OTHER than those hoping for lower Certificate of Entitlement (COE) premiums, it appears that almost everyone else is happy about the revised vehicle financing restrictions.

The Monetary Authority of Singapore’s (MAS) move to relax the loan curbs instituted in February 2013 was good news for many groups of people and at least one country.

From the car buyer who couldn’t scrape together enough for a cash downpayment on a budget model, to the wealthy super sports car buyer who prefers to stretch his repayment schedule, the barriers to entry were lowered on Friday when the loan quantum permitted rose to either 60 per cent or 70 per cent depending on the car price, and the maximum loan tenure raised from five years to seven.

Also from the motor industry, which sees stronger demand and therefore fatter margins by raising prices, to the government whose wallet will be fattened by higher COE revenues.

And most of all, the flagging Singapore economy which will benefit from the stimulus.

In easing the more than three-year-long restrictions, the MAS said that the adjustments were possible with the sustained moderation in COE premiums and resulting inflation. But it also means that COE premiums will probably go back up.

Car dealers are glad for the changes not only because demand for new cars will strengthen but because most genuinely believe the new regulations are more equitable. Like Goldilocks, they thought 50 per cent and five years was too harsh, 100 per cent and 10 years too lax, but 70 per cent over seven years is just right.

At the same time, they are also expecting COE premiums to rebound – not much initially, maybe a few thousand dollars in the first couple of rounds because they had collected orders with relatively low COE thresholds. But very probably a bit more after that.

Any increases could, however, be mitigated by the expanding COE quota. Some expectations put passenger car COE numbers jumping by up to 50 per cent more than last year to over 80,000 units (57,589 cars were registered in 2015).

The ongoing economic uncertainty could cap any premium increases as well. But even if they do, assume the premiums of the COEs which can be used to register a passenger car – Categories A, B and E – rise by an average of S$10,000 over the next 12 months.

If 80,000 such COEs were to be made available, then it could boost the government’s coffers by as much as S$800 million in a very decent revenue-generating effort.

In the recently announced Budget though, the government only forecasts COE premiums from April 2016 to March 2017 climbing to S$5.655 billion from S$5.406 billion the previous year, or a more modest increase of S$249 million. Which is a relief because it could mean it is looking at a smaller appreciation in COE premiums.

But then, there is the question of placing a new car within the means of a bigger group of people than before, at a higher price, with bigger interest payments, in the context of a weaker economy.

Will that cause some marginal owners to overstretch and put at risk the MAS’s efforts to promote financial prudence?

Of course, it must be noted that the default rate here is already very low. But could that change if economic conditions don’t improve soon?

But perhaps more curious is that in addition to serving the longer term purpose of encouraging financial prudence, the MAS states that the loan measures also support efforts to promote a car-lite society.

Given that the COE supply is controlled, how does society become car-lite when the only variable involved here is demand?

Could this be a clue that society will soon be COE-lite too because the quota will be dramatically slashed in the near future? Should we worry that our Singapore love affair with the car will end soon?

Or maybe, instead of trying to read between the lines, we should all just be happy about the new rules and go out and buy a car.

samuelee@sph.com.sg

This article was first published on May 30, 2016.
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A proposal to redevelop part of The Tanglin Club could add another towering commercial complex near Orchard Road.

The club in Stevens Road will hold its annual general meeting (AGM) today. Among the proposed resolutions is a plan by the club’s development and planning sub-committee to add 11 more guest rooms.

But former club presidents Joseph Chew and Sim Yong Chan have proposed an even more ambitious plan.

In a letter submitted by hand on May 6 to the club’s general manager, Ms Josie Tulipano, they asked the club to consider building a high-rise recreational and commercial development instead.

Should their proposal be included in the AGM agenda, club members will have at least two different redevelopment ideas to consider.

Under the resolution on guest rooms, the additions will complement 16 existing ones, which earned $1.1 million in revenue for the club’s financial year to Jan 31, 2016. The new rooms are to be built on the fifth level of the club’s existing Sports and Recreation Complex, capped at a cost of $2.1 million.

But Mr Chew and Mr Sim have suggested setting up a task force, instead, to look into maximising the potential of the land on which the sports complex, tennis courts and squash courts are located.

The task force will then apply to the Urban Redevelopment Authority (URA) for permission to build a high-rise mixed recreational and commercial development there.

Their proposal is inspired by the redevelopment done by the Hong Kong Club in 1984, when it rebuilt its existing clubhouse – in Jackson Road in central Hong Kong – into a 21-storey mixed recreational and commercial building.

Developers Hongkong Land agreed to bear the costs of demolishing the old clubhouse and constructing the new building in exchange for rental income of the 17 upper storeys in the building for 25 years. The first four storeys were used as the club’s new clubhouse.

In a letter to club members, Mr Chew and Mr Sim said Hongkong Land made about HK$100 million a year during the 25-year period.

The duo added that Tanglin Club’s financial position will be “enviable” if it successfully pulls off a Hong Kong Club-style redevelopment.

They said they got an in-principle approval from URA in 1995 to redevelop a part of the club’s land into a high-rise mixed recreational and commercial building. The approval lapsed as there was no follow-up.

Architect Liu Thai Ker has agreed to be an adviser to the task force, should it be set up, said Mr Chew and Mr Sim in their letter. Mr Liu is now senior director of RSP Architects Planners and Engineers, which has been involved in the design of The Tanglin Club.

Mr Chew and Mr Sim could not be reached for comment.

Property experts said it is too early to assess the market potential of the proposed building as the proposal is still in its infancy.

“There are too many unknown factors to know for certain whether this proposed venture would be profitable,” said Mr Nicholas Mak, head of research and consultancy for SLP International Property Consultants. Factors he cited include the design and size of the building and the allocation of space.

However, Mr Alan Cheong, Savills Singapore research head, said “although the club is not located adjacent to an MRT station, a case can still be made for an office building”.

He said club members who run businesses may also find themselves as tenants, as “renting an office above the club may give them the right setting for a one-two punch to close deals”.

“The use of the site in its present state is not the best way. From a monetary perspective, the inclusion of commercial uses would likely be a benefit,” Mr Cheong added.

vijayan@sph.com.sg

kenggene@sph.com.sg

This article was first published on May 30, 2016.
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When a 7.8-magnitude earthquake struck Nepal on April 25 last year, hundreds of foreigners were stranded at the airport and trying desperately to leave the country.

But consular officer Wang Huihui from Singapore’s Ministry of Foreign Affairs (MFA) had to board the earliest commercial flight into Kathmandu instead.

The 25-year-old was part of a four- member Crisis Response Team (CRT) sent to Kathmandu, whose responsibilities include evacuating Singaporeans in overseas crises, such as natural disasters or terrorist attacks

“When we landed at Kathmandu, the first thing that greeted us was a 6.8-magnitude aftershock while the plane was still on the runway. It was unsettling to feel the aircraft shaking violently,” said Ms Wang.

Last year, the MFA sent the CRT to help Singaporeans in five major overseas incidents, including the Yemen armed conflict in April, the Sabah earthquake in June and the Bangkok bomb blast in August.

The MFA said this “was the highest ever deployed in recent years”.

It said “the frequency and scale of crises have intensified in recent years”, amid an uncertain global security climate and increased frequency of natural and man-made disasters. In the past year, for instance, there were bombings in major cities such as Paris and Brussels.

The CRT was first dispatched in 1997 in response to the SilkAir Flight MI185 crash in the Musi River near Palembang, Indonesia.

In the Nepal earthquake last year, the MFA facilitated the return of 71 Singaporeans. The ministry said it worked under challenging circumstances to contact Singaporeans in Nepal, as it did not have a permanent presence there and telecommunication lines and Internet connections were disrupted.

The CRT set up a registration point at the airport and worked with the Nepalese authorities to secure landing slots for the Republic of Singapore Air Force C-130 aircraft used to evacuate Singaporeans. It also had to trace Singaporeans in the affected area who had registered online with the MFA and to verify the safety of those whose next of kin provided leads.

Emergency travel documents were issued to Singaporeans whose passports were lost or left behind to facilitate their return home.

In Parliament last month, Senior Minister of State for Foreign Affairs Mohamad Maliki Osman urged Singaporeans to stay safe when travelling by “staying in close contact with their next of kin and close friends, taking necessary precautions for their personal safety and planning properly for their travels”.

These include buying comprehensive travel insurance and providing active contact details to the MFA.

Singapore residents make about nine million trips abroad via air and sea each year.

The MFA said not many Singaporeans who went abroad registered online with it. Last year, only about 300,000 travellers did so.

Ms Wang said it was her first encounter with an earthquake and she recalled how she had only a few hours to get ready for the deployment.

“When I got the news, it was the weekend and I was watching a movie. I left halfway to prepare for my trip,” she said.

There was definitely some apprehension about going to Nepal, but “I was reminded of my responsibility to assist Singaporeans who wish to return home safely”, she added.

This article was first published on May 30, 2016.
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ROME – As an oasis of racial and religious harmony, Singapore has piqued the interest of Pope Francis, who discussed inter-faith harmony with President Tony Tan Keng Yam.

Dr Tan, assessing his state visit to the Holy See, said yesterday that Singaporeans may take the peace between different communities for granted, but this state of affairs is considered exceptional by others.

Singapore has a unique way of maintaining harmony through inter-faith dialogue and sees preventing religious extremism not only as a security issue, but also as a holistic one which involves ideological, social and family issues, he said.

He added that it was something Pope Francis was keen to learn more about during their meeting in the Vatican City last Saturday.

The two men spoke about the vital role of inter-faith dialogue in building a society where people can occupy their own space while sharing common spaces.

They also discussed the terror attacks in Paris and Brussels and the importance of managing religious extremism in the face of terrorism.

“I was able to share with the Pope our experiences in this area, to explain that, for Singapore, racial and religious harmony is fundamental not only to our progress but to our very existence and, from the start, we have placed a great deal of emphasis on building bridges across communities,” said Dr Tan to Singapore media yesterday.

He highlighted the role of the Religious Rehabilitation Group spearheaded by Muslim clerics. The group counsels those who have been affected by radical teachings.

He also pointed to the major role of the Roman Catholic Archdiocese of Singapore in the National Steering Committee on Racial and Religious Harmony.

Still, Singapore is not insulated from the influences of religious extremism and disharmony, particularly because of the make-up of its society, said Dr Tan.

“Racial intolerance, religious intolerance, extremism, is a feature in all countries,” he added, pointing to Europe’s experience.

It is a problem that will need to be worked on for many years, he said.

Dr Tan said he hopes the Pope will visit Singapore to see this in practice once a suitable date is found.

The two also affirmed the friendly ties between Singapore and the Holy See, and agreed that there is potential for more collaboration, such as in the area of cultural exchange.

Dr Tan also discussed regional and international developments with the Secretary of State of the Holy See, Cardinal Pietro Parolin.

This article was first published on May 30, 2016.
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Even as Singapore Management University’s revamped campus takes shape, it is drawing up plans for another building to optimise degree education for millennials who learn on the go.

The university is in the process of seeking the necessary approvals, but SMU president Arnoud De Meyer said the building, which it hopes to build by 2019, will have classrooms that encourage active and collaborative learning both online and offline.

It will be open 24 hours, seven days a week, and the facilities will include sleeping pods to allow students to work overnight on projects.

Professor De Meyer also gave an update on SMU’s revamped campus plan during an interview with The Straits Times, saying that most of the new facilities, including the law school, the 240-seat amphitheatre and three-storey fitness centre, will be ready for use next year.

As for the new building, it will be named SMU-X after a new programme in teaching and learning that the university piloted last year.

Students in the programme take on projects from industries and organisations. A public policy management course, for instance, may get students to work with a social welfare agency to draw up programmes for disadvantaged families.

Prof De Meyer said the SMU-X programme was a hit with the 600 students who had a taste of it last year. This year, it has been expanded to allow up to 2,000 students to take the courses.

This means every SMU undergraduate will be able to take at least one SMU-X course over their four years of study. Some 150 companies have come in as industry partners.

Prof De Meyer said: “Students work on projects brought in by industry partners. So they are immediately applying what they learn in solving real-life problems.”

Professors and industry mentors guide students through projects. Students earn credits from the semester-long courses and are graded on their participation and the final outcome.

Currently, the SMU-X courses are conducted in a conserved building in Stamford Road which was home to the flagship MPH bookstore until 2003. Prof De Meyer said the facilities in the building were designed to suit the way millennial students learn.

SMU students were involved in the planning and design of the rooms. They held focus group discussions, conducted surveys and went overseas to look at facilities in other university campuses.

The White Room, for example, is a favourite with students for brainstorming sessions. The walls, floors and table can be used for scribbling ideas.

Another room has sofa-beds for power naps, while another is filled with colourful beanbags for small groups to meet.

The university’s facilities have already proven to be a draw for full-time national serviceman Darren Lim, 20, who will enter SMU next year to study business. He said he picked the university over another local institution partly because of its “cool city campus”.

“Before I decided on SMU, I visited two of my ex-junior college mates who were studying there. I especially liked the SMU-X facilities because that’s how I study.”

“But, besides the facilities, I like the idea of learning a course through a project. It will make the course more interesting as you can immediately see how it can be applied to solve a problem.”

sandra@sph.com.sg

This article was first published on May 30, 2016.
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