account.

“Continue to do this till you reach your emergency fund. Beyond that, the monthly ‘saveable’ can now be invested.”

Save before you invest. If you have just started working, you should save first before buying a car, says Mr Lim.

“One way to accumulate savings is to look at topping up your Central Provident Fund. For the first $20,000 of your Ordinary Account, you get 3.5 per cent; for the Medisave and Special accounts, you get 5 per cent for the first $40,000,” he says.

“Given the low interest rate environment, that’s a gold mine. Focus on maximising the returns first from these savings.”

Break down your expenditure to the last dollar, including credit card bills. Once you see exactly how much you spend versus how much you bring in, it will be clear how much you need to cut back on, says Mr Tan. Stay clear of debt, including charge and credit cards. If you need to swipe the plastic, make sure you pay it back in full. There is always the temptation to spend more than one has, since one does not quite see the bill until later. But if you need to use the credit card, pay it back in full. Snowballing on credit card debt is the surest way to destroying any kind of savings.

Why protection?

Investment and protection are two distinct strategies that address two very different needs. Both, however, are necessary in order to meet an individual’s financial goals

Manpreet Gill, Senior Investment Strategist, Standard Chartered Bank
04 Jan 2012

MOST of us tend to relate our financial goals with our investments. Within this framework, success in our investments correlates with meeting our investment goals, while protection is usually incorporated to the extent that it addresses the downside risks of the investment portfolio.

We think protection and its role in meeting one’s overall financial goals, however, have a much wider meaning. Downside risk extends beyond the risk of losses on one’s investment portfolio. For example, if an individual were unfortunate enough to be rendered disabled such that returning to a regular job was impossible, his or her income would be reduced or stop completely. But financial commitments and goals will not change. Without a similar level of income, it would be increasingly difficult or impossible to meet their financial goals.

In our view, investment and protection are two separate, but highly complementary activities that work together to help you meet your financial goals. Investments focus primarily on growing your capital (or just staying ahead of inflation). Protection, on the other hand, focuses on ensuring continuity of cash flows so that you are able to meet your commitments even if your primary source of income reduces, or stops.

There are, in our view, two significant risks that should be addressed through a protection plan, over and above any existing investment strategy that one may have in place.

The first is the risk of early mortality or disability. This is the obvious one – however unfortunate and unlikely, if mortality or disability were to occur then your income would cease. Your family’s financial commitments, however, would not. An investment portfolio cannot fully address this risk because a financial market instrument that allows you to directly hedge against this risk does not exist.

The risk of early mortality or disability is also highly uncertain in terms of timing and likelihood. Protection – in this case executed via insurance – is necessary over and above one’s investment portfolio in order to mitigate this risk and ensure one’s family is able to meet financial commitments such as education costs and ordinary living expenses.

The second is the risk of longevity. This is less obvious. According to World Bank data on life expectancy, the average Singaporean national born in 1965 could expect to live till the age of 67. The average national born in 2009, however, could expect to live till the age of 81. There is a greater risk, thus, that an individual born in 2009 outlives his or her savings or investments.

Investments can help somewhat in the second case, but they cannot provide a solution alone. Assuming a retirement age of 60, the individual born in 1965 would have to fund only seven years of retirement without a regular income. The person born in 2009, however, will have to fund 21 years of retirement without an income. This additional money has to come from somewhere.

In our view, there are a few ways in which individuals can mitigate this risk.

• Setting aside additional funds is the intuitive solution, but this is easier said than done. All factors held constant, this would require a higher savings rate over one’s lifetime on average.

• Working longer would be one solution. This would both raise total lifetime earnings (and therefore savings) and reduce the length of retirement without income.

• Starting to save and invest earlier would also help. This, together with a strong asset allocation approach, would help increase the chances that investment returns meet target levels.

To mitigate longevity risk, it makes sense to start the savings and investment process early, and to use a long-term asset allocation process. This is important simply because it increases the chances of meeting one’s financial goals while potentially lowering the volatility of returns.

Following a good asset allocation strategy can be central to capturing solid investment returns over time by (a) reducing the chances of not being invested in a winning asset class, and (b) helping avoid selling at the worst possible time.

To use an illustrative example, a portfolio consisting of 100 per cent global equities would have generated a cumulative return of 181 per cent over the past 20 years. However, a diversified portfolio consisting of 60 per cent global equities and 40 per cent global bonds would have returned 233 per cent over the past two decades.

While intuitively one can put together a good argument that equities should outperform bonds over the long run, clearly this was not the case over the past two decades. An asset allocation-based approach helps to ensure you remain invested.

The aspect of timing brings us to our second point – end-points do matter. In the above example, year-by-year comparisons would show that the somewhat counter-intuitive returns can be attributed to poor returns in equities in the last few years alone. However, for someone retiring around this time and selling their investments, this particular choice of end-point would have a real impact.

This risk can be reduced by

• Starting to invest early so that over the course of many business cycles one can reduce the risk of missing out on the best parts of a business cycle.

• Modifying the asset allocation breakdown as one approaches retirement

Investment and protection are two distinct strategies that aim to address two very different needs. Both, however, are necessary in order to meet an individual’s financial goals.

The risk of early mortality or disability and rising average longevity are two risks that are an important component of an individual’s financial plan, but they both cannot be addressed by investments alone. It is, in our view, important to have protection in place together with an investment plan in order to mitigate the risk of not meeting one’s financial goals.

Home of HK$33 wontons could fetch HK$180m

An example of why you should never sell a good asset.

Home of HK$33 wontons could fetch HK$180m
Ho Hung Kee’s landlord puts famed noodle shop up for sale amid Causeway Bay retail boom just a year after buying it from family for HK$100m
Sandy Li
SCMP Apr 11, 2012

A 1,000 square foot noodle shop that has survived in Hong Kong’s cutthroat restaurant market for 38 years and boasts a Michelin star is in the news – but not for its lunchboxes.

Just a year after being sold for HK$100 million, the long, narrow shop space that houses Ho Hung Kee is up for sale again and could fetch nearly twice the price. The street-level shop at 2 Sharp Street East in Causeway Bay, the world’s second-most expensive street for retailers, is now valued at around HK$180 million – including its 600 sq ft cockloft.

The Ho family, who have operated Ho Hung Kee since 1946, bought the shop for HK$350,000 in 1974, but decided to cash in on rocketing retail property prices, and last year sold the shop to an investor for HK$100 million on a two-year lease-back.

Property consultants said the wonton noodle restaurant currently pays about HK$125,000 a month in rent, and the lease is due to expire in mid-2013. Not counting utilities, salaries and food costs, that means Ho Hung Kee needs to sell 126 of its HK$33 bowls of wonton noodles a day, seven days a week, to cover the monthly rent payment.

Isaac Wai, a senior marketing manager at Ricacorp Properties said a 400 sq ft shop selling T-shirts at 9 Sharp Street East, opposite Ho Hung Kee, is paying HK$170,000 a month, while another at 7 Sharp Street East is being offered for lease at HK$200,000 a month.

“The shop could definitely pay HK$250,000 in rent a month, and if it changes hands at a higher price, it’s logical for the new owner to raise the rent when its lease is due for renewal,” he said.

It is unclear how the property sale will affect the noodle shop, still run by the Ho family, according to a woman who identified herself as the owner.

“It’s too early to say,” she said. “We’ll continue with business as usual because our lease hasn’t expired yet.”

But she also said it would be tough to survive if the landlord raised the rent significantly.

“We only charge HK$33 for a bowl of wonton noodles. But thanks to our loyal customers, our business is still strong at the moment.”

The family plans to open a new shop in the soon-to-be opened Hysan Place in Causeway Bay, she said.

Yesterday, the property’s owner appointed Colliers International to offer the shop for sale.

Pierre Wong Tsz-wa, chief executive of commercial property agency Midland IC & I, said the owner wanted to cash in on the retail boom.

“Due to tight supply, retail shops in Causeway Bay have fetched jaw-dropping prices,” said Wong, who estimated that the shop, with its proximity to Times Square, could fetch as much as HK$180 million .

Helen Mak, director of retail services at Colliers International Hong Kong, said two recent transactions in nearby Lee Garden Road had generated more than HK$200,000 per square foot.

“Space is scarce, so retail properties in the district are being snapped up the minute they come on the market because investors see the potentially high returns,” she said.

The monthly rent for Ho Hung Kee in the current market could go as high as HK$350,000, she said.

Big fall in M&A activity involving S'pore firms

Business Times – 26 Mar 2012
Deals in Q1 down to 187 from 273 a year ago, while their value fell 36.5%

By LYNETTE KHOO

(SINGAPORE) A bleak picture on the local merger and acquisition (M&A) scene has emerged, showing M&A activity involving Singapore-domiciled companies sliding to the lowest level in value since the second quarter of 2009.

The total value of announced Singapore M&A deals in the first quarter registered year-on-year and quarter-on-quarter declines of 36.5 per cent and 24.6 per cent, respectively, to US$5.7 billion, latest data from Thomson Reuters shows.

The number of deals stood at 187 in the first quarter, down from 273 in the same period last year.

A similar trend unfolded in the South-east Asian region, with the total deal value slipping 19.2 per cent from a year ago and 11.9 per cent from the fourth quarter to US$20.3 billion.

Wong Ai Ai, principal at Baker & McKenzie.Wong & Leow, noted that deals are taking a longer time to negotiate and close due to gaps in pricing expectations and buyers’ concerns over risks. ‘Deals that were being looked at in the last half of 2011 have either not been completed or have fallen away for these reasons,’ she said.

Singapore companies have slowed down their buying spree abroad, with the overseas deal count falling from 104 in the first quarter last year to 68 this year, though the aggregate value of these deals were 12.3 per cent higher year-on-year at US$2.9 billion.

The total deal value was bolstered by United Fiber System’s proposed acquisition of Indonesia’s Golden Energy Mines through a reverse takeover valued at US$987.8 million.

At the same time, Singapore companies were also less targeted by overseas acquirers, with 30 announced inbound M&A deals in the first quarter compared to 50 deals in the same quarter last year.

This resulted in a 91.6 per cent plunge in the aggregate value of inbound M&A deals to US$224.3 million – the lowest quarterly level since the first quarter of 2004. Chinese acquirers still accounted for the bulk of Singapore’s inbound M&A deals with a 35.1 per cent share.

According to data from Thomson Reuters, Malaysian companies are most targeted in the region by acquirers, followed by Indonesia, Vietnam and then Singapore.

‘There’s been a lot of recent excitement over deals announced across the Causeway, and over the potential assets for sale in Indonesia, so relative to all that activity, Singapore may not look so exciting or well-priced,’ Ms Wong said.

‘But a lot of deal structuring is being done through Singapore, even though the companies involved may not be Singapore companies.’.

Private equity (PE) firms closed smaller M&A deals in the first quarter, with PE-backed deals involving Singapore companies falling by 95.4 per cent year-on-year to US$10.2 million although the deal count remained at five.

In the South-east Asian region, PE-backed M&As marked a 87.8 per cent fall to US$70.2 million while the number of deals declined from 19 in the first quarter last year to 13 this quarter.

Than Su Ee, head of Mezzanine Capital Unit (Private Equity & Special Opportunities) at OCBC Bank, noted that the let-up in M&A activity among PE funds in the last six to nine months is a reflection of the uncertainties surrounding global economic conditions.

‘This is changing as investors are increasingly of the opinion that the eurozone crisis and US economic troubles may have turned the corner,’ he said.

With improvements in economic climate and market liquidity, PE investors are expected to take advantage of better market conditions to undertake M&A financing or exit from their investments, he added. ‘Unless there are any major global economic or political surprises, we should see a return of private equity funds activities in M&A over the next 24 months.’

Slower M&A activities in the first quarter has translated to lower fees for advisors. Estimates from Thomson Reuters/Freeman Consulting Co show M&A advisory fees from completed transactions involving Singapore companies fell 39 per cent from a year ago to US$50 million this quarter.

Leading the pack is Morgan Stanley, which chalked up fees of US$4 million and accounted for 8 per cent of total fees. Daiwa Securities enjoyed the highest jump in estimated fees, enjoying an increase of more than 19-fold from a year ago to US$1.7 million in the first quarter.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

Quotes to inspire you toward becoming a good leader

Giftedness, Core Values & Purpose:

“Life is a place of service. Joy can be real only if people look upon their life as a service and have a definite object in life outside themselves and their personal happiness.” – Leo Tolstoy

“Too many people overvalue what they are not and undervalue what they are.” – Malcolm Forbes

“Life is good when you live from your roots. Your values are a critical source of energy, enthusiasm, and direction. Work is meaningful and fun when it’s an expression of your true core.” – Shoshana Zuboff

“Try to forget yourself in the service of others. For when we think too much of ourselves and our own interests, we easily become despondent. But when we work for others, our efforts return to bless us.” – Sidney Powell

“When a man realizes his littleness, his greatness can appear.” – H. G. Wells

“A meaningful life will not be found in the next job or the next car. The way you get meaning in your life is to devote your self to helping others and creating something that gives you purpose.” – Morrie Schwartz, in “Tuesdays with Morrie” by Mitch Albom

“The only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking.” – Steve Jobs

“When you ask people what it is like being part of a great team, what is most striking is the meaningfulness of the experience. People talk about being part of something larger than themselves, of being connected, of being generative. It becomes quite clear that, for many, their experiences as part of truly great teams stand out as singular periods of life lived to the fullest.” – Peter Senge

“How does one become a butterfly? You must want to fly so much that you are willing to give up being a caterpillar.” – Trina Pallus

“However mean your life is, meet it and live it: do not shun it and call it hard names. Cultivate poverty like a garden herb, like sage. Do not trouble yourself much to get new things, whether clothes or friends. Things do not change; we change. Sell your clothes and keep your thoughts.” – Henry David Thoreau

“Whatever you can do, or dream you can, begin it. Boldness has genius, power, and magic in it.” – Goethe

Servant & Transformational Leadership:

“It is amazing how much people can get done if they do not worry about who gets the credit.” – Sandra Swinney

“If your actions inspire others to dream more, learn more, do more, and become more, you are a leader.” – John Quincy Adams

“Far better it is to dare mighty things, to win great triumphs, even though checked by failure, than to rank with those poor spirits who neither enjoy much nor suffer much, because they live in the gray twilight that knows neither victory nor defeat.” – Theodore Roosevelt

“Leadership is lifting a person’s vision to higher sights, the raising of a person’s performance to a higher standard, the building of a personality beyond its normal limitations.” – Peter Drucker

“In the end, it is important to remember that we cannot become what we need to be by remaining what we are.” – Max DePree

“We are not looking for blind obedience. We are looking for people who, on their own initiative, want to be doing what they are doing because they consider it a worthy objective. I have always believed that the best leader is the best server. And if you’re a servant, by definition, you’re not controlling.” – Herb Kelleher

“It could be argued that all leadership is appreciative leadership. It’s the capacity to see the best in the world around us, in our colleagues, and in the groups we are trying to lead. It’s the capacity to see the most creative and improbable opportunities in the marketplace. It’s the capacity to see with an appreciative eye the true and the good, the better, and the possible.” – David L. Cooperrider

“Leadership is not so much about technique and methods as it is about opening the heart. Leadership is about inspiration – of oneself and of others. Great leadership is about human experiences, not processes. Leadership is not a formula or a program, it is a human activity that comes from the heart and considers the hearts of others. It is an attitude, not a routine.” – Lance Secretan

“If you’re the leader, you’ve got to give up your omniscient and omnipotent fantasies – that you know and must do everything. Learn how to abandon your ego to the talents of others.” – Warren Bennis

Emotional Intelligence & Employee Engagement
(Balancing Head & Heart):

“He who has learning without imagination has feet but no wings.” – Stanley Goldstein

“When people are made to feel secure and important and appreciated, it will no longer be necessary for them to whittle down others in order to seem bigger in comparison.” – Virginia Arcastle

“The development of people is an equal partner with the actual results of your organization’s purpose” – Ken Blanchard

“The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.” – Franklin D. Roosevelt

“The axe forgets, the tree remembers.” – Anonymous

“My day is better when I give people a bit of my heart rather than a piece of my mind.” – Pam Conley

“A special workplace has many ingredients. The feeling that you are part of a team, a sense of community, the knowledge that what you do has real purpose – all these things help to make work fun. But by far the most important factor is whether people are able to use their individual talents and skills to do something useful, significant, and worthwhile.” – Dennis Bakke

“The greater part of happiness or misery depends on our dispositions, and not on our circumstances.” – Martha Washington

“We who lived in concentration camps can remember the men who walked through the huts comforting others, giving away their last piece of bread. They may have been few in number, but they offer sufficient proof that everything can be taken from a man but one thing: the last of the human freedoms – to choose one’s attitude in any given set of circumstances, to choose one’s own way.” – Viktor Frankl

Wong Kar Wai – "Fallen Angels" (1995) Ending

Fallen Angels is a 1995 Hong Kong neo-noir crime comedy-drama film written and directed by Wong Kar-wai. It features two intertwined storylines—one tells the story of a hitman wishing to leave the criminal underworld (Leon Lai), the prostitute he starts a relationship with (Karen Mok), and his agent (Michelle Reis), who is infatuated with him. The other story is of a mute ex-convict on the run from the police (Takeshi Kaneshiro) and a mentally unstable woman dumped by her boyfriend (Charlie Yeung). Set in 1995 pre-Handover Hong Kong, Fallen Angels explores the characters’ loneliness, their alienation from the situations around them, and yearning for connections in a hectic city.