INDUSTRIALIZATION OF SINGAPORE - Knight Frank

SINGAPORE

PRESENTATION OUTLINE• Part 1 – Industrialization of Singapore• Part 2 – The Singapore Economy

MoscowRussiaASIASingapore

SINGAPORE FACTS & FIGURESSINGAPORE• A young nation with less than 40 years of history• Population by race: 4.483 million (2006)• Chinese (76%), Malays (13.7%), Indians (8.4%), Others (1.8%)• Official Languages:• English (language of administration), Chinese (Mandarin), Malay & Tamil• Education:• General Literacy rate - 95% literacy among individuals aged 15 and above• 56% are literate in 2 or more languages

SINGAPORE FACTS & FIGURESTotal Land Area: 699.0sq km. comprising one main island and anumber of islets scattered off north-east and south.Climate: Singapore has relatively uniform temperature, all year long,with high humidity and abundant rainfall.Average daily temperature: 25.1 - 31 degree Celsius

SINGAPORE FACTS & FIGURESGDP at Current (2006) Market Prices (mil): approx USD145,183vs US at USD13,020,861Per Capita GDP (2006): approx USD32,867vs US at USD44,190Official foreign reserves: approx USD129,060 million (2005)Commercial banks: 5 local banks and 111 foreign banksTotal Trade: approx USD477 billionTotal imports: approx USD222 billionTotal Exports: approx USD255 billion

SINGAPORE FACTS & FIGURESNo. of visitors: 9.7 million (2006)No. of gazetted hotels: 226No. of gazetted hotel rooms: 37,000Average occupany rate: 85%

INDUSTRIALIZATIONOF SINGAPORE

SINGAPORE FACTS & FIGURESINDUSTRIALESTATESShown in Yellow

MILESTONES– SINGAPORE’S S INDUSTRIALIZATION PROGRAMME1960sStarted the industrialization programme …….transforming swamp landto multi-storey industrial buildings which are simple yet functional, forquick business start-up1980sTo face the challenges of advancement in technology globally..….Developed a Science Park to meet the demands of Research andDevelopment (R&D) companies1990s2000sTo further meet the demands for integrated commercial and officecomponents …….Looked at intensifying land usage and integration of commercial andindustrial activities … came up with Business Parks, Ramp-up factories/warehouse...Positioning Singapore as a strategic business location ….To meet the totally new challenges of the new millennium, …. startedimproving our infrastructure and building new developments that the worldhas yet to see in the industrial property market..

INDUSTRIALIZATION OF SINGAPORE – late 1960s1960s…….transforming swamp land

INDUSTRIALIZATION OF SINGAPORE – 1980s1980sdevelopment of Science Park…. research & development

INDUSTRIALIZATION OF SINGAPORE – 1990s…. intensifying land usage and ….ramp-up factories/warehouse1990s

INDUSTRIALIZATION OF SINGAPORE – 2000s2000schallenges of the new millennium

INDUSTRIALIZATION OF SINGAPORETypical “Flatted” Factory(Multi-storey Factory)

INDUSTRIALIZATION OF SINGAPOREModernizing our flatted factory –“High-Tech” Factory

INDUSTRIALIZATION OF SINGAPORE – our unique designStackup Factories cumwarehouseRamp

INDUSTRIALIZATION OF SINGAPORE – our unique designInterior ViewStackup Factoriescum warehousing

INDUSTRIALIZATION OF SINGAPORE - Warehouse8-storey warehouse buildingwith an ancillary officeOccupancy 96.3%Gross Floor Area : 142,311 sq mLettable Area : 124,611 sq mKEPPEL LOGISTICSWarehousing – standard and controlledenvironmentAutomobile ServicesDistribution ServicesContainer Services

INDUSTRIALIZATION OF SINGAPORE - WarehouseMulti-storey Ramp-up Warehouse –An artist impression

INDUSTRIALIZATION OF SINGAPORE - TransportationAIRPORT LOGISTICS PARK• Over 26 hectares of land• Next to Singapore Changi Airport• Within a Free Trade Zone

Singapore Economy2007

2006 GDP growth at 7.9%12.00%10.00%8.00%6.00%4.00%2.00%Quickrebound ineconomyAsianFinancialCrisisGlobaleconomicdeclineIraqwar &SARS0.00%-2.00%-4.00%Sep 11 Attacks inNY199519961997199819992000200120022003200420052006GDP GrowthSource: Singapore Dept of Statistics

Singapore Economic Growth in 2007• 2006: 7.9%• 2006, Q1: 10.1%• 2006, Q2: 8.0%• 2006, Q3: 7.0%• 2006, Q4: 6.6%• Forecast 2007• Government: 7% - 8%• Private-Sector Economists: 7% - 8%Source: Singapore Dept of Statistics

Industrial Price and Rental Indices180160Price & RentalIndices(4Q98=100)Industrial Price IndexIndustrial Rental Index140Post-Financial Crisis Recovery120September 11thResurgence10080Asian FinancialCrisis602Q 97 2Q 99 2Q 01 2Q 03 2Q 05 2Q 07Source: Urban Redevelopment Authority/ Knight Frank

Industrial Property Clock1996“Growth Slowing”“Falling Rent”“Rising Rent”20062001“Decline Slowing”2004

Industrial Space Supply, Demand & OccupancyFloor Space ('000 sq m nett)2,5002,0001,5001,00050098Occupany Rate (%)New Supply New Demand Occupancy Rate (%)969492908801993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20071H86Source: Knight Frank Research / URA

Industrial Space Supply in the pipeline'000 sq m gross2000Under ConstructionPlanned1500100050002007 2008 2009 2010 > 2010Source: Urban Redevelopment Authority/ Knight Frank

Industrial Stock, Occupancy and Rentalsas at 2Q 2007Type of industrial facilityFactory Space(Basic & Hi-Tech Bldg)WarehouseBusiness ParkAvailable stock(million sq m)26.86.10.97Occupancy rate (%) /Avg. Mthly Gross Rental (US$psm)91.2%US$6.40 – US$25.0089.1%US$5.70 - US$12.9082.7%US$20.00 - US$39.40Rates are inclusive of Service ChargeSource: Urban Redevelopment Authority/ Knight Frank

Industrial Market Outlook• Demand for factory space remains healthy on the back ofpositive business sentiment and continued growth inmanufacturing sector• Demand for warehouse space continues to be strong in linewith government’s initiatives to promote the logistics industry• Increased demand for high spec industrial and business parkspace due to spillover effect of tight office market• For entire year of 2007, industrial rentals and capital valuesare expected to increase by 20% - 30%

ACHIEVEMENTS – Engines moving the IndustrializationSingapore’s s industrialization achievements in the last 20 years :• Biomedical Sciences and Healthcare Services• Home to 6 of the world's top 10 pharmaceutical companies' manufacturing facilities• Chemicals• One of the top oil refining centres in the world• One of the top three oil trading and price discovery centres in the world• Among the top 10 petrochemical hubs in the world• Among the top 3 bulk liquid ports in the world• Home to eight of the world’s top ten flavours and fragrances companies

ACHIEVEMENTS – Engines moving the Industrialization• Engineering• Clean Energy• 15% of the world’s publicly listed water companies are listed on the Singapore Exchange• Singapore hosts one of the world’s largest membrane-based seawater desalination plants• Precision• 70% global market share for semiconductor wire/ball bonder units• Home to 5 major semiconductor and industrial equipment manufacturers• Transport• 80% world market share in jack-up rigs• 20% world market share for ship repair• Asia's #1 MRO hub• 6 automotive regional distribution centres (RDCs)• 15 automotive regional headquarters (RHQs)• Top 3 global centres for oil & gas (O&G) equipment manufacturing and servicing

ACHIEVEMENTS – Engines moving the Industrialization• Electronics• Home to the world's top 3 wafer foundry companies• Home to the world's top 3 sub-contract assembly-and-test companies• Education Services• Singapore is a key training hub for international executive programmes andcorporate training• Logistics• Singapore has presence of some 3,000 logistics and supply chainmanagement companies operating here• 17 out of the world’s top 25 3PLs have a substantial presence here

PROGRESSWe came a long way from ……….. INTO LANDRESOURCEPLANNING

PROGRESS….. INTO THE FUTURENeuros & Immunos

PROGRESSWhat can we do next?Limited by land mass,but not byHUMAN CAPITAL.Driven by aNeed to Grow ….

PROGRESSTRANSFEROUR KNOW-HOW• BUILDING TOWNSHIPS• DIRECT INVESTMENT• CONSULTANCY WORK

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