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 SGX Counters, Discussion on Counters in the SGX

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TOS
post May 20 2021, 06:07 PM

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Shangri-La Dialogue cancelled also.

https://www.businesstimes.com.sg/government...logue-cancelled
TSHansel
post May 21 2021, 02:29 AM

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Bloomberg Event still on-target in November,...
TOS
post May 21 2021, 05:57 PM

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QUOTE(Hansel @ May 21 2021, 02:29 AM)
Bloomberg Event still on-target in November,...
*
What sort of event? Not aware of such an event called "Bloomberg Event".
TSHansel
post May 21 2021, 07:12 PM

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Can't find the link now,... perhaps if you can Google....

There is an event in November organized by Bloomberg.

E Musk could be attending too if I remembered correctly.
TOS
post May 21 2021, 08:07 PM

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QUOTE(Hansel @ May 21 2021, 07:12 PM)
Can't find the link now,... perhaps if you can Google....

There is an event in November organized by Bloomberg.

E Musk could be attending too if I remembered correctly.
*
You mean this: https://www.channelnewsasia.com/news/singap...eaders-14753216

New Economy Forum?

Let's hope that one can pull through.
TOS
post May 23 2021, 05:43 PM

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https://www.channelnewsasia.com/news/busine...profit-14856208
TOS
post May 27 2021, 07:52 AM

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Singtel: https://links.sgx.com/1.0.0/corporate-annou...35c0fab0c457ff2

SATS results will be announced post-trading today, webcast available for public (need registration though).
TOS
post May 27 2021, 02:38 PM

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Views on SG's Quarterly Reporting Rules.

https://www.businesstimes.com.sg/companies-...s-new-quarterly

QUOTE
Companies & Markets
HOCK LOCK SIEW; SGX cannot rely on the goodwill of some companies to make its new quarterly reporting regime a success
Michelle Quah
27 May 2021
Business Times Singapore
STBT
English
© 2021 Singapore Press Holdings Limited
THE success of Singapore's risk-based quarterly reporting (QR) regime, launched 15 months ago, appears to be predicated on one thing, which just happens to be outside the control of regulators: the voluntary efforts of companies, that have not been directed to do so, to continue issuing quarterly financial reports and /or business updates.

It begs the question of just how practicable this new system will be, particularly over the longer term.

The current regime is a marked departure from Singapore's previous mandatory QR regime, which had been in place since 2003. In explaining the change, Singapore Exchange Regulation (SGX RegCo) said the new approach would focus on high-risk companies, thereby relieving the reporting burden on others and giving them more latitude to consider longer-term strategic matters.

Under this risk-based approach, which took effect on Feb 7, 2020, the issuers that would be required to report their numbers quarterly would be those: that have a modified audit opinion on their latest financials; whose auditors have highlighted a material uncertainty relating to going concern based on their latest financials; or whom SGX has regulatory concerns about.

The list of companies required to do so is maintained and regularly updated on SGX's website, and covers about 100 companies.

When asked if the new regime has achieved its purpose, SGX RegCo said "it is still early days", but that it has "seen some positive emerging trends" - among them: a considerable proportion of issuers voluntarily producing business updates or financial statements; consistent information, from one period to the next, from issuers that have produced more than one voluntary update or financial statement; and voluntary business updates that generally contain operating review and business outlooks based on what issuers think might be useful for investors.

Of the analysts and users of financial statements that The Business Times approached for their views on the workings of this new regime, a handful had a positive response.

CGS-CIMB research head Lim Siew Khee told us: "Even though there is no detailed quarterly reporting, a lot of companies have opted for voluntary business updates. So that has been good for the buy/sell side to get updates."

Active investor Ang Hao Yao, who has spoken out strongly against the removal of mandatory QR in the past, said there has generally been less updated financial information to base his investment decisions on, but that he is "heartened to note that there are companies who make voluntary quarterly business updates" and that he hopes more companies would do likewise.

Investor rights body, the Securities Investors Association (Singapore) or SIAS, said it supports the new regime for its balanced approach, but that "this model will work so long as companies continue to provide timely disclosures of material information".

The consistent theme? The positive aspects of this new regime can be said to be due to the voluntary efforts of certain companies, whose goodwill - it would seem - is going to play a significant role in determining if this risk-based approach works for the Singapore market.

This is hardly the foundation upon which one wants to base the successful operation of one's new reporting set-up.

For one, while such voluntary disclosures are a sign of a good corporate culture within Singapore, arguably the result of years of effort by various stakeholders including the regulators, these good examples are the exception, rather than the norm.

Corporate governance advocate Mak Yuen Teen, an associate professor of accounting at the NUS Business School, compiled a list of some 40 companies, with a primary listing in Singapore, that have not been directed but are voluntarily releasing quarterly financial statements.

He identified the issuers that continued to issue first- and third-quarter results between Feb 7, 2020, and now. He omitted those that gave business updates instead of a full quarterly financial statement, as well as secondary listings that are required to file quarterly reports by their home market.

The small handful of issuers that continue to issue quarterly reports, as well as those who issue frequent and meaningful business updates, should definitely be lauded for their efforts. But, isn't the fact that they remain in the minority an issue?

One could argue that the choice to move to a risk-based approach to QR is a recognition that not every company needs to issue a quarterly report. And yet, SGX RegCo has pointed to the various instances of voluntary reports and updates as a "positive trend" - an indication that they would like to see more, which is also the sentiment shared by users of financial statements interviewed by BT.

It's clear that these various parties appreciate such reports from all companies and not just those deemed high-risk, which is what the current regime is solely catered for.

The availability of frequent and meaningful financial information from all segments of the market is especially helpful to retail investors, who often do not have access to companies' management teams the way institutional investors do, or who may not know how to band together or approach SIAS to organise such efforts for them.

David Gerald, president and CEO of SIAS, told BT: "SIAS hopes that companies can continue to disclose any material information that would affect companies' financial performance, especially adverse information. Investors do not like surprises and the market price will suffer if the companies are not managing or engaging their investors and their stakeholders properly.

"Companies should continue to provide reviews of their business and financial performance, including the impact from Covid-19. Financial disclosures on their sales, profitability and cash flows would facilitate investors' understanding of the companies' business performance. SIAS welcomes transparency in disclosures so that investors can make informed investment decisions," he added.

It can then be argued that it would hardly be desirable to then have to depend on companies (and such a small number, at that) to voluntarily issue such frequent updates, bearing in mind that such disclosures would then vary across companies and across time. Already, the lack of consistency in information flow, with some companies choosing to release such data and others choosing not to, impedes the making of informed investment decisions.

So, if users of financial information and regulators alike find that such voluntary disclosures are going some way in making for a more well-informed and attractive market, SGX RegCo must do more than simply rely on the goodwill of some companies to make up for the shortfall in others. It needs to explore ways in which it can ensure the consistent and frequent release of good-quality information, without returning to a mandatory reporting set-up if that isn't the desired final result.

Singapore Press Holdings Limited


https://www.businesstimes.com.sg/companies-...ng-regime-works

QUOTE
Companies & Markets
NEWS ANALYSIS; Views mixed on whether new quarterly reporting regime works
Michelle Quah
27 May 2021
Business Times Singapore
© 2021 Singapore Press Holdings Limited
Singapore

IT'S been 15 months since Singapore decided to scrap mandatory quarterly reporting (QR) for its listed companies, and the market remains mixed in its perception of whether that move was the right one.

The latest criticism against the decision was heard just last week, when the Asian Corporate Governance Association (ACGA) said in its widely followed CG Watch 2020 that "Singapore has gone backwards" in its corporate governance journey by diluting its QR rules.

It said that while many issuers may have cheered the removal of this mandatory reporting requirement, the ACGA feels the move is a "mistake" and that Singapore's regulators use the new tool "as a form of punishment rather than a more positive platform for keeping investors, small as well as large, informed about company performance".

A number of analysts, investors and market observers that The Business Times (BT) spoke to recently shared similarly critical views, though some said the change has not adversely affected them.

At the time the decision was announced, Singapore Exchange Regulation (SGX RegCo) chief Tan Boon Gin explained that a shift to a risk-based QR regime would give issuers more latitude to consider longer-term strategic matters.

Under the risk-based approach, which took effect on Feb 7, 2020, issuers only need to report their numbers quarterly if they have a modified audit opinion on their latest financials, if their auditors have highlighted a material uncertainty relating to going concern based on their latest financials, or if SGX has regulatory concerns about them. The list of companies required to do so is maintained and regularly updated on SGX's website, and covers about 100 companies.

BT spoke to SGX RegCo last week about how it felt the new regime had performed in the last 15 months and if it had served the purposes it intended. The regulator said that it has been "closely observing developments and, while it is still early days, we have seen some positive emerging trends".

For example, it has noted that many companies "have provided detailed and forward-looking disclosures on the impact of Covid-19 on their businesses".

It has also observed that: a considerable proportion of issuers are voluntarily producing business updates or financial statements; of the issuers that have produced more than one voluntary update or financial statement, most have provided consistent information from one period to the next; the voluntary business updates generally contain operating reviews and business outlooks based on what issuers think might be useful for investors; and that larger issuers tend to produce business updates with more information.

Mr Tan said the new regime, via its targeted approach, has allowed the regulator to "strike a balance between allowing companies the space to focus on responding to Covid-19 and ensuring that they make timely material disclosures".

"Given the unique situation, we issued multiple rounds of guidance on disclosures that are of greatest concern to investors and directly engaged companies that are of most concern to us," he said.

But, there were analysts, market observers and investors whose views were comparatively less upbeat.

OCBC Credit Research analyst Ezien Hoo, who had stressed the importance of not just the frequency but also the quality of reports in BT's review of the new QR regime in July ("Voluntary quarterly reporting has reduced visibility on listed companies' outlooks", BT, July 1, 2020), told us last week that her views have not changed since then, "in that a higher level of frequency (of reporting) is still preferred".

She added, however, that a higher frequency of reporting per se would not necessarily resolve the lack of disclosure among the companies that already underperform on this front; while more frequent reporting does help in tracking changes, the quality of information is important in setting the right context for investors to make an informed view.

"Often we find that the companies with the best disclosures tend to also be those who take corporate governance more seriously and, as such, we continue to differentiate bond issuers by the level of their public disclosures both in breadth and quality," Ms Hoo added.

Corporate governance advocate Mak Yuen Teen, an associate professor of accounting at the NUS Business School, said: "When SGX implemented the new risk-based approach, they committed to strengthening the continuous disclosure regime with stricter rules on IPTs (interested person transactions), improving practices relating to valuations and audits, establishing a whistleblowing policy, and hard-coding the requirement for listed companies to have a whistleblowing policy. Has SGX kept its bargain? Yes, to some extent in most of these areas, except they haven't hard-coded the last one yet."

He also said that, while SGX has also become more active in querying companies - with the number of continuous disclosure queries going up to 771 in 2020, from 384 in 2019, and the number of trading queries increasing to 50, from 37 - there remain deficiencies in other aspects of continuous disclosures.

"I don't see continuous disclosure of material information on a timely basis as having improved, as there continues to be many examples of unusual price or volume movements before material announcements, and companies having disclosure lapses.

The quality of SGX queries have improved in some cases but they often do not get to the heart of the issue and responses to queries that do not fully address the concerns are not followed up with more substantive queries.

"There has been no discernible improvement in enforcement - if anything, over the years, it has gone backwards. Rules are one thing - without effective enforcement, a disclosure-based regime is doomed to fail and removing QR (except for 'high-risk' issuers) will aggravate the deficiencies in our disclosure-based regime," Prof Mak said.

Active investor Ang Hao Yao, who has spoken out strongly against the removal of mandatory QR in the past, said that he has found that "there has generally been less updated financial information to base my investment decisions on, since the dropping of the quarterly reporting requirement".

"However, I am heartened to note that there are companies which make voluntary quarterly business updates. I definitely view these companies favourably when investing and would encourage more companies to provide such voluntary updates as I believe the market will increasingly recognise their efforts," he added.

Like Mr Ang, CGS-CIMB research head Lim Siew Khee has also expressed a sanguine view of the workings of the new regime, again due mostly to the voluntary efforts of the companies that have made an effort to continue reporting frequently.

Ms Lim had said in a research report in July 2020, cited in BT's report at that time, that she felt the level of detail of business updates provided by the companies had affected the earnings read-through.

But when asked last week, she said: "Even though there is no detailed quarterly reporting, a lot of companies have opted for voluntary business updates. So that has been good for the buy/sell side to get updates. I think I won't prefer (having) more frequent reporting."

David Gerald, president and CEO of investor rights champion, the Securities Investors Association (Singapore), said SIAS supports the risk-based QR regime because "it is a balanced approach that enables companies to make timely disclosures as well as volunteer updates on their business performance", allowing them to stay nimble and focus on their businesses, while relieving them of the time and financial burdens of QR.

But, he added, "this model will work so long as companies continue to provide timely disclosures of material information".

"Investors do not like surprises and the market price will suffer if the companies are not managing or engaging their investors and their stakeholders properly. So, they should not hide any information and be transparent in terms of any adverse shocks to their performance. This will go a long way to building investors' confidence."

When asked how SIAS members have reacted to the change in QR regime, Mr Gerald said: "There were a few who preferred the old regime. However, the majority of the retail investors have been silent."

He added that he believes "there isn't a one-size-fits-all approach" for QR, that the larger capitalisation companies that have more resources would be better able to address stakeholders' concerns with their disclosures, and that "investors should continue to engage their respective investee companies if they feel that information is needed on specific areas or developments within the company".

Prof Mak added a note of concern about the criteria used by SGX RegCo to determine which companies would be required to do QR in this new regime: "Looking at the issuers that have dropped off the list of those required to do QR, I think it is far too easy for issuers to get themselves off the list just by having one unmodified opinion."

He said he is also concerned about possible pressure being exerted on auditors or auditors to help a client receive an unmodified opinion. "Acra (Accounting and Corporate Regulatory Authority) should probably pick those issuers that have managed to get a clean opinion after years of modified opinions - for their financial statements review and audit inspections - to make sure that there has been no compromise in financial reporting and audit in such cases," he added.

Mr Tan told BT that SGX RegCo will continue to query and guide issuers as they adapt to the new regime.

Singapore Press Holdings Limited

TOS
post May 27 2021, 05:57 PM

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SATS: https://links.sgx.com/1.0.0/corporate-annou...3668cf86d833238
TOS
post May 27 2021, 08:21 PM

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OCBC shareholders can make their CA choice in the scrip dividend scheme offered via their brokers from yesterday.

I logged into IBKR/TSG and noticed the CA election message. Just to remind others.

You can either elect to receive cash or reinvest the stock at 11.93 SGD per share.

This post has been edited by TOS: May 27 2021, 09:37 PM
abcn1n
post Jun 2 2021, 11:28 PM

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Anybody holding SIA (Singapore Airlines) shares? As I'm currently holding some shares, received offer to subscribe for rights issue at $1.

1) Does that mean I can buy the shares at $1. So for every 100 shares, pay $100?


2) Currently SIA shares are $4.59. This is a huge price difference of $3.59. If I don't subscribe for the rights issue, then will lose out a lot when the rights turned into shares. Wouldn't it make sense to oversubscribe as much as possible then?

Hmmm.. It seems that its not for shares but for MCB. Attached is an article explaining it. Guess I will pass it up.
https://financialhorse.com/sias-2021-rights...h-can-sia-burn/

This post has been edited by abcn1n: Jun 2 2021, 11:36 PM
nicemamak
post Jun 6 2021, 10:36 AM

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I am Malaysian working in Malaysia. I am thinking to invest in share/counter in SGX. I read the post and i already understand how to open bank account online (CIMB SG). So that I can transfer fund to CIMB SG. I am thinking to transfer fund from CIMB SG to recommended IB/brokerage firm to buy Sg share. Which is the most recommended IB/brokerage firm to recommend for buying SG share please?
nicemamak
post Jun 6 2021, 11:08 AM

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QUOTE(nicemamak @ Jun 6 2021, 10:36 AM)
I am Malaysian working in Malaysia. I am thinking to invest in share/counter in SGX. I read the post and i already understand how to open bank account online (CIMB SG). So that I can transfer fund to CIMB SG. I am thinking to transfer fund from CIMB SG to recommended IB/brokerage firm to buy Sg share. Which is the most recommended IB/brokerage firm to recommend for buying SG share please?
*
I got the answer already. Can trade via tiger brokers. Thank you
TOS
post Jun 6 2021, 11:12 AM

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QUOTE(nicemamak @ Jun 6 2021, 11:08 AM)
I got the answer already. Can trade via tiger brokers. Thank you
*
Other choices are Moomoo (Futu SG), IBKR/TSG, FSM SG, and Saxo Singapore as far as I know.
TOS
post Jun 6 2021, 11:14 AM

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QUOTE(abcn1n @ Jun 2 2021, 11:28 PM)
Anybody holding SIA (Singapore Airlines) shares? As I'm currently holding some shares, received offer to subscribe for rights issue at $1.

1) Does that mean I can buy the shares at $1. So for every 100 shares, pay $100?
2) Currently SIA shares are $4.59. This is a huge price difference of $3.59. If I don't subscribe for the rights issue, then will lose out a lot when  the rights turned into shares. Wouldn't it make sense to oversubscribe as much as possible then?

Hmmm.. It seems that its not for shares but for MCB. Attached is an article explaining it. Guess I will pass it up.
https://financialhorse.com/sias-2021-rights...h-can-sia-burn/
*
Looking at the step-up coupon rate, SIA thinks the pandemic will be over in 4 years time or so. It's unlikely SIA will want to pay Temasek and other shareholders 6% p.a. after 8 years. It's not immediately dilutive anyway. Why forgo it?
TOS
post Jun 7 2021, 11:41 AM

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Some BT articles:

https://www.businesstimes.com.sg/companies-...ted-meme-stocks

QUOTE
Companies & Markets
MARK TO MARKET; What can Singapore companies learn from the latest rally in US-listed meme stocks?
Ben Paul
7 June 2021
Business Times Singapore

© 2021 Singapore Press Holdings Limited

Cultivating a large following of small investors could significantly boost a company's market value

THOSE clueless retail investors who hang out on Reddit are at it again.

The condescending tone was unmistakable in financial news reports about the rollercoaster performance over the past week of US-listed meme stocks such as AMC Entertainment, Bed Bath & Beyond, BlackBerry and GameStop.

Some reports characterised what was happening as just another bout of excessive speculation fuelled by very loose liquidity in financial markets. Others noted that short sellers seemed more prepared than they were in January to cope with the sudden rally in these stocks.

For me, the most interesting take on the news was how some of these companies are embracing their meme status and engaging the self-styled "apes" on Reddit.

In particular, movie theatre chain AMC wasted no time last week in using the big run in its share price to raise fresh equity.

The stock, which started the week at US$26.12, ended the Wednesday session at US$62.55. The following day, June 3, AMC said it had completed the sale of 11.55 million new shares at an average price of US$50.85, to raise some US$587.4 million.

Only two days before that, on June 1, AMC announced it had raised US$230.5 million from Mudrick Capital by selling 8.5 million shares at US$27.12 each. Shares in AMC ended Friday at US$47.91, up more than 80 per cent for the week.

AMC has used its elevated share price over the last few months to repeatedly raise much-needed cash. With the 11.55 million shares sold on Thursday, the company has raised almost US$1.25 billion in Q2 2021 alone.

Meanwhile, AMC has also been reaching out to the more than three million retail investors who own some 80 per cent of its shares and encouraging them to become loyal customers as well as owners of the company.

This past week, the company unveiled an investor relations platform dubbed "AMC Investor Connect" through which it is promising to deliver shareholder-exclusive promotions, direct communications from AMC's CEO Adam Aron as well as information on the company and the wider movie industry.

"Many of our investors have demonstrated support and confidence in AMC. We intend to communicate often with these investors, and from time to time provide them with special benefits at our theatres. We start with a free large popcorn on us, when they attend their first movie at an AMC theatre this summer," said Mr Aron.

Mr Aron also sat down last week with Trey Collins, the host of the Trey's Trades channel on YouTube and an ardent fan of AMC.

In the widely watched interview, Mr Aron emphasised that he works for the shareholders of AMC. He explained that the share sales had enabled AMC to stave off bankruptcy, and put it in a position to pay down its liabilities and contemplate acquisitions. He also urged AMC's shareholders to support its proposal to increase its authorised share capital by 25 million shares, to enable the company to continue issuing new shares when needed.

'My first kiss'

Mr Aron's efforts to win over the Reddit investor community have not gone down well with everyone though.

Some news reports and commentaries last week make snarky references to AMC adding billions of dollars to its market value by offering retail investors free popcorn instead of real financial returns.

Some professional market watchers accused AMC of "preying" on retail investors to dig itself out of its financial hole.

In the face of Covid-19, AMC reported a loss of US$4.6 billion for 2020. Revenue was down more than 77 per cent to US$1.2 billion. AMC took impairment charges of more than US$2.5 billion during the year.

AMC reported a further loss of US$567.2 million for Q1 2021. It ended the quarter with negative shareholders' funds of US$2.3 billion.

Even before Covid-19 came along, AMC was struggling in the face of disruptive technological trends such as movie streaming services. It has actually reported losses in three out of the last five financial years.

So, why are retail investors flocking to AMC?

"They want to feel like they matter. They want to feel like these short sellers who have bet against this stock and bet against the retail investor for years and years, and decades and decades, were wrong this whole time," said Mr Collins, winding up his interview with Mr Aron last week.

He went on to suggest that AMC is an underdog of sorts, to which retail investors could relate at an emotional level. "I have a million memories, great memories. I had my first kiss ... at an AMC movie theatre," Mr Collins said.

Lessons for Singapore

Shares in AMC are probably wildly overvalued right now. Yet, given the willingness of retail investors to support its lofty share price, the company can hardly be accused of exploiting them. If anything, AMC's effort to engage its retail shareholder base might hold lessons for Singapore's corporate sector.

Unlike AMC, many of Singapore's leading companies have a controlling shareholder on which they can rely in a really desperate situation. Indeed, some of the most significant corporate moves since the onset of Covid-19 were seemingly hatched with little thought for minority investors.

For instance, most of SIA's minority investors baulked at its mandatory convertible bond issue last year. This resulted in Temasek Holdings taking up almost all of the issue. SIA is now in the process of issuing a second tranche of MCBs.

As the experience of the meme stocks has shown, however, having a large following of small investors can have a positive impact on a company's market valuation. Singapore companies should perhaps take a leaf from AMC's playbook and develop retail investor communication initiatives that are more targeted.

Also, consumer facing companies, such as Singtel, should not underestimate the benefit of cultivating owners of the company as customers and vice versa.

Over the past 10 years, Singtel has delivered a total return of 25 per cent (dividends reinvested basis). All of that positive return came from dividends (its share price actually declined some 24.9 per cent during the period).

However, Singtel has struggled to sustain its dividend payouts recently. For FY2021 ended March 31, it paid a total of just S$0.075 per share. This was lower than FY2020's S$0.1225 per share, and even lower than FY2019's S$0.175 per share.

As at June 2, 2020, Singtel had nearly 331,000 shareholders, with more than 71 per cent of them holding only between 100 and 1,000 shares.

Offering every individual shareholder a voucher exchangeable for some Singtel product or service with a face value of, say, S$100 would compensate for the reduced dividend income that the majority of the group's investors have suffered.

That probably will not be enough to turn Singtel into a hot meme stock like AMC or GameStop, but it might go some way in renewing enthusiasm for the company among many small investors.

AMC has used its elevated share price over the last few months to repeatedly raise much-needed cash. With the 11.55 million shares sold on Thursday, the company has raised almost US$1.25 billion in Q2 2021 alone.

Singapore Press Holdings Limited


https://www.businesstimes.com.sg/government...ingapore-offers

QUOTE
Government & Economy

INTERNATIONAL TAX REFORM; G-7's global minimum tax deal may nullify any tax advantage Singapore offers
Angela Tan
7 June 2021
Business Times Singapore

© 2021 Singapore Press Holdings Limited

Countries with large domestic markets may benefit as MNCs will have to pay larger proportion of their taxes to countries where sales are generated

Singapore

THE historic tax agreement by the Group of Seven (G-7) could nullify any tax advantage Singapore offers to multinational corporations (MNCs), leaving a question mark over how this will affect their investment decisions to continue to operate here, tax experts say.

But countries with large domestic markets such as Indonesia may benefit from the global tax deal given that MNCs will have to pay a larger proportion of their taxes to countries where sales are generated, says Chua Hak Bin, senior economist at Maybank Kim Eng.

Over the weekend, finance leaders from the G-7 countries agreed to back a new global minimum tax rate of at least 15 per cent that companies would have to pay regardless of where they locate their headquarters. The agreement would also impose an additional tax on some of the largest MNCs, potentially forcing technology giants such as Amazon, Facebook and Google, as well as other big global businesses, to pay taxes to countries based on where their goods or services are sold, regardless of whether they have a physical presence in that jurisdiction.

Ajay Kumar Sanganeria, KPMG Singapore's partner and head of tax, says the G-7 agreement mostly benefits larger countries with high corporate tax rates.

"Developing economies may find their policy options to attract investments much more limited as they will be unable to offer tax incentives," he says.

While Singapore's corporate tax rate is 17 per cent, which is slightly higher than the 15 per cent global minimum rate, the effective tax rates of many businesses here may fall below 15 per cent due to tax incentives and factors such as not taxing unremitted overseas income and capital gains.

Many MNCS, which are based here and serve the region, book their revenues in their Singapore office in part because of the lower tax rates. These MNCs are incentivised and taxed at rates that are possibly as low as 10 per cent, Mr Chua says.

"It is unclear when the rules will be implemented but businesses in Singapore would need to consider the impending impact of these announcements starting now," Mr Sanganeria adds.

Chester Wee, EY Asean international corporate tax advisory leader, says: "Even if Singapore were to grant an incentive with preferential tax rates of 0 per cent, 5 per cent or 10 per cent, the tax differential will be picked up for tax collection elsewhere, nullifying any tax advantage offered.

"Multinational enterprises (MNEs) that choose to locate in Singapore for commercial reasons will continue to stay, but subject to the detailed regulations; the advantage of the tax incentives that Singapore offers to large MNEs will likely be eroded under the new proposal," Mr Wee says.

The question then is how this would affect the overall investment decisions of the large MNEs to continue to operate in Singapore.

"Understandably, the impact will vary from MNE to MNE," he adds.

Another proposal which involves the reallocation of at least 20 per cent of large MNEs' profits exceeding 10 per cent margin for taxation in market jurisdictions could also have implications.

Mr Wee says: "MNEs have used Singapore as a hub for distributing their products and services into Asia-Pacific. Part of large MNEs' profits from Singapore may be reallocated to market jurisdictions, meaning a possible erosion of tax base for Singapore."

US Treasury Secretary Janet Yellen, who attended the London meetings, said the agreement "provides tremendous momentum" towards reaching a global deal that "would end the race-to-the-bottom in corporate taxation".

Britain's Treasury chief Rishi Sunak, the meeting's host, said the deal would "reform the global tax system to make it fit for the global digital age and crucially to make sure that it's fair, so that the right companies pay the right tax in the right places".

The endorsement from the G-7 could help build momentum for a deal in wider talks among more than 140 countries being held in Paris as well as a Group of 20 (G-20) finance ministers meeting in Venice in July.

However, tax experts say there is still much work to be done, and garnering wider support may be a challenge given that countries are at different stages of economic development and face varied challenges.

Dean Rolfe, KPMG's partner and head of international tax for Asia-Pacific, says the G-7 represents a small fraction of the 139 countries under the Organisation for Economic Co-operation and Development's (OECD) Inclusive Framework. It remains to be seen if the other members are aligned with what has been agreed on.

"A global agreement depends to a large extent on whether developing economies stand to gain anything under these rules. Given there is a lack of clarity on digital taxation in recent months, as well as increasing uncertainty on who is within the scope of these rules, there is still much work to be done to achieve a global consensus," Mr Rolfe says.

The G-7 communique provides for the "removal of all digital services taxes, and other relevant similar measures, on all companies".

"That is to say, the G-7 is suggesting that while these new rules only apply to the largest global companies, unilateral measures to tax the digital economy must be removed in all countries regardless of whom these rules are targeting," Mr Rolfe says. "This of course pushes in the opposite direction of the demands from a number of key developing countries - they are arguing that the roll back of unilateral tax measures that target the digital economy should only be done for taxpayers falling within the scope of these new global tax rules. In other words, many economies are currently arguing for a limited roll back only. It will be interesting to see how the 139 Inclusive Framework members and the G-20 negotiations land on this issue."

Crucial details are still missing. These include the size of the MNCs that will be affected, how to share the spoils, and the timing for rolling out these rules.

A key and critical unknown at this time is which sectors will be excluded from these rules. There has been much speculation on whether financial services, real estate, international transportation and infrastructure will be excluded. Extractive industries may also be excluded.

"That said, some member countries of the Inclusive Framework would prefer no exclusions. We will await the details of who is within and outside the scope of these proposed rules," Mr Rolfe says.

Singapore Press Holdings Limited

TOS
post Jun 7 2021, 09:06 PM

Look at all my stars!!
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I just had a discussion with my SG friend about scrip dividend "arbitrage" by earning "free" 0.5 shares due to rounding up of scrip shares.

This applies to the S-banks in particular. To illustrate my case, I have 102 OCBC shares. All applicable for scrip dividend. If I opt for 100% scrip dividend that means I will get 102*0.159/11.93 = 1.36 shares, with the fractional part disregarded since 0.36 < 0.5. So in the end I get 1 scrip stock of OCBC the remaining fractional part will be paid in cash to my IBKR/TSG account.

Now if I choose to have only 38 shares (out of the original 102 shares) to be reinvested in scrip dividend, that means 38*0.159/11.93 = 0.51 (which is > 0.5) and it will be rounded up to 1 shares. And the rest (102 - 38 = 64 shares) will be paid in cash to my brokerage account.

So I gain an extra 0.5 shares free (to be exact 1 - 0.51 = 0.49) shares free, which worth around 5-6 SGD.

Maybe some veteran investors already know this. Thought I would share here for the knowledge of newbies.

(Lesson: Next time don't simply put 100% of shares as scrip dividend, tweak the ratio of dividend to be reinvested to the dividend paid out in cash a bit to earn a few SGD...)

This post has been edited by TOS: Jun 7 2021, 09:13 PM
TOS
post Jun 8 2021, 08:26 PM

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SATS acquisition: https://links.sgx.com/1.0.0/corporate-annou...08a01d68001e035
no6
post Jun 10 2021, 05:04 PM

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QUOTE(TOS @ Jun 6 2021, 11:12 AM)
Other choices are Moomoo (Futu SG), IBKR/TSG, FSM SG, and Saxo Singapore as far as I know.
*
just wandering which is the best broker for sg reit in terms of fees&charges?
TOS
post Jun 10 2021, 08:16 PM

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QUOTE(no6 @ Jun 10 2021, 05:04 PM)
just wandering which is the best broker for sg reit in terms of fees&charges?
*
I think Moomoo and tiger are cheap enough. Pure IBKR comes next at 2.5 SGD min, 0.08% per order, and lastly TSG 3.75 SGD per order. Beware of platform fee for Moomoo and Tiger though. I still don't know how it is incurred. But if they are charged the order as to which is the cheapest may change.

If you want to trade other exchanges' products make sure you study their charges as well. Pure IBKR has zero commissions for US products compared with say, Moomoo.

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