Singapore Industry Stat 2010

8/3/2019 Singapore Industry Stat 2010

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Economic Survey of Singapore 2010 Manufacturing

38 MINISTRY OF TRADE AND INDUSTRY

8.1

MANUFACTURING

OVERVIEWThe manufacturing sector expanded by 26 per cent in the fourth quarter of 2010, supported by strongperformances in the biomedical manufacturing, electronics and precision engineering clusters. Allclusters recorded higher output on the back of the continuing economic recovery.

For 2010, the manufacturing sector expanded by 30 per cent, reversing two consecutive years of decline in 2008 and 2009.

OVERALL MANUFACTURING

PERFORMANCEManufacturing output grew by 26 per cent in thefourth quarter, higher than the 14 per cent growthin the preceding quarter (Exhibit 8.1). All clustersregistered higher output.

For the whole of 2010, manufacturing outputincreased by 30 per cent. Strong growth in thefirst half was partly due to the low productionlevels during the same period in 2009, whilegrowth in the second half moderated in tandem

with global market conditions.

PERFORMANCE OF CLUSTERSThe biomedical manufacturing cluster surgedby 82 per cent in the fourth quarter, after postinga small contraction in the preceding quarter.The strong rebound was largely attributed to thepharmaceuticals segment which expanded by 93per cent. For 2010, the biomedical manufacturingcluster turned in sterling growth of 50 per cent(Exhibit 8.2 and Exhibit 8.3).

The precision engineering cluster expandedby 34 per cent in the fourth quarter. The robustgrowth was led by the machinery and systemssegment (65 per cent), driven by healthy exportdemand for semiconductor related equipmentand a ramp up of production in new plants. Forthe whole of 2010, the precision engineeringclusters output increased by 40 per cent, a

marked turnaround from the contractions recordedin the preceding three years.

2.4

37.2

45.2

13.7

25.5

0

10

20

30

40

50

IV I II III IV

Per Cent

Exhibit 8.1 Manufacturing Growth Rates

2009 2010

Exhibit 8.2: Manufacturing Clusters Growth

-20 -10 0 10 20 30 40 50

2010

2009

Per Cent

Precision Engineering

Electronics

Total Manufacturing

Chemicals

General Manufacturing

Transport Engineering

BiomedicalManufacturing


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Economic Survey of Singapore 2010 Manufacturing

MINISTRY OF TRADE AND INDUSTRY 39

The electronics cluster expanded 14 per cent in thefourth quarter as strong demand for smartphones,media tablets and other consumer electronicscontinued to fuel growth in the semiconductorssegment (30 per cent). The computer peripheralssegment declined by 21 per cent. The contractionwas due in part to the high base effect caused byrestocking-related production in the same periodof 2009. For the full year, the electronics clusterrecorded a strong gain of 35 per cent, comparedto the 8.5 per cent contraction in 2009.

The chemicals cluster grew 10 per cent in thefourth quarter, due to strong growth in boththe petroleum (13 per cent) and petrochemicals(13 per cent) segments. The petroleum segmentposted the strongest gain in the last quarter of the

year as a result of improved refining margins. Forthe whole of 2010, the chemicals cluster expandedby 13 per cent.

The transport engineering cluster grew by 5.0per cent in the fourth quarter. The aerospacesegment (17 per cent) rose on the back of highertravel demand, while the marine and offshoreengineering segment (-4.5 per cent) declined.Despite recording higher output in the secondhalf of 2010, the transport engineering clustercontracted by 4.6 per cent in 2010.

The general manufacturing industries roseby 1.8 per cent in the fourth quarter due toexpansions in food, beverages & tobacco (4.9 percent), and miscellaneous industries (1.1 per cent).For the whole of 2010, the general manufacturingindustries grew by 11 per cent.

Exhibit 8.3: Percentage Contribution toManufacturing Sectors Growth in 2010

-0.6

1.1

1.6

4.1

10.5

13.0

29.7

-10 0 10 20 30 40Per Cent

Total Manufacturing

Electronics

Precision Engineering

Chemicals

General Manufacturing

Transport Engineering

BiomedicalManufacturing


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Economic Survey of Singapore 2010 Construction


8.2

CONSTRUCTION

OVERVIEWThe construction sector contracted 2.0 per cent in the final quarter of 2010, reversing the 6.7 per centgrowth in the preceding quarter.

For the whole of 2010, the construction sector expanded 6.1 per cent, down from 17 per cent in 2009.Construction demand from the private sector doubled from 2009s levels, offsetting the 42 per centcontraction from the public sector.

CONSTRUCTION DEMANDContracts awarded rose by 8.8 per cent to $6.0billion in the fourth quarter (Exhibit 8.4). Forthe whole of 2010, total construction demandincreased by 14 per cent to $26 billion. The growthwas fuelled by robust private sector constructiondemand.

Public Sector

The robust 33 per cent gain in the fourth quarter

was underpinned by the strong constructiondemand for the institutional & others (113 percent), and residential building (71 per cent)segments.

For the full year, public residential contractsawarded remained similar to 2009s level of $2.8billion, while industrial contracts awarded roseto $970 million, the highest volume since 2003(Exhibit 8.5). The strong industrial constructiondemand was driven by the award of Singaporesfirst Liquefied Natural Gas (LNG) terminal atJurong Island and active industrial developmentsat Seletar Aerospace Park.

Private Sector

Private sector construction demand in the fourthquarter dropped marginally by 1.7 per cent to$3.7 billion, following four consecutive quartersof triple-digit growth. For the full year, contractsawarded doubled to $18 billion.

Exhibit 8.5: Contracts Awarded, 2010

$ Billion

Total Public Private

TOTAL 25.7 8.1 17.6

Residential 11.1 2.8 8.3

Commercial 2.8 0.1 2.7

Industrial 4.0 1.0 3.0

Institutional & Others 4.8 2.1 2.7

Civil EngineeringWorks 3.0 2.2 0.8

0

2

4

6

8

IV I II III IV

$ Billion

Exhibit 8.4: Contracts Awarded

Private

Total

2009 2010

Public


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Residential construction demand surged to arecord high of $8.3 billion, bolstered by positiveproperty market sentiments and strong homesales. Likewise, commercial construction demandrose to $2.7 billion, boosted by an improvingbusiness environment and a revival in visitorarrivals. Industrial construction demand firmedup to $3.0 billion, backed by a higher volumeof conventional industrial developments anda few sizeable Engineering, Procurement andConstruction projects for power utilities at JurongIsland and Tuas South. Furthermore, institutionalconstruction demand grew to $2.7 billion, largelydue to the construction of the Singapore SportsHub and two private hospitals.

CONSTRUCTION ACTIVITIESConstruction output in the fourth quarter droppedby 16 per cent to $6.6 billion, extending theslowdown since the first quarter (Exhibit 8.6). Asa whole, total construction output moderated from$31 billion in 2009 to $27 billion in 2010, as majorprojects such as the two Integrated Resorts werenearly completed.

Public Sector

Public sector construction output edged up by2.3 per cent in the fourth quarter, bringing thesectors output in 2010 to $11 billion. For the fullyear, certified payments grew by 6.3 per cent.Except for commercial and institutional projects,construction activities for all other developmenttypes expanded.

Public industrial construction output increased

four-fold, underpinned by the on-site constructionactivities for the developments of the LNG Terminaland industrial facilities at Seletar Aerospace Park.Residential construction output continued itsuptrend since 2006, growing by 18 per cent. Civilengineering construction activities, accountingfor 48 per cent of total public sector constructionoutput, were supported by the construction of the MRT Downtown Line and Marina CoastalExpressway.

0

2

4

6

8

10

IV I II III IV

$ Billion

Exhibit 8.6: Certified Payments

Private

Total

2009 2010

Public


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Private Sector

Private sector construction output continued tomoderate in the fourth quarter. Private sectorstotal certified payments shrank by 26 per cent,resulting in a 22 per cent contraction for thefull year. The contraction was mainly due to theslowdown in construction output from commercialand industrial projects, as major projects such asthe Integrated Resorts and petrochemical plantswere nearly completed.

In contrast, residential construction output roseby 13 per cent on the back of an upbeat propertymarket. Likewise, institutional construction outputalso expanded 9.3 per cent, underpinned by theconstruction commencement for the SingaporeSports Hub and various new healthcare facilities.

CONSTRUCTION MATERIALSTotal consumption for ready-mixed concrete roseby 5.2 per cent in 2010, while demand for cementand steel rebars dropped by 10 per cent and 5.2per cent respectively.

Strong global steel demand in 2010 led to a

general uptrend in average steel rebar prices,with average price reaching $868 per tonne inDecember, up from $742 per tonne in January. Asa result of increasing consumption, the averagemarket price for Grade 40 Pump ready-mixedconcrete also trended upwards in early 2010before softening in August. By December, theaverage price of ready-mixed concrete reboundedto $107 per cubic metre, due to the tight supplyof granite aggregates. On the other hand, pricesfor cement (bulk) declined by 4.7 per cent to $89per tonne in December (Exhibit 8.7).

-40

-30

-20

-10

010

20

30

IV I II III IV

Per Cent

Exhibit 8.7: Changes in Market Prices of Construction Materials

Steel Bars

2009 2010

Cement


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CONSTRUCTION COSTSThe Building and Construction Authority (BCA)sBuilding Works Tender Price Index (TPI) for 2010declined by a marginal 1.3 per cent comparedto 2009 (Exhibit 8.8). Although prices of majorconstruction materials such as concrete and steelrebars picked up over the year, the impact onconstruction tender prices was mitigated by themoderation in construction demand.

CONSTRUCTION OUTLOOK IN2011BCA forecasts total construction demand in 2011to reach between $22 billion and $28 billion, alevel comparable to 2010s levels (Exhibit 8.9).

Public sector demand is likely to strengthenthis year, contributing about 55 per cent of theindustrys demand to between $12 billion and$15 billion. The rebound is anticipated to comefrom growth in institutional construction demandas well as stronger civil engineering works led byLand Transport Authoritys MRT projects. On theother hand, private sector demand is expected tomoderate to $10 billion to $13 billion, reflectingmore cautious sentiments among propertydevelopers.

Construction output is projected to moderateto between $24 billion and $26 billion in 2011.Correspondingly, the demand for cement, steelrebars and ready-mixed concrete is expected todecrease by 8 per cent, 8 per cent and 5 per centrespectively.

Exhibit 8.9: Projected Construction Demand in2011

$ Billion

Public Sector 12.0 15.0

Building Construction Sub-total 5.6 7.2

Residential 2.8 3.3

Commercial 0.1 0.1

Industrial 0.2 0.7

Institutional & Others 2.5 3.1

Civil Engineering Works Sub-total 6.4 7.8

Private Sector 10.0 13.0 Building Construction Sub-total 9.5 12.3

Residential 5.1 6.1

Commercial 2.1 3.0

Industrial 1.8 2.6

Institutional & Others 0.5 0.6

Civil Engineering Works Sub-total 0.5 0.7

TOTAL CONSTRUCION DEMAND 22.0 28.0

-20

-10

0

10

20

2006 2007 2008 2009 2010

Per Cent

Exhibit 8.8: Changes in Tender Price Index


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Economic Survey of Singapore 2010 Wholesale & Retail Trade


8.3

WHOLESALE & RETAIL TRADE

OVERVIEW

The wholesale and retail trade sector expanded by 11 per cent in the last quarter of 2010, slowingdown from the 14 per cent growth in the preceding quarter. Full-year growth in 2010 rose sharply to15 per cent, a significant improvement from the 6.0 per cent decline in 2009.

Wholesale trade rose by 17 per cent in 2010. Growth for retail trade was almost flat at 0.8 per centon the back of weak motor vehicles sales.

RETAIL SALES

In the fourth quarter, retail sales declined by 3.5per cent, worse than the 1.9 per cent contractionin the previous quarter (Exhibit 8.10). Excludingmotor vehicles, retail sales volume grew by 5.4per cent, similar to the 5.2 per cent gain in theprevious quarter.

The motor vehicles segment was the only segmentwhich posted a double-digit decline of 31 percent. With the exception of motor vehicles, foodand beverages (-2.6 per cent), supermarkets(-1.5 per cent) and petrol service stations (-0.2per cent), the other retail segments grew in thefourth quarter. Notably, the wearing apparel andfootwear, and furniture and household equipmentsegments grew most strongly at 10 per cent.

For the whole year, retail sales fell by 2.5 percent, a smaller decline compared to the 9.3 percent contraction in 2009. Excluding motor vehiclesales, retail sales grew by 5.6 per cent, reboundingfrom the 2.7 per cent contraction in 2009.

The motor vehicles segment registered thelargest decline at 25 per cent. Provision andsundry shops declined marginally (-1.9 per cent),followed by food and beverages (-1.4 per cent)and supermarkets (-0.4 per cent). In contrast,the major segments with strong growth weretelecommunications and computers (11 per cent),furniture and household equipment (10 per cent),medical goods and toiletries (9.8 per cent), andwearing apparel and footwear (9.6 per cent)(Exhibit 8.11).

-10

-5

0

5

10

IV I II III IV

Per Cent

Exhibit 8.10: Changes in Retail Sales Index atConstant Prices

2009 2010

Total

Total (excludingMotor Vehicles)

Exhibit 8.11: Changes in Retail Sales Index atConstant Prices for Major Sectors in 2010

-24.9-1.9-1.4

-0.40.8

3.85.76.5

9.69.810.411.1

-60 -40 -20 0 20 40

Telecomms & ComputersFurniture & Household Equipment

Medical Goods & ToiletriesWearing Apparel & Footwear

Department StoresWatches & Jewellery

Optical Goods & BooksPetrol Service Stations

Per Cent

SupermarketsFood & Beverages

Motor VehiclesProvision & Sundry Shops


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Economic Survey of Singapore 2010 Hotels & Restaurants


8.4

HOTELS & RESTAURANTS

OVERVIEW

The hotels and restaurants sector grew robustly by 7.5 per cent in the fourth quarter of 2010.

For the full year, the sector expanded by 8.8 per cent a strong rebound from the contraction of 1.6per cent in 2009. This reflected strong recoveries in visitor arrivals, room lettings and restaurant sales.Both the hotels and restaurants segments registered positive gains.

HOTELS

In the fourth quarter, the average room rate of gazetted hotels was $214, slightly lower than$220 in the preceding quarter (Exhibit 8.12). Theaverage room rate grew by 14 per cent comparedto the fourth quarter of 2009. Similarly, theaverage occupancy rate of gazetted hotels reached86 per cent, representing an increase of 3.8percentage- points over the same period in 2009.Overall, total hotel room revenue grew strongly by14 per cent to reach $487 million.

The hotels segment ended 2010 with $1.9 billionin total room revenue, an increase of 22 per centover 2009s level. The average room rate increasedby 12 per cent to reach $212, and the averageoccupancy rate improved by 9.8 percentage-pointsto hit 86 per cent.

VISITOR ARRIVALS

In the fourth quarter, Singapore received 3.1million visitors and enjoyed a fourth consecutive

quarter of double-digit growth (16 per cent)(Exhibit 8.13).

The top five markets continued to be Indonesia(617,000), Malaysia (312,000), China (286,000),

Australia (228,000) and India (222,000),accounting for 54 per cent of total visitor arrivals.Major markets that achieved the highest growthrates in the fourth quarter included Thailand (47per cent), South Korea (47 per cent), Hong Kong(42 per cent), the Philippines (34 per cent) andIndonesia (25 per cent).

-40

-20

0

20

180

200

220

240

IV I II III IV

Dollar Per Cent

Exhibit 8.12: Average Hotel Room Rate

2009 2010

YOY Change(RHS)

Exhibit 8.13: Visitor Arrivals

0

5

10

15

20

25

30

2.0

2.2

2.4

2.6

2.8

3.0

3.2

IV I II III IV

Per Cent

2009 2010

YOY Change(RHS)

Million


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Economic Survey of Singapore 2010 Hotels & Restaurants


Strong arrivals were seen for all months in 2010.In particular, July and December registered recordhigh arrivals of more than one million visitors.Singapore ended the year with 11.6 million visitorarrivals, representing a 20 per cent increase onthe back of a global recovery in tourism and theintroduction of new tourist offerings such as theIntegrated Resorts.

Asia contributed significantly to the recovery intourism as it accounted for 75 per cent of totalvisitor arrivals. The number of visitors from Asiagrew 26 per cent to 8.7 million. In particular,

ASEAN countries were the major drivers of thetourism rebound. The key markets of Malaysia (36per cent), Thailand (35 per cent), Indonesia (32per cent) and the Philippines (26 per cent) posted

the highest growth rates (Exhibit 8.14).Similar to Singapores performance in the fourthquarter, Singapores top five visitor-generatingmarkets for the full year were Indonesia (2.3million), China (1.2 million), Malaysia (1.0 million),

Australia (880,000) and India (829,000). Together,they accounted for 53 per cent of total visitorarrivals in 2010.

CATERING TRADE

The catering trade index rose by 6.4 per cent inthe fourth quarter, significantly higher than the 3.9per cent increase in the previous quarter (Exhibit8.15). All segments experienced strong positivegrowth food caterers (9.1 per cent), restaurants(8.4 per cent), fast food outlets (5.1 per cent) andother eating places (3.8 per cent).

For 2010, the catering trade index grew by 4.5 percent, compared to the 5.3 per cent contraction in2009. The food caterers segment recovered moststrongly at 10 per cent, followed by fast foodoutlets (7.0 per cent) and restaurants (5.9 percent). Although the other eating places segmentfell by 0.4 per cent in 2010, the contraction wassignificantly milder than the 8.5 per cent declinein 2009.

Exhibit 8.14: Growth Rates of Top Ten VisitorGenerating Markets in 2010

-1.7

6.0

7.9

12.514.2

25.026.0

32.1

35.3

35.7

-10 0 10 20 30 40

MalaysiaThailand

IndonesiaPhilippines

ChinaIndia

United StatesJapan

AustraliaUnited Kingdom

Per Cent

-10

-5

0

5

10

15

20

IV I II III IV

Per Cent

Exhibit 8.15: Changes in Catering Trade andRoom Lettings

Hotel Room Lettings

Catering Trade Index atConstant Prices

20102009


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Economic Survey of Singapore 2010 Transport & Storage


8.5

TRANSPORT & STORAGE

OVERVIEWThe transport and storage sector rose by 3.8 per cent in the fourth quarter of 2010, compared to 5.2per cent in the preceding quarter.

For the whole of 2010, the sector grew by 6.0 per cent, reversing the previous years contraction of 9.0 per cent.

OVERALL PERFORMANCE

Water Transport

Container throughput grew by 9.9 per cent in2010, rebounding from the 14 per cent decline in2009 (Exhibit 8.16). The number of twenty-footequivalent units (TEUs) handled correspondinglyrose from 26 million in 2009 to 28 million in 2010.Sea cargo volumes also increased, growing by 6.6per cent compared to the 8.4 per cent decline in2009.

0

5

10

15

20

IV I II III IV

Per Cent

Exhibit 8.17: Changes in Air Transport

2009 2010

Air Passengers

Air Cargo

Aircraft Landings

-10

0

10

20

IV I II III IV

Per Cent

2009 2010

Sea Cargo

Container Throughput

Exhibit 8.16: Changes in Container Throughput andSea Cargo Handled

Air Transport

Air passenger traffic surged by 13 per cent,sharply reversing the 0.6 per cent contraction in2009 (Exhibit 8.17). Similarly, air cargo edged up11 per cent in 2010, compared with the declineof 12 per cent a year ago. Growth in aircraftmovements also accelerated to 9.5 per cent over

2009.


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Economic Survey of Singapore 2010 Transport & Storage


Land Transport

As of December 2010, a total of 945,829 vehicleswere registered with the Land Transport Authority.These comprised 584,399 cars, 13,347 rental cars,26,073 taxis, 16,309 buses, 148,160 motorcyclesand scooters, and 157,541 goods vehicles andother vehicle types (Exhibit 8.18).

900

920

940

960

IV I II III IV

Thousand

Exhibit 8.18: Motor Vehicles Registered

2009 2010


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Economic Survey of Singapore 2010 Information & Communications


8.6

INFORMATION & COMMUNICATIONS

OVERVIEW

The information and communications sector grew by 2.9 per cent in the fourth quarter of 2010,moderating from the 3.4 per cent growth in the preceding quarter.

For the whole of 2010, growth was 2.9 per cent, faster than the 1.0 per cent growth in 2009.

TELECOMMUNICATIONS

The information and communications sector grewby 2.9 per cent in the fourth quarter, following a3.4 per cent rise in the previous quarter (Exhibit8.19). For the whole of 2010, growth was 2.9 percent, faster than the 1.0 per cent growth in theprevious year.

Growth in residential and corporate broadbandsubscribers fell to 36 per cent, from 43 per centin the previous year. Similarly, the total numberof mobile subscribers grew by 6.3 per cent, slowerthan the 8.2 per cent in 2009. Mobile subscriptionsper capita climbed further to 144 per cent while

broadband subscriptions per household reached191 per cent. International telephone call durationsaw an increase of 22 per cent, marginally higherthan the 20 per cent rise in the previous year.

0

10

20

30

IV I II III IV

Per Cent

Exhibit 8.19: Information & CommunicationsGrowth

2009 2010

International TelephoneCall Minutes

Value-Added at 2005 Prices

Mobile Subscribers


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Economic Survey of Singapore 2010 Financial Services


8.7

FINANCIAL SERVICES

OVERVIEW

The financial services sector grew by 11 per cent in the fourth quarter of 2010, up from 9.7 per centin the preceding quarter.

For the whole of 2010, the financial services sector expanded by 12 per cent, stronger than the 4.3per cent growth in 2009. The upturn was driven by the financial intermediation cluster which saw arecovery in lending across most segments.

COMMERCIAL BANKS

Total assets/liabilities of commercial banks roseby 11 per cent in 2010 to reach $782 billion(Exhibit 8.20). This was driven by the 15 percent expansion in the non-bank lending segmentto $323 billion, underpinned by the 23 per centgrowth in the consumer housing segment (Exhibit8.21). Business lending also rebounded fromnegative growth in 2009 to 12 per cent. Incomparison, interbank credit increased by 2.6 percent to reach $233 billion.

Non-bank customer deposits rose by 11 per cent,bringing the total non-bank deposit base to $434billion at end-December. Despite low interestrates, demand deposits, savings deposits and fixeddeposits all posted increases.

Exhibit 8.20: Total Assets and Liabilities of Commercial Banks

0

5

10

15

20

0

200

400

600

800

2006 2007 2008 2009 2010

$ Billion Per Cent

YOY Change (RHS)

Exhibit 8.21: Growth of Bank Loans and Advancesto Non-Bank Customers by Industry in 2010

-15.0

3.5

4.17.5

9.5

14.7

17.0

22.9

32.6

-30 -20 -10 0 10 20 30 40Per Cent

General Commerce

Housing Loans

Financial Institutions

Total

Building & Construction

Others

Manufacturing

Transport & Comms

Professional & PrivateIndividuals


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FINANCE COMPANIES

Finance companies total assets/liabilities declinedby 1.4 per cent to $12 billion in 2010 (Exhibit8.22).

On the assets side, loans and advances fell slightlyby 0.4 per cent to $8.1 billion (Exhibit 8.23). The12 per cent decline in hire-purchase financing waspartially offset by the 21 per cent gain in lendingto the housing segment.

From the liabilities perspective, total deposits of non-bank customers fell by 2.4 per cent, comparedto the 8.7 per cent decline in 2009.

Exhibit 8.22: Total Assets and Liabilities of FinanceCompanies

-10

0

10

20

30

0

5

10

15

20

2006 2007 2008 2009 2010

Per Cent

YOY Change (RHS)

$ Billion

Exhibit 8.23: Growth of Loans and Advances of Finance Companies in 2010

-12.3

-0.4

0.0

21.1

-20 -10 0 10 20 30Per Cent

Housing Loan

Others

Total

Hire Purchase Finance

Exhibit 8.24: Total Assets and Liabilities of Merchant Banks

-30

-20

-10

0

10

20

30

0

2

4

6

8

10

12

2006 2007 2008 2009 2010

$ Billion Per Cent

YOY Change(RHS)

MERCHANT BANKS

Total assets/liabilities of merchant banks increasedby 18 per cent in 2010 on the back of double-digit expansions in their domestic operations andoffshore components (Exhibit 8.24).

On the domestic front, loans and advances tonon-bank customers expanded by 127 per cent, asharp increase from the 8.2 per cent gain recordedin 2009. Meanwhile, domestic interbank lendinggrew by 6.6 per cent, up from 3.9 per cent in2009.

Offshore lending rose 18 per cent, higher than the3.3 per cent increase in 2009, supported by gainsin non-bank lending of 8.8 per cent. However,interbank lending saw its third year of decline,posting a 1.6 per cent contraction.


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OFFSHORE BANKING

Total assets/liabilities of the Asian Dollar Market(ADM) reversed the decline in 2009 to post gainsof 12 per cent and reach US$972 billion in 2010(Exhibit 8.25). The rebound was due to theimprovement in interbank lending, as well as a 22per cent expansion in non-bank lending.

On the liabilities front, overall deposits rose mainlydue to significant increases in interbank funds,which amounted to US$82 billion. This reversedtwo consecutive years of declines in 2008 and2009. Non-bank depositors added US$4.8 billion,as compared to the US$7.0 billion in the precedingyear.

INSURANCE INDUSTRY

Total new business premiums 1 of the direct lifeinsurance industry increased by 36 per cent to$8.6 billion in 2010 (Exhibit 8.26). This was drivenby robust growth in the sales of investment-linkedproducts in both onshore and offshore business.Both the single and regular premium businessexperienced strong growth of 37 per cent and32 per cent to hit $7.2 billion and $1.4 billionrespectively. However, as a result of a decrease ininvestment returns, the overall net income of thedirect life insurance industry declined significantlyto $0.9 billion from $1.4 billion in 2009.

Premiums in the general insurance industry roseby 12 per cent to $8.5 billion, with offshore anddomestic business accounting for $5.3 billionand $3.2 billion of gross premiums 2 respectively.However, the industrys operating profits droppedto $0.6 billion from $0.9 billion in 2009. This fallwas due to a decline in net investment profitsfrom $0.6 billion in 2009 to $0.3 billion in 2010.Underwriting profits also saw a slight reductionfrom $0.4 billion to $0.3 billion.

Exhibit 8.25: Total Assets and Liabilities of Asian Dollar Market

-10

0

10

20

30

400

600

800

1,000

1,200

2006 2007 2008 2009 2010

Per Cent

YOY Change(RHS)

US$ Billion

1 Includes premiums from both individual and group life insurance businesses.2

Gross premium figures for the general insurance industry include gross premiums for the direct general insurance industry aswell as the general reinsurance industry.

Life Insurance Industry General Insurance Industry

2009 2010

$ Billion

Exhibit 8.26: Premiums of Insurance Industry

0

2

4

6

8

10


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CENTRAL PROVIDENT FUND

Members contributions to the Central ProvidentFund (CPF) rose 9.2 per cent to $22 billion in2010. Total withdrawals decreased by 10 percent to $9.6 billion, after a 2.3 per cent decreasein 2009. This resulted in net contributions of $12billion, higher than the $9.5 billion received in2009.

As at end-December 2010, more than 60,000 CPFmembers had signed up for the national annuityscheme, CPF Lifelong Income Scheme for theElderly (CPF LIFE). The total amount committedto CPF LIFE was $3.6 billion. This scheme wasmade available from 5 September 2009 to all CPFmembers aged 55 and above.

Net withdrawals for housing purposes decreasedby 17 per cent to $4.9 billion. Members alsomade net refunds of $1.5 billion under the CPFInvestment Scheme (CPFIS), compared to netrefunds of $0.8 billion the year before. A tighterrestriction was placed on investments under theCPFIS from 1 July 2010 - members were allowedto invest only balances above the first $40,000from their Special Account, compared to the first$30,000 previously. Restrictions on using excessmonies above the first $20,000 in the Ordinary

Account remained unchanged.Outstanding CPF balances due to members grewby 11 per cent, from $167 billion in 2009 to $186billion in 2010.

STOCK MARKET

The domestic stock market opened 2010 on acautious note at 2,745.35, lower than the 2,897.62

seen at the end of 2009. The Straits TimesIndex (STI) rose steadily from January to Aprilon the back of improving investor sentiments.However, the index posted a decline of 1.8 percent (quarter-on-quarter) in the second quarter,due to increasing risk aversion over the Eurozonedebt crisis which started in May.


17/20



3 In the past, the total number of SGX-listed securities was the sum of all primary-listed companies and active secondary-listed

companies. From 2010, the total number of SGX-listed securities included all primary-listed companies and secondary-listedcompanies. A similar change was made in the computation of market capitalisation.

Investors became less cautious in the third quarteron the back of strong domestic and regionaleconomic growth. A steady stream of strongcorporate earnings reports supported the upwardclimb of the STI which finally breached the 3,000level in September. Overall investor sentimentscontinued to improve in the fourth quarter asadvanced economies such as the US postedstronger-than-expected economic growth. The STIclosed the year at 3,190.04, the highest seen sincethe 2008 financial crisis, but 15 per cent below thehistorical high in October 2007 (Exhibit 8.27).

SECURITIES MARKET

Compared to 2009, the value of turnover in thesecurities market increased by 9.9 per cent to$408 billion in 2010. The volume of securitiestraded on SGX decreased by 7.6 per cent to $424billion.

There were 37 new companies listed on SGX. Intotal, there were 782 3 listed companies at the endof 2010, with 651 companies listed on the SGXMainboard and 131 companies listed on Catalist.The total market capitalisation of l isted companiesamounted to $902 billion, an increase of 21 percent from 2009.

DERIVATIVES MARKET

The volume of futures and options traded on theSGX derivatives markets in 2010 was approximately61 million contracts, an increase of 14 per centfrom 2009. Trading volumes increased by 13 percent and 452 per cent for futures contracts and

options contracts respectively. The Nikkei 225Stock Index, MSCI Taiwan Stock Index and CNXNifty Index futures contracts remained the mosttraded contracts, amounting to 90 per cent of SGXs total volume traded.

2,000

2,500

3,000

3,500

I II III IV

Index

Exhibit 8.27: Straits Times Index

2010IV

2009


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In August, a second derivatives exchange, theSingapore Mercantile Exchange, started operationswith a suite of four commodities and currenciesderivatives.

FOREIGN EXCHANGE MARKET

Singapores foreign exchange market posted anaverage daily turnover of US$278 billion in 2010,a 17 per cent increase over the previous year.

Trading in the major currencies such as theUS Dollar, Euro and Japanese Yen continuedto dominate the market, with the US Dollar/Euro currency pair registering the highest trading

volume. Trading in US Dollar/Singapore Dollarcontributed slightly less than 10 per cent to totalturnover.

In 2010, the US Dollar gained against the Euroand Pound Sterling by 6.5 per cent and 3.5percent respectively, reversing the decline seenagainst both currencies in 2009. However, it lost15 per cent against the Japanese Yen. The Eurowas weighed down by sovereign risk concerns of the peripheral economies in the Eurozone andfears of contagion via the financial channel. The

Pound Sterling weakened as the Bank of Englandmaintained its dovish stance on the back of weak economic growth prospects. The Japanese Yencontinued to gain against the US Dollar despiteofficial interventions as the Federal Reserveemployed a second round of quantitative easing.


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Economic Survey of Singapore 2010 Business Services


8.8

BUSINESS SERVICES

OVERVIEW

The business services sector grew by 4.5 per cent in the fourth quarter of 2010, lower than the 6.0per cent growth registered in the preceding quarter. For 2010, the business services sector grew 5.9per cent, faster than the 4.3 per cent in the previous year.

REAL ESTATE

Growth in the business services sector was drivenprimarily by the real estate segment, which grew

12 per cent on the back of strong new homesales.

New private residential property sales rose 17per cent in the fourth quarter over the precedingquarter, reversing two consecutive quarters of decline. In 2010, new private home sales reacheda record high of 16,292 units, 11 per cent higherthan the previous year. For the whole of 2010, theresidential property price index rose 18 per centto reach an all-time high (Exhibit 8.28).

Other property segments also remained healthy.The occupancy rates of private offices and privateshop space rose to 87 per cent and 94 per centrespectively (Exhibit 8.29).

In tandem with the recovery in occupancy rates,office rentals in both Central and Fringe Areasincreased 12 per cent, reversing their respective25 per cent and 15 per cent declines in 2009. Shoprentals in the Central and Fringe Areas also rose2.7 per cent and 4.0 per cent respectively.

140

160

180

200

0

2

4

6

IV2009 2010

III III IV

New Sales Property Price Index (RHS)

Thousand 1998 Q4 = 100

Exhibit 8.28: New Sales Transactions for PrivateResidential Units and Private ResidentialProperty Prices Index

80

85

90

95

IV2009

I2010

II III IV

Office Space Shop Space

Per Cent

Exhibit 8.29: Occupancy Rates of Private SectorShop and Office Space


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Economic Survey of Singapore 2010 Business Services

Industrial rents rose 13 per cent as the factoryoccupancy rate rose to 92 per cent in the fourthquarter, the highest level since the first quarter of 2009 (Exhibit 8.30).

In line with the economic recovery, there was

broad-based growth among the professionalservices segments including accounting (2.7per cent), legal (2.6 per cent), and businessand management consultancy activities (2.4 percent).

-20

-10

0

10

20

80

85

90

95

IV2009

I2010

II III IV

Occupancy Rate Rental Growth (RHS)

Per Cent Per Cent

Exhibit 8.30: Occupancy Rate and RentalGrowth of Private Sector Industrial Space

Singapore Industry Stat 2010

Documents

Transcript of Singapore Industry Stat 2010