SINGAPORE — Since the water issue is at boiling point, netizens from both countries have been weighing in and expressing their opinions on the matter.
Some Singaporeans have applauded their government’s firm stance, in the context of the Ministry of Foreign Affairs’ statement that “Singapore has been clear and consistent that our position is that Malaysia has lost the right to review the price of water under the 1962 Water Agreement.”
Other commenters, however, question this stance.
However, there are commenters from both sides who are urging for negotiations to be re-started.
Others believe that it’s time to take the matter to international courts.
Some feel international court action may end badly for Malaysia as that the agreement is binding.
And yet, at least one netizen believes that it’s best to simply honor the existing agreement and negotiate the terms when it runs out.
Some suggest that perhaps Singapore should be looking for new sources of water.
And that Malaysia, in turn, should begin to process its own water.
A Malaysian netizen proposed a very simple hashtag as a solution:
Singapore – On March 11 (Monday), the Immigration & Checkpoints Authority (ICA) confiscated 6,000 cigarettes hidden in gaming machines at a warehouse in Tuas Avenue 3.
A press release on March 13 by the ICA stated the discovery of the smuggled items hidden in 10 “Game Machines” in a 40-foot container at the warehouse.
Anomalies were detected by officers studying the scanned images of the declared consignment form of the container and its items. The container was presented for clearance at the Pasir Panjang Scanning Station.
While checking the machines, officers wondered why they were locked. The machines were then pried open for closer inspection.
The officers found the machines were hollow inside and contained cigarettes wrapped in black bundles.
According to Singapore Customs, the duty to be paid per 100 sticks was approximately S$85.40 depending on the weight of the individual sticks. In addition these are also subject to the Goods and Services Tax (GST).
Photo: taken from Singapore Customs website
For the 6,000 cartons of cigarettes, “total duty and Goods and Services Tax (GST) evaded amounted to about $512,400 and $37,780 respectively,” stated the ICA.
The case has been handed over to Singapore Customs for further investigation.
“Safeguarding Singapore’s borders remains ICA’s top priority. ICA will continue to conduct security checks on passengers, cargo and vehicles at various checkpoints to prevent attempts to smuggle undesirable persons, drugs, weapons, explosives and other contraband across our borders,” said the ICA.
“The same method of concealment used by contraband smugglers may be used by terrorists to smuggle arms and explosives to carry out attacks in Singapore,” they added.
Smugglers never seem to run out of ideas when trying to sneak items across the border. The ICA has been vocal in exposing the failed attempts and continues to emphasize their zero-tolerance for such acts.
It was only a few days ago when ICA officers seized five modified cars containing contraband at the Woodlands Checkpoint. The smugglers tried to hide the illegal cigarettes in every nook and cranny possible.
Given the high cost of home renovations in Singapore, homeowners want to be sure that they don’t incur unnecessary expenses and aren’t surprised by additional costs once they finish renovating. In order to help these individuals, we’ve identified potentially costly issues that homeowners should be cognisant of before they decide to renovate.
Last Minute Changes
To the extent that it is possible, it is important to avoid making last minute changes to your renovation plans. Besides creating a headache for your contractor, you can increase the total cost of your project beyond its original quote. For example, a seemingly innocuous adjustment such as requesting a different type of flooring material can drive up the cost of your renovation. For instance, choosing different materials, or even a different variant of the same material, can increase the cost of your renovation by hundreds of dollars. This problem can be easily avoided through proper planning and by sticking to your original plans.
Sometimes the changes may be outside of your control. Unfortunately, in this case you may not be able to avoid paying the higher cost. For example, your desired materials could be out of stock, or you may find out too late that what you ordered doesn’t fit in your original design or may not be up to par with your expectations. To avoid these instances, you should make sure you have an open line of communication with your contractor and ensure the quality and availability of the materials as early as possible to avoid ending up paying significantly more for expensive alternative materials.
Forgetting to Take Measurements
As simple as it sounds, forgetting to take measurements before you purchase furniture, fixtures or appliances can be a costly mistake. In some cases, you will be able to simply return these items; however, sometimes you will have to pay additional shipping fees or even buy brand new items to fit your renovation needs. For these reasons, it is important to take the time to double-check all of these minor details before you make purchases related to your project.
Accidental Damages
Unfortunately, when renovation accidents happen, they can be expensive to fix. Fortunately, those caused by your contractor are not likely to be an added cost for you, though they may delay the entire process. However, any damages that you cause during your own efforts to the renovations can raise the cost of your total bill. Furthermore, damages caused by your renovation project are usually not covered by home insurance. While damages that occur during renovation are not typically covered by your homeowners insurance, damages to the renovations made in your home that occur following your renovation should be covered. For this reason, it is important to insure yourself with the best home insurance for your home in order to protect your recently completed renovation project.
Finding a Place to Stay
Smaller renovations may not require you to leave your home; however, larger projects may require that you find another place to stay. Staying a few nights at a hotel can cost hundreds of dollars, and longer-term situations may require that you find a short-term rental, which could cost even more. Similarly, if you end up staying in your home during the renovation, you may end up up eating out more if your kitchen appliances are affected by the project. Homeowners may not think about these costs as they plan their renovations, but should add to food and lodging to their budget if their project requires them to leave their home and they do not have alternative options, such as staying with friends or family.
Getting the Wrong Renovation Loan
Many of those seeking to renovate their home will not have the ability to pay for the entire cost of their ideal renovation without using financing. However, getting the wrong renovation loan can significantly drive up the cost renovating. After analysing the renovation loan offerings in Singapore, we found that the cheapest renovation loans can save borrowers approximately 14 – 28% compared to the average renovation loan. This means that choosing the wrong loan can cost hundreds or even thousands of dollars, which can substantially increase the cost of your renovation project.
Varying Fee Structures
If you have never renovated your home, you are likely to have never worked directly with a contractor. It is important to understand that not all contractors offer the same price structures, which can be tricky when you are trying to estimate your total bill. For example, some do not add the cost of hauling demolition debris or the cost of cleaning upon the conclusion of the project in their quotes. This isn’t unheard of, so make sure you check with your contractor about these types of fees to avoid being blindsided.
Save Money by Planning Ahead
With all of the advice listed, it is important to be aware of potential pitfalls that can set you back financially. With this in mind, it is important to have agreed upon a clear plan with your contractor and considered how you would react depending on various contingencies. In the end, careful planning can help you avoid thousands of dollars in hidden costs associated with your home renovation.
Photo: Facebook screengrab/ Sultan Ibrahim Sultan Iskandar
Johor Baru: Fresh from urging the Government to quickly investigate the people behind the illegal dumping of chemicals in Pasir Gudang, Johor’s Sultan took a step further by pledging RM1 million (S$ 332,000) in support of the endeavors to provide solutions to the problems created by the dumping.
Sultan Ibrahim Almarhum Sultan Iskandar decision to do so was motivated by an audio recording he had heard while discussing the matter with his wife, Permaisuri of Johor Raja Zarith Sofiah Almarhum Sultan Idris Shah, who is the Royal Adviser to the Malaysian Red Crescent Society.
The recording was that of a tearful father asking for help for his child, who had been one of the victims from the fumes of the noxious chemicals that was unlawfully dumped into Sungai Kim Kim.
This strengthened his resolve to aid the affected people, who now number more than 500, which includes the 166 people who have been or are still currently hospitalised. Nine people remain in the Intensive Care Unit (ICU) because of exposure to the poisonous fumes, which came from chemicals dumped into Sungai Kim Kim in Pasir Gudang on Thursday last week, March 7.
Since March 13, Wednesday, all of the 111 schools in Pasir Gudang have been temporarily shut and will remain closed until further notice.
Permaisuri of Johor Raja Zarith Sofiah Almarhum Sultan Idris Shah said, “Tuanku Sultan was discussing this with me as Royal Adviser to the Malaysian Red Crescent Society and he was deeply moved when he heard an audio recording of a crying man pleading for help for his child.
With his personal contribution, Tuanku Sultan thinks it will help the authorities and rescue agencies such as the Fire and Rescue Department and the Royal Malaysia Police to equip their teams to help the people,” according to a statement from the Royal Press Office posted on the Sultan’s Facebook account on Thursday morning, March 14.
A few days ago, the Sultan did not hesitate to show his deep displeasure and even anguish at the chemical dumping, which caused hundreds of people to be hospitalized, including young people.
Many of the victims were students of Sekolah Kebangsaan (SK) Taman Pasir Putih and Sekolah Menengah Kebangsaan (SMK) Taman Pasir Putih. All these schools are located near the river where the chemicals were dumped.
“These are innocent schoolchildren, teachers, and health workers … don’t those responsible feel any remorse at the thought that children in the ICU are fighting for their lives?” he said.
The country’s Deputy Prime Minister, Datuk Seri Dr Wan Azizah Wan Ismail, is visiting Pasir Gudang on Thursday, March 14 (today), to assess the situation in order to determine if a state of emergency should be called. Meetings between relevant agencies and the state government will be conducted before the decision is announced.
The New Straits Times reports her as saying, “I will be in Pasir Gudang in the evening to look at the current situation and how to deal with the matter, which includes emergency. (sic) As of now, the problem is considered to be of state-level. It has to be a national-level.
This is something worrying and we need to take all measures necessary to ensure the safety of the people especially children. We must consider how to resolve the issue. We do not want to create panic,” Dr Wan Azizah said to the press.
If an evacuation is necessary, Dr Wan Azizah said the Government would be prepared to conduct it.
“We also want to take action as recommended by the (Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin ) minister.”
She added that the Government also wants to take action in order to ensure that such incidents do not recur.
Singapore — Of all the pressing issues between Singapore and Malaysia, the one that is blowing hottest at the moment is the water issue — the price of raw water sold from the Malaysian state of Johor to Singapore, and back to Johor as treated water.
This price has been unchanged for nearly six decades, something that Malaysia has had problems with, claiming that Singapore is buying water for far too cheap a price—one that is no longer in keeping with inflation and today’s cost of living.
But is the price of raw water really at the heart of the issue? Or does the contention revolve around something bigger?
Historical Roots
The binding water agreement between Singapore and Malaysia is the 1962 Johor River Water Agreement that is valid until 2061. This agreement allows Singapore to get 250 million gallons of water every day from the Johor River at 3 sen per 1,000 gallons. Singapore sells treated water back to Johor at 50 sen per thousand gallons.
Malaysia had had an opportunity to review the price of raw and treated water when the pact reached its 25-year mark in 1986 and 1987, but the country’s leaders had declined to do so.
Deeper issues than the price of water
For many Singaporeans, the water issue goes deeper than the money exchanged between the two nations. According to Singapore’s former Prime Minister Goh in April 2002, “Any breach of the Water Agreements would also call into question the Separation Agreement, and undermine our very existence.”
Goh had been referring to the Independence of Singapore Agreement (also known as the Separation Agreement) signed between Singapore and Malaysia on August 9, 1965. This guaranteed the water agreements from 1961 and 1962, and registered it with the United Nations.
Later that year, Mahathir took a firm stance and told the press, “Well, international agreements have been broken before. I have seen people go to war, even which is not by agreement.”
The following year, Singapore’s Minister for Foreign Affairs Jayakumar said in Parliament, “The 1961 and 1962 Water Agreements are … fundamental to our very existence as an independent nation. Neither Singapore nor Malaysia can unilaterally change them. This is the root of the dispute between us.
It is not a matter of money — the significance of the water price, to both countries, is Singapore’s existence as a sovereign nation separate from Malaysia, and the sanctity of the most solemn agreements which Singapore and Malaysia have entered into.”
By October 2003, Mahathir retired as Malaysia’s prime minister.
2018—Water issue revived
Shortly after returning to power in Malaysia when he won the General Election in May 2018, Mahathir began to call the 1962 Water Agreement “unfair” and even “unreasonable.” It has become an oft-repeated refrain with him.
In November he asked Singapore Prime Minister Lee Hsien Loong for discussions on the water issue to be again opened, to which PM Lee agreed.
Why Singapore believes prices under the Water Agreement is fair
Singapore justifies the price gap between the water it buys and sells since it pays for water treatment infrastructural costs. A 2003 booklet Water Talks explains how construction, operation and maintenance costs for dams, treatment plants, pumps and pipelines have all been, and are all paid for by Singapore. An example the booklet used was a project for which Singapore had paid S$1 billion but for which Malaysia shouldered none of the costs.
According to the government, the real cost of treating the water is RM 2.40 (S$0.80) per thousand gallons, which means that Singapore pays for RM 1.90 (S$0.63) per thousand gallons.
For Singapore, a sovereignty issue
In July of 2018, Singapore’s Minister of Foreign Affairs Dr Vivian Balakrishnan, claimed that the 1962 Water Agreement is no ordinary pact. Balakrishnan echoed both former PM Goh and foreign affairs minister Jayakumar when he said in Parliament, “Any breach of the 1962 Water Agreement would call into question the Separation Agreement, which is the basis for Singapore’s very existence as an independent sovereign state.”
He also underlined that it is not the price increase that is the most important issue, but how it’s done: “As was stated then, the core issue is ‘not how much we pay, but how any price revision is decided upon. Neither Malaysia nor Singapore can unilaterally change the terms of this agreement between our two countries.”
Disagreement from Malaysia
For every argument that Singapore has, Malaysia’s leaders have a counter-argument.
The expiration of the time for review
Malaysia’s Minister for Foreign Affairs Saifuddin Abdullah vehemently disagrees that Malaysia has lost its chance to review the terms of the 1962 Water Agreement.
On Mar 12, he said, “Clause 14 of the agreement states that “it shall be subject to review after the expiry of 25 years from the date of these presents…”, not at the 25th year. As such, I do not understand the type of English used by the Singapore Foreign Minister, given his interpretation. We respect agreements, that is why we say we can review the agreement after 25 years.”
2. Unreasonable prices, unfair payments
In August, Dr Mahathir announced that he planned to raise the price of raw water Malaysia is selling to Singapore by as much as 1000 percent. For him, this is reflective of the change in the cost of living from the time the agreement was drawn up almost six decades ago.
Last month, Mahathir said: “We need to fight for this (water price negotiation). A rich country (Singapore) (cannot be) buying water from poor countries at such an unreasonable price. If we are reasonable, we must say that this payment is unfair. They are growing rapidly because we are supplying them water.”
3. Taking the issue to the International Court of Justice
Speaking to members of the Malaysian press on Mar 3, Mahathir said that if Singapore takes the water price issue to the World Court (International Court of Justice or the International Court of Arbitration), the republic would lose the case.
He added, “To go to the World Court, you must have agreement from both parties.”
4. Just who is subsidizing whom?
As explained above, Singapore has justified the price for selling treated water to Johor, since water treatment is pricy.
But Malaysia’s foreign affairs minister has a different take on the matter. He claims that based on the prices under the 1962 Water Agreement, Singapore had actually received at least RM 2.4 billion in “subsidy.” This translates to RM 42 million a year or roughly RM 100,000 a day from Malaysia, Mr Saifuddin said in Parliament.
“We sell (water) at a very low price, but buy it back at a high price,” he added.
A response from Singapore’s MFA
On March 13, Singapore’s Ministry of Foreign Affairs (MFA) responded to Mr Saifuddin’s allegations. “Singapore has been clear and consistent that our position is that Malaysia has lost the right to review the price of water under the 1962 Water Agreement (62WA). No review of the price of water has taken place,” says a MFA spokesperson.
Concerning third-party arbitration, the MFA spokesman said that the country has been prepared “to agree to refer this matter to international arbitration by the Permanent Court of Arbitration in the interest of resolving the dispute.”
What exactly does Malaysia want?
In Feb 2019, Mahathir reiterated his stance that new prices should reflect current costs of living from the time the agreement was drawn up to almost six decades ago.
The Malaysian Prime Minister insists that as a developed country, Singapore has a per capita income of S$77,000 (about RM232,300), and therefore, should not be even buying water from Malaysia, where the per capita income is not even S$13,500 (about RM40,700) at 1962’s rate of three sen per 1,000 gallons.
Looking at the 1962 Water Agreement in today’s context
For Malaysian Member of Parliament Charles Santiago, the 1962 agreement should be understood in the context of both countries’ development. In an interview with The Independent, he said that when the pact was made, both countries were developing nations, and out of goodwill, Malaysia sold water to Singapore at a very cheap rate. But Singapore has become one of the leading countries in the region, and he says that “it’s time to level the playing field.”
“Commercial agreements are based on a variety of circumstances. This agreement was made with the prosper thy neighbour approach. Now that our neighbour is doing better, it’s time to look at the agreement again. This is how real politics works,” he added.
So where does the issue go from here?
Malaysia seems to be determined to negotiate for a higher price of water, as this is an issue that Mahathir is pursuing.
However, the 1962 Water Agreement is legal and binding.
But, who can blame Mahathir from wanting to change an agreement that he finds onerous and exploitative to his people? On the other hand, who can blame Singapore for insistently standing by an agreement that affirms its sovereignty?
Singapore – Popular stand-up comedian Fakkah Fuzz ( Muhammad Fadzri Abd Rashid) went out of his way to personally deliver some face masks to toxic fumes victims at Pasir Gudang in Johor.
At midnight on March 13 (Wednesday), he took to Twitter to assess the situation in Pasir Gudang. Fakkah Fuzz tweeted: “Anybody here stayin’ in Pasir Gudang care to tell me what the situation there is like now? I wanna know how I can help.”
Member of the public AfiqAiman answered by posting a video of the current status of those in the area.
According to theMalay Mail, over 500 people have been affected by the toxic fumes resulting in the closure of 16 schools. “Affected victims reported suffering headaches, breathing difficulties, nausea, and vomiting,” reported the publication on March 13.
Twitter user Akim informed Mr. Fakkah Fuzz that shops have no more masks left. “Currently I went to so many shops, and pharmacies, looking for masks. Most of these shops (sic) are out of stock. We need more masks,(sic) please if someone could help with the mask (sic),” he tweeted.
The comedian asked Pasir Gudang to tell him what supplies were needed so he can provide them.
He received a reply saying that the masks that they currently had were not effective in blocking out fumes.
Photo: Twitter screengrab
Netizens replied to Mr. Fakkah Fuzz’s tweet and asked for masks, N95 or R95 in particular.
Mr. Fakkah Fuzz went right to work to acquire the masks and a few hours later, tweeted, “THOSE IN PASIR GUDANG IN NEED OF N95 MASKS. I am looking to make a trip down to UITM Pasir Gudang to give away masks. Insyaallah updates the time tryin’ (sic) to get it sorted here.”
Ms Akhma commented on the tweet and said that Dewan Taman Pasir Putih, a Johor community, was in critical condition and badly needed the masks to which Mr Fadzri replied that he would make the necessary arrangements for it.
Photo: Twitter screengrab
Mr. Fakkah Fuzi took a photo of his haul and wrote, “Guys in Pasir Gudang this was all the N95 I could find and I can’t head to UITM tonight. Instead, I am only able to go to Dewan Taman Pasir Putih. Lemme (sic) get some more and I’ll make my way down.” He also posted a video encouraging those in Pasir Gudang that he was on the way and to stay strong.
After a few more hours and a causeway jam, Mr. Fakkah Fuzz made it to Dewan Taman Pasir Putih safely and delivered the masks. He reassured them that more help was coming their way.
On March 14, he tweeted an update and said, “Hey guys I realize R95 is needed instead of N95. Was kinda (sic) only told to me (sic) after the purchases were made so I sent what I could first. We’re working on sending more R95s to Pasir Gudang as we speak.”
For those who wish to help, do note that the R95 masks are preferred.
The Independent Singapore has reached out to Mr Fadzri for a statement:
“It was very enlightening because when I reached the site where they were holding the victims, they were very happy that we brought masks because the whole area was out of stock.” (sic)
“The residents were very thankful and kept asking me if the jam at the causeway was bad,” he added.
“I think this is a small gesture but we can all do our part as good neighbours to help because they are definitely in need at the moment,” said Mr. Fadzri. “I want to thank everyone who volunteered to help them. We are working towards another trip hopefully we can get as much help as we can to our neighbours.”
In yet another breaking story, Alibaba-backed Paytm Mall is said to be very close to scaling down its B2C consumer business in India
SoftBank, Toyota in talks to invest US$1B in Uber’s self-driving unit: sources [Reuters]
A group of investors led by SoftBank Group Corp and Toyota Motor Corp is in talks to invest $1 billion or more into Uber Technologies’s self-driving vehicle unit, which would value the unit at US$5 billion to US$10 billion, said two people familiar with the talks.
The investment would provide a cash injection for Uber’s self-driving program that is costing the money-losing startup hundreds of millions of dollars without generating revenue.
It could also help underscore Uber’s value as the ride-hailing firm prepares for a stock market debut in which its value could top US$100 billion.
Bruised by cashbacks, Alibaba-backed Paytm Mall takes a call to scale down; shifting focus on B2B [Entrackr]
It seems like cashbacks won’t be the flavour of 2019 after all. Paytm’s e-commerce play Paytm Mall powered massively by cashbacks so far, is very close to scaling down its B2C consumer business.
After a series of internal brainstorming meets and recent discussion between the board members, the company has taken a call to focus on B2B business, said three sources aware of the development.
“Paytm Mall has been failing to find volumes as well as unit economics in the consumer-facing e-commerce segment. Ultimately, its key backers, Alibaba and SoftBank have realised that cashback driven commerce is going nowhere. Now they find no merit in concentrating effort and capital on it,” said two sources on the condition of anonymity.
SC Malaysia reviews 60 proposals for US$245M pooled VC fund [DealStreetAsia]
The Securities Commission (SC) of Malaysia has reviewed about 60 proposals from local and foreign venture capital managers for the RM1 billion ($245 million) venture capital pooled fund that was allocated by state in the 2018 Budget.
“The GLICs (government-linked investment companies) are still reviewing [these proposals]. So, at this stage, we’re still not able to share how much allocation has been done,” said SC Malaysia deputy chief executive Zainal Izlan Zainal Abidin at the launch of SC’s annual report 2018 today at Kuala Lumpur.
Mumbai-based mobile point-of-sales (PoS) company Mswipe has raised around INR 220 crore (US$32M) in a new round of funding from existing investors — US-based hedge fund Falcon Edge, Facebook co-founder Eduardo Saverin-promoted B Capital Asia, technology investment firm Epiq Capital and DSG Consumer Partners — according to filings with the Registrar of Companies.
This round came after the company’s Series-D round of funding in 2017, when Ratan Tata promoted UC-RNT infused around INR 200 crore into the company along with participation from its existing investors. Mswipe founder Manish Patel could not be reached for comment.
As per the filing, B Capital Asia and Epiq Capital pumped in around INR 70 crore while Falcon Edge put in nearly 57 crore and DSG Consumer Partners invested Rs 21 crore. The company is in the business of deploying PoS terminals at merchant outlets and processing card transactions for all major card schemes, including Visa, Mastercard, and RuPay.
Adtech startup Scibids opens APAC headquarters in Singapore [press release]
Adtech startup Scibids has opened its Asia Pacific headquarters in Singapore, its first international office. This follows the company’s raising of SGD 3.3 million Series A funding last September.
Rahul Vasudev, former Managing Director of MediaMath (Asia Pacific) and the APAC Head of Digital at MediaCom, will head Scibid’s APAC expansion.
Based in Paris, Scibids has developed an AI-based intelligence layer, which acts as a virtual trader on top of demand-side platforms (DSPs) such as Google’s DV360, The Trade Desk, MediaMath and AppNexus. It sorts through as many as 22 million variables such as geography, gender, site placements and third party data to automatically build thousands of highly granular buying strategies in the DSP.
With these epiphanies at hand, media agencies and marketers who have in-housed programmatic buying can improve their return on ad spend by targeting the right contexts more accurately and optimise towards their own custom business metrics.
– Expatriate rents have dropped in Singapore by 1.3% to an average of USD 4 215 per month
– Singapore remains in Asia’s top 10 most expensive locations for expatriate rents, and is in the top 25 most expensive locations for expat rents globally
– Hong Kong is the most expensive location in the world for expatriate rents, with an average monthly rental cost of USD 10 929
– Globally, New York and Tokyo are in second and third place respectively for expatriate rents
Singapore rent prices for expatriates have continued to drop here and are now on average, USD 500 cheaper per month than in 2016.
This was one of the findings of the latest research published by ECA International, the world’s leading provider of knowledge, information and software for the management and assignment of employees around the world.
Rental prices for an unfurnished, mid-market, three-bedroom apartment in areas commonly inhabited by international executives in Singapore average USD 4 215 a month, a drop of 1.3% compared to the previous year.
“Reductions in the population of non-residents in Singapore, a key driver of rental demand, has led to continued drops in rental prices for expatriates,” said Lee Quane, Regional Director – Asia at ECA International. “Recent announcements in the Singapore Budget 2019 have further limited the proportion of foreign workers that companies in the services sector can employ, to 35% by 2021. This seems to imply that the downward trend in rents will continue, as the availability of properties increases with little anticipated rise in demand.”
ECA International has been conducting research into accommodation costs for international executives for more than 20 years to help companies provide the right housing options as part of the overall compensation package for mobile employees. The research compares rental costs for accommodation in areas typically inhabited by expatriate staff in over 320 locations worldwide.
Asia Highlights
Hong Kong remains the most expensive location in the world for expatriate rent, with typical expatriate accommodation costing an average of USD 10 929 per month – an increase of 4.9% from 2018.
Quane added: “The main driver of increased rent across Hong Kong in 2018 was the limited availability of housing, which has been a long-term issue for the Hong Kong housing market. Rent increases are not just limited to central Hong Kong anymore either; rents are expected to rise throughout outlying neighbourhoods in 2019 too, as international firms seek more affordable office spaces and leverage options in cheaper suburbs.”
Rental costs in Tokyo have risen at a quicker rate than Hong Kong, with typical expat accommodation now averaging USD 8 668 per month. This rise of 6.9% makes Tokyo the second most expensive Asian location in ECA’s survey.
Quane said, “While Tokyo’s rental market has been historically tight, 2018 saw a significant upturn in the rate of rent increases. A rise in tourism, coupled with the accompanying increase in landlords preferring to lease out accommodation on a short-term basis, have contributed to rising costs in recent years. With both the 2019 Rugby World Cup and the 2020 Olympics set to be hosted in Tokyo, we have observed a major surge in business interest in Japan’s capital. All of these factors will contribute to the increasingly limited availability of suitable rental accommodation in Tokyo, with rent increases expected to continue into 2019.”
Chinese cities endured a mixed fortune throughout 2018, with major rent increases seen in some locations, but static or decreasing levels of rent in others.
Shanghai was the highest placed Chinese city and the eighth most expensive city for expats to rent in globally, averaging USD 5 305 per month.
Quane explained, “With a new property tax mooted to be introduced in Shanghai from 2020, many landlords are now choosing to sell their properties rather than to continue renting them out. This has led to a reduction in the availability of rented accommodation, prompting some rent increases.”
Similarly, Shenzhen saw a big rise in the average rent for overseas workers. Typical monthly rental costs in Shenzhen are now USD 2 795 – an increase of over 10%.
Quane said, “Shenzhen continues to be a city that attracts high demand for rented accommodation, as a result of both its local economy and its proximity to Hong Kong. The market has proven particularly tight in 2018, leading to this trend of high rental prices, which will most likely continue for the foreseeable future.”
Bangkok entered the top 10 most expensive Asian locations for expat accommodation for the first time, following the city’s rise in average rental prices this year.
“Increases in rents reflect a continuation in foreign investment in Thailand. Thailand remains a popular regional destination for many MNCs. However, they have been joined by newly globalising companies from China, which has led to a higher demand for rental accommodation from an expatriate population that typically rents in a relatively small geographical area in central Bangkok. Furthermore, the growth in tourism in Bangkok has also had an impact on rental prices, given the increase in the number of properties being converted from long-term to short-term rental to cater to this demand,” explained Quane.
Expatriate rents in Kuala Lumpur saw a rebound after a sustained decline between 2015 and 2017, with the average rental cost for expatriates now at USD 1 621 per month, an increase of USD 112 from the year before.
Quane said, “The domestic economy has been comparatively weak in Malaysia over the past few years, and the delivery of large stocks of properties to the rental market was not balanced by weaker demand. Rents for apartments staged a recovery in 2018, but Kuala Lumpur is still very affordable for a major city in the region.”
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The 200-seat co-working space is located in Blk 71 Launchpad at One-North
Innovation House Finland, which provides a soft-landing hub for Finnish startups in Asia and a gateway for Asian entrepreneurs in Finland, in partnership with Singapore-based VC firm Mercatus Capital, has opened a co-working space in the city-state.
Singapore’s is Innovation House’s third facility globally. The 200-seat co-working space is located in Blk 71 Launchpad @One-North. Membership options include the use of co-working facilities with services, such as inclusion in the local networks, social media marketing and being part of a collaborative community.
Members can also avail Eight Mercatus‘s (a startup platform launched recently by the VC firm) services such as searching for financial channels and partnerships, marketing and branding, recruitment, legal and patent affairs in the Asian market.
Innovation House was founded by Petra Erätuli-Kola and Katja Aalto. Its first facility opened in Otaniemi, Espoo in 2017, followed by another in Kallio, Helsinki in September 2018. The company hosts a community of more than 100 companies and over 600 members across all its facilities. Co-founder Erätuli-Kola said: “Innovation House’s long-term vision is to create a new culture of mutual collaboration and assistance between startups and corporations.”
Launched in 2006, Mercatus Capital is an accelerator and incubator specialising in seed and startup investments, with the aim to enable and propel early-stage companies to grow beyond their local markets. It has funded 50 businesses in APAC.
Eight Mercatus is a startup platform that provides the key elements startups need for growth, including connectivity, funding, recruitment and crucial mentorship from well-established business leaders, and important entrepreneurship training. It also provides startups with access to an extensive network of connections and its business know-how.
Innovations House Singapore’s CEO Pete Karumo said: “The most pressing need for companies who come to Singapore are contacts and local business know-how. Innovation House, together with Eight Mercatus, is able to provide the services to help entrepreneurs get a strong start in Singapore because of Mercatus Capital’s local knowledge and strong network in Asia Pacific.”
“He further explained that because of the team’s strong entrepreneurial backgrounds, they are able to understand the issues their clients face and introduce innovative solutions to overcome them. The combination of their services, local expertise and investment backing makes their concept unique, distinguishing themselves from other established operators,” Karumo added.
Singapore has become increasingly successful at creating an environment conducive for startups to thrive, leading it to be well-known as a leading startup hub in not only Southeast Asia, but the world.
Of several issues that disrupt harmony between Singapore and Malaysia, the most contentious one presently involves water, with both countries increasingly airing their sides.
But, how did it all begin and develop?
Four agreements
Malaysia and Singapore signed four water agreements in 1927, 1961, 1962 and 1990.
Subsequent agreements voided the first one while the 1961 pact has expired.
Importance
1927 – 2011: Half of Singapore’s water needs met by Malaysia
2011: 1961 pact expired, Singapore reduces dependence on Malaysia for water
2061: Singapore to be self-sufficient waterwise and final two agreements to expire
Singapore allowed to rent 8.5 sq km of land in Gunong Pulai in the Malaysian state of Johor for supplying raw water, for the price of 30 sen per 4,047 sqm as annual rental fees.
Water was actually free. An additional 64.7 sq km of land in Johor was set aside for possible further use, with additional fees
For its part, Johor could have 3,637 cubic metres daily of treated water from Singapore at a rate of 25 sen per 4.55 cu m, with a provision for an increase after 1929
Singapore becomes a self-governing state; Malaysia had obtained independence.
An agreement between Singapore and Johor was signed on Oct 2, 1961, known as the Tebrau and Scudai Rivers Water Agreement, giving Singapore full and exclusive rights to all the water for a specific land area from Gunong Pulai, Sungei Tebrau and Sungei Scudai, from 1961 through to 2011, or for a period of 50 years.
Singapore to pay annual rent of RM5 per acre for the land, as well as 3 sen for every 1,000 gallons of raw water drawn. In return, Singapore to supply Johor daily with treated water of up to 12 percent of the raw water drawn, with a minimum of 18,184 cu m, and at the price of 50 cents per 1,000 gallons. Provisions for more treated water to be supplied to Johor, when necessary.
Singapore allowed 1.14 million cu m from Johor River daily; 3 sen for every 3.78 cu m drawn
Singapore obligated to supply treated water to Johor of up to two percent of the raw water it provides; 50 cents per 3.78 cu m
Singapore pays rent on the land “at the standard rate applicable to building lots on town land”, and follows water rates and prices stated in the 1961 agreement
Price review possible in 25 years
1986 and 1987, the 25-year mark for the two agreements
Johor opts not to review the price of water under the agreements (It is important to note that under these agreements, neither country can unilaterally raise the price of water)
The Separation Agreement signed between Singapore and Malaysia on Aug 9, 1965 guaranteed the water agreements from 1961 and 1962
Signed between Singapore’s Public Utilities Board (PUB) and Johor
Allowed Singapore to build Sungei Linggiu dam to extract water from Johor River
Singapore paid RM320 million for the land, premiums of RM18,000 per hectare and yearly rent of RM30 per 92.9 sqm, and agreed to shoulder building, and maintenance costs
Singapore can buy Johor’s treated water from new dam over and beyond the 250 mgd of raw water it drew from the Johor River under the 1962 agreement
Price for additional water would be based on the weighted average of Johor’s water tariffs plus 50 percent of the surplus from the sale of this water by PUB to its consumers after deducting Johor’s price and PUB’s cost of distribution, or 115 percent of the weighted average of Johor’s water tariffs, whichever was higher
The 1990 Water Agreement ended six years of water negotiations between the both nations’ leaders
Since 1990
1998 Price of raw water sold to Singapore is 3 sen*
2000-2002
Malaysia suggests several price increases for raw water, from 45 sen to RM 6.25 for every 3.78 cu m (1000 gallons)
Periodic price reviews and adjustments due to inflation
Mahathir seeks resolution on the price of raw water, thus affecting bilateral issues
2003
Singapore’s foreign affairs minister Prof S Jayakumar states that neither country can unilaterally change the 1961 and 1962 agreements
2011
1961 agreement ended
Singapore turns over all agreement land and facilities, with country’s water supply unaffected
2018
1962 water agreement terms re-affirmed at year’s start
June: Malaysia’s prime minister Mahathir calls price of raw water sold from Johor to Singapore “ridiculous”
July: Malaysia’s foreign affairs minister Datuk Saifuddin Abdullah wants review of the 1962 agreement water prices, Singapore’s PM Lee Hsien Loong and foreign affairs minister Vivian Balakrishnan disagree with this
Nov: PM Lee and Mahathir agreed to further discussions on the issue
2019 Mar
Mahathir claims that Malaysia would win if water issue is taken to the World Court
Singapore’s Balakrishnan says it is up to citizens to decide on fairness of water price
