Less than four months after its quiet opening, the open-air Satay by the Bay is catching on among locals. While it may be quiet on weekdays, the 1,000-seat eatery is reportedly packed on weekends. — ST PHOTO: SEAH KWANG PENG
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SINGAPORE – While waiting for a flight to Miami last month, Mr Lionel Yeo found time to study a Wall Street Journal (WSJ) article about Singapore that had been making a stir on social media.
It was a racy read. Fast cars, private jumbo jets, $32,000 cocktails and a lavish party scene – all of which depicted Singapore as a glamorous amusement park for the world’s ultra-rich.
Soon after this, the chief executive of the Singapore Tourism Board (STB) was penning an e-mail to all his staff.
“We don’t need to apologise for introducing world-class concepts and events to Singapore. We don’t need to apologise for taking advantage of a rising Asia,” he wrote. “But we should also seize opportunities to support and feature our home-grown culture, talent and offerings.”
Going local has been Mr Yeo’s clarion call since he took up Singapore tourism’s top job last June.
The 40-year-old, who is married to Nominated MP Janice Koh and has two sons, recognises that Singapore needs its glittering integrated resorts, its exclusive nightclub scene and its shiny malls with luxury brands.
But he also recognises that these must be coupled with attractions that have a distinct Singaporean flavour.
“A lot of discerning travellers want their creature comforts, a certain international standard of hospitality,” he says, while sipping a tall glass of iced tea at an upmarket cafe nestled in Ann Siang Hill.
“But at the same time, what really makes the visitor experience special for them is if they can also tap into something which is very local and very authentic.”
The cafe chosen for his interview with The Straits Times offers a view of the area’s preserved shophouses, framed by skyscrapers in the business district. One of his minders points out a cocktail on the menu – a vodka drink inspired by the local dessert cheng tng.
Mr Yeo feels that Singapore needs to mix it up too.
He cites two models of tourism: Dubai with its faux, modern attractions and flashy hotels, and Penang, where the focus is simply on its cultural heritage.
“For Singapore, we can’t be one or the other,” he says. “It has to be a combination of both.”
Mr Yeo’s approach will require widespread support from the public, private and people sectors – some of which is already familiar ground to him after 17 years in the civil service.
He has had stints at the ministries for Trade and Industry, Finance, Community Development, and Information and the Arts. Most recently, he was the dean and chief executive of the Civil Service College and deputy secretary (development) in the Public Service Division of the Prime Minister’s Office.
“There is a very large whole-of-government operation involved in tourism development and tourism promotion – it’s not something the STB does alone,” he says. “We have to work together with a large number of agencies, whether it’s the Urban Redevelopment Authority, Land Transport Authority, or police force.
“That’s the part I was a little bit more familiar with, in terms of navigating within the public sector and I know many of the leaders in other public agencies.”
Still, he describes his first 10 months at the helm of the tourism board as “a steep learning curve”. Mr Yeo says one of his first priorities was to help the various businesses grow amid challenging times. “It cannot be business as usual,” he says, pointing to labour shortages faced by the hotels and service sectors. “If tourism-related businesses want to grow…they have to adapt, invest in new business models, new technologies.”
These problems will not go away, and Mr Yeo wants the STB and its partners to “hunker down and see how we can succeed”.
As a keen hiker who has trekked in Bhutan, Nepal, Mount Kilimanjaro in Africa and Mount Bromo – an active volcano in Indonesia – he is quite prepared for the long haul.
He is also aware that on the road ahead, the extravagant picture painted by the WSJ article must be matched with stories about Singapore’s rich, local tapestry.
“The STB cannot do our work in a way that ignores what locals care about,” he says. “It’s about striking a balance…and being respectful to how Singaporeans feel about what is going to happen to their city.”
Get a copy of The Straits Times or go to straitstimes.com for more stories.
When K-pop boy band U-KISS announced that band members Alexander and KiBum were leaving the group in 2011, some fans wondered what the future had in store for remaining members Soohyun, Kiseop, Eli, Kevin, and Dongho.
Yet, following the addition of new members AJ and Hoon, things seem to just keep getting better for the seven-piece K-pop boy band.
Last month, U-KISS released their third studio album “Collage.” The band will embark on a five arena Japanese tour in July, making stops in Tokyo, Fukuoka, Osaka, Hokkaido and Aichi.
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KPopstarz was lucky enough to sit down with the members of U-KISS at a press funtion just hours before their highly anticipated Hard Rock Hotel Singapore concert on April 20.
The group talked about Eli, AJ and Kevin’s new side project UBEAT, which released their debut mini-album “Should Have Treated You Better” on Monday and what it was like being back in Singapore.
What did U-KISS miss the most about Singapore?
Kevin: Especially the KissMe fans in Singapore! I think it has been a while since we’ve been to Singapore.
Eli: Yes! It has been a long time.
Kevin: Through Twitter, the Facebook and everything all of our Singaporean fans wanted us back and they wanted a concert. Finally, we get to have our concert today and we’re so excited. Can’t wait to see everyone.
Describe your preparation for the concert.
Eli: It was actually really hard because AJ came back and we had to rematch our whole dance choreography.
AJ: Yeah, that’s true.
Eli: And this time around, we will be performing our new album “Collage.” We’ll be performing [U-KISS"s new single] “Standing Still” that we haven’t done before yet outside the country.
What can the fans look forward to for the concert tonight?
Kevin: Especially tonight, we could have a lot of interactions with the fans, because we saw the venue for our rehearsal, and it was really close to the crowd. We are going to have a hot night tonight.
AJ: And actually it’s our first time to coming to Singapore with our third album right? So we will be performing our new songs, which we haven’t performed yet. So that will be really amazing. That’s my guess.
Tell us about the new U-KISS subunit group uBEAT.
Eli: uBEAT is me, AJ and Kevin. Kevin is featuring for us. And our song is very upbeat. It’s a sad song but it has a fun melody. So it’s kind of hard to grab the concept but it’s going to be very fun.
Kevin: The fans can look forward to it because it’s been a while since we’ve worked with [South Korean rapper] Brave Brothers. He produced our album this time and it’s going to be a really good song.
Last year, Dongho played a villain in the movie “Don’t Cry Mommy.” When he accepted the role, was there any concern about what the reaction would be like from U-KISS fans?
Dongho: When I first got the role, my close friends and family said it might really have a bad impact on my idol image. First, I was concerned about it. And now that I did [the film], I got more experience and it was a really good opportunity.
For the other members of U-KISS, if you get a chance to act, what character would you like to be?
Hoon: I want to be in a love story, a romance. Because Dongho was in a drama not too long ago called “Holy Land” and all the characters were guys. So I want women in the drama.
Eli: I want to try comedy, like a romantic comedy or [some kind of] comedic acting.
AJ: I want to try a role that is really funny like in “The Hangover.”
Kiseop: A romantic [role].
Soohyun: He wants to meet his love while fishing. [Maybe a role] related to fishing [for Kiseop]?
Eli, AJ and Kevin, how are your feeling about uBEAT’s live debut on Mnet’s M COUNTDOWN in Taiwan on Thursday?
Eli: We are actually very nervous because [our songs are] all in Korean and we are concerned about how the fans will react. Because it is just we three, we don’t know how good we’re going to be onstage. So we are trying our best right now and we are practicing a lot.
Kevin: We are glad we are performing in Taiwan because we haven’t been to Taiwan for long time as well. So we will glad to meet the Taiwanese fans.
Soohyun, what are some of the most rewarding or challenging things for you as the leader of U-KISS?
Soohyun: There’s nothing that is challenging to me as a leader. I am always happy because the dong-saengs [little brothers] always listen to my words and follow my instructions.
Who’s the most rebellious member of U-KISS?
Soohyun: Dongho. He seems like a little baby, but he’s matured for his age, so he is kind of a mature person. He is more like a hyung [older brother].
U-KISS recently appeared on the MBC Music program “Gangnam Feel Dance Class.” How do you feel about Singaporean K-pop star, Tasha?
Kiseop: I’m really surprised because when I was teaching the dance to Tasha, she’s a really fast learner. I thought ‘she is not even in UKISS.’ She could be a member of U-KISS since she is such a good dancer…. she’s really pretty!
What other endeavors would you like to try beyond U-KISS?
Soohyun: I want to be a producer and I have confidence [in my ability].
Kiseop: A photographer!
Kevin: Something other than this entertainment field, I really like kids. Something like a father or teacher, or anything that has to do with kids.
Eli: If I have time, I want to go backpacking around Asia. I would really like to come back here [to Singapore], not for work but for vacation.
Dongho: A radio DJ!
Hoon: I want to make lots of money and build my own sports center, and teach all the sports I know: bowling, golf and taekwondo.
Many are now calling into question the economic health of Singapore, as a number of economic indicators are showing lackluster results. Singapore – the business center of Southeast Asia – posted unprecedented results in the current quarter (on an advance estimates basis), contracting 0.6% year over year against the year-ago growth of 1.5%.
This is even worse news when investors consider the projections by the market for the current quarter. The consensus called for growth of 0.2% for the period, so the slide lower was quite the surprise.
The manufacturing sector was the hardest hit, shrinking as much as 6.5%. In the year-ago period, the sector contacted 1.2%.
On a quarter-on-quarter basis, the economy contracted 1.4%, ruling out the seasonal abnormality, again down from the 3.3% growth in the preceding quarter.
This could represent a very sluggish time for one of the best growth stories in the past few decades, and even more so during recent times. The country was considered a good bet over the past few years as its impressive unemployment rate (mere 1.8% in the fourth quarter of 2012) as well as heightened business activities in the Asia Pacific made it a compelling choice for investment (Read: Singapore ETFs for the Rise of Asian Financial Centers).
But in the wake of a lackluster first quarter, this positive outlook seems to have weakened. Following the release of the result, the market immediately gave a negative reaction leading to a slew of downgrades at some institutes like Credit Suisse and ING Financial Markets.
Further, Singapore’s economy grew 1.3% in 2012, the slowest pace in three years while the inflation accelerated the fastest in eight months in February. Data for exports was also not encouraging for the month of February due to a stronger Singaporean Dollar (Read: Inside the Only Singapore Dollar ETF). The inflation scenario was also not contained in this island-economy.
Basically, the economy has suffered twin attacks from slower growth and heightened inflation. The combination generally results in a strange situation in which measures adopted to tame inflation will halt growth and vice versa.
Hence, the Monetary Authority of Singapore (MAS) maintains its tight monetary policy as high inflationary environment does not allow MAS to opt for an expansionary monetary policy.
Looking Ahead
Despite this doom and gloom over the country, there are still plenty of reasons to be optimistic. The country remains an important business hub in the region, and the safety and business protections in the nation are unmatched across Southeast Asia.
Furthermore, the country’s central bank reiterated its outlook of 1–3% of GDP growth for 2013. The central bank also slashed its inflation forecast for 2013 to the range 3–4% from the previous range of 3.5–4.5%.
The authority sounds optimistic on the nation’s future and expects an improvement through the rest of 2013 buoyed by external demand, and the desire for many businesses to move to the open-business climate in the nation (Read: 5 ETFs for Countries with Highest Employment Rates). At present, Singapore is the second freest economy with a score of 88 on a scale of 100, up 0.5 points year over year.
In view of the ongoing circumstances, investors need to take great caution when looking at Singaporean ETFs. We would like to see which direction the Singaporean economy heads into in the coming few months before making a definitive call, as the short term has been negative, but longer term trends have been decidedly positive.
The biggest Singaporean ETF iShares MSCI Singapore Index (
EWS
– ETF report
)
which tracks the performance of the MSCI Singapore Index lost -0.6% year-to-date. With around $1.6 billion in assets, this large-cap oriented fund is mostly exposed to financials (33%), industrials (23%), real estate (17%) and telecommunications (12%).
While the fall was steeper than expected for the industrial sector in the first quarter, we foresee a risk component in EWS given the fund’s considerable allocation towards the sector.
While some investors may be beginning to panic over Singapore, it is probably too early to raise an alarm. It’s true, the country does have some significant issues plaguing its economy right now, but there are still some products that are going steady. One such example is iShares MSCI Singapore Small Cap Fund (
EWSS
)
.
With an asset base around $12.8 million, EWSS has delivered 6.4% year-to-date. This fund, tracking MSCI Singapore Small Cap Index, has considerable investment in the better-performing Real Estate sector which is probably the reason for the fund’s ability to return this year. With 70 assets in its holdings basket, EWSS also offers greater diversification than EWS which has 32 holdings.
Bottom Line
Singapore has been one of the greatest investing stories in the post-WWII period. The nation has gone from a small village to a financial and industrial behemoth, dominating the Southeast Asian region.
Yet, nothing lasts forever and many are starting to wonder if other picks in the region could be better positioned in the near term. This is especially true given the incredible growth rates that we have seen in markets like Indonesia or the Philippines as of late.
These worries have begun to appear in stock prices too, as EWS has faced some severe weakness as of late, signaling to some that the story in Singapore is over. However, it is important to remember that the small cap fund, EWSS, has held up quite well, and thus could be a better play going forward as Singapore finds its way in this uncertain economic environment.
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Publication Date : 25-04-2013
Big spenders from Russia, the UAE among tourism board’s target groups
Transfer by private jet, suite bookings at a five-star hotel, reservations at celebrity chef restaurants and a chauffeur at their beck and call.
This is the kind of itinerary – costing up to S$50,000 (US$40,000) per person for a five-day trip – that inbound travel agency Hong Thai woos its well-heeled customers with.
Such niche offerings have proved a hit with tourists from the United Arab Emirates (UAE) and Russia – two countries singled out for targeting in a new discussion paper from the Singapore Tourism Board (STB).
Hong Thai’s director, Alex Chan, 55, started offering such packages in 2011 and saw the number of tourists from these places increase by 10 per cent in just a year.
It could be because Chan has them figured out to a tee.
Russians, looking to escape from harsh winters back home, prefer hotels by the beach. Tourists from the UAE tend to opt for accommodation located in shopping districts, he said.
“You know what they say – that Russians like vodka? It’s true. They’re known to clear out hotel minibars, so we make sure they are well-stocked,” said Chan, whose agency seems to be ahead of the curve.
The STB’s paper, called Navigating The Next Phase Of Tourism Growth, called on agencies in Singapore to continue to lure travellers from the growing markets of Vietnam and Japan. The 22-page action plan also pinpointed the need to “defend” traditional markets such as Indonesia and China.
Its release on Monday comes at a time when the tourism industry is at a crossroads. STB estimated that visitor arrivals would grow by 3 to 4 per cent and tourism revenue by 4 to 6 per cent year-on-year in the next decade.
This contrasts with the record growth posted between 2002 and last year, when visitor arrivals grew at a compounded annual rate of 6.6 per cent. Tourism receipts also grew at a corresponding 10 per cent in the same period.
Travel agencies that concentrate on pulling in visitors to Singapore sell packages through partner agencies to overseas consumers. Some develop standard packages and distribute them to various partners at a marked-up rate. Others like Hong Thai work closely with partners to design specific programmes for target markets.
Ngee Ann Polytechnic’s senior lecturer in tourism, Michael Chiam, told The Straits Times a “laser beam” approach is needed.
“Don’t offer the broad-stroke standard products. Ask, what do your people want? I will package it for you, I will customise it for you,” he said, adding that agencies need to study their target customers closely.
He suggested that agencies “fully exploit” local culinary offerings with food tours and offer round-the-clock personal concierge services to high net worth travellers.
CTC Travel seems to be doing just that. It launched a series of packages called Singapore Deep early this year to attract repeat visitors. One takes them on a food tour to uncover the story behind dishes such as bak kut teh (pork rib soup) and samsui chicken (steamed chicken spiced with ginger). Another, which shows them the Singapore “outback”, includes trips to farms in Lim Chu Kang.
But CTC spokesman Alicia Seah said that some markets, such as Russia and the Middle East, are not easy to penetrate.
“We don’t have the network or know-how to handle these markets,” she said. “It’s about connections sometimes.”
