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SME performance up in Q2 2024, but OCBC predicts flat year

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SINGAPORE: Small and medium enterprises (SMEs) in Singapore have shown signs of recovery in the second quarter of 2024, according to the latest OCBC SME Index.

The index, which measures the overall health and performance of SMEs, rose to 50.2 in Q2 2024 from 49.7 in Q1 2024, marking its first expansionary reading since Q4 2022. This increase ends five consecutive quarters of contraction and signals a potential turnaround for the sector.

The OCBC SME Index’s rise was driven by improved performance across seven of the 11 industries tracked. Notably, four industries transitioned from contraction to expansion: Transport & Logistics (50.6), Resources (51.1), Wholesale Trade (50.4), and Healthcare (50.2). Other sectors that saw expansionary performance include Education (50.8), Food & Beverage (50.6), and Retail (50.3).

However, not all sectors fared as well. Building & Construction (49.8), Business Services (49.8), Manufacturing (49.9), and Information and Communications Technology (ICT) (49.5) remained in contractionary territory during Q2 2024.

OCBC attributed the overall index improvement to a 1.4% year-on-year increase in SME collections and a 1.3% decrease in payments. These figures reflect a healthier cash flow situation for SMEs, which is a positive sign amid ongoing economic challenges.

Despite the positive developments in Q2, OCBC has cautioned that the SME Index is likely to remain relatively flat for the remainder of 2024.

“The OCBC SME Index is likely to remain relatively flat and range-bound for the rest of 2024 despite the improvements registered this quarter as the uncertainties in the macroeconomic environment persist,” the bank said.

OCBC highlighted that externally oriented industries might benefit from a global turnaround in electronics, potentially boosting broader manufacturing and wholesale trade. Nevertheless, significant downside risks remain.

Continued global supply chain disruptions and elevated costs, especially in sea transport, pose ongoing challenges. Additionally, further geopolitical tensions could disrupt the disinflationary momentum, potentially dampening domestic demand.

The cautious outlook underscores the fragility of the current economic environment and the need for SMEs to navigate a complex landscape of risks and opportunities as the year progresses.

TISG/

Singapore GDP up 2.9% YoY in Q2 2024

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SINGAPORE: Singapore’s gross domestic product (GDP) grew by 2.9% year-on-year (YoY) in the second quarter of 2024, slightly below the 3.0% growth seen in the previous quarter.

According to advance estimates released on July 12, the quarterly seasonally-adjusted growth was 0.4%, up from 0.3% in Q1 2024, as reported by the Singapore Business Review.

The manufacturing sector rebounded with a 0.5% YoY growth in Q2, a turnaround from a 1.7% contraction in the last quarter. The uptick was driven by increased output across most manufacturing clusters, although biomedical manufacturing and precision engineering faced challenges. Quarter-on-quarter (QoQ), the sector expanded by 0.6%, recovering from a 5.3% contraction in Q1.

Construction also saw positive growth, expanding by 4.3% YoY, up from 4.1% in Q1, supported by increased public sector construction activities. On a quarterly basis, the sector expanded by 2.4%, reversing a 1.9% contraction.

In the services sectors, wholesale and retail trade, alongside transportation and storage, collectively grew by 2.5% YoY, a slowdown from 3.9% in the previous quarter. Notably, water and air transport saw significant growth, while wholesale trade benefited from strong sales of machinery and equipment. However, retail trade declined due to reduced sales in apparel, watches, and optical goods. On a quarterly basis, the services sector expanded by 0.7%, down from 2.7% growth in Q1.

Finance, insurance, and professional services expanded by 5.6% YoY, slightly lower than the 5.7% growth in Q1.

Strong demand for IT solutions, growth in business representative offices, and robust performance in financial services drove this growth. Quarterly, the group rebounded with a 1.4% expansion, following a 2.8% contraction.

Other service sectors including accommodation and food services, real estate, and administrative & support services, grew by 1.9% YoY, down from 3.0% previously. However, these sectors contracted by 0.5% QoQ, reversing from a 2.3% growth. /TISG

Read also: Singapore keeps GDP growth forecast for 2024 at 1% to 3%

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Quah siblings express disappointment over Singapore Aquatics decision

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SINGAPORE: National swimmer Quah Zheng Wen did not hold back from expressing disappointment in a recent Instagram story, after it was revealed that his sister would not be fielded to the Olympics.

He posted a photo of himself with his parents and his two sisters, fellow swimmers Quah Ting Wen and Quah Jing Wen against the backdrop of a pool.

The athlete wrote, “What an absolutely disappointing display of management. The lack of transparency, clarity and honesty given to our national athletes by positions of authority is appalling.

“The misrepresentation of information is quite frankly disgusting, and am in complete disbelief that the entire situation was managed in the way it was.”

Earlier this week, Singapore Aquatics, the national governing body for aquatic sports in the country, confirmed the list of athletes for this year’s summer Olympics, to be held this year in Paris from July 26 to Aug 11.

On Jul 8 (Monday), it announced that the country would be represented by five swimmers, Jonathan Tan, Letitia Sim, Gan Ching Wee, Quah Jing Wen, and Levenia Sim.

Conspicuously absent from the list was Quah Ting Wen, who had qualified to be part of the 4x100m relay team, when she, her sister, and Letitia and Levenia Sim had previously set a national record in Doha and Ms Quah had, understandably, prepared to go.

According to Singapore Aquatics’ announcement, it had made an appeal for the elder Ms Quah to be included in the relay team, but  World Aquatics (AQUA) turned the appeal down.

AQUA had invited Ms Gan to compete in the Olympics, and when SAQ’s Selection Committee met, it decided to field the Sim sisters, the younger Ms Quah, and Ms Gan in the 4x100m relay,

Ms Quah herself had also made an appeal, but when a SAQ Appeals Committee met on July 7 to consider her case, they chose to stick to the decision of the Selection Committee.

“We understand her disappointment and empathise with her. We look forward to Ting Wen being an important part of our 2025 plans when we host the World Aquatics Championships and compete in the SEA Games,” said SAQ president Mark Chay.

Ms Quah, however, has been open about her feelings, telling The Straits Times how “disappointed and emotionally exhausted” she is, and saying that she does not want her career to end this way.

“I do need time to process everything. So if you’re asking me if I’m gonna swim for sure next year, my answer is ‘I don’t know’.”

Others online have echoed Ms Quah’s disappointment.

“How can you tell someone that they are selected for the Olympics, make them sign documents, and then reverse your decision. Quah Ting Wen trained for 4 years just for this!” wrote Wake Up, Singapore on July 9. /TISG

Read also: Quah siblings making waves for Singapore in the pools at the SEA Games

 

Singapore stocks open higher on Friday morning following latest GDP data—STI rose by 0.5%

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SINGAPORE: Singapore stocks open higher on Friday morning, July 12, reflecting positive sentiment from the latest economic data. The Ministry of Trade and Industry reported a 2.9% year-on-year GDP increase, close to the revised 3% growth seen in the first quarter, according to advance estimates.

The Straits Times Index (STI) opened 0.5% higher, adding 17.89 points to reach 3,492.95 at 9:01 am, The Business Times reports.

In the broader market, gainers outnumbered losers, with 83 stocks advancing and 35 declining. A total of 70.2 million securities worth S$109.9 million were traded.

One of the most actively traded stocks was CapitaLand Integrated Commercial Trust, which saw a 1.5% rise, adding S$0.03 to its price to settle at S$2.07, after seven million were exchanged.

Yoma Strategic also saw significant activity, jumping 6.5%, or S$0.007, to S$0.115. Meanwhile, units of Mapletree Logistics Trust climbed by 1.5%, or S$0.02, to S$1.34.

Banking stocks showed mixed results at the opening. DBS dipped slightly by 0.3%, losing S$0.11 to trade at S$38.27. In contrast, UOB rose by 0.5%, or S$0.17, to reach S$33.13, and OCBC increased by 0.9%, or S$0.13, to S$15.33.

On Wall Street, stocks finished mixed on Thursday as yield on US Treasury bonds declined further amid growing expectations of interest rate cuts.

The Dow Jones Industrial Average ticked up by 0.1% to close at 39,753.75. However, the S&P 500 fell by 0.9% to 5,584.54, and the Nasdaq Composite dropped 2% to 18,283.41.

Meanwhile, European shares closed higher, driven by softer-than-expected US inflation data. The Europe-wide Stoxx 600 index increased by 0.6%, ending at 519.51. /TISG

Read also: Singapore stocks opened with steady gains on Thursday—STI rose by 0.6%

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4 in 10 young women do not foresee themselves getting married

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SINGAPORE: A recent survey reveals that 40 per cent of women aged 21 to 34 do not foresee themselves getting married. This is according to data from a Singapore Perspectives 2024 (SP2024) survey collected by Dr Kalpana Vignehsa, Senior Research Fellow at the Institute of Policy Studies, National University of Singapore and her colleagues.

The Straits Times reported that the survey highlights the changing attitudes of young Singaporean women towards marriage. The survey found that 40 per cent of women in this age group do not expect to marry. While 17% of these women are less interested in marriage, 12% are less hopeful about having children compared to their male counterparts.

Although recent data from Singapore’s Department of Statistics (DOS) showed that falling birth rates result primarily from increasing rates of singlehood, Dr Vignehsa argues that it has long been ​​a narrative that fewer Singaporeans want children.

Gender relations

Dr Vignehsa noted that gender relations, not child rearing, is the reason marriage is less appealing for women than men. “This – and not the skewed notion that women are somehow solely responsible for a falling total fertility rate – is what we need to understand and address,” she said.

Young Singaporean women are increasingly achieving higher education and professional success, often surpassing their male peers. This has empowered many to pursue their careers and personal development independently.

Research on dating in Singapore from the 2010s indicates that attitudes toward premarital sex are permissive, though housing policies make unmarried cohabitation still uncommon.

The SP2024 survey also found that 74 per cent of young women and 64 per cent of young men agree that getting married is not necessary. Despite this, 60 per cent of women and 77 per cent of men still anticipate marrying in the future.

“One way to understand these results is that while marriage continues to be desirable, it is no longer central to the identity of Singaporean youth,” Dr Vignehsa said.

The rise of dating apps has played a role in this shift, offering young people a more casual approach to relationships and widening the pool of potential partners.

Gender inequality in domestic responsibilities remains a significant issue

The Ipsos-United Women Singapore study from November 2020 found that while most Singaporeans agree that domestic labour should be shared equally, it is still largely divided along gender lines. Women are often responsible for regular duties such as cleaning, cooking, and childcare, while men handle tasks requiring greater physical strength or technical skills.

“This means that women tend to be responsible for duties that require regular attention, leaving them with less time than men to attend to other priorities.”

Dr Vignehsa added that in couples, there’s also a gap—women believe they do 43% of the housework, while their partners think it’s only 24%.

Research led by Associate Professor Vincent Chua of the National University of Singapore across East and Southeast Asia found that a mismatch between egalitarian gender ideology and traditional practices around household labour negatively affects professional women’s well-being. This issue is especially pronounced in societies with strong patriarchal norms but is also evident in Singapore.

As Dr Vignehsa said, “Staying single is a valid personal choice that must be respected.” However, if society does not address the underlying issues of gender inequality and support for working parents, falling marriage rates may become a rational choice for an increasingly educated population. /TISG

Read also: 7 in 10 S’poreans feel it’s “unnecessary to get married” or “have children” due to stress and cost of living

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Expat clashes with Singaporean after seeking detailed breakdown of living costs

SINGAPORE: A 25-year-old expat planning to move to Singapore clashed with a Singaporean online after seeking a detailed breakdown of living costs in the city-state.

The expat has since deleted her entire account, which means her post and comments are no longer available online, but the conversation stirred enough interest that screenshots are still circulating online.

“I’m 25F planning on moving to Singapore in a few years and wanted to understand what the actual monthly cost of living would be?” she wrote. She listed categories like utilities, groceries, Wi-Fi, house maintenance, transport, medical insurance, self-care, and personal wants.

She noted that while she was frugal in some areas, she was willing to spend on things like food and fitness classes. Hoping for answers, she added, “I would very much appreciate your insights and experiences.”

However, her post was met with a sharp response from a Singaporean. She said, “Can’t imagine who is going to spend 2-3 hours of their time doing this research for you. Maybe Google first, then ask specific questions,” adding that rental listings and costs for services like Netflix are publicly available.

No need to be rude,” the expat replied, clarifying that she was seeking insights from those with “lived experience.” She argued that while Google might provide basic figures, “lived experience is wildly different.”

She retorted, saying, “you did waste probably 1 minute of your precious time replying to this, hope you get it back soon enough.”

The conversation quickly escalated. The Singaporean insisted that “lived experiences are the same as what Google will tell you.” She noted that rents, like Netflix costs, are available online as all transactions are publicly published.

She added, “I’m not being rude, I’m being helpful, that’s why I spent a minute replying. I will help you in other aspects of life as well. If you did basic research first, it would help get you answers more specific to your situation. Rude would be downvoting and moving on. Warm regards.”

The expat, undeterred, fired back, telling the Singaporean “You’re (not) being helpful but you ARE being rude.” She mentioned that she had already done extensive research: “Not that I need to justify anything to you, I posted this after a month of research and countless Excel sheets, down to tax deductions and CPF contributions.”

“You know what would help you in other aspects of life? Not commenting on things you don’t know about. Better just downvote and move on. Get a life,” she concluded, clearly irritated.

The Singaporean, however, wasn’t ready to back down. She sarcastically insisted on helping because she was “awesome,” and pointed out that showing prior effort in research would have garnered more specific and helpful responses.

“If you have done a month of research, it certainly doesn’t show in the question. So it’s a bit pointless. Show your effort and people might actually help you,” she replied.

“20k is needed for a high-maintenance special person like you,” another commenter added.  /TISG

Read also: “You’re earning 10X more than us!” — Expat being offered S$280K pay in SG draws flak for seeking advice on cost of living

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“It’s just plain mean,” Furious Singaporean exposes teacher for publicly shaming students on Instagram

SINGAPORE: A furious Singaporean student took to social media on Wednesday (Jul 10) to expose her teacher for publicly shaming students on Instagram.

“Criticism is supposed to help us improve, but this isn’t constructive at all—it’s just plain mean,” she wrote on r/SGexams.

Despite the names being blurred out, the student found the comments to be excessively humiliating. The student felt that this was a clear violation of student privacy and condemned it as extremely unprofessional.

She also pointed out that instead of fostering a supportive and safe learning environment, the teacher’s actions created a toxic environment, leading students to feel anxious about having their work scrutinized and mocked online.

“Being publicly shamed like this can have serious repercussions on a student’s mental health. It’s already stressful enough to keep up with schoolwork without the added pressure of public humiliation.”

She insisted that teachers should be there to encourage and help students, not tear them down with harsh comments.

“I honestly don’t know what to do. Reporting it feels like a risk because it might make things worse, but this can’t continue. Teachers should be role models, not bullies.”

The student added, “I really hope someone in a position of authority steps in to put an end to this nonsense. Students deserve to be treated with respect and dignity, not as subjects for public shaming on social media.”

“You can report it anonymously on the MOE feedback page.”

In the discussion thread, several Redditors were likewise furious with her teacher for using students as content on Instagram. They strongly recommended that she escalate the matter to the Ministry of Education (MOE) and formally lodge a complaint against the teacher.

One netizen said, “Please report it to MOE, or even other teachers you trust (with receipts). Not all teachers are here because they love teaching. Some are here because their scholarship stipulates they serve as a teacher for x years.”

Another commented, “You can report it anonymously on the MOE feedback page. They take it seriously.”

However, others dissuaded her from doing so, saying that she can first talk to her teacher about the public shaming.

One netizen stated, “If it’s a teacher you trust (kinda) and whom you think might be receptive to feedback, do provide feedback directly to the teacher and see if they stop. Perhaps they think they’re witty or ~relatable you never know…”

Another netizen, who claims to be a teacher for 19 years, added, “Just walk into the principal’s office and tell. It will be taken down within minutes. There is no need to write to MOE etc. Everyone makes mistakes, even teachers. Just talk to P and things will move immediately. No need to threaten that teacher’s job.”

Read also: SG student says “my mum called me selfish just because I’m not giving my dad $700” from her $2000 award

Featured image by Depositphotos

Soon-to-be divorced father wants half of the profits from HDB sale even though he only paid for 25% of the flat

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SINGAPORE: A young netizen turned to Reddit for advice after her parents had a heated argument over their impending divorce and the division of profits from their HDB property.

In her post, she explained that her father had been planning to divorce her mother for decades and use the money from the sale of the HDB property to retire in China.

“Since divorce requires the selling of our hdb, he plans to use the divorce to earn a large sum of money for his retirement.”

Her father had insisted that he take 50% of the profits, even though he only pitched in 25% and never chipped in for the house renovations. Her mother, however, stood firm and refused to agree to these terms.

“There was physical violence involved, whereby he hit my mom and I had to step in to stop him. He apologized to me because I was crying, but I had already lost all trust in him,” she wrote.

“This is extremely unfair for my mother, sister and I. Beyond essentially abandoning us as a family, and leaving my mom as a single mother, he is financially exploiting my mom. The splitting of profits is inherently unfair, we will have to unnecessarily buy another hdb or rent.”

While she sympathizes with her father’s struggles with depression and insomnia, which have slowed down his career and left him earning only about S$3,000 to S$4,000 at age 59, she still believes that he should have focused on planning for retirement rather than seeing the divorce as a way out.

“Since divorce requires consent of both parties and my mom does not consent (due to a financially unfair outcome). He contacted the lawyer and wanted to settle it in court. (which I think is a stupid move because it incurs high fees, and I estimate that the odds are against him).”

“He even tried to get my help in filling up information because he couldn’t understand the English words (plaintiff and defendant). It was outrageous.”

Worried about the legal proceedings, she turned to the Reddit community for insights and advice on how best to support her mother through this challenging time and secure a fair financial outcome.

“Financial contributions can be traced so no worries on that.”

In the comments section, a few Redditors explained that her mother is likely to have the upper hand in this legal situation due to Singapore’s clear rules on asset division. They also mentioned that HDB has records of both her father’s and mother’s financial contributions towards the property, which should ensure a fair outcome.

One individual added, “When you sell a hdb, money will first return to CPF then anything left over will be split. (This is the good part of CPF).

So lionshare will be returned back to your mother. All financial contributions can be traced.”

Another assured her, “Financial contributions can be traced so no worries on that. The courts are pretty fair. Source: me, whose parents divorced 10+ years ago.”

Others recommended hiring a lawyer and getting the police involved since this was also a case of domestic violence.

On the contrary, several Redditors argued against complicating matters further, suggesting she persuade her father to resolve things amicably.

One netizen said, “Tell your dad frankly that both getting lawyers to fight over a flat is lose-lose.”

Another individual added, “You still love both of them, and though your dad is abusive, it seems that they are still on talking terms. Especially your dad with you, since he asked you to translate some legal documents.

“Explore your mum buying over the property so it pays him off. Lay out to him that even if he goes to court, with the evidence that you have, he’s bound to lose out.”

Read also: Indian PR asking for divorce advice urged to go back to India to file for divorce because “Singapore is more protective of women”

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Branch chairman claims PAP’s presence in Aljunied is “felt by online trolls hiding behind false identities”

SINGAPORE: Former People’s Action Party (PAP) candidate and branch chairman in Aljunied GRC, Victor Lye, has claimed that the ruling party’s presence is “felt by online trolls hiding behind false identities,” as he called out commenters making “vile and rude” comments online.

Mr Lye was a member of what has been dubbed the PAP’s “suicide squad” for the Workers’ Party-held Aljunied GRC in both the 2015 and 2020 general elections. Despite his consecutive defeats at the polls, he serves as an unelected PAP branch chairman in the opposition ward and regularly leads grassroots events in the opposition ward.

On Friday (5 July), Mr Lye indicated that he considers vile comments from “online trolls” fuel that keeps him and his comrades going. He wrote on social media:

“We have consistently walked the ground at Aljunied GRC over the years. Our presence is felt by online trolls hiding behind false identities; also persons who make vile and rude online comments. Good for all to see. Thanks for the encouragement from those offended or unhappy with these unruly ones.”

He added, “Let’s focus our energy and attend to those who matter. We know why we do what we do.”

Back in 2019, Mr Lye asserted on social media that it is “not easy to keep trying to win the hearts and minds” of people.

Pointing to fake news, he said: “Echoing his ruling party colleagues’ warnings about fake news, he concluded: “In this age, we have to deal with new challenges, rising expectations and often, misguided or false information. Ultimately, we need to earn our place among our people by winning their trust. We accept our imperfections and must be able and willing to Advance Singapore Together.”

In another Facebook post that same year, he warned people about “those who are truly politicians” while asserting that PAP activists should first and foremost be “community and political leaders”.

Noting that PAP activists “walk among our people, even when we are not in Parliament” and “care for our seniors, our young and those with needs,” Mr Lye painted his job as a non-elected PAP representative as one that is unenviable.

Mr Lye appeared to paint his work as a non-elected PAP branch chairman as something that is perhaps looked down upon but, WP’s Pritam Singh has a different view to this.

The Aljunied GRC MP, Pritam Singh, has revealed in the past that grassroots advisers have the power to disburse the millions of dollars that are made available to all town councils for community upgrading projects and have the authority to approve or reject community improvement projects the WP proposes.

Decrying how unfair the practice of installing defeated PAP candidates as grassroots advisers in opposition wards is, Mr Singh that this practice makes defeated ruling party members “relevant for residents” and allows them to “campaign for votes well before the General Elections” since their appointments as grassroots leaders gives them the authority to dispense “large sums of taxpayer dollars.”

No opposition party that has been defeated in other wards have the opportunity to place their representatives and branch chairmen to run grassroots activities in the wards they hope to contest, in between election terms.

TISG/

LTA says overall reliability of Singapore MRT system has improved over past year

SINGAPORE: The Land Transport Authority (LTA) has announced a notable improvement in the overall reliability of Singapore’s Mass Rapid Transit (MRT) system for the period from April last year to March this year.

According to data released by the LTA, there was only one significant delay accident for every 2.321 million kilometers traveled by the MRT during this period. This marks a positive stride from the previous year, where the figure stood at approximately 2,077,000 kilometers per incident.

Among the five MRT lines in operation, the Downtown Line, managed by SBS Transit, emerged as the top performer in terms of reliability. Trains on this line experienced an average delay of more than five minutes only once every 8.149 million kilometers traveled.

Following closely behind was the East-West Line operated by SMRT, which reported one delay accident for every 5.05 million kilometers covered, a significant improvement compared to the 3.363 million kilometers reported in the previous year.

Conversely, the Circle Line displayed the least reliability among the MRT lines, with one accident for every 1,028,000 kilometers traveled, reflecting a decline from its performance last year.

In addition to the MRT system, the Light Rail Transit (LRT) network experienced a decline in reliability. Trains on the LRT encountered one significant delay accident for every 375,000 kilometers traveled, a stark contrast to the 546,000 kilometers reported in the previous year.

Despite these challenges, serious incidents of MRT delays exceeding 30 minutes remained low. Only one such incident was recorded in the first quarter of this year, affecting the Circle Line. Similarly, the LRT system encountered one serious incident in Bukit Panjang.

TISG/