Showing off Stomach-side

Well, Jackie Chan has shown off his kungfu on stage and in his shows.He may be attired then in kungfu pants to show off his torso.

However, it is not always that he shows his stomach peekaboo to a member of the opposite sex. Look the lady here is having the joy of her life-time, I guess.

Singapore: Casinos and Expected Growth

This is a news report from the Straits times. I thought it makes itneresting reading and so I am posting it in toto here.

"Anyone reading about the outlook for Singapore's economy this year would be forgiven for thinking that growth hinges on the integrated resorts (IR).

The buzz surrounding Marina Bay Sands and Resorts World Sentosa has intensified recently, as the resorts gear up for their big openings while Singapore readies itself for a robust 2010 recovery.

Some analysts say the timing couldn't be better. Economists predict the resorts will help power growth to up to 6.5 per cent this year, after a contraction of 2.1 per cent last year.

One of the immediate economic perks of the resort openings is that visitor arrivals could increase by a strong 20 per cent this year, according to estimates by DMG & Partners analyst.

The resorts are also expected to spur domestic spending and further hiring.
But the real story of the economic recovery this year goes beyond the opening of the IRs. After all, tourism makes up only 3 per cent to 4 per cent of Singapore's economy.

And like almost every other major industry in Singapore, the tourist-dependent resorts are still gambling on a turnaround in the global economy.

“The fundamental driver of growth this year is still the global demand cycle, and the resorts are just the bonus on top of that,” said a Citigroup economist.

He is one of at least three economists predicting 6.5 per cent growth this year, well above the official forecast of 3 per cent to 5 per cent. This is based not just on the expected boost from the integrated resorts, but on a rebound in the wider services sector, which remains key to growth.

In the recent downturn, services proved more resilient than manufacturing, the other main growth driver. Estimates released on Monday showed that the economy hit a speed bump in the fourth quarter, largely due to a pullback in manufacturing, especially in the unpredictable biomedical segment.

Services was steadier, continuing to rise quarter-on-quarter in the fourth quarter, and increasing year-on-year for the first time in five quarters.

Economists believe 2010 will be the year of services growth, in line with what the Monetary Authority of Singapore has said about focusing more on services in the future. The resorts will simply be the most visible service sector star.

Trade-related services, which make up about a quarter of the economy, are expected to pick up along with a rebound in global trade, said one of the economist.

Financial services, about 12 per cent of the economy, should also continue to rally as stock markets improve and private and commercial banking strengthen.

“Services growth will be the key employment driver this year, given the opening of the two integrated resorts and the brighter financial services prospects,” said an OCBC economist.

Manufacturing will also boost the recovery, with two new biologics factories coming on-stream in the first quarter. The Purchasing Managers Index, a forward-looking indicator of factory output, rose encouragingly in December.

Of course, there are risks to this bright outlook, one of which is, ironically, the integrated resorts.

Some economists fear the resorts will simply exacerbate the existing volatility of Singapore's economy, reliant as they are on external demand and sentiment.

Despite numerous attempts at diversification, Singapore's export-dependent economy plunged steeply during the downturn last year, and price stability has proved a pipe dream in recent years as property values and inflation lurched from one wild swing to another.

This has prompted some economic soul-searching, most visibly manifested in the setting up of the Economic Strategies Committee. It will this month unveil its suggestions for new ways for Singapore to grow in the next five to 10 years.

A UOB economist is cautious about how much of an economic boost to expect from the resorts this year, given the opening delays — Marina Bay Sands, initially scheduled to open by the end of last year, is now looking at an April opening for its first phase — and the fact that they are an “untested concept”.

“If anything, the impact will be more material in the second half of 2010, assuming no major external shocks,” she said. “We will have to wait and see.”

Adding to the uncertainty is the lack of knowledge about how much the resorts will actually contribute, directly or indirectly, to economic growth.

Some analysts have put it at as little as 0.3 per cent to 0.5 per cent of gross domestic product (GDP). Others, such as CLSA gaming analyst Aaron Fischer, expect a 4 percentage point contribution this year from all resorts-related activity, from tourism to employment and higher consumption.

The reason, Fischer says, is simple: Asians like to gamble — the average bet in Macau is US$62 (RM210), compared to US$10 in Las Vegas. He expects the integrated resorts “to prove extremely successful”. Gaming revenue for this year is expected to hit US$2.9 billion and surge by 45 per cent to US$4.4 billion next year, as the impact of a full year of operation kicks in.

Beyond the resorts, there are also other risks this year. Inflation is one, no thanks to a surge in food and property prices and abundant liquidity. Governments also need to cut back on their stimulus packages: not so quickly that the recovery stumbles but not so slowly that asset bubbles have time to build.

In general, though, economists are optimistic about Singapore's prospects this year.

As Asia leads the global rebound, plenty of cash is floating around looking for a place to be spent — not just at the blackjack table, but on bigger investments in a country full of casino buzz.

A lot is riding on the success of these resorts, from the tangible — such as the prices of luxury homes in Marina Bay and Sentosa Cove — to the more abstract, including local consumer sentiment and foreign investor confidence in Singapore's economic gambles.

But the good news is that even if the promised boost from the resorts turns out to be more hype than reality this year, the economy is unlikely to tank.

So while all eyes will be on the glitz and glamour of the resorts, expect the big payout to come when the global economy recovers, lifting Singapore along with it.

I like the tone of this news report. It is definitely more optimistic than most.

Construction: To peak in 2H,2010

HwangDBS Vickers Research envisages that the construction sector is expected to peak between the third and fourth quarter of this year on the anticipation of a full roll out of three mega projects,

The mega projects are the RM2 billion Low Cost Carrier Terminal, to be sited about two kilometres from the KL International Airport in Sepang, Pahang-Selangor Water Transfer and Light Rail Transit (LRT) extensions.

The sector may show continuity in 2011, depending on the speed of the roll out of other mega projects like the new LRT lines and the pace of the new order book wins, it said.

“We expect further out performance with the new leadership paving the way for more aggressive contract flows and prudent cost management.

"The foreign contract inflows are added catalysts. We expect Middle East countries and India to be the focus markets,” it said in a statement. The research house also views positively the participation of contractors from China in the mega projects and the spillover effects for the locals.

Private Finance Initiatives and public-private partnerships are expected to play a bigger role as the government had allocated RM7 billion for the purpose under the second stimulus package, it said.

It said the private sector would likely provide the bulk of the financing while the government made available basic infrastructures to ensure project viability.

To spur private sector involvement in economic corridor development, the government had set aside RM3.5 billion this year for infrastructure and basic amenities in the corridor regions, it added."

Looks like an active year for contracting companies if there are sufficient jobs to go around.

KTM: The 50% Student Discount Card

I think this is great news for students.

With the increasing cost of transportation, any discounts or benefits available will be a great blessing.

KTM's introduction of the 50% Discount Student card must be applauded.Beginning 2010, all Malaysian students aged 13 and above can now obtain the Keretapi Tanah Melayu Berhad (KTMB) 50% discount card for long-distance travel from all KTMB stations.

This discount card is made available by KTMB for free since yesterday (5 January 2010).

The issuance of the discount card is subject to certain conditions and it is only for second class and economy class travel.

Secondary school students, students of public and private higher learning institutions, and part-time or long distance-learning students could apply for the discount card.

However, students of teacher training, nursing, police and armed forces colleges and health institutes will need to pay an annual fee of RM30 for the card.

The card can also be used during the festive seasons but booking for a trip must be made seven days before the journey.

It can be obtained within a day from the KTMB office at KL Sentral and within three weeks from other KTMB offices.

So if you are interested in getting a card for your children,call KTMB at 03-2279 8852 or visit www.ktmb.com.my.

This is really another benefit provided by Premier Najib. Every little bit counts.

I salute you, PM Najib!

The RWS Earlier Opening: Pros and Cons

Business Times Singapore featured this article concerning the pros and cons of the earlier opening and the potential downsides of the rules on the operation of junkets.

"Genting Singapore appears to be on a roll with its share price increasing from about S$1.17 (RM2.84) per share just before Christmas to hit almost S$1.30 per share yesterday. This despite news that its junket business may be affected by strict regulations in the future.

The increase of around 10 per cent over a two-week period can largely be attributed to the revelation that its Resorts World at Sentosa (RWS) will very likely open before Las Vegas Sands’ (LVS) Marina Bay Sands, confirmed, more or less, by LVS chairman Sheldon Adelson who said its resort will open in the second quarter of 2010.

The perceived advantage is that RWS’s casino could have a headstart in developing a base of Singaporean regulars who will likely choose to pay a S$2,000 annual entrance fee over the S$100 daily entrance fee, thus locking in their choice destination. The release of Casino Regulatory Authority’s (CRA) junket licensing regime also failed to dampen investor sentiments.

In a research note, CIMB analysts said that while stringent regulations could threaten RWS’s VIP gaming revenue, “we think that such concerns are largely long-term in nature.”

CIMB added: ‘Over the short-term, we believe that the novelty effect would naturally drive in the punters, allowing RWS to nurture its higher-margined in-house VIP market by leveraging on the Genting Group’s extensive gaming foothold and clientele base.’

After acknowledging downside risks like having to extend credit to in-house VIP clients, CIMB still retained its FY10-11 revenue projections for Genting Singapore of S$2.94 billion and S$3.57 billion respectively.

Analysts at JP Morgan say the strict junket regulations were “expected” and appear to have priced this in. Their revenue forecasts for Genting Singapore in FY10-11 are even higher at S$3.54 billion and S$4.11 billion respectively.

Even analysts at Goldman Sachs, who are the least bullish with a “sell” call on the stock, have revenue projections for FY10-11 of S$2.97 billion and S$3.68 billion respectively.

The assumption, it seems, is that there will be significant business generated by VIP casino clients with at least a couple of major junket promoters applying for licences to operate in Singapore. The consensus is that they will bring in about 40-50 per cent of total gaming revenue.

But a look at the actual application forms for junket licences which was released by CRA a few days after it released the junket regulations reveals that the probity checks on promoters are as strict as those for casino operators.

For example, applicants have to declare if they, their spouses or children, have made loans over S$25,000 in the last 10 years. Applicants also have to list all assets, bank accounts (foreign and domestic) and business activities for the last 15 years.

It seems Adelson may be right when he said recently that junket promoters will not come to Singapore.

Apart from opening the casino on time — the official date is still Q1’10 — there is another hurdle that Genting Singapore will have to contend with, and that is how rigorously the government here intends to regulate credit facilities offered by casinos and junket promoters. Should these prove to be strict as well, some high-rollers may not be able to arrange credit with either the casino or junket promoters to gamble with.

If that happens, it may then be time to review revenue projections.

Meanwhile, let us just wait and see human psychology when it is set in motion as the casino licence is approved for operation. I think it will be before Chinese New Year.

A Funny Thing Happened on the Way to Gonbei

Well, yesterday(5 January 2010), we went to town.After locating the Relish Floor of Starhill,we approached the Gonbei Japanese Restaurant. There a Malay and Indian waiter in Japanese attire complete with Japanese clogs,smiled at us." Going to Jogoya?" That direction,they pointed us the way!

In the negative, we replied. We want to go to the Gonbei! Smiles appeared on their faces like clockwork. The said " Welcome!" in the Japanese tongue as we walked through the bridge like structure with the pitched roof of bamboo poles. Then we heard a loud boom being sounded from the banging of a traditional drum behind us. As we approached the seating area, a chorus of loud "Welcomes" came from all the waiters and waitresses. Oh! what a welcoming gesture and show they have really put on!

The name Gonbei is that of a typical farmer from ancient Japan, who has that deep-seated spirit of warm hospitality characteristic of the whole country. The bamboo structured restaurant entrance is based on a traditional farmhouse, symbolising vitality.

Food was aplenty from the few bento boxes we ordered. There was good shashimi,tempura and teppanyaki. There was pan-fried unagi and salmon. Then there was that soft wagyu beef cutlets for us to savour as well. We finished off the meal with traditional miso seaweed soup, the egg custard and fruits.

On refelction, I think Gonbei is one fine Japanese restaurant.

Genting: RWS-Earlier Opening

It looks like the Genting group has beaten Marina Bay Sands in the run up to casino resort openings.In a statement today, Genting Singapore said today it will open the first part of its US$4.4 billion (RM14.9 billion) casino-resort in the city-state on Jan 20, beginning with four hotels.

“Resorts World Sentosa (RWS)is working closely with the authorities to obtain approvals for Universal Studios Singapore, which will open next,” the company said in a statement.

Genting Singapore, a unit of Malaysia’s Genting Bhd, said it will announce the start date for the casino when it receives the licence from Singapore authorities.

Singapore legalized casino gambling in 2005 and said it will allow two casino-resorts to be built as part of ambitious plans to double visitor arrivals to 17 million by 2015.

The city-state’s other casino-resort, Las Vegas Sands’ US$5.5 billion Marina Bay Sands, is scheduled to begin its phased opening in April, although many analysts doubt if the firm can meet even that new target date.

Casino operators in Singapore will pay an effective tax of around 12 per cent on net revenue from gamblers, giving them an incentive to draw Asian high rollers away from Macau where the tax is just under 40 percent.

Genting declined to provide estimated start dates for its Singapore casino or Universal Studios theme park, Southeast Asia’s first, although a spokesman said testing and commissioning of the various rides had started in early November.

A spokeswoman for Singapore’s Casino Regulatory Authority said Genting made an initial submission for a casino licence in October 2009 and the completed application package was received in December. Singapore casino laws are based on regulations in the United States and Australia.

Such applications typically take more than three months to process as they involve vetting casino owners and managers, casino industry officials have said.

Be that as it may, I believe the Singapore authorities would not delay the approval because they would certainly like the tourist numbers to start coming as the new year rolls in.