By EMILYN YAPSINGAPORE’s property market has anew player by the name of Hao YuanInvestment, and it has created quitean impression by submitting the topbid in what could be its first shot for asite at a state tender.

The race for a 99-year leaseholdresidential land parcel at SembawangRoad/Jalan Sendudok closed yester-day, and Hao Yuan’s bid was$191.8 million or $460 per squarefoot per plot ratio (psf ppr).

The bid exceeds forecasts of$340-$410 psf ppr made by consult-ants two months ago.

It is also about 11 per cent morethan the second highest bid of

$172.6 million or $414 psf ppr, sub-mitted by a tie-up between FragranceGroup and Aspial Corporation.

The third-placed bidder, a HongLeong Group unit, offered to pay amuch lower $141 million or $338 psfppr.

The tender attracted six bidders inall, including a partnership betweenFrasers Centrepoint and Far East Or-ganization.

Top bidder Hao Yuan is a relative-ly unfamiliar name in the local real es-tate scene. It was registered in Singa-pore last year and one of its directorsis Wen Baoguo, a Chinese nationalwith an address in Hebei.

A spokesman for Hao Yuan toldBT that the company’s main opera-tions lie in the trade and property sec-tors. Its major shareholders are alsoinvolved in natural resource explora-tion, iron and steel works and proper-ty development in China and othercountries.

Hao Yuan has plans for a projectwith around 400 units on the site.The spokesman said that it is confi-dent of demand, with SembawangMRT station located near the site, andSembawang Shopping Centre justnext door.

The plot has a maximum permissi-ble gross floor area of around416,900 sq ft and is next to CanberraResidences, which was launched ear-ly this year.

“Bidders were probably encour-aged by the recent pick-up in saleslaunches and units sold in the subur-ban market,” said Credo Real Estateexecutive director Ong Teck Hui, cit-ing Eight Courtyards and HedgesPark Condominium as examples.

He estimated that the top bidwould translate to a breakeven cost of$800-850 psf and an average sellingprice of around $900 psf.

FOR evad ing about$30,000 in tax, eye surgeonChiang Currie, 55, was sen-tenced to six months jailyesterday and ordered topay a penalty of $117,888.

Investigations show thatDr Chiang, who owns andoperates International EyeClinic at the Mount Eliza-beth Medical Centre, in-structed staff to downloadthe actual income recordsof the clinic on a portabledisk daily. She would thendelete some of the paymentrecords from the hard disk,in particular those thatwere settled in cash, saidthe Inland Revenue Authori-ty of Singapore (IRAS) in astatement.

Dr Chiang then used theincomplete paymentrecords to report tax, un-der-declaring her businessincome for 2006 and 2007.Dr Chiang stated that her in-come in the 2006 tax yearwas $998,107 when it wasreally $999,197.

For 2007, she went fur-ther and under-declared itby $148,501.

In total, Dr Chiang un-der-declared income taxamounting to $149,591 inher tax returns for thosetwo years.

Dr Chiang has been inprivate practice since 1994.Previous media reports saythat she is a member of theAmerican Society of Cata-ract and Refractive Sur-gery, and has attended pres-tigious international medi-cal forums.

According to the website

of International Eye Clinic,Dr Chiang went on a mis-sion to Nepal to provide eyetreatment to the villagers ofBandipur in 2002.

Under section 96A of theIncome Tax Act, a personwho evades tax using meth-ods such as preparing ormaintaining false books ofaccounts or other recordsmay be liable to pay a penal-ty that is four times theamount of tax evaded, anda fine of up to $50,000 or ajail time of up to five years,or both.

“IRAS would like to re-mind all businesses to keepproper records and ac-counts of all their transac-tions. Businesses mustkeep the i r recordsup-to-date and ensure thatthe records support their in-come tax and/or GST decla-rations,” said the tax au-thority.

By KALPANA RASHIWALAPROSPECTS for investingin Singapore’s office, retailand industrial propertymarkets have been catego-rised as “hot” as at the firstquarter of this year inDTZ’s latest Money intoProperty report.

“This is similar to the Q42010 findings, as we expectcontinued price and rentalincreases based on Singa-pore’s projected economicgrowth in 2011 and overthe next few years,” saidDTZ’s head of South EastAsia research Chua ChorHoon.

“The Singapore officemarket is ranked amongthe top five in the “hot” cate-gory among the Asia Pacificcities covered in this study.Capital values are expectedto re-price at a faster rate(in 2011) compared with2010 with growing interestfrom institutional inves-tors,” she added.

The latest Q1 2011 DTZFair Value Index (FVI)

score – an indicator of in-vestment opportunities inthe office, retail and indus-trial property markets – forAsia Pacific stood at 65,well above the global scoreof 50.

The more the number ofhot markets in a region, thehigher the index will be,with 100 being the maxi-mum score.

DTZ noted that marketsin the Asia Pacific are expe-riencing increased occupierdemand from expanding do-mestic companies and mul-ti-nationals locating to theregion.

The Asia Pacific alsoachieved a strong increasein property investment vol-u m e s l a s t y e a r t oUS$158 billion, double theUS$73 billion in 2009 andmaking the region the lead-ing market (46 per cent ofglobal transactions). Invest-ment volume in the Asia Pa-cific region also overtookEurope for the first time.The global investment vol-ume increased 76 per centfrom US$194 billion in2009 to US$342 billion lastyear.

DTZ is predicting a 9 percent rise in global invest-ment transaction volumes

this year, largely on theback of continued recoveryin Europe. However, theAsia Pacific is expected tosee volumes flat lining.

“We expect that the gov-ernment restrictions (onproperty transactions) inChina will begin to take ef-fect in 2011 ... and (thereis) expected drop-off in ac-tivity in Japan following theearthquake,” said the re-port.

Ms Chua also addressedquestions on Singapore’sresidential property marketat DTZ’s Money into Proper-ty Asia Pacific 2011 semi-nar yesterday. Quizzed onlikely changes in Singa-pore’s property market fol-lowing the appointment ofa new National Develop-ment Minister, she said: “Ithink they will be reviewingall the Housing & Develop-ment Board policies; it’sjust a question of whichones will be changed and towhat extent.”

She also noted the recov-ery in developers’ privatehome sales volumes inMarch and April and highsales in the secondary mar-ket and argued that thenew residential supply be-ing pumped into the mar-

ket could lead to a glut ofcompleted homes in a fewyears. This would dampenprices and rentals – espe-cially if interest rates riseand demand falls particular-ly if there is a slowdown inintake of new immigrantsto Singapore.

Ms Chua reckons poten-

tial property cooling meas-

ures could include a further

reduction in loan-to-value

limit and an increase in the

minimum cash downpay-

ment on private home pur-

chases by investors.

By LESTER HIODOVER Park Hospice (DPH)yesterday named Dr TonyTan as its first patron, evenas it announced plans for a$3 million expansion.

The number of beds willsoon increase from 40 to 50and the hospice is consider-ing adding satellite hospic-es in other parts of the Re-public as demand increasesin a rapidly ageing Singa-pore.

“This move will under-gird and strengthen thepublic service, support andgoodwill to our hospice. Weare so glad that despite his

busy schedule and heavycommitments, Dr Tan sograciously and generouslyagreed to become patron ofDPH”, said chairman ofDPH Lionel Lee.

He added that the pa-tronage of former deputyprime minister Dr Tanwould be an importantmove towards greater re-ception to palliative care inSingapore.

Dr Lee also underlinedthat the hospice’s plan forexpansion is in line withthe demands of the in-crease in ageing popula-tion. Dr Tan too recognisedthe need for greater expan-sion in the services thatDPH can offer.

“I am glad to see DPHgrowing from strength to

strength,” Dr Tan, who is al-so chairman of SingaporePress Holdings, said in hisspeech. “Its expanded facili-ties and new sub-acute in-patient and home palliativeservices testify to DPH’sforesight and capabilities.”

The expansion plan sawrenovations starting inmid-May and is expected tobe completed by mid-July.

Not only will there be anincrease in the hospice’s ca-pacity, there will also be animprovement in its capabili-ty in taking on cases that re-quire intermittent intensiveinterventions. Such an ex-pansion will reduce theamount of re-admissions in-to hospitals, which often en-tails cost, and inconven-ience and stress to patientsand family members.

By MINDY TANEVEN as accounting firmsare encouraged to go re-gional, questions arise asto whether smaller firmsare equipped to tackle thebroader market, andwhether all firms in gener-al recognise the gap be-tween what the marketexpects and what they pro-vide.

Asked during the paneldiscussion whether or notregionalisation is optional,or a necessity, Chia NamToon, chief financial officerof Ascendas Group, said:“It’s not a question ofwhether regionalisation isnecessary. I think it’s agiven.” He added: “Region-alisation is good, the ques-tion is how we go forward.”

Teo Eng Cheong, chiefexecutive of InternationalEnterprise Singapore,agreed, and added: “(Ac-countancy) is a fairlyunique industry in that youhave a few big players,some medium players, andmore than 500 small prac-tices.” Further, he said,small companies have an“inherent disadvantage” injuggling costs.

Helen Brand, chief exec-utive of Association of Char-tered Certified Accountants(ACCA) Global, agreed thatchallenges exist, but ar-gued that with the righttools, the transition couldbe smooth. She said:“There are complicationslike employment laws, taxregimes, and registration.If you’re a small business,this can be a big extra bur-den to sort out. But if you

have the right advice, thatcan be quite smooth. Andonce you are established,there’s no reason why youcan’t be as successful as alarge organisation.”

She added: “We knowfrom all our research thatsmall and medium enter-prises (SMEs) favour smallpractices. It’s not just bigbusinesses that go region-al, SMEs can do so too. Andthey need finance advicethat small practices canprovide.”

Tham Sai Choy, manag-ing partner at KPMG LLP,disagreed with the premiseof small versus large firms,arguing that accountancyfirms were a completelydifferent business modelsfrom firms that profit fromeconomies of scale.

Instead, he argued, com-panies should look to offerniche services, not just inSingapore, but in the re-gion. “I think that the chal-lenge for accounting profes-sionals is that we need tomove more into nicheareas. The profession as awhole shouldn’t just belooking at opportunities inSingapore, but at opportu-nities right across the Asia-Pacific. (Opportunities) thatoffers a different scale suchthat even on a single nicheproduct, we will be able tobuild a business.”

Themed, “Accountantsfor business: Going region-al – Challenges and oppor-tunities for the accountingprofession”, yesterday’s2011 ACCA SingaporeAnnual Conference hostedover 350 delegates.

FOR the first time ever, Sin-gapore has signed an agree-ment with an internationalgaming regulator. The Casi-no Regulatory Authority ofSingapore (CRA) yesterdayinked a Memorandum ofUnderstanding (MOU) withthe Nevada Gaming ControlBoard (NGCB).

This paves the way forenhanced collaboration inthe field of gaming regula-tion between CRA andNGCB.

Areas of cooperation in-clude the sharing of infor-mation, expertise, knowl-edge and skills, as well as

exchange visits and train-ing. In addition, CRA andNGCB will hold annual bilat-eral meetings.

Speaking at the MOUsigning which was held atthe NGCB’s office in Las Ve-gas, Nevada, chief execu-tive of the CRA, T Raja Ku-mar, said: “Nevada’s experi-ence in regulating casinosand their open sharing onregulatory best practiceshave been useful to the CRAas we were developing thecasino regulatory frame-work for Singapore. I ampleased to cement our closeworking relationship withthis MOU and look forward

to working with Nevada inall aspects of casino-relatedexchanges.”

Chairman of NGCB,Mark Lipparelli, added:“The CRA has established arespected plan for regula-tion and they share manyof our philosophies for ap-propriate regulatory over-sight. This agreementmakes formal the strategicties we have developedwith a respected regulatorincluding benefits in the ar-eas of exchange of informa-tion on common licenseesand reduction in cost andtime spent for probity inves-tigations.”

By UMA SHANKARIORGANISERS of the GreatSingapore Sale (GSS),which kicks off today, ex-pect takings during thetwo-month-long shoppingseason to climb from lastyear as the economy contin-ues to improve and touristarrivals remain robust.

The Singapore RetailersAssociation (SRA) said re-tailers could rake in asmuch as $5.5 billion in re-tail sales in June and July.

Last year, shoppersspent $5.3 billion in the twomonths. The figures in-clude motor vehicle sales.

“I am hoping that wecan reach it (the target of$5.5 billion) because this isgoing to be an excitingyear,” said SRA presidentJannie Tay. “Last year, wewere just coming out of therecession, so this yearshould be better.”

In addition to the thou-sands of stores islandwidethat have become regularparticipants of the annualGSS, this year’s sale will al-so see the participation oftenants in the two newestmalls in Singapore: MarinaBay Link Mall in MarinaBay, and nex, a suburbanmall in Serangoon.

As usual, retailers start-ed to roll out discounts asearly as two weeks ago in abid to get a head start. Andmore new deals were an-nounced yesterday.

“In keeping with the spir-it of the Great SingaporeSale, Tiger Airways will of-fer even better deals thanusual with up to 60 per centoff our already low fares,providing the best value intown for our customers,”said Tiger Airways’ Singa-pore managing directorStewart Adams yesterday.

However, both retailersand analysts admit that tak-ings of individual retailerscould be dampened by newsupply, increased onlineshopping and the strongerSingapore dollar.

“The retail sector contin-ues to grapple with sup-ply-side issues, brought onby the massive injection ofnew retail space in 2009and 2010,” said OCBC In-vestment Research analystOng Kian Lin. “Some of thetourism expenditure is alsobeing diverted to the casi-nos and more consumersare shopping online, partic-ularly among the youngergroup.”

Eye surgeon gets 6 monthsjail; pays penalty of $177,888She manipulatedincome accounts toevade taxes

It’s consideringsatellite hospices inother parts of S’pore

NOTABLE philanthropist Frank Cintamaniis doing his part for charity once again –only this time, in the kitchen.

The CEO of Fide Multimedia will bewhipping up skewers of lok lok, a tradition-al street snack, at the Food Republic BeerGarden tonight, from 8 to 10pm.

He is the ninth of 12 CEOs participatingin the Great CEO Charity Cookout, whichaims to raise $1 million for the charityProject Helping Hands.

A community project by The New Paperin partnership with Ngee Ann Polytechnicand the Lions Befrienders Service Associa-tion, it involves installing wireless motion

sensors in the flats of senior citizens wholive alone.

The system tracks the resident's move-ments and sends an SMS to a caregiver orvolunteer if it does not detect any move-ment for an unusually long period of time.

In keeping with the usual glamour ofthe events his firm organises, Mr Cintama-ni and his team will be transforming theoutdoor dining eatery into a glitzy venuecomplete with waiters outfitted in faux tux-edo wear.

Alongside the lok lok, which will be soldto VIPs in full evening wear as well as thepublic, a charity auction will also be heldto raise additional funds.

New player Hao Yuan putsin bid above expectationsfor Sembawang plot

Capital valuesexpected to bere-priced at fasterpace this year

ARTHUR LEE

At the ward: New patron Dr Tony Tan visiting patients at the Dover Park Hospiceyesterday. With him is Mrs Tan and Dr Lionel Lee

The importanceof being regional

S’pore, Nevada gaming regulators sign MOU

CEO Frank Cintamani cooks for charity

GreatSingaporeSale eyesbiggertakings

China-linked firm tops state tender

S’pore still hotfor propertyinvestment: DTZ

APAC marketsFair value classification, Q1 2011

Source: DTZ Research

OFFICE RETAIL INDUSTRIALBangalore Bangalore BrisbaneBeijing Bangkok Gold CoastChennai Chengdu MelbourneDalian Chennai SingaporeDelhi Delhi SydneyGold Coast Hyderabad

HOT Hyderabad MumbaiMelbourne PunePerth SingaporeQingdaoShanghaiShenyangSingaporeTianjinAuckland Auckland AucklandBangkok Beijing PerthBrisbane Brisbane ShanghaiChengdu Gold CoastGuangzhou Guangzhou

WARM Jakarta Kuala LumpurKolkata PerthMumbai SydneyPuneSeoulSydneyTokyoHong Kong Hong Kong Hong KongKuala Lumpur Kolkata TaipeiShenzhen MelbourneTaipei Shanghai

COLD

Dover Park Hospiceplans $3m expansion

10 SINGAPORE NEWS The Business Times, Friday, May 27, 2011