Are there any good dividend ETF in Singapore?

Let the figures speak for themselves.

CIMB APAC Div 100     [Annually ~3.7% dividend]
IS ASIA BND 100      [Annually ~4.8% dividend]
IS ASIA HYG100      [Annually ~6% dividend]
X@ db x-trackers STOXX GLOBAL SELECT DIVIDEND 100 ETF [Annually ~3-4% dividend]

CIMB FTSE ASEAN 40     [Annually ~2.8% dividend]
IS LC 1-3Y 100      [Annually ~2% dividend]
IS LC BND 100      [Annually ~3.3% dividend]
IS MSCI SIN 100      [Annually ~3% dividend]
IS S&P500 10      [Annually ~1.7% dividend]

X@ db x-trackers - CSI300 INDEX ETF    [Annually ~1% dividend]
X@ db x-trackers - asia ex japan ETF   [Annually ~0% dividend]
X@ LYXOR ASIA 10     [Annually ~1% dividend]
X@ Lyxor Asia Real Estate    [Annually ~3% dividend]
X@ Lyxor ETF China H 10     [Annually. Inconsistent dividend yield]
X@ Lyxor ETF Dow Jones Industrial Average   [Annually ~1.5% dividend]
X@ Lyxor ETF Eastern Europe     [Annually ~2.3% dividend]
X@ Lyxor ETF MSCI Emerging Markets   [Inconsistent dividend yield]
X@ Lyxor ETF MSCI Europe    [Annually ~2.5% dividend]
X@ Lyxor ETF MSCI Malaysia    [Annually ~1% dividend]
X@ Lyxor ETF MSCI World     [Annually ~1.2% dividend]
X@ Lyxor ETF NASDAQ     [Annually ~0% dividend]
X@ Lyxor ETF Russia     [Inconsistent dividend yield]
X@ Lyxor ETF HSI      [Annually ~2.7% dividend]
X@ Lyxor ETF Japan Topix    [Annually ~1% dividend]
X@ Lyxor ETF MSCI Taiwan    [Inconsistent dividend yield]
X@ Lyxor ETF MSCI EM Latin America   [Annually ~1.3% dividend]

X@ : Synthetic Replicated ETFs and SIP

PS: please validate yourself as data may not be accurate and may contains certain assumptions and estimations.

Details of Singapore Government Bonds

How to find out about the details of the Singapore Government Bonds:

1. Go to Singapore Government Securities site: http://www.sgs.gov.sg/
2. Under the SGS website, go to Statistics and then Daily SGS Prices.
3. The codes for the 6-month, 1yr, 2yr, 5yr, 10yr, 15yr, 20yr and 30yr bonds will be listed in a table
4. Go to SGX site: http://www.sgx.com
5. Under the SGX website, go to Market Information and then Fixed Income
6. Select SGS Bonds from the pull down 

MDR, Rowsley

MDR: http://www.reuters.com/finance/stocks/financialHighlights?symbol=MDRT.SI

P/E Ratio (TTM) 15.12
Price to Sales (TTM) 0.32
Price to Tangible Book (MRQ) 2.61
Price to Cash Flow (TTM) 14.83
Quick Ratio (MRQ) 1.54
Current Ratio (MRQ) 2.32
Interest Coverage (TTM)  120.56
Almost no debt
Gross Margin (TTM) 9.89%
Net Profit Margin (TTM) 1.83%

Not a value play by the above ratios. However, we should look at MDR as a Myanmar telco play as it looks likely (not 100% certainty though) that MDR will become 1 of 4 telco in future. Myanmar has a population of 48m.


Rowsley: http://www.reuters.com/finance/stocks/financialHighlights?symbol=ROWS.SI

It is an investment holding company held by Billionaire Peter Lim. Find out more about them at the company website: http://www.rowsley.com/about-us/

From publicly available news, it is entering a joint venture with another company that is 30% owned by the Johor Royalty and is purchasing a piece of land in Iskandar for development. It will also be acquiring a property developer firm for this purpose through the issue of shares at $0.15 each.

NAV of each share is reported as $0.0372 in the 2012 annual report.

Again not a value play, but the propects of investing in Iskandar is interesting and the potential partnership looks strong. However, the investment capital required for the development is going to be huge and thus there's a good chance that Rowsley will raise capital in the future. Thus will need to have spare cash to pump in if necessary.

Koon Holdings rights issue

Koon Holdings Limited is giving a 3 rights for every 5 shares at S$0.19 for each rights.

Basic info
==========
1) Current ordinary shares (OS): 164,208,000
2) $16,324,000 cash and fixed deposits. This works out to $0.099 cash per OS
3) $52,842,000 total equity. This works out to NAV of $0.32
4) Current share price: $0.205
5) Rights issue shares: 98,524,800

Valuation
=========
Assuming the current share price of $0.205 better reflects the true enterprise value (EV) of the share
rather than the cash per OS or NAV.

Assuming full subscription of the rights issue,
EV of each share after rights issue will be ((3 x $0.19) + (5 x $0.205))/8
= (0.57 + 1.025)/8
= 1.595/8
= $0.199375 

Thus the fair value of 1 rights will be $0.199375 - $0.19 = $0.009375

Dual Currency ETF on SGX

There are 7 ETF listed in SGX that is trading in dual currencies.

Some things to note:
1) Since they are listed in SGX, there are no holding costs, unlike buying foreign shares. Thus this is good

2) They are fungible, meaning one can buy in currency A and sell in currency B, vice versa. Again, this is good as you can choose to transact in the currency that is most beneficial to you.

3) Dividend distributions (if any) will be handed out in the primary currency of the listed security. To note.




The 7 ETFs are:
1) CIMB S&P Ethical Asia Pacific Dividend ETF
- Details: http://www.cimbetf.com/index.php?ch=ch_etf_sg&pg=pg_etf_sg_ethical
- Tracks S&P Ethical Pan Asia Select Dividend Opportunities Index.
- The Index is designed to track the performance of ethically conscious, high dividend yielding stocks from the Pan Asia region. To be included in the Index, stocks must have less than 5% revenue exposure to alcohol, gaming, pork, and tobacco. The top 40 highest yielding stocks in the Pan Asia region that meet these criteria are represented in the Index.
- Manager's fee: 0.65% of NAV pa up to max 1%
- Primary current: US$
- Gives dividend annually or more frequently (if any). Newly listed so no dividend record available
- Personal comment for my own reference: I like.


2) CIMB FTSE Asean 40
- Details: http://www.cimbetf.com/index.php?ch=ch_etf_sg&pg=pg_etf_sg_asean
- Tracks FTSE/ASEAN 40 Index
- The Index is maintained by FTSE and represents the 40 largest companies (ranked by market capitalisation) listed on the stock exchanges of Indonesia, Thailand, Malaysia, Singapore and the Philippines
- Manager's fee: 0.65% of NAV pa up to max 2%
- Primary current: US$
- Gives dividend annually (ranging from us$0.23 - us$0.35 per unit). ~3% yield.
- Personal comment for my own reference: I like. However to note that it is Sinagpore heavy (~36%) and Financials heavy (~43%)


3) iShares Barclays Capital USD Asia High Yield Bond Index
- Details: http://sg.ishares.com/product_info/fund/overview/SGX/O9P.htm#
- Fund Size: us$22.36mil
- Management fee: 0.5%
- Dividends: Appear to give quarterly ~us$0.22. ~8% yield
- Personal comment for my own reference: Might be good to have a little investment here for the high yield. Of course, the risk is much higher too.


4) iShares MSCI India Index
- Details: http://sg.ishares.com/product_info/fund/overview/SGX/I98.htm
- Fund Size: US$630mil
- Management fee: 0.99%
- No history of dividends since 2006.
- Personal comment for my own reference: Good for exposure into India, but prefers to have dividends


5) iShares J.P Morgan USD Asia Credit Bond Index
- Details: http://sg.ishares.com/product_info/fund/overview/SGX/N6M.htm#
- Fund Size: us$43.33mil
- Management fee: 0.3%
- Dividends: Appear to give quarterly of ~us$0.12 each. ~5% yield


6) iShares Barclays Captial Asia Local Currency year Bond Index ETF
- Details: http://sg.ishares.com/product_info/fund/overview/SGX/N6L.htm
- Fund Size: us$36.14mil
- Management fee: 0.35%
- Dividends: Appear to give quarterly of us$0.08 each. ~3% yield


7) iShares Barclays Captial Asia Local Currency 1-3 year Bond Index ETF
- Details: http://sg.ishares.com/product_info/fund/overview/SGX/O9Q.htm#
- Fund Size: us$9.4mil
- Management fee: 0.35%
- Dividends: Appear to give quarterly. us$0.04 in feb-12, us$0.05 in jun-12. ~2% yield
- Personal comment for my own reference: Fund size is puny. Don't like.

Lantrovision Rights Valuation

Lantrovision is giving a $0.01 special dividend per ordinary share (OS), and a 100 to 1 consolidation. After which, each consolidated share (CS) is entitled to 12 rights issue at $0.09 each.

Basic info
1) Current ordinary shares: 2,074,939,000
2) $65,290,000 cash and fixed deposits. This works out to $0.0314 cash per OS
3) $95,983,000 total equity. This works out to NAV of $0.0462

Valuation
Assuming the current share price of $0.032 better reflects the true enterprise value (EV) of the share rather than the cash per OS or NAV (both are higher by the way).

EV per 1,000 OS = 1,000 * $0.032 = $32
EV per 1,000 OS after special dividend = 1,000 * ($0.032 - $0.01) = $22

EV per 10 CS = $22
EV per CS = $2.2

Assuming full subscription of the rights issue,
EV per 13 CS after rights (CSAR) = $2.2 + ($0.09 * 12) = $3.28
EV per CSAR = $3.28/13 = $0.2523

Thus the fair value of 1 rights will be $0.2523 - $0.09 = $0.1623

Formula One (F1) IPO on SGX

Formula One (F1) is looking to IPO on SGX next month.

Total listing expected to be US$3B. It will be priced in S$ and any dividends will be distributed in S$ as well.

Currently privately owned by private equity firm CVC Capital Partners.

Share is expected to be bundled with a loan note:
- 10% interest rate to shareholder
- mature in 2060
- may be callable 

Proceeds of the IPO:
- US$450m will be used to partially repay current debt of US$2.2B

A lot depends on the pricing of the IPO, but the bundled loan note looks interesting. Keep a look up on this.

IHH Healthcare IPO

Owned by Malaysia's sovereign wealth fund Khazanah. 

IHH is one of the world's largest private healthcare providers with 16 hospitals, 3000 beds, 60 medical centres and clinics:

1) Singapore - Mount Elizabeth, Gleneagles, Parkway East Hospitals, Mount Elizabeth Novena Hospital.
2) Turkey - 60% of Acibadem AS, Turkey's largest private hospital with 1750 beds.
3) Malaysia - Pantai Hospitals and International Medical University
4) China
5) India - Apollo Hospitals Enterprise Ltd
6) Vietnam
7) Brunei

Current ownership composition:
1) Malaysia's Khazanah 62.1%
2) Japan's Mitsui & Co Ltd 26.6%
3) Dubai-based Abraaj Capital 7.1%
4) Acibadem chief Mehmet Ali Aydinlar 4.2%

Expected IPO date - Jul 2012. It will be dual listed in Singapore and Malaysia. Indicative price should be available on 1 Jun.

This is definitely something to look forward to to gain a good exposure to the healthcare sector, given raising healthcare costs and aging population in Singapore and China. 

Facebook IPO Valuation (Update)

Facebook had updated their IPO price range from $28-$35 per share to $34-$38 per share.

Many articles out there had estimated the PE to be about 100x.

A quick comparison to the 2 most popular tech stocks:
1) Apple: PE (TTM) = 13.5x
2) Google: PE (TTM) = 18.5x

This makes facebook quick overpriced, given that it is still trying to monetize their business model. As stated in the earlier post, it only makes for speculative trading.

Facebook IPO, Valuation

Facebook will officially debut on the Nasdaq Stock Market (listed as "FB") on 18th May 2012.


IPO price is expected to be $28 to $35 per share. Of course the trading price on 18th May is expected to be even higher than the IPO price.

Basic Numbers
Revenue: $3.7B
Profit: $1B
Users: 845M
IPO Target: $12B (different numbers reported by articles, from 5B to 13B)
IPO Price (expected): $28 to $35
IPO Shares issue (estimated):  343M (using $12B divided by $35 per share)
Total Class B shares: >2B

Why IPO - Use of Proceeds

"The principal purposes of our initial public offering are to create a public market for our Class A common stock and thereby enable future access to the public equity markets by us and our employees, obtain additional capital, and facilitate an orderly distribution of shares for the selling stockholders. We intend to use the net proceeds to us from our initial public offering for working capital and other general corporate purposes; however, we do not currently have any specific uses of the net proceeds planned. We may use a portion of the net proceeds to us to satisfy a portion of the anticipated tax withholding and remittance obligations related to the initial settlement of our outstanding RSUs, which will become due approximately six months following the completion of our initial public offering. Additionally, we may use a portion of the proceeds to us for acquisitions of complementary businesses, technologies, or other assets. However, we have no commitments with respect to any such acquisitions or investments at this time.

Pending other uses, we intend to invest the proceeds to us in investment-grade, interest-bearing securities such as money market funds, certificates of deposit, or direct or guaranteed obligations of the U.S. government, or hold as cash. We cannot predict whether the proceeds invested will yield a favorable return. Our management will have broad discretion in the application of the net proceeds we receive from our initial public offering, and investors will be relying on the judgment of our management regarding the application of the net proceeds." 

This basically says that facebook doesn't really need the money, so it could be a case of cashing out by the key stakeholders.

Dividend Policy
"We have never declared or paid cash dividends on our capital stock. We currently intend to retain any future earnings for use in the operation of our business and do not intend to declare or pay any cash dividends in the foreseeable future."

Patents
For such a prominent company, Facebook seems to have limited patents and IP.

"As of December 31, 2011, we had 56 issued patents and 503 filed patent applications in the United States and 33 corresponding patents and 149 filed patent applications in foreign countries relating to social networking"
 
"We are currently, and expect to be in the future, party to patent lawsuits and other intellectual property rights claims that are expensive and time consuming, and, if resolved adversely, could have a significant impact on our business, financial condition, or results of operations"

Business Prospect
Given its wide reach and context awareness of its users, the advertising potential of Facebook is huge and could be greater than Google.

Summary
This looks like a speculative trading target since it is not a dividend play and it already has rich valuation. 

Downtrend

Personally I find the 50 days moving average a clearer signal compared to 20 and 200 days.

Using the 50 days moving average, both S&P and STI are clearly in a downtrend since Aug 2011.

http://sg.finance.yahoo.com/echarts?s=^STI#symbol=^sti;range=1y;compare=;indicator=sma+volume;charttype=candlestick;crosshair=on;ohlcvalues=1;logscale=off;source=;

http://sg.finance.yahoo.com/echarts?s=^GSPC#symbol=^gspc;range=1y;compare=;indicator=sma+volume;charttype=candlestick;crosshair=on;ohlcvalues=0;logscale=off;source=;

Better to sit tight and wait for reversal before picking up more stocks.

The latest crisis - A reversion to mean

Latest Crisis - The Cause
So what causes this latest round of crisis? Erring on over-simplifying the complicated issues, it is basically due to U.S. getting to expensive, and we are in the process of reverting to the mean.

U.S had grown so expensive over the past few decades that many of her companies find it cheaper to outsource the jobs and manufacturing to developing countries such as India, China, and SE Asia.

However, these outsourcing of jobs and manufacturing means that U.S has to pay the workers and capital equipment in these foreign countries, and import the end products. Both resulted in U.S sustaining trade deficit.

Is U.S at risk of defaulting
Again, we might be over-simplifying the issues. However, U.S debts are denominated in US$, and U.S can simply print more US$ to pay off the debt. Thus, U.S can choose not to default infinitely.

Next question - would the creditors continue to accept U.S debt? As long as U.S is able to repay the interest, probably. U.S debt is around 14T. GDP is also around 14T. As such, U.S should be able to sustain the interest payment as long as the tax revenue is greater than the required interest. Besides, they still have the printing press. Also, the creditors probably don't have much alternatives either.

What is at risk will be the internal budget such as healthcare, defence spending, etc. If these budgets are cut, jobs might be lost. However, this is simply a re-allocation of resources from shrinking industries to growth industries, as long as capitalism continues to function.

So what is happening now
Reversion to mean. U.S is printing money to repay the interest and debt. This results in inflation and devaluation of US$. And this means that companies that outsourced their jobs and manufacturing will find it more and more expensive to pay the foreign countries. Over time, the jobs and manufacturing will be brought back onshore. Employment will be created. Re-allocation of resources will take place from govt sector to private sector.

Potential Impact
Developing countries that currently hosting the jobs and manufacturing will experience unemployment.

What is our strategy
Personally, I'll switch out of emerging markets and bet on a U.S recovery. The best way to accomplish this is to diversify using U.S ETF.

For singapore market, these are a few candidates traded on SGX:

1) DBXT STOXX GLOB DIV 100 ETF 10 (gives ~5-6% dividend based on 2011. Synthetic ETF)

2) db x-trackers S&P 500 ETF (dividends are re-invested back to fund. Synthetic ETF)
3) IS S&P500 10US$@ (gives ~2% dividends)
4) Lyxor ETF Dow Jones Industrial Average

PRU Monthly Income Plan

A friend bought into this fund for 5% dividend returns per annual.

http://www.fundsupermart.com/main/fundinfo/viewFund.svdo?sedolnumber=PPMIPM

Currently it is selling close to launch price of $1.

Period	1 yr high	1 yr low	3 yr high	3 yr low	All time high	All time low
Price (SGD)	1.02	0.96	1.02	0.7	1.05	0.7

From the pricing, there isn't much capital gain to be expected, and thus this fund is purely a dividend play. Dividend payout had been consistent at about 5%

A quick look at the bonds/investments that the fund is holding reveals that majority of them are rated BBB and lower.

At 5% dividend, I feel that the return does not commensurate with the risk. UOB preference shares give 5% dividend as well.

15 biggest listed palm oil companies in the world, ranked by market value

Found this old article in reuters back in Mar 2008:

COMPANY                 MKT CAP^  PRODUCTION   TOTAL     RSPO

(US$ bln)               LAND      Member
 1  Wilmar (WLIL.SI)         18.7      831,420    573,400  YES
 2  Sime Darby (SIME.KL)     15.2*   2,200,000*   560,000* YES
 3  IOI Corp (IOIB.KL)       12.9      793,452    220,593  YES
 4  Astra Agro (AALI.JK)      5.6      917,885    258,900  NO
 5  KL Kepong (KLKK.KL)       5.0      134,981    360,000  YES
 6  Golden Agri (GAGR.SI)     3.3    1,608,000  1,300,000  YES
 7  Asiatic Dev ASIA.KL     1.7    1,208,140    164,264    YES
 8  London Sumatra (LSIP.JK)  1.6      340,015    121,436  YES
 9  Bakrie S (UNSP.JK)        0.93     159,773     58,065  YES
 10 Boustead (BOUS.KL)        0.85     248,135     89,771  YES
 11 Sampoerna Agro (SGRO.JK)  0.81     240,000     73,000  YES
 12 United   (UTPS.KL)        0.87     192,204     43,325  YES
 13 Kulim Bhd (KULM.KL)       0.76     363,750     88,484  YES
 14 IJM Plantation (IJMP.KL)  0.70     139,313     63,490  YES
 15 Tradewinds (TWSP.KL)      0.61     186,744     126,980 NO

NOTES: Total land includes cultivated and uncultivated

Recommended Investment Management Companies

Recommended by my Prof for their low fees:
1) Vanguard
2) Fidelity
3) Schwab

The context of his recommendations is a discussion on diversification using plain vanilla index ETFs. He had been using these 3 investment houses for decades (yes, he is an old man).

Although not discussed, I think liquidity of the sponsored ETFs, as well low tracking errors played a part in his preference.

Equity Shortlists

Given that equity prices had gone up substantially, it is time to prepare ourselves for the next downturn by shortlisting some counters with good potential.

Mining Equipment Makers
- Caterpillar Inc.
- Bucyrus International
- Joy Global

Medical
- Medtronic

Indices
- Vanguard FTSE All-World ex-US ETF

World Earthquake and Tsunami zones

In view of Japan 2011's major earthquake, I'm curious about the earthquake zones around the world. In areas where earthquakes are prone, damages to properties and economies could be substantial. We may need to keep this in view when we go about our investment decisions.

Source: http://geology.about.com/library/bl/maps/blworldindex.htm

Hutchison Port Trust IPO - Updates

Some key figures:
- Indicative pricing = US0.91 to US 1.08

- 2010 profit margin = 26.46%. Proforma for unitholders around 18.8%

- 2010 EPS = US$0.0315. Thus PE Ratio (using US1.08) = 34.29. 2011

- Current Asset = US 937M. Current Liability = US 1447. Net current liability.

- Total Debt = US 5469M. Total unitholders = Us 9405M

- Expected payout ratio for 2012 about 150% of profits

- Total TEU handled by listed entities = 21.174M

- Base Fee is a fixed fee of US$2.5 million per annum, which is subject to increase each year by such percentage representing the percentage increase (if any) in the Hong Kong Composite Consumer Price Index. This is about 3.6%. The Trustee-Manager has elected to receive 100.0% of the Base Fee in cash for the Forecast Period 2011 and the Projection Year 2012

- The Trustee-Manager is entitled to receive a Performance Fee in relation to the Forecast Period 2011 and the Projection Year 2012 as follows when the DPU of HPH Trust exceeds the seasonally annualised 20111 forecast DPU of HK45.88 cents (the “Base DPU”):
a) a fee of 3.0% of the first 25.0% of excess DPU as compared to the Base DPU;
b) an additional fee of 6.0% of the next 25.0% of excess DPU as compared to the Base DPU (i.e. excess DPU above 25.0% and up to 50.0% of the Base DPU);
c) a further fee of 12.0% of the next 25.0% of excess DPU as compared to the Base DPU (i.e. excess DPU above 50.0% and up to 75.0% of the Base DPU); and
d) an additional further fee of 18.0% of any excess DPU above 75.0% of the Base DPU.



Previous post:
http://sgretailinvestor.blogspot.com/2011/02/hutchison-port-trust-ipo.html

Hutchison Port Trust IPO

For Hutchison Port Holding's listing of the Trust, it seems that only
the 2 highlighted ports will be included in the trust. This is about
18M TEU (27.6%) out of its 65.3M TEU (based on 2009 data listed on its website).

Port / Business Unit

Throughput (thousands of TEU)

	Hong Kong and Yantian
	China - Yantian		8,579
	Hong Kong - Kwai Tsing		9,505
	Hong Kong - Tuen Mun		1,701
	The Mainland
	Shanghai		8,238
	Ningbo		1,773
	Pearl River Delta in Southern China - Jiuzhou, Gaolan, Nanhai, Jiangmen, Huizhou & Shantou		1,151
	Xiamen		930
	North and South Asia
	Malaysia		4,452
	South Korea		2,903
	Indonesia		2,296
	Thailand		1,102
	Pakistan		724
	Vietnam		N/A
	Australia		N/A
	Middle East and Africa
	Saudi Arabia		1,254
	Egypt		482
	Tanzania		327
	Oman		99
	Europe
	The Netherlands		7,871
	United Kingdom		3,534
	Spain		908
	Poland		149
	Italy		745
	Sweden		23
	The Americas and The Caribbean
	Panama		2,367
	The Bahamas		1,323
	Mexico		1,416
	Argentina		278

Singapore Budget 2011

Budget 2011 for Individiuals

1. CPF: Raise the employer contribution rate by another 0.5 percentage points, from 15.5%  to 16%, which will restore the total contribution rate to 36%. The additional 0.5% will go into the Special Account. Revise the CPF Salary Ceiling from $4,500 to $5,000 per month. To take effect in September 2011.
2. Income Tax Reduction for 2011: Personal income tax rebate of 20% for individual resident taxpayers for YA 2011. The rebate will be capped at $2,000
3. Income Tax Reduction for 2012 (see table 1) 
4. Growth Dividends (see table 2) by 1st May 2011
5. Household rebates (see table 3)
6. SRS: Raise the contribution cap within the Supplementary Retirement Scheme. 
7. Child Development Credit scheme ($300-$400) for all Singaporean children aged six and below. The Child Development Credit can be used to pay for their children’s preschool, childcare, and medical expenses. The Child Development Credit will be paid into the Children Development Accounts (CDAs), which most children already have.
8. Top-up each primary and secondary school student’s Edusave account by $130
9. Top-up CPF Medisave Accounts of Singaporeans aged 45 and above. Those aged 45 to 49 will receive up to $300, while those aged 50 to 59 will get a top-up of up to $400. Older Singaporeans will receive more, with those 80 and above getting up to $700
10. Remove radio ($27) and television ($110) licence fees permanently

Table 1

Table 2

 Table 3

Industries that will benefit from Budget 2011

1. Banks: Exempt all interest payments made by banks and similar financial institutions from withholding tax.
2. Maritime (shipping, ports, ship builders): Withholding tax exemption for interest payments on loans to build or buy ships. GST zero-rating for repair and maintenance services performed on ship parts and components.
3. Biomedical: GST relief for imported clinical trial materials, as well as enhance the Approved Contract Manufacturer and Trader Scheme
4. Commodities:  Enhance the Global Trader Programme to qualify all derivative trades under the scheme
5. Green Vehicles: Extend the Green Vehicle Rebate scheme for another year till 31 December 2012. In the meantime, we will undertake a comprehensive review on the measures to promote the adoption of green vehicles, as part of our overall efforts to promote sustainable development
6. IT and Machinery Suppliers: Allow businesses to deduct from their taxable income 400% of their expenditures in any of the six broad categories of investment under the scheme, for example, training or investment in automation equipment
7. Construction:  Spend $10 billion to upgrade homes and rejuvenate estates over the next 10 years
8. Specialised storage facilities that store high-value collectibles such as art and antiques: GST zero-rating for specified services supplied to overseas persons, if they are performed on goods kept in qualifying specialised warehouses and eventually sent overseas