Flying high with Seletar makeover

Training institutions will make Seletar Aero+sPace a regional aviation campus.

TUCKED in the north-eastern corner of Singapore, Seletar Airport's humble appearance belies its grand beginnings. Built just before World War II, it is the country's first international civil airport and it has lasted to this day even as international air traffic moved to Kallang, Paya Lebar, and finally Changi over the years.

Seletar continues to operate as a base for flight training and aerospace maintenance, repair and overhaul (MRO). Though relatively quiet today, the area could soon return to the hustle and bustle of yesteryears when JTC Corporation's aerospace park takes shape.

As the government agency spearheading Singapore's industrial growth, JTC has earmarked 300 ha of land for Seletar Aero+sPace (SAP). The strategic project, which began in 2006, aims to enhance the country's position as a leading MRO service centre in Asia Pacific.

Since 1990, Singapore's aerospace industry has grown at a compounded rate of 13 per cent annually. There is a strong MRO cluster offering a full range of services including airframe maintenance, engine overhaul, component repair, structural systems repair and avionics systems repair.

As the industry grew, aerospace companies in Singapore and new investors started seeking space for expansion and this led to the creation of SAP.

Undoubtedly, the aviation industry today is facing significant challenges and the MRO market has not been spared. Hit by high fuel costs earlier, airlines now have to contend with the global economic slowdown. Some have grounded less fuel-efficient aircraft and cut back on routes.

But despite the weak immediate outlook, the aerospace industry's future remains promising, said Senior Minister of State for Trade and Industry S Iswaran at an MRO conference last October. 'We are determined to proceed with infrastructure works at Seletar. . . This will position us well for the upturn, when it comes.

'We see this as the occasion to prepare the infrastructure and manpower capabilities needed for future growth, especially since we remain positive about the long-term prospects of this industry.'

The SAP clusters
JTC completed the SAP masterplan in June 2007 and the park will accommodate four key activities - aerospace MRO, design and manufacturing, training, and business aviation and general aviation. The clustering concept allows customers to access a whole suite of aviation services and also allows companies there enjoy synergy and economies of scale.

Singapore already has strong MRO capabilities in commercial wide-body aircraft. To diversify into new market segments, Seletar will host MRO activities for the growing narrow-body and smaller aircraft market.

When it comes to design and manufacturing work, new business opportunities are emerging. US and European companies are increasingly looking for cost-competitive yet reliable manufacturing locations; companies that are developing new aircraft types such as microjets are also looking for new locations to produce and assemble them.

The SAP will also become a regional aviation campus when leading aeronautical training institutions set up shop there. The training of pilots and crew, aviation staff such as airport managers, and aerospace engineers and technicians will benefit both the local and regional aviation industry.

Seletar Airport will also have an important role to play in supporting business and general aviation. With the emergence of private wealth management and new tourist attractions such as the integrated resorts, there will be increased business aviation traffic in Singapore. The privacy which Seletar Airport offers will suit high net worth individuals coming here.

The SAP masterplan
Under the masterplan, Seletar Airport will be upgraded to include an extended runway, a new taxiway, aircraft parking aprons and an instrument landing system. JTC has reserved about 140 ha of land around the airport for the rest of SAP, and surrounding utilities and roads will be enhanced to meet the requirements of aerospace companies.

Development began in November 2007 and included the construction of a new road and a substation. According to JTC last year, phase 1 of SAP was fully allocated to new tenants Rolls-Royce and Pratt & Whitney, and to existing companies ST Aerospace and Jet Aviation.

'We have enjoyed strong support from the aerospace industry since SAP was launched,' said Mr Iswaran.

Phase 2 of the SAP is just beginning to take shape and will include the development of a new multi-storey building to house aerospace-related businesses that are not runway-dependent, such as those involved in aviation insurance, flight chartering, aircraft financing and leasing.

JTC will retain some colonial 'black-and-white' residences in Seletar. It will also convert some of the heritage buildings into offices, training classrooms, trainee dormitories and commercial outlets. The SAP will offer a mix of entertainment and food and beverage establishments to inject vibrancy into the community.

When fully completed in 2018, the SAP and its suite of aerospace-related activities will create more than 10,000 jobs and contribute more than $3 billion annually to the economy.

'Singapore remains committed to developing the aerospace industry and reinforcing our status as an air hub,' Mr Iswaran reiterated. 'These are important pillars of our economy and Singapore will continue to invest in the essential infrastructure and resources to support them.'

Source: Business Times, 3 Mar 2009

Opening a retail store? Check the location mapping first

IMAGINE. You are looking for a place to open a retail store. You decide to scout for the ideal location, and trek the streets of Singapore in the unflinching sun.



Or maybe you could approach your mission another way. Such as by sitting in the comfort of your home and logging on to an Internet portal that does the work for you.


All you need do is specify a point on a map. The software then analyses the suitability of the location by detecting nearby amenities, competitors and even local population demographics.
'It's so much more convenient than pounding the streets to find a good location,' says Terence Tan, founder of Wheresoft Geo- commerce, the company behind the application.


Mr Tan's WhereBizMap portal helps companies, franchises, SMEs and entrepreneurs determine the best site to set up shop. It incorporates the Singapore Land Authority's (SLA's) derivative layered base maps, which use over 30,000 points of interest overlaid with any business and residential address in Singapore.


The retail location analysis application is but the latest tool introduced by the company. Prior to that, Wheresoft has been offering location-based services for logistics tracking and amenities search. The company counts StarHub, SingTel, Comfort Transportation and CityCab among its key customers.


However, its most popular application to date is a tool that helps real estate agents gather information about specific property projects. Called 'Wis', it aggregates data about properties in Singapore, from floor plans, prices and historic transactions to owners' profile and litigation checks. This alone generates a six-figure income for the company.


'We launched it about two-and-a-half years ago,' says Mr Tan, who is now CEO of Wheresoft. 'Today, a substantial market share of agents use it. I would count the largest and strongest supporter to be HSR. And there are PropNex, DWG and OrangeTee - to name a few.'


Wheresoft was founded in 1997 but did not begin commercial operations until three years later when it clinched a deal with Singapore Press Holdings to provide services for logistics tracking.



Even then, demand for its location-based services (LBS) was lacklustre, limited mostly to SMS directory requests like the location of the nearest ATM.


The company was 'just coasting' until business turned around in late 2005 when a new investor prompted a foray into developing applications for the property industry. Lawan Consultancy, which had conveyancing and litigation databases, decided that by taking a strategic interest in Wheresoft it could put its databases to better use. And that was how the idea for 'WiS' was born.


Wheresoft has since moved on to offer mapping systems aggregated with geographic, business and people information systems. And by using its mapping systems as a launchpad, it offers related services such as corporate information searches, litigation and bankruptcy checks and credit management and debt recovery, supported by the experience of Lawan Consultancy.


'The convergence of available location-determining technology - be it GPS, your handphone or wireless network - is making location a big thing now,' says Mr Tan.' A lot of information can be accessed dynamically. The push from external factors is accelerating the growth of what we are doing. Continuous tracking of your current location becomes possible - LBS on the go, rather than LBS where I am.'


So confident is Mr Tan that he wants to move his applications from a B2C model to a B2B model, with the introduction of WhereBizMap. The company is targeting retail SMEs. Business costs are a bigger concern than ever, as the weak economic climate leaves little room for wrong decisions.


Hence, pricing options will be catered to SMEs' appetite. 'We will offer them a package,' says Mr Tan. 'They can check, do a cross-search, location analysis and will be entitled to, maybe, 10 demand letters in debt recovery.'


As for expansion overseas, Wheresoft only sees headway being made with partners. 'To begin with, it will take a long time for us to get information together to a satisfactory level of integration,' says Mr Tan. 'Especially as not every country is as well organised as Singapore, where SLA and the various agencies are reliable information providers. We will have to find our way slowly.'



Source: Business Times, 3 Mar 2009

Opening a retail store? Check the location mapping first

IMAGINE. You are looking for a place to open a retail store. You decide to scout for the ideal location, and trek the streets of Singapore in the unflinching sun.

Or maybe you could approach your mission another way. Such as by sitting in the comfort of your home and logging on to an Internet portal that does the work for you.

All you need do is specify a point on a map. The software then analyses the suitability of the location by detecting nearby amenities, competitors and even local population demographics.
'It's so much more convenient than pounding the streets to find a good location,' says Terence Tan, founder of Wheresoft Geo- commerce, the company behind the application.

Mr Tan's WhereBizMap portal helps companies, franchises, SMEs and entrepreneurs determine the best site to set up shop. It incorporates the Singapore Land Authority's (SLA's) derivative layered base maps, which use over 30,000 points of interest overlaid with any business and residential address in Singapore.

The retail location analysis application is but the latest tool introduced by the company. Prior to that, Wheresoft has been offering location-based services for logistics tracking and amenities search. The company counts StarHub, SingTel, Comfort Transportation and CityCab among its key customers.

However, its most popular application to date is a tool that helps real estate agents gather information about specific property projects. Called 'Wis', it aggregates data about properties in Singapore, from floor plans, prices and historic transactions to owners' profile and litigation checks. This alone generates a six-figure income for the company.

'We launched it about two-and-a-half years ago,' says Mr Tan, who is now CEO of Wheresoft. 'Today, a substantial market share of agents use it. I would count the largest and strongest supporter to be HSR. And there are PropNex, DWG and OrangeTee - to name a few.'

Wheresoft was founded in 1997 but did not begin commercial operations until three years later when it clinched a deal with Singapore Press Holdings to provide services for logistics tracking.

Even then, demand for its location-based services (LBS) was lacklustre, limited mostly to SMS directory requests like the location of the nearest ATM.

The company was 'just coasting' until business turned around in late 2005 when a new investor prompted a foray into developing applications for the property industry. Lawan Consultancy, which had conveyancing and litigation databases, decided that by taking a strategic interest in Wheresoft it could put its databases to better use. And that was how the idea for 'WiS' was born.

Wheresoft has since moved on to offer mapping systems aggregated with geographic, business and people information systems. And by using its mapping systems as a launchpad, it offers related services such as corporate information searches, litigation and bankruptcy checks and credit management and debt recovery, supported by the experience of Lawan Consultancy.

'The convergence of available location-determining technology - be it GPS, your handphone or wireless network - is making location a big thing now,' says Mr Tan.' A lot of information can be accessed dynamically. The push from external factors is accelerating the growth of what we are doing. Continuous tracking of your current location becomes possible - LBS on the go, rather than LBS where I am.'

So confident is Mr Tan that he wants to move his applications from a B2C model to a B2B model, with the introduction of WhereBizMap. The company is targeting retail SMEs. Business costs are a bigger concern than ever, as the weak economic climate leaves little room for wrong decisions.

Hence, pricing options will be catered to SMEs' appetite. 'We will offer them a package,' says Mr Tan. 'They can check, do a cross-search, location analysis and will be entitled to, maybe, 10 demand letters in debt recovery.'

As for expansion overseas, Wheresoft only sees headway being made with partners. 'To begin with, it will take a long time for us to get information together to a satisfactory level of integration,' says Mr Tan. 'Especially as not every country is as well organised as Singapore, where SLA and the various agencies are reliable information providers. We will have to find our way slowly.'

Source: Business Times, 3 Mar 2009

Property developers get 'kiasu'

SINGAPORE: Some developers are getting so “kiasu” (afraid to lose out) that they are getting the original buyers of homes to indemnify them should a sub-purchaser fail to pay. However, the Controller of Housing has told at least one developer, Keppel Land, that this is wrong.

The issue was raised when the buyer of an apartment at Park Infinia at Wee Nam Road, just off Keng Lee Road, tried to sell the unit bought from KepLand. The developer had wanted the original buyer to not only be liable for breaches by the sub-purchaser, but also to ensure that property tax and maintenance bills are paid. Asked to sign such a form, the original buyer asked lawyers to look into its enforceability. The lawyers then wrote to the Housing Controller for advice.

In response to the law firm, the Controller of Housing said in a letter seen by TODAY: “We are of the view that requiring your clients to sign a Letter of Authority with the indemnity clause stated above is contrary to the intention of rule 16 of the Housing Developers Rules, which requires a developer to enter into a fresh S&P Agreement (Sale and Purchase) with the sub-purchasers on the same terms and obligations as the original purchasers. This will place the sub-purchasers in a direct contractual relationship with the developer and releases the original purchasers from their obligations under the original S&P Agreement.”

The Controller added: “We have therefore written to the developer to request that the indemnity clause be deleted from the Letter of Authority which your clients have been asked to sign and complete the sub-sale expeditiously.”

A KepLand spokesman said the matter had since been resolved between the company and the purchaser, and the offending clause taken out of the S&P agreement.

A lawyer-friend of the purchaser said: “The clause should never have been included in the first place. How can any purchaser keep tabs on the financial position of a sub-purchaser down the road?”

Sources said this was not first time that KepLand had asked original purchasers to sign the indemnity form. It also appears that other developers have asked their purchasers to sign similar forms or are keen to follow KepLand’s example.

“In the current climate where scores of purchasers are said to be defaulting on their mortgage payments, it’s not hard to see why developers have to resort to such measures to protect their own interests,” said a prominent developer.

Against a backdrop of rising business failures and unemployment, property industry observers think mortgage defaults could increase this year. As a result, banks have become stricter on their mortgage financing, especially for those buying second and third properties.

Source: Today, 3 Mar 2009

Downtown Line's Stage II work to start this month

WORK on the second stage of the Downtown MRT Line will start this month, with the first civil contract going to a Singapore-Korea joint venture.

Hock Lian Seng Infrastructure and Korea's GS Engineering and Construction have clinched the deal to build the line's depot near Woodlands for $410.7 million, the Land Transport Authority said yesterday.

The project includes constructing tunnels leading to and from the depot, which is sited on a 21ha plot that was once largely occupied by a Teochew cemetery.

Stage II of the Downtown Line is 16.6km long and has 12 stations. It spans from Gali Batu in Choa Chu Kang in the north to Rochor in the south, where it joins Stage I - a 4.3km loop to Marina.

Stops in Stage II include Bukit Timah's Sixth Avenue, King Albert Park and Beauty World, as well as the Botanic Gardens and Newton. The line will be completed in 2015.

The final stage of the Downtown Line - a 19.1km project linking the eastern part of Singapore to the city - will be completed in 2016.

Singapore's rail network expansion does not stop there.

Future projects include the Thomson Line, joining Woodlands to Marina Bay; and the Eastern Region Line, connecting Changi to Marina Bay via Marine Parade.

They are due to be completed in 2018 and 2020 respectively.

The depot for Downtown Line Stage II marks GS Engineering's first infrastructural project in Singapore. The company is currently building the Seoul Subway Line and Goyang Train Depot in South Korea.

Hock Lian Seng Infrastructure is no stranger to MRT projects. It built the Circle Line's Kim Chuan Depot - the world's largest underground depot.

The entire 40km-long Downtown Line is expected to cost $12 billion. So far, about $3.2 billion worth of contracts have been awarded.

Source: Straits Times, 3 Mar 2009

Developers need to launch properties to avoid holding costs

SINGAPORE: Singapore homebuyers can expect more private residential properties to be launched in the coming months and at lower prices.

Analysts said that's because developers are now torn between accepting either weaker profits or high costs of holding on to land.

Brisk sales seen in recent property launches like the Caspian can be credited to lower prices being offered by developers. Units there were sold at about S$600 per square foot, or S$50 per square foot less than earlier planned.

Analysts said developers have little choice but to cut prices to move sales as the the cost of holding onto a piece of land can be expensive as well.

A typical plot of land for mass market homes could chalk up more than S$500,000 of interest annually, including other costs. Interest on land cost is typically about four to six per cent.

Developers normally take a 60 per cent loan on land.

This means a mid to mass market plot of land bought for S$20 million will accrue more than S$500,000 of interest in a year.

There are other costs too. Cheang Kok Kheong, COO, Development & Property, Frasers Centrepoint, said: "It's very good price for the present economic situation and it really meets the kind of needs and budgets our customers have right now.

"We have committed our construction costs. We have gone ahead and developed it and we are looking at our cashflow to ensure that we can build the project on time with little financial difficulties."

Frasers also wants cash for possible land acquisitions in the near term.

Other developers which have turned to cutting prices include City Developments. It recently launched a new phase of its Livia project in Pasir Ris at about S$620 per square foot, down from S$650 per square foot.

Meanwhile, GuocoLand relaunched its development near Buangkok MRT - the Quartz - at an average price of S$595 per square foot, more than eight per cent lower than the initial launch in 2007.

Another developer, MCL Land, recently made provisions to value its land near current market prices.

Analysts said this is normally a prelude to a relaunch at lower prices.

But they noted that developers will not keep prices low for too long.

Donald Han, managing director, Cushman & Wakefield, said: "Some obvious strategy would be to go out there, launch as much as you can, depending on where the quota is. "Then once you hit a certain sales quota, you stop and then you relaunch it when the project can be launched at a better market sentiment and hopefully at a higher price as well."

Most analysts believe the market will start to pick up in mid-2010.

Source: Channel News Asia, 2 Mar 2009

Queenstown landlord posts details of errant tenant

SINGAPORE: With the worsening economy, more landlords could see their tenants defaulting on rents.

But one landlord in Queenstown has taken matters into his own hands by posting personal details of his errant tenant all over the neighbourhood.

The leaflets stated that this man had left suddenly without informing his landlord. He also allegedly made off with the housekeys and has not returned any calls. The landlord has since lodged a police report, but his leaflets can be found at nearby bus-stops and MRT stations.

Lawyers warned that this loanshark-style shaming tactic could amount to libel.

By posting leaflets without authorisation, the landlord could be breaking the law by defacing or damaging public property.

Instead, they suggest that landlords in such situations seek legal avenues of redress.

Source: Channel News Asia, 2 Mar 2009