Quoteworthy: "Evolve or die. That’s what’s happening here." — Bridgewater Associates CEO Nir Bar Dea on his new reorganisation strategy to boost returns, increase profits.
Wee Cho Yaw relinquishes board roles
Legendary banker Wee Cho Yaw, 94, is retiring as chairman of two listed companies his family controls: Singapore Land Group and United Overseas Insurance (UOI). However, as of March 1, there is no word from two other companies he now chairs if he would be stepping down as well: UOL Group and Haw Par Corp.
Wee has served on UOI’s board since 1971; UOL’s board since 1973; Haw Par’s board since 1975 and Singapore Land’s board in 1992.
In a stock market filing on Feb 24, Singapore Land Group says that Wee will be appointed as chairman emeritus and honorary adviser. He holds the same title at his family’s flagship entity: United Overseas Bank.
Wee’s son, Wee Ee Lim, who is now a non-executive and non-independent director, will become its next chairman. Ee Lim jointed Singapore Land Group’s board in May 1999. He is also the president and CEO of Haw Par Corp, a role he has held since October 2003.
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In its separate announcement on Feb 28, UOI says Wee will retire by rotation and not see re-election at the upcoming AGM to be held on April 14. Similarly, Wee will be reappointed chairman emeritus of the insurance firm.
Wee Ee Cheong, better known as the deputy chairman and CEO of UOB, will take over from his father as the chairman at UOI. At the same time, UOI’s first managing director, Hwang Soo Jin, will also be stepping down as a director at the coming AGM on April 14. — Felicia Tan
China’s factory activity tops decade high, boosting recovery
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China’s manufacturing activity recorded its highest monthly improvement in more than a decade in February as factories reopened after the Lunar New Year holiday, giving more support to an economic recovery that has so far relied heavily on retail and services.
The manufacturing purchasing managers’ index rose to 52.6 last month from 50.1 in January, the National Bureau of Statistics (NBS) said on March 1, beating the median estimate of 50.6 in a Bloomberg survey of economists. It was the highest reading since April 2012.
The non-manufacturing gauge — which measures activity in both the services and construction sectors — increased to 56.3 from 54.4, better than a projected improvement to 54.9.
A reading above 50 represents expansion from the previous month, while anything below indicates contraction.
February data offer the most complete picture yet for how China’s economic recovery is shaping up, as many people returned to work following the holiday break and as a wave of Covid infections subsided. The government’s proclamation that Covid is “basically over” has spurred more travel and spending as movement curbs and other restrictions were removed.
China’s economy continued to recover in February, thanks to an acceleration of activity and the resumption of production as the impact of a Covid wave subsided, said Zhao Qinghe, senior statistician at the NBS. Measures to stabilise growth in the country have also started to take effect, Zhao added.
The CSI 300, China’s benchmark stock index, rose 0.3% following the PMI data release, erasing earlier losses and outperforming a broader Asian equities gauge. The offshore yuan also improved, gaining much as 0.2%. The onshore yuan steadied. The 10-year government bond yield held firm at 2.91%.
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Private figures already showed some signs of recovery as road congestion in major cities increased, subway ridership returned to pre-pandemic levels and restaurant and mall spending rose.
The recovery so far has been uneven, though. While the services sector saw a big jump in activity in January, spending on big-ticket items like homes and cars has remained weak. Factory output has also been slow, as Lunar New Year holiday closures muddled the data. Slowing exports and a muted recovery for domestic industrial demand have also weighed on manufacturing activity.
Top leaders have pledged to prioritise growth this year, placing an emphasis on the role that domestic demand will play in driving the recovery. The People’s Bank of China said in its latest monetary report that it would provide “sustainable” support for the real economy and refrain from using “floodstyle” stimulus.
Market watchers should be able to get more clues on China’s economic blueprint on March 5 when policymakers gather for the annual National People’s Congress. It is at that event where Premier Li Keqiang will lay out his last government work report detailing the main economic goals for the year. — Bloomberg
Business Receipts Index up 10.9% y-o-y in 4Q2022
The overall Business Receipts Index grew by 10.9% y-o-y in 4Q2022 as all industries registered higher business receipts, according to the Department of Statistics Singapore (SingStat).
The index, which measures the short-term changes in the amount of business or operating revenue every quarter, excludes the wholesale trade, retail trade, accommodation and food services industries. The index is compiled at current prices.
On a q-o-q, non-seasonally adjusted basis, overall business receipts were also up by 2.9%. During the year, recreation and personal services led the growth with a 36.8% increase y-o-y. This was mainly due to the higher earnings of firms in the gaming and attractions segment amid the relaxation of Covid-19 measures. During the 4Q2021, there were stricter Covid-19 measures where operating capacity and group sizes for social gatherings were restricted.
At the same time, the information and communications industry saw the second-highest y-o-y growth at 14.9%. This was due mainly to software developers and IT consultancy firms, which saw increased business activities.
The real estate industry also recorded an increase of 12.6% in revenue, driven mainly by firms letting out real estate properties. On a q-o-q basis, the professional services industry led the growth with a 13.3% increase as firms engaged in legal, head office, and business and management consultancy activities reported increased revenue.
The information and communications industry came in second on a q-o-q basis with a 7.4% increase. This time, firms engaged in information service activities such as data analytics processing and web hosting services were among those which saw an increase in turnover.
The transportation and storage industry was the only one to see a q-o-q decline at 8.5% as shipping lines and freight forwarders saw lower revenue during the 4Q2022. — Felicia Tan
