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Archive for 2007
Customer Focus and Team Spirit Drive ASBIS Bulgaria Forward
Mitko Topalov, ASBIS’ Regional Sales Director for Bulgaria, Romania and Serbia, reveals in an interview what it takes to maintain market leadership.
ASBIS Named Best and Most Trusted Distributor 2007 in Bulgaria
ASBIS Bulgaria has been named the Best IT Distributor in the country in 2007. The company has received this title for the 5th consecutive year.
Russian PC Builders Rank ASBIS as Top 5 Disti
According to the results of a large-scale survey of the Russian IT channel’s 2-tier players conducted by CRN (Russian Edition) in November 2007, ASBIS was recognized as one of the best distributors for PC builders.
ASBIS has been announced one of the best IT distributors for assemblers of PC 2007 in Russia
Results of voting „The Best Russian IT Distributor 2007” organized by the most popular channel publication CRN/Russian Edition, analithical agency IT Research and Business Exchange were pronounced in IT Forum 2007 “IT market in Russia”.
Russia: Who Dares Wins
Andrey Kostevich, ASBIS’ VP for Russia and Belarus, talks about distribution trends in the region in his interview to IT Europa.
ASBIS Expands Distribution to Balkan Region
ASBIS has extended the distribution agreement with Corsair Memory to include Serbia, Croatia and Slovenia.
ASBIS Expands Corsair Memory Distribution to Balkan Region
ASBIS has extended the distribution agreement with Corsair Memory to include Serbia, Croatia and Slovenia.
IT Europa: Russia goes global
The Russian IT market is going through a period of transition, as it inches ever nearer to Western norms of operation, and seeks to join the World Trade Organisation. The top dogs in distribution and assembly remain the local players, but, as this survey shows, companies like Dell on the hardware side, and German PC-Ware, one of Microsoft’s biggest European partners, are betting that now is the time to get involved…
Taxman Raises Hdb Property Value, Most Unaffected For Now
The annual values of most properties – including HDB flats – are going up,
but while owners of most private homes will be paying more taxes on their
properties next year, HDB flat owners will largely be insulated from the
taxman’s move.
The annual value is the estimated annual rent of a property if it were to
be let. In determining the annual value of a property, the Inland Revenue
Authority of Singapore (Iras) is guided by prevailing market rents.
The property tax rate is currently set at 10 per cent of the annual value
of the property. For owner-occupied homes, a concessionary rate of 4 per
cent applies.
The Iras said the average increase in the annual value of private
residential properties is about 20 per cent. This is broadly in line with
the rise in real estate prices reflected in data from the Urban
Redevelopment Authority (URA).
According to the URA, private home prices were up an average 8.3 per cent
in the third quarter from the previous three months. Compared to the end
of last year, private home prices averaged 22.9 per cent higher.
“Every year the Iras will assess the situation Â… They are increasing it
because rentals have gone up,” said Mr Eugene Lim, assistant
vice-president at real estate agency ERA.
“We are already seeing a trend of HDB owners renting their flats out and
the rental market has picked up. In that sense, the Government will look
at ways to ensure those who benefit pay their dues,” said Mr Donald Han,
managing director of property consultancy firm Cushman and Wakefield.
The Housing Development Board (HDB) Resale Price Index rose 6.6 per cent
in the third quarter and was up 11 per cent from the end of last year.
However, most HDB flat owners will enjoy a two-year reprieve from higher
property taxes, even though the Iras will be raising the annual values of
all HDB flats from Jan 1.
“The amount does impact the dwellers, but because there is a system of
rebates and preferential rates applied to home owners, the tax increase
will be mitigated,” Mr Han said. “The increase will only be felt by those
who lease out their premises.”
As part of the offset package for the Goods and Services Tax announced in
Budget 2007, all owner-occupied residential properties will be given an
additional tax rebate of up to $100 per year in 2008 and 2009. As a
result, 90 per cent of all HDB flat owners will not be paying more
property tax next year, the Iras said.
According to the Iras, one and two-room HDB flat owners will not have to
pay property tax next year, as well as 60 per cent of three-room flat
owners. The other 40 per cent of three-room flat owners will pay less tax
than they did this year.
For the four- and five-room HDB flat owners, 15 per cent will have to pay
higher taxes but the increase will be less than $40, the Iras said.
Meanwhile, in Parliament yesterday, National Development Minister Mah Bow
Tan said the Government would not be taking further action to cool the
property market.
Last month, the Government announced that it would scrap the deferred
payment scheme for private property purchases in a move to reduce
speculative buying and stabilise the red-hot real estate market. Mr Mah
said removing the scheme would not affect genuine home buyers.
Mr Mah also assured Singaporeans that there would be enough new housing to
meet the demands of a growing economy and population.
“At the end of the third quarter of 2007, there was a supply stock in the
pipeline of 65,000 units. This, in fact, is higher than the supply at the
end of the second quarter of 56,000 units. If Singaporeans are aware of
these figures – and these are numbers that we put out regularly – there is
no reason for Singaporeans to panic and feel that there is a real shortage
in the medium term.”
Mr Mah added that while the Government would seek to balance the supply
and demand in the long term, its “bias is not to over-regulate or
interfere” with the market.
“We monitor the growth rate of the market in relation to the growth of the
economy and growth is supported by economic fundamentals,” he said.
The National Development Minister added that more sites would be put up in
the Government Land Sales Programme in the first half of next year if
necessary. But this will be done carefully so as not to create an
oversupply situation in the longer term.
Mps Tackle Worries Over Food Price Rise
Govt doing its best to keep inflation low, assures minister
Nazry Bahrawi
nazry@mediacorp.com.sg
WITH groceries costing more by the day and consumers still getting used to
the four-month-old 2-per- cent hike in GST, it was inevitable that
inflation – and the Government’s handling of it – became one of the
talking points in Parliament yesterday.
Among the questions raised by several MPs: Is the Government monitoring
the increases in prices of food items such as flour and chicken? Are such
increases a cause of concern? What will be the impact of rising prices on
businesses? Should the Singapore dollar be allowed to appreciate further?
Madam Halimah Yaacob (Jurong GRC), wondered whether the Consumer Price
Index (CPI ) – which rose 2.7 per cent year-on-year in the third quarter
compared to 1 per cent in the second quarter and 0.5 per cent in the first
quarter – was an accurate reflection of inflationary trends in Singapore.
The CPI tracks the prices of a basket of goods and services, such as
housing, healthcare and transport, consumed by an average household.
Mr Inderjit Singh (Ang Mo Kio GRC) said he was concerned that higher
inflation would affect Singapore’s competitiveness in attracting foreign
investors. Non-Constituency MP Sylvia Lim of the opposition Workers’
Party, wanted to know how Singapore is diversifying its food sources in
order to stabilise prices.
In his response, Trade and Industry Minister Lim Hng Kiang said that the
Government would try its best to keep inflation low even as he noted that
the “current uptick in inflation is a global phenomenon”.
For example, Mr Lim said, the Monetary Authority of Singapore (MAS) had
managed to strengthen the value of the Singapore dollar by maintaining an
exchange rate policy since April last year that allows the currency to
“appreciate gradually and modestly” rather than pegging it to the US
dollar. The latter move would have resulted in Singaporeans experiencing
higher inflation.
In reference to Mdm Halimah’s query about whether the CPI was an accurate
reflection of the state of inflation here, Mr Lim noted that the index had
been low for the first two quarters of this year. The CPI is expected to
rise slightly above 2.7 per cent in the fourth quarter.
Mr Lim attributed the lower CPI in the first two quarters of the year to
the “low transport CPI” because of some changes to the transport policies
as well as the low oil prices back then.
However, oil prices are now on the rise and the impact of the GST hike in
July will continue “to show up in higher CPI inflation figures” for 12
months until June next year.
Mr Lim added: “Unlike food import prices, the GST increase has had only a
limited impact on basic food prices as the major supermarket chains have
been absorbing the GST increase for basic food items.”
Mr Lim expects the CPI to hover around 3 per cent in the later part of
2008, higher than the last few years. The Government expects inflation to
peak at 4 to 5 per cent in the first half of next year.
On the issue of food diversification, Mr Lim said while Singapore can
explore the possibility of importing vegetables from Thailand and China,
there is only so much that the Government can do to mitigate a price hike
in consumer goods.
For example, if there is a worldwide increase in the prices of cornfeed,
than chicken prices will go up even if Singapore were to diversify its
sources of frozen chicken from countries such as Australia, the United
States and Brazil.
Allaying Mr Singh’s concern over the impact of rising prices on
businesses, Mr Lim said that Singapore is still in a “good position” to
attract foreign investments because inflation here is still comparatively
lower than other countries.
Singapore is competitive also because while wages had increased, so too
had our productivity, said Mr Lim.
“I don’t think we should begrudge our workers having a fair share of wage
increase in the last two years if we look at the last broader 5 to 7 year
time frame,” he said, explaining that wages was slow to climb during the
longer term period.
Will New Penalties M Ake ‘disappearing’ Taxis Reappear?
LTA hopes they will but some have doubts if the stick will work
Leong Wee Keat
weekeat@mediacorp.com.sg
FROM Monday, taxi drivers who solicit for, overcharge or refuse to pick up
passengers will face higher fines, more demerit points and immediate
suspensions of their vocational driving licence of two to four weeks.
Wielding a big stick, the Land Transport Authority (LTA) said it expects
the combination of stiffer penalties and stepped up enforcement to put an
end to these errant practices, which have earned the ire of the public.
Passengers are hoping these measures will reduce the long wait at Clarke
Quay, Boat Quay, Sentosa and Orchard Towers, where many often despair of
ever getting a taxi, especially during the evening peak hours.
The LTA noted that at such entertainment “hotspots” errant taxi drivers
have been known to take advantage of the high demand to openly tout for
business and overcharge their passengers, especially tourists.
The authorities are currently investigating about 80 taxi drivers for such
offences since last month. Some are repeat offenders. There are about
23,000 taxis plying Singapore’s roads.
Taxi operators and the LTA appeared confident in the new measures.
However, taxi passengers whom Today spoke to had mixed feelings.
They agreed that the LTA was moving in the right direction, but were
sceptical the new measures would solve the prennial problem of
“disappearing cabbies” at peak hours and before late night surcharges kick
in.
An LTA spokesperson told Today: “We expect many of the errant drivers to
cease the malpractices, including that of rejecting passengers who are
unwilling to accept their demand for exorbitant fares.”
ComfortDelGro’s chief executive officer of taxi operations, Mr Yang Ban
Seng, said the measure would “serve as a strong deterrent”.
The chairman of Premier Taxi Operators’ Association, Mr Foo Chi Yong, said
the “tougher penalties are necessary to restore the public’s confidence in
the taxi industry”.
The taxi chiefs also took pains to paint a picture of a few bad apples,
spoiling the image of the majority.
Under the new penalties, taxi drivers who refuse to pick up passengers
could be fined $300, given six demerit points and an immediate two-week
suspension. This is a sharp increase from the current $100 fine and three
demerit points.
Repeat offenders, found guilty of soliciting or overcharging within a
period of two years, will have their vocational licence revoked.
But what of the other bugbear of “queue jumping” where passengers walk
ahead of one another to flag down taxis along the road?
Well, the LTA also announced that it will be adding 15 more taxi stands in
the Central Business District (CBD) by the end of the year – up from the
current 80. This is so that there will be a taxi stand within 300 metres
or a five-minute walk from buildings in the area.
So from March next year, hailing taxis along the roads within the CBD will
no longer be allowed.
Taxis will only be allowed to pick up or drop off passengers at taxi
stands and along private driveways, even on telephone bookings.
The LTA expects this will increase the number of taxis calling at the
stands and hence help shorten the waiting time. More importantly, it will
alleviate some of the difficulties now faced in getting a cab during the
evening peak hours.
The LTA added that this measure would also reduce the incidents of taxis
cutting into bus lanes to pick up passengers or indiscriminately stopping
and contributing to traffic congestion.
This, however, did not go down too well with some taxi commuters.
“Doesn’t having to walk to the nearest taxi stand defeat the purpose of
taking taxis, and being able to just stick out your hand, and hope to hop
into a taxi?” asked primary school teacher Sonya Lin.
Similarly, marketing executive Serene Fong asked if such changes would
work at some downtown spots, such as Plaza Singapura.
There, taxi queues tend to form along Orchard Road rather than at the
designated taxi stand.
Freelance writer Wong Zijia wondered what pushed drivers to overcharge.
“Are there too many taxis and too little business to go around? Are taxi
rentals too high?”
There was also no shortage of suggestions from passengers.
Sales consultant Bryan Lim noted that most taxi drivers head out of the
city when changing shifts in the afternoon. So, a change in shift timing
might be a better solution.
From January, taxi companies will also have to meet the full criteria of
quality service standards.
Currently, operators need to meet 80 per cent of the standards.
The LTA will also release results of its mystery audit of taxi services
next January. Started last month, the mystery audit is part of the LTA’s
on-going efforts to improve taxi services and is conducted on a quarterly
basis. The audit assesses taxi drivers on service, conduct, driving skills
and familiarity with routes.
Sub-prime Still Gets Shares Down
But fall cushioned as Govt says no new property measures
Cheow Xin Yi
cheowxinyi@mediacorp.com.sg
SINGAPORE shares suffered their biggest fall in three weeks yesterday as
bourses worldwide slumped on continued concerns over the extent of the
sub-prime mortgage crisis that began in the United States.
But the Straits Times Index (STI) found a foothold at the psychological
3,500 mark, soothed partly by the Government’s reassurance that it would
not be taking further measures to cool the property market.
The benchmark shed 88.55 points, or 2.5 per cent, to close at 3,511.12,
recovering from an intraday low of 3,483.2. Decliners outnumbered gainers
800 to 160, on volume of 2.17 billion shares valued at $2.74 billion.
Banks continue to bear the brunt of the selling. Shares in DBS,
Singapore’s largest lender, fell 70 cents to $19.80. Shares in United
Overseas Bank, the second- biggest, shed 50 cents to $19.60. OCBC shares
lost 15 cents to $8.50.
“There’s been a wave of risk aversion around the world in the wake of last
week’s reports of more (US) banks’ write-offs; so, that clearly scared
investors off. We saw the weakness on Wall Street last Friday and that was
echoed in sell-offs across Asia,” said economist David Cohen from Action
Economics.
DBS Vickers’ retail market strategist Yeo Kee Yan said he expected a
rebound today after National Development Minister Mah Bow Tan’s remarks in
Parliament that the Government would not be “considering any new measure
for the property market” following its move last month to scrap the
deferred payment scheme.
“Some of the property stocks have been sold down quite badly. The market
may see this as an excuse to put some technical bounce on property plays.
But the trend is still uncertain with so many worries like oil prices and
the sub-prime crisis,” said Mr Yeo.
Agri-firms Make Comeback At International Trade Exhibition
- ESTHER FUNG
After an absence of three years, agribusinesses will make a comeback, with
at least two participating in the Enterprise Exchange exhibition this
week.
“With prices of goods and commodities getting higher because of high oil
prices, land-owners and agricultural entrepreneurs would be interested in
finding out how to increase their yields,” said Dr Sung Do Song, director
of agricultural consultancy and fertiliser-maker Agro-Genesis.
Organised by Global Entrepolis @ Singapore (GES), this annual
international trade fair, the fifth since 2003, aims to attract up to
20,000 people to the Suntec City Convention and Exhibition Centre from
today to Thursday.
Besides the agri-businesses, there are about 350 companies from over 30
countries that will exhibit their offerings in the manufacturing, exchange
dealings and energy sector, said managing director Derrick Tan of Zenith
Events Management, organisers of GES 2007.
Record Investments This Year: Pm Lee
Manufacturing still key focus for Singapore
Hedirman Supian
hedirman@mediacorp.com.sg
Manufacturing will remain a key focus for the Government as it expects
investment commitments for the sector to reach a record high this year.
Speaking at the opening of Global Entrepolis @ Singapore yesterday
evening, Prime Minister Lee Hsien Loong said: “The Government is fully
committed to keeping manufacturing a key pillar of the economy.”
“EDB expects to end this year with manufacturing investment commitments in
Singapore reaching a record high,” he added.
The Economic Development Board has forecast fixed asset investments (FAI)
for manufacturing to be between $8.5 million and $9 billion this year.
Last year, the FAI forecast was between $8 billion and $8.5 billion but
actual investments were $8.8 billion.
The best in manufacturing were given due recognition last night with the
Manufacturing Excellence Award (Maxa).
In its second year, Maxa is the only national award benchmarked to global
manufacturing standards.
Tetra Pak Jurong, this year’s big winner, received top marks for
production and operational performance and employee training.
Other winners included Kenwood Electronics Technologies Singapore, 3M
Singapore and Systems on Silicon Manufacturing.
The Tiger Could Lose Its Roar
M’sia needs to work harder and faster if it does not want to be left
behind: Analyst
William Pesek
Those wondering where Malaysia is headed should keep an eye on Mr Tony
Fernandes.
Perhaps no one personifies the promise of Asia’s 10th-biggest economy
better than the 43-year-old entrepreneur. In 2001, he created a budget
airline, beating the odds in an industry dominated by government-linked
companies. AirAsia has been turning heads ever since.
Airline magnate Aristotle Onassis once said the key to succeeding in
business is knowing something others don’t. Mr Fernandes knew that not
only were Asians ready for no-frills carriers, but so were investors.
Mr Fernandes is often called South-east Asia’s answer to Mr Richard
Branson. It seems highly appropriate, then, that the two men teamed to
launch AirAsia X, a long-haul budget carrier that made its maiden flight
this month. Mr Branson’s Virgin Group is among its key backers.
For all his success, Mr Fernandes is a microcosm of why Malaysia’s economy
isn’t on the upward trajectory it could be.
Politicians’ efforts over the years to protect the turf of Malaysia
Airlines (MAS) backfired, leaving Kuala Lumpur lagging behind in the race
for Asia’s travel hub. Malaysia has tied one hand behind its back to help
national champions at the expense of the bigger picture.
“I’m asking this for national interest, not MAS’ interest or that of
anything else,” said Mr Fernandes of his battle to fly from Kuala Lumpur
to Singapore. “The consumers have suffered enough.”
Politicians continue to dither over another national champion:
State-controlled carmaker Proton Holdings. While talks on an alliance with
Volkswagen AG are progressing, the saga is a reminder that Malaysia’s
leaders are wasting time the nation doesn’t have.
In Proton’s case, the exercise is about finding a partner to help revive
sales and return the 24-year-old company to profit. Yet this, like Mr
Fernandes’ fight to expand his innovative airline, is emblematic of how
politicians often don’t grasp that Malaysia’s place in Asia is rather
tenuous.
Malaysia is a remarkable place with incredible potential. Its economy has
achieved great things in the 50 years since independence from Britain.
Once a tropical backwater, Kuala Lumpur is now a modern, skyscraper-filled
city home to the world’s second-tallest buildings, the twin Petronas
Towers.
Yet, the next 50 years will arguably be harder than the last. It wasn’t
one of the original Asian tigers, but Malaysia became one over the years.
However, “the world is moving ahead at a rapid pace and it won’t wait for
Malaysia”, said Mr Razlan Mohamed, chief executive of Malaysian Rating
Corp. The nation “needs to work harder and work faster”.
Ms Chrisanne Chin from MIMS Business School, Malaysian Institute of
Management and INTI University College, puts it this way: “It’s not so
much what Malaysia is lacking, but that China, India, Vietnam and even
Thailand and Indonesia have improved so much they are capable of
leapfrogging Malaysia in another five years because of specific
comparative advantages, from low costs to human capital to technology.”
Human capital is a particular concern. The government needs to do more to
train the leaders of tomorrow and import the talent that companies need to
thrive. It also has to win more of the foreign direct investment flowing
elsewhere in Asia.
There is much backslapping about how the US$147-billion ($213-billion)
economy may expand 6 per cent this year and 6.5 per cent next year. The
real picture can be found in the World Economic Forum’s latest
competitiveness survey, in which Malaysia slipped two spots to 21st place.
A huge obstacle for Malaysia is something that can barely be discussed: A
37-year-old affirmative-action programme favouring the predominant Malay
community.
It alienates non-Malays, limits foreign investment, stifles competition
and keeps the economy from moving toward a meritocracy. Yet, it is a
third-rail issue. Most Malaysians won’t even discuss it without first
looking around to see who is listening.
A sense of political drift doesn’t help. Four years in office, Prime
Minister Abdullah Ahmad Badawi has spent more time trying to solidify the
influence of his political party – the United Malays National
Organisation – than bringing Malaysia’s economy to the next level.
For a glimpse of the future, one could do worse than ask Mr Ramon
Navaratnam, president of anti-corruption group Transparency International
Malaysia and author of the book, Where to, Malaysia?, who has this to say:
“The future is bright, but only if we are honest with ourselves that we
have a lot of difficult work to do … Otherwise, we will see the rest of
Asia pulling ahead and Malaysia walking in place.”
William Pesek is a Bloomberg News columnist. The opinions expressed are
his own.
Businessbriefs
hyflux doubles q3 profit
Water-treatment firm Hyflux’s third-quarter net profit climbed to $4.2
million from $1.9 million a year earlier, while revenue rose to $51.9
million from $29.4 million. Hyflux’s China operations contributed about
68 per cent to its revenue while sales in the Middle East and North Africa
accounted for 27 per cent.
Noble group triples Q3 profit
Noble Group’s net profit nearly tripled to $60.6 million in the third
quarter from $23.5 million a year earlier because of rising demand for
commodities. A recent expansion in its operations – to take advantage of
low production costs in source markets – and its shipping fleet also
helped its bottom line. Turnover of the energy segment, Noble’s largest
business, rose to $2.2 billion from $1.8 billion on higher returns from
clean fuels, coal, coke and carbon credits activities. – AGENCIES
Red Bee Media Opens In S’pore
Red Bee Media, an award-winning multimedia and channel management firm,
opened its Singapore office last Tuesday as part of its global expansion.
It joins its network of global offices in London, Paris, Beijing and
Sydney.
Red Bee Media, with its 40 years of expertise in digital media, works for
clients like the Discovery Channel, ESPN, Star and Virgin Media. It is a
key player in the European video on demand market, helping its clients to
distribute and promote multimedia content through a variety of platforms,
including Web-based and mobile media.
The Singapore office will offer interactive design, media management,
branding and editorial services to media players in Singapore and
throughout the region.
Mr Petri Nikula, Red Bee Media’s vice-president of business development,
will head the office in Singapore.
- Joseph Yadao
Sleek, Friendly And … Seductive
Joseph Yadao
joseph.yadao@mediacorp.com.sg
Bigger and clearer – that seems to be the sales pitch for most television
sets these days. But Philips is bringing another element into its
marketing drive.
The Dutch consumer products manufacturer enthralls its target audience
with the Seduction by Light campaign for its Aurea line of televisions.
This campaign was developed to convey the emotions aroused by Aurea.
Philips roped in film director Wong Kar Wai, fashion photographer Vincent
Peters, fashion designer Alber Elbaz from the House of Lanvin and
jewellery designer Lorenz Baumer to generate the seduction of light-
inspired creatives.
Mr Wong, who won international acclaim when he garnered the Best Director
award in the 1997 Cannes Film Festival, created There Is Only One Sun, a
short film that had its exclusive premiere in Singapore at the Aurea
launch.
“He is a renowned master in blending light and colours to create a
seductive atmosphere in his movies and Philips feels that he is the
perfect person to create a movie which highlights all of the Aurea’s
features,” said Philips Electronics Singapore general manager Milton Tan.
For Aurea’s print campaign, Mr Peters was the man for the job. Having
worked with Vogue magazine and several fashion houses, he brought the
campaign images to life with his inimitable style of light manipulation.
“The light itself is what creates emotional access to what you see. The
light is always there, but no one ever thinks about it,” he said.
The Seduction by Light campaign is Philips’ first foray into the luxury
lifestyle space and is a world away from its usual brand positioning as a
leader in technology. With its alluring appeal, Aurea is positioned to
appeal as much to women as to men.
“Women are getting more tech-savvy today and are constantly seeking
technology that enhances their current lifestyle,” said Mr Tan. “More
women today are willing to explore technology and want it to be sleek,
feminine, user friendly and trendy.”



