from the ground Up

The conference has been absolutely exhaustive but pretty interesting in many ways.

I would have written more about it, other than the fact I had to lug my brick of a laptop which has everything inherently wrong with it (which my cheapskate company is too tight to replace) all over the conference, file stories, and stress over why my blog servers were down for almost 48 hours. (Sorry about this, if you’ve tried to visit recently. There was an updating error on my host server’s side and it took ages for it to get repaired).

I will have to write more later because right now, a hotel bed has never been more inviting.. but before I do that, a few points I want to remember to write about when I do have the energy.

1. The visit to Masdar city site, the solar PV competition, testing out panels in the Abu Dhabi climate, the 10 MW grid connected solar installation, the speed of building, the Masdar team and Abu Dhabi’s commitment to the project

2. The elaborate details of the eco-city, even more impressive than that of Dongtan and Tianjin. 100% renewable, 90-95% recyclable content in almost ALL its building material, it’s potential for collaboration and showcase for rest of the world

3. The lovely PR ladies from Edelman who were very helpful, and the contrastedly up-himself racist ex-reporter Brit guy who works for the Masdar press team (okay, so this is not really an interesting point, just indulge me) who went out of his way to be UNhelpful.

4. Al Bateen Marina where Tash and her parents live (yes, I actually have a friend who lives in Abu Dhabi) getting an Arabian recipes cookbook…

5. The first day of the conference: Dr Sultan Ahmad Al Jaber’s great speech, Prince of Orange and President of Seychelles so-so speeches, being bored of general speeches

6. Great WFES press conferences, involving interviews with Lord Stern (he remembered me from the interview I did with him at the LSE forum last year!), (more on that and fuel subsidies coming up) and Dr Pachuari (more on something on climate change science)…

7. Meeting random journalists from all over the world, getting invited to go to Dubai, Paris and Washington. Having dinner with an amazing French journo who explained the history of the EU, and prophesised the collapse of the EU this year.

8. Photos - will come up soon.

by Jessica Cheam, The Straits Times, Jan 19 2009
Japan and S. Korea adopt green plans to save economy but S’pore unlikely to follow suit
RESCUE packages for ailing Asian economies are increasingly taking on a green hue, with Japan and South Korea being the latest to announce “Green New Deal” policies to boost growth.
While market watchers [...]

by Jessica Cheam, The Straits Times, Jan 14 2009
Two- and three-roomers draw over 11 applications each in latest exercise
RED-HOT demand for Housing Board homes, especially smaller flat types, has not been dampened by the gloomy economic outlook.
In fact, the recession seems to have added to their allure. The HDB’s latest quarterly sales of three-room and [...]

Couple of weeks after I wrote my commentary on how Asia Needs its own Green New Deal, there have been encouraging reports out of North Asia, where Japan and Korea have announced their own versions of this green new deal (GND).

Am working on a story on whether Singapore could see its own GND in the short- to mid-term future…

So far the stats I’ve managed to pull-out show far smaller figures for Singapore: 3,800 green jobs in the last year or so.

Although I must say its economy is much smaller than the North Asian giants, and these are figures that have already been published, not including those that may be in the works.

Green jobs in Singapore:

Renewable Energy Corp: $6.3 billion plant, 3,000 jobs by 2010

Neste Oil: $1.18 billion plant, 100 jobs by 2010

Vestas Wind: $500 million plant, 300 jobs by 2012

Oerlikon Solar: $39 million R&D centre, 100 jobs

NorSun: $419 million plant, 300 jobs

From the UN’s news site:

Japan and the Republic of Korea Announce They Will Invest Billions of Dollars in Environmentally Smart Projects
Jan 11, 2009, 4:26pm

Japan and the Republic of Korea announcement that they will invest billions of dollars in environmentally smart projects to create jobs and spur economic growth is the latest sign that the Green New Deal advocated by the United Nations is gaining momentum, the head of the UN Environment Programme said on January 9, 2009.

UNEP s Global Green New Deal and Green Economy initiative are clearly two ideas whose time has come, as evidenced by the Republic of Korea and Japan s stimulus package announcements alongside those of other key economies and leaders from China to the President-elect of the United States, Executive Director Achim Steiner said.

UNEP launched the Global Green New Deal and Green Economy Initiative as an antidote to current economic woes and as a springboard to a low-carbon, low-impact, high-job and better-managed global economy.

Japan has announced that it aims to expand the green business market and create up to one million new jobs, through measures that include zero-interest rate loans for environmentally-friendly companies.

The Republic of Korea, meanwhile, will invest $38 billion over the next four years in a series of eco-friendly projects to create 960,000 new jobs and lay the groundwork for future economic growth.

The 36 projects include the creation of green transport networks, the provision of two million energy-saving homes and the clean-up of the country s four main rivers.

Investments in clean-tech and renewable energy; infrastructure such as railways and cycle tracks and nature-based services like river systems and forests, can not only counter recession and unemployment but can also set the stage for more sustainable economic recovery and growth in the 21st century, Mr. Steiner said.

by Jessica Cheam, The Straits Times, Jan 8 2009
NEWS of the billion-dollar scandal at software giant Satyam Computer Services sent shock waves through its Singapore offices and the Indian business community here yesterday.
Some Satyam staff seemed dumbfounded at what had unfolded at their blue chip company while Indian business leaders fear the fraud could damage [...]

So I was covering the news break of Satyam’s billion-dollar fraud and how its Singapore operations are affected, how employees are reacting etc… and that included a visit to the firm’s site at the Ultro Building at Changi Business Park.

[The company's latest televised statement by its interim CEO can be found here.]

Most of the reactions I got were suitably appropriate, involving shock, surprise, lament and regret. One particularly reaction I got, however, completely stupefied me. I had asked this woman whom I ambushed at the fifth floor toilet about how the latest news will affect employees, and she actually looked at me with disdain and said, and I quote word-for-word, “what’s the big deal? The market’s not that bad. Don’t think it will affect the company.”

I wonder if she reads the same news site as we do. Or perhaps she was reading some form of Onion News. Your company’s share price has fallen 80 per cent, your chairman and founder has resigned, your balance sheet has a US$1 billion gaping hole, and “the company will not be affected” ???

I was at a loss for words. I guess some people choose to remain in denial when the crisis hits hardest. I wonder how many more unscrupulous corporate deeds will get unearthed in this economic and credit crunch.

My guess is as good as yours.

by Jessica Cheam, The Sunday Times, Jan 4 2009

[ST exclusive] Number of cases has jumped by 8,000 since year-end 2003, making up 8% of all such loans

The number of home buyers defaulting on their home loans for three months or more has risen significantly over the last five years.
Figures obtained by The Sunday Times from the Housing Board show that the number of these defaulters has jumped by about 8,000 since the end of 2003.
Also, such defaults have climbed from 5per cent to 8per cent of all HDB home loans.
The figures underscore what seems to be a growing problem. From one in 20 borrowers being in arrears, the proportion is now one in 12.
Parliament was told recently that 33,000 out of 420,000 HDB home loan borrowers were in arrears for more than three months.
When asked for historical data, HDB said that at the end of 2003, 25,000 flat owners out of the 517,300 households with HDB loans were in similar arrears.
At the end of 2002, the number was even lower – at 4 per cent, or about 21,800 of the 540,000 households.
On the decreasing number of total HDB loans, market analysts say this is likely due to new rules that took effect on Jan1, 2003, which stated that those upgrading their flats for a second time, as well as all downgraders, must borrow from banks instead of the Housing Board.
HDB loans – which offer a concessionary rate – are available only for first-time buyers or first-time upgraders.
Analysts told The Sunday Times that the increase in defaulters was likely due to the fact that HDB flat prices were “very much lower in 2003” than they were last year.
HDB flat prices have risen steadily over the last four years during Singapore’s property boom to a “new peak”, said ERA Asia-Pacific associate director Eugene Lim.
“Incomes were also on the rise. During good times, it is possible that some home buyers overstretched in a rising market and may now be in a fix as the economy sinks into recession,” he said.
HDB flat prices enjoyed a spectacular bull run with a 17.4 per cent gain in 2007, the strongest growth in a decade.
Latest estimates last Friday showed that while private property prices fell 4.3 per cent last year, HDB flat prices rose a further 13.9 per cent.
Property agency PropNex’s chief executive officer, Mr Mohamed Ismail, said an increase in affluence and higher costs of living over the last five years could have contributed to the higher incidence of people being in arrears.
Finally, HDB rarely repossesses defaulters’ flats, leaving their numbers to accumulate in the system. Some home owners in arrears can take up to a few years to pay off debts.
Still, the number of HDB home owners in trouble is clearly on the rise.
Members of Parliament interviewed confirmed the trend, noting a rise in residents seeking help for home loan problems at their Meet-the- People sessions.
Dr Teo Ho Pin, Mayor of the North West District, MP for Pasir Ris-Punggol GRC Teo Ser Luck and Aljunied GRC MP Cynthia Phua are among those who have noticed the trend.
In many cases, said Dr Teo, home owners were retrenched or had to switch to lower-paying jobs and could not maintain their loan payments.
“A lot of them are coming to me for help to find them jobs,” added Mr Teo.
The MPs pointed out HDB’s various assistance measures, such as allowing for the restructuring of loans, postponing payments, and even helping borrowers to downgrade to smaller flats.
The HDB also said it has several comprehensive measures to help such cases.
Banks which give market-rate loans for HDB flat purchases say they have not yet seen a significant increase in the number of defaulters.
Maybank said there had been a slight increase “but nothing at an alarming rate”.
OCBC and DBS said there had been no significant increase in arrears.
Mortgage consultant Dennis Ng from portal www.HousingLoanSG.com said banks generally charge defaulting home owners higher interest, but will, on a case by case basis, help those facing difficulties to restructure their home loans.
Repossession of their flats is a last resort.
Looking ahead as the recession deepens, MPs said more HDB borrowers will probably have problems paying off their mortgages.
Madam Phua said the limited supply of smaller flat types could become a problem that needs fixing quickly as families start to downgrade.
The HDB is addressing this by beefing up the supply of two- to three-room flats to around 4,000 over the next two years for lower-income families and those home owners who need to downgrade.

These, however, will be ready only in two to three years. “We’ll have to explore other options in helping such default cases in the coming year,” said Madam Phua.

HELPING HOME OWNERS

Two years ago, renovation contractor Ting Kah Ping was up to his neck in debt, owing the Housing Board more than $80,000 for his home loan. He was unable to meet the instalments.
Today, the father of four owns a flat without an outstanding loan – and he said it is thanks to the HDB.
Mr Ting, 54, and his wife bought a four-room flat in Tampines in 1998 for $112,800 but started having problems paying the instalments about five years ago.
Work as a renovation contractor was inconsistent and he was unable to service his loans regularly. He approached the HDB for help and it agreed to let him make smaller payments and, for a time, postpone his payments for half a year.
Still, despite his wife taking on part-time jobs while looking after their four children, now aged 11 to 21, they had difficulty paying their debts.
The HDB advised the couple to downgrade their flat and, earlier this year, they sold their home for $303,000. With the money, he bought a three-room home nearby and fully paid up his debt to the HDB.
“I’m just glad the HDB did not force me to give up my flat or take it back. I think banks wouldn’t have had as much patience,” Mr Ting said in Mandarin.
He is one of many home owners whom the HDB hopes to help with its various initiatives.
The board will consider allowing them to pay reduced loan instalments on a temporary basis and work out a solution to their financial situation.
Owners can also sublet a room to generate income, or include working family members as joint owners to help pay for the flat.
The board may also consider providing an additional HDB loan to help owners downgrade to a smaller, more affordable unit.

by Jessica Cheam, The Straits Times, Jan 3 2009
The fourth quarter’s 5.7 per cent drop is the sharpest in a decade
THE deepening economic crisis sent private home prices plunging 5.7 per cent in the fourth quarter of 2008 – the steepest drop in a decade.
The dramatic fall has effectively brought an end to Singapore’s four-year [...]

by Jessica Cheam, The Straits Times, Jan 1 2009

[ST Exclusive] Crisis takes its toll on rental market

THE economic crisis is posing a new problem for landlords: tenants who break leases or even skip town without notice, leaving debts in their wake.
Property agencies told The Straits Times that increasing numbers of tenants, mostly foreign, are cutting short their leases on anything from high-end luxury apartments to Housing Board flats.
Advice on how to break leases is also making the rounds on some online expatriate forums such as www.expatsingapore.com, as the financial crisis takes its toll on a previously booming rental market and expats get sent back home.
The discussions on these sites range from how to renegotiate with landlords to how to find replacement tenants and even how to make a run for it.
C&H Realty managing director Albert Lu put the number of cases at about 5 to 10 per cent out of 100 rental agreements in the last few months of 2008 – compared with “a rare few” in 2007.
ERA Asia Pacific associate director Eugene Lim said that while there were no tenants breaking leases in 2007, the firm has seen 10 corporate tenants struggle with their rent recently.
These companies, which often lease high-end apartments in prime districts 9, 10 and 11, have had to look for replacement tenants and make up the difference in rents after cutting staff numbers.
Rents themselves have also started to fall. While the official index dipped just 0.9 per cent in the third quarter following an increase of 2.5 per cent in the April-July period, agents say rents have fallen as much as 20 per cent in some areas.
PropNex agent Michael Tan, 37, who specialises in leasing prime district apartments, cited units at Cosmopolitan in River Valley. They used to go for $8,500 for a 1,300 sq ft three-bedroom home but levels have dropped about 24 per cent to $6,500 per month.
Cost-cutting measures and retrenchments mean there are fewer expats renting pricey flats, said Mr Tan.
Although agents are seeing the effects of the crisis more severely in the high-end rental market, even HDB landlords have not been spared.
Dennis Wee property agent Sally Tan told The Straits Times that two Indian nationals had skipped town without paying the last month’s rent. This was six months after they signed a one-year contract to rent a three-room flat in Yishun for $1,800.
Ms Tan said the two tenants, who were working in a foreign bank’s IT department, told her by SMS that they were leaving for good and left the key in the flat’s letterbox.
When she rushed to the flat, all their belongings were gone and a day later, their telephone lines were terminated.
“It poses a lot of problems for agents and landlords. We also can’t get the same level of rent,” she said. The same flat is now being rented for $1,600 a month.
The director of Dennis Wee Properties, Mr Chris Koh, said landlords of such tenants have little recourse as tracing them in their home country would be too costly.
Landlords can cut their losses by keeping the deposit paid by the tenant and finding a replacement as soon as possible.
If the tenant can be located, landlords can take legal action at the Small Claims Tribunal, said Mr Koh.
Breaking lease agreements does not always have to be nasty, however, said HSR Property Group executive director Eric Cheng.
Most rental contracts with foreigners have a “diplomatic clause” which states that tenants can break the lease after a year if they have a valid reason, such as returning to their home country.
“Tenants in this case should give their landlords two months’ notice so a replacement can be found,” said Mr Cheng. Even if one year is not up, tenants can still negotiate with landlords so a mutually beneficial arrangement can be sorted out, he added.
Meanwhile, agency bosses expect the situation to get worse in the next six months to a year as firms continue to cut costs and retrench staff.
The recent flood of units onto the rental market from en bloc projects where developers have postponed redevelopment, such as Fairways in Telok Blangah or Grangeford at Leonie Hill, could also contribute to the softening of the rental scene, they added.
As ERA’s Mr Lim put it: “I would say we’re only seeing the beginning.”