Sunday, November 29, 2015

CPF rates maintained for Q1 2016

CPF rates maintained for Q1 2016

CENTRAL Provident Fund (CPF) rates will be maintained at current levels from Jan 1 to March 31 next year, said a joint press release from CPF Board and the Housing and Development Board.
For the Ordinary Account (OA), the legislated minimum of 2.5 per cent a year applies as the three-month average of major local banks' interest rates was 0.21 per cent from August to October this year.
The concessionary interest rate for HDB mortgage loans, which is pegged at 0.1 percentage point above the OA interest rate, will remain unchanged at 2.6 per cent a year for the first three months of 2016.
Special and Medisave Account monies earn the current floor interest rate of 4 per cent a year or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus one percentage point, whichever is higher.
For the first three months of 2016, the interest rate will be maintained at 4 per cent a year. The 12-month 10YSGS average yield of November 2014 to October 2015, plus one percentage point, was 3.39 per cent.
Finally, new Retirement Account monies credited in 2016, which are invested in newly-issued Special Singapore Government Securities, will earn a fixed rate of 4 per cent for the full year of 2016.
As with the above, the 4 per cent coupon is calculated thus because the comparable 12-month average of the 10YSGS plus one percentage point rate of 3.39 per cent is lower than the floor rate of 4 per cent.
The press release also reminded CPF members that there is an extra one percentage point of interest paid on the first S$60,000 of a member's combined balances, with up to S$20,000 from the OA.
CPF members aged 55 and above will also earn an additional one percentage point of interest on the first S$30,000 of their combined balances from January 2016 - as introduced in the 2015 Budget.

BOJ's Kuroda warns of risk from emerging market slowdown

BOJ's Kuroda warns of risk from emerging market slowdown

[NAGOYA] Bank of Japan Governor Haruhiko Kuroda warned on Monday that a slowdown in emerging economies, if prolonged, may hurt Japanese business confidence and discourage firms from increasing capital expenditure.
"The BOJ will respond without hesitation if it sees the need to do so to achieve its 2 per cent inflation target at the earliest date possible," he told business leaders in Nagoya, central Japan.
The BOJ has held off on expanding its massive stimulus programme since last October, even as the economy relapsed into recession and falling energy costs push inflation further away from its target.
REUTERS

Cameron, Tusk see progress despite 'difficult' EU talks

Cameron, Tusk see progress despite 'difficult' EU talks

[BRUSSELS] British Prime Minister David Cameron and European Union president Donald Tusk hailed good progress in talks on London's EU reform goals despite difficulties in some areas, Cameron's office said Sunday.
With doubts growing that Britain can secure a deal in time for a full EU summit in December, Mr Tusk and Mr Cameron met Sunday on the sidelines of a Turkey-EU meeting in Brussels.
Mr Cameron has pledged to win key EU reforms before holding an in-out referendum on Britain's place in the 28-nation bloc by the end of 2017 at the latest, and possibly by mid-2016.
"The prime minister and the president of the European Council, Donald Tusk, discussed the UK renegotiation in a bilateral meeting after the EU-Turkey summit," a spokesman for Cameron said in a statement.
"They agreed that we continue to make good progress.
"While some areas are more difficult than others, discussions are ongoing with member states to find solutions and agree reforms in all four areas outlined in the PM's letter to the European Council president.
"These discussions will continue in the coming days, including with bilaterals between the PM and other European leaders in Paris tomorrow, and all EU leaders will have a substantive discussion of the UK renegotiation at next month's European Council as planned."
European sources said this week that it was difficult to see a deal being reached at the December EU summit at this stage.
In a major speech earlier this month outlining Britain's demands for change following pressure from EU leaders, Mr Cameron warned he was ready to "think again" about British membership if he could not strike a deal.
Among proposals he laid out are: improved competitiveness, greater "fairness" between eurozone and non-eurozone nations and sovereignty issues including an exemption from the aspiration of ever-closer union.
Most controversial is the demand to ban EU migrants to Britain from claiming certain state benefits for four years after arriving.
AFP

Greek central bank chief says need political consensus to end debt crisis

Greek central bank chief says need political consensus to end debt crisis 

[ATHENS] Greece's central bank chief called on the country's party leaders on Sunday to maintain their political consensus to help pull Athens itself out of its financial crisis once and for all.
His comments came a day after Prime Minister Alexis Tsipras failed to secure the backing of Greek opposition parties on tough pension reforms the country has promised to implement by December under its latest international bailout.
The Greek people are weary after six years of punishing austerity, and legislating in painful pension reforms will be the next big test of Tsipras's coalition government, which saw its majority shrink to just three seats this month. "There has been a high degree of consensus when the (bailout) deal was voted in by a big parliamentary majority last July," Greek central bank governor Yannis Stournaras told Mega TV in a statement.
"It (the consensus) should be safeguarded to secure political stability, support a definite exit from the crisis and pave the way towards growth," he said.
Greece and its international lenders agreed this week on a new set of reforms the country must approve in December to qualify for an additional 1 billion euros in aid.
Pension reforms are not part of this list but remain a key issue in order to complete the first review of progress under the bailout programme and open the way for negotiations on debt relief.
REUTERS

Jokowi's US$4b model power plant faces day in court over land

Jokowi's US$4b model power plant faces day in court over land

[JAKARTA] Indonesia's top court will rule whether the state can forcibly purchase land from farmers refusing to make way for a power plant, a test of President Joko Widodo's efforts to get stalled infrastructure projects moving.
Construction of the US$4 billion Batang coal-fired station on Java island was supposed to begin in 2012 but has been held up by villagers unwilling to sell their land, a common obstacle to projects in Indonesia.
Mr Joko, better known as Jokowi, formally kicked off work at the site in August, yet three months later full-scale construction has not begun.
Delays on the plant have undermined Mr Joko's image as a can-do reformer, after he was elected last year promising to overhaul Indonesia's power supply and transport network to help revitalise economic growth.
The government announced in June it will apply a never before-used law that allows for compulsory land purchases for projects in the public interest, and villagers backed by Greenpeace are challenging that in the Supreme Court.
"By the end of the year the court case will be settled," said Ganjar Pranowo, the governor of Central Java province, where the plant is located. He predicts the court will toss out the challenge. "And then we will start work. This is very important. It's a model project."
NOT LEAVING
A decision in favor of the government would be a boost to Mr Joko, yet might not signal the end of the saga. Some farmers say they will refuse to leave their land under any circumstances.
That would mean forced evictions, raising human rights concerns that could unnerve lenders and developers, which include Japan's Electric Power Development Co and Itochu Corp, and a unit of Indonesia's PT Adaro Energy.
"We are not negotiating and we are not selling," said Mr Untung, one of 48 landowners insisting on remaining on their fields. "We are staying. We don't want this project."
Mr Joko staked his reputation on delivering Batang, a public-private partnership, after telling businessmen in Tokyo in March that construction could start the following month.
In August, he flew to the site along with ministers to inaugurate the project, even though developers had yet to acquire around 10 per cent of the land they need.
DIFFICULT DECISION
The project will produce 2,000 megawatts of electricity in a country where industries often cite unreliable power supply as a major obstacle to their operations. Regular blackouts are common across the sprawling archipelago of 250 million people.
The government aims to lift the country's electrification ratio, or proportion of people with access to power, from 87 per cent this year to 97 per cent in 2019. That compares to 100 per cent in regional neighbors Malaysia and Thailand, according to World Bank data.
Getting the project started would also send a signal to private investors the government is serious about partnering with them on infrastructure. It would be the first large-scale project to be carried out under a 2005 presidential regulation aimed at encouraging such ventures. The court case is the first use of a 2012 law on acquiring land, which sets timeframes for talks on prices and resolving disputes.
"At the end of the day the government has to make a difficult decision as to what is for the greater good," said John Cheong-Holdaway, a Jakarta-based infrastructure economist. "Does it consider powering Java worth the livelihoods of a couple of hundred farmers?"
BLOOMBERG

Assad says enemies boosting his opponents

Assad says enemies boosting his opponents  

[DAMASCUS] Syrian President Bashar al-Assad on Sunday said his enemies have increased support for rebels fighting his regime as loyalists backed by Russia and Iran push an offensive to regain lost territory.
His remarks came as the Syrian Observatory for Human Rights said 18 civilians were killed and 40 wounded in "probable" Russian air strikes on a northwestern town held by a rebel alliance.
The Britain-based Observatory also reported that the Islamic State group had murdered more than 3,500 people in Syria, including 2,000 civilians, since declaring its "caliphate" last June.
The latest developments came as Britain pressed efforts to widen its participation in a US-led air coalition battling IS in Iraq to include Syria.
Defence Secretary Michael Fallon said his government was intensively lobbying the opposition Labour party to support air strikes in Syria, two years after it had blocked that option.
In remarks during talks with a senior Iranian official in Damascus, Assad spoke of "important gains by the Syrian army in the fight against terrorism, with the support of its friends led by Iran and Russia." State news agency SANA also quoted him as saying that these gains had "pushed certain countries hostile to Syria and who pretend to fight terrorism to... increase their financing and arming of terrorist groups".
Assad did not identify any country by name but since the outbreak of the Syrian conflict in March 2011, he has accused Turkey and Gulf nations of arming his mainly Sunni opponents.
Assad's regime, dominated by the Shi'ite Alawite sect, launched a key offensive to retake areas seized by opponents after Moscow began in late September an air war in support of the government.
Iran, the region's main Shi'ite power, has also backed Assad, including with the reported deployment of hundreds of "military advisers" to bolster regime forces.
Following the November 13 Paris attacks which killed 130 people and were claimed by IS there have been increasing calls by French leaders on their allies to step up the fight against the jihadist group.
On Thursday, French Defence Minister Jean-Yves Le Drian called on Britain - which is already taking part in US-led air strikes on IS in Iraq - to help "win this war".
Mr Fallon told the BBC that his government had been pressing the opposition Labour party to vote yes on launching air strikes on Syria.
"We've been talking to Labour MPs all week," he said, but the government had "not yet" secured enough support to be sure of winning such a vote.
British Prime Minister David Cameron said Saturday that IS was a threat to Britain and conducting air strikes in Syria would be the "right thing for Britain to do".
He was speaking as thousands of people took to the streets of London to protest against military action in Syria.
Britain, which was also hit by terror attacks, remains deeply scarred by its former interventions in Afghanistan and Iraq.
Thousands also protested against military action in Syria on the streets of Madrid, amid fears by many Spaniards that it would make their country a target for militants.
A poll published Sunday in Spain's El Mundo newspaper showed that Spaniards are divided on joining anti-IS strikes, with 54 per cent opposed.
In Germany, army chief of staff General Volker Wieker told Bild am Sonntag newspaper his country is planning to deploy 1,200 troops to help France in the battle against IS but not join air strikes.
The coalition already had "sufficient forces and means", he said when asked why Germany had shied away from participating in air strikes in Syria.
Initially an anti-regime uprising, the Syrian conflict has evolved into a multi-front war in which the regime, jihadists including IS, secular rebels and a range of ethnic militias are battling for territory.
More than 250,000 people have died in the fighting and millions have been forced from their homes.
Elsewhere, Turkey said the body of a Russian pilot shot dead in Syria after his plane was downed shot down last week by Turkey had been retrieved and will be returned to Moscow.
AFP

Swatch, Visa launch pay-by-wrist watch venture

Swatch, Visa launch pay-by-wrist watch venture

[ZURICH] Swiss watchmaker Swatch SA, Visa Inc and Visa Europe have launched a project that lets Visa cardholders in the United States, Switzerland and Brazil make payments with Swatch's new "pay-by-the-wrist" Swatch Bellamy watch.
Set to launch in early 2016, Swatch Bellamy can be used around the world wherever contactless near-field communications (NFC) Visa payments are accepted, the partners said in a joint statement.
REUTERS

Data breach at Hong Kong toy maker VTech highlights broader problems

Data breach at Hong Kong toy maker VTech highlights broader problems

[HONG KONG] The theft of toy maker VTech Holdings Ltd's database highlights a growing problem with basic cyber security measures at small, non-financial companies that handle electronic customer data, industry watchers said on Monday.
The hacked data at VTech included information about customers who download children's games, books and other educational content, the Hong Kong-based toy maker said. The breach also included information relating to children.
As more devices are connected to the Internet and as companies increasingly collect personal information about their customers, such attacks are expected to increase.
"Smaller companies might be targeted less often, but the implications ... can be just as serious," said the chief technology officer of cyber security firm FireEye Bryce Boland. "As larger companies implement stronger security measures, smaller companies become relatively easy targets for cyber crime."
VTech has a market value of HK$21.9 billion ($2.8 billion). Tech giant Apple Inc has a market capitalization of $657 billion.
In VTech's case, information that should have been obscured and unrecoverable if the database were breached - such as passwords and secret answers - either wasn't obscured at all or was done so improperly, said Larry Salibra, founder and chief executive of crowd-sourced bug-testing platform, Pay4Bugs.
Mr Salibra said these types of security measures were basic best practices that don't require a lot of money.
"This seems to be a trend. Hardware manufacturers really don't value software skills - I would imagine because they don't see any immediate positive impact to their bottom line," Mr Salibra said. "Software talent is an easy place to be cheap with minimal consequences until something like this happens."
News site Motherboard reported that data belonging to some 4.8 million parents and more than 200,000 children was taken in the VTech attack. It said that included names, email addresses, passwords and home addresses of parents; as well as first names, genders and birthdays of children.
The site said it had spoken to a hacker who claimed to be behind the attack, who said he planned to do "nothing" with the data. Motherboard's claims could not be independently confirmed.
VTech, which sells children's tablets, electronic learning toys and baby monitors, said the targeted database did not include payment information, credit card information, Social Security numbers or drivers license numbers.
It did not say how many records were stolen.
Vtech said it has taken steps to prevent further attacks but did not provide details.
Vtech's stock has fallen 22 per cent this year.
Shares were suspended on Monday and trade in other Vtech securities has also been suspended, the company said.
REUTERS

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