Kelvin Khoo Online

Speaking to reporters after a half-hour ride on board one of the 28 capsules, Mr Lee described the experience as ‘enjoyable and spectacular’.

‘We have a beautiful city and this is a remarkable view of it,’ he said. ‘The Singapore skyline is constantly growing and changing. The Flyer is an addition to that skyline, as well as to view the city around us.

‘I’m very happy with the project. It’s on time and it has achieved what we hoped for. We are optimistic it will do very well (with regard to) passengers and become one of the busiest flyers in the world.’

Also at the opening yesterday were 350 guests, including families and the elderly from various grassroots and social welfare organisations.

The Singapore Flyer board and management also presented a $28,000 cheque to The Straits Times School Pocket Money Fund, which was received by Straits Times editor Han Fook Kwang.

The 165 m tall Singapore Flyer took over five years to conceptualise, plan and build.

It was opened to the public on March 1, after a soft launch on Feb 11 for corporate customers. The attraction is expected to draw about 2.5 million people in its first year.

It is seen as a key part of Singapore’s plan to grow tourism and attract 17 million visitors by 2015.

But there was also an equally significant pointer for market watchers looking for data on the direction of private home prices.

The islandwide median price of private homes (excluding executive condos) sold by developers dipped 0.8 per cent from $1,064 psf in February to $1,055 psf in March, with the decline coming from the Outside Central Region (where suburban mass-market projects are typically located). The median price there slipped about 3.8 per cent, from $844 psf in February to $812 psf in March.

However, the median price in the Core Central Region jumped from $1,723 psf to $2,450 psf, while that for the Rest of Central Region rose from $1,095 psf to $1,104 psf over the same period. These figures are based on Urban Redevelopment Authority’s monthly survey of developers’ sales.

Property analysts cautioned against reading too much into the monthly price data given that sales volumes are still relatively thin.

Developers sold 301 private homes in March, a significant improvement from 174 units in February but slightly lower than the 320 units for January.

These numbers are lower than the monthly sales of more than 500 units for September to November last year. The dizzy days between June and August last year had seen more than 1,000 units being sold each month.

Chesterton International’s head (research & consultancy) Colin Tan said that, focusing on projects with sales of at least five units in February as well as March, there were 14 developments that recorded month-on-month price declines, outpacing just seven projects with increases.

‘The number of declines versus rises gives some sense of the power play between buyers and sellers. The market is on balance at the moment, with some hint that buyers have a slight edge. We cannot yet say for sure that the market has definitely turned,’ he added.

URA’s data showed that developers launched a total of 642 private homes (excluding ECs) in March, up significantly from 343 units in February, which had a shorter period for home sales because of the Chinese New Year festivities. The March launch figure was the highest in seven months.

Jones Lang LaSalle, looking only at private apartment and condo sales, said the ratio of units sold to units launched has fallen from 101.2 per cent in November last year to 46.4 per cent in March 2008. ‘But the ratio may be stabilising since the March figure was just slightly lower than the 47.5 per cent ratio in February,’ said JLL’s head of research (South-east Asia) Chua Yang Liang.

‘It seems developers’ optimism on the mass market far exceeds buyers’ expectations. Buyers maintain a more cautious outlook of the market as the economy is expected to ease in the next few months, despite the strong advance estimate of 7.2 per cent GDP growth for Q1 2008.’

The highest-priced primary market transaction in March was the $4,612 psf fetched by a unit at Scotts Square along Scotts Road - higher than the $4,140 psf top price achieved in February, for a unit at The Ritz-Carlton Residences in the Cairnhill area.

Looking ahead, CB Richard Ellis executive director Li Hiaw Ho said: ‘The current market sentiment is likely to continue into the second quarter. Activity may pick up in terms of project launches, but buyers’ response will be price sensitive.’

Knight Frank director Nicholas Mak too expects sales volumes to remain thin in the next few months in the face of continuing uncertainty of the US economic outlook and financial market problems. ‘Homebuyers, especially in the mass-market segment, are expected to remain cautious until there is a sustained recovery in the financial markets and economic conditions, which would spill over to the property market. Developers, on the other hand, are likely to launch their projects slowly in the next few months to take advantage of any improvement in market sentiments,’ Mr Mak added.

East vs West

As much of the Asian wealth is created in the last few decades, the concept of preservation tends to be newer than in the West. ‘From that perspective, this may be the first generation in a particular family that has even had to consider the issue,’ said UBS wealth planning consultant Bill Lexmond.

But the issues that emerge in their succession planning are not vastly different from what their counterparts face in the West, or even the Middle East.

Said Wendy Yeo of ABN Amro Private Bank Asia’s international estate planning division: ‘Very often, we come across questions like ‘How can the family wealth be passed to the next generation in an orderly manner? How the second generation can be equipped to manage and preserve the family wealth? What can be done to prevent children from overspending? How to manage conflicts among different stakeholders?’.’

In other words, the general concerns of preservation with a long-term view, control, access to benefits and taxes are universal, although the approach used in addressing them may be different.

‘They (high net worth families in Asia) usually prefer to retain beneficial interest in their assets during their lifetime, with their wealth passed on to the next generation only after their demise,’ said Credit Suisse head of private banking for South-east Asia and Australasia Francois Monnet.

‘They are also concerned about potential dilution of family wealth as a result of marital disputes, and generally also do not include spouses of their children/grandchildren as beneficiaries of their estate planning structures. Although this is not unique to Asian families, high net worth families in the West are probably more inclined to transferring certain assets to children during their lifetimes.’

Most of the private banks that BT talked to also noted a strong inculcation of traditions and culture among wealthy Asian families. Even as the next generation of successors may be educated in the West, family values are regarded as important guiding principles for them and a foundation to create cohesiveness and a sense of purpose among family members.

This is also reflected in their attitudes toward philanthropy. ABN Amro’s Ms Yeo noted that many high net worth individuals are apportioning their wealth to charity.

‘Many have recognised that by so doing, they are also able to leave a legacy for their family and it also serves as a means to bond the family together, which gets progressively more difficult with each successive generation,’ she said.

The trend is observed by UBS as well. ‘If you look at families in Asia who have gone beyond the traditional third, fourth generations, they would say that one of the key elements they have are values that were put into the family and then each generation, shared and made into part of the family culture,’ said its Asia-Pacific head of philanthropy services Terry Farris. ‘Now philanthropy is one of the easiest tools in creating value succession.’

Giving back to community

Although charity giving by high net worth families from Asia has always been in existence, their generous acts have not always gathered as much limelight as contributions made by those from the West. This is because philanthropy tends to be very private and low-key affairs, and sometimes ad-hoc, in this part of the world.

‘The decision would usually be made by the leader within the family and driven by relationships,’ said Fortis Private Banking Singapore vice-president in philanthropy services Desmond Lum. ‘The concept of engaging an outsider consultant to discuss family wealth and outsourcing philanthropic services to professionals are concepts that are likely to take time for greater acceptance.’

But that could change with the setting up of more charity trust foundations, indicating the desire for a more thoughtful approach in giving back to society. HSBC Private Bank senior philanthropy adviser Cynthia D’Anjou-Brown said that the strategic approach would also ensure a more transparent, accountable and organised process in altruism.

She added: ‘Increased media exposure and heightened interest and awareness of professionally structured foundations, such as the Bill & Melinda Gates Foundation, no doubt have also helped inspire many wealthy Asians to follow in their footsteps.’

The popular charity causes centre around education, basic needs and religion. On the other hand, Fortis noted that less than 10 per cent of the money Americans gave to charity addressed basic human needs such as sheltering the homeless, feeding the hungry or caring for the sick.

‘Ethno-centricity also comes into play when opportunity arises for cross-border contribution as the Asian culture tend to keep in mind the source of their success, just as the Chinese proverb says to ‘remember the source when one has drunk the water’,’ said Mr Lum.

Preparation

From seminars for children to inter-generation forums, private banks are quick to offer ideas to help their Asian clients prepare for the succession of wealth to future generations. Experts said that estate planning is becoming more complex with the multitude of offerings - from trusts to family offices to foundations - and the stricter compliance and reporting regimes.

UBS is of the view that everyone should have a plan regardless of their net worth. This can be in the form of a simple will. When there is no plan, then the assets would have to go through probate, which means they are frozen under estate planning laws under the jurisdiction and can only be accessed by the family or descendents when the courts grant permission at a later date.

It is difficult to put a dollar value on the minimum size of assets required before one should seek professional help in estate planning. Obviously there is a balance to strike between the cost of establishing and maintaining a more sophisticated estate planning structure and the benefits that can be accrued from it. Most of the bankers suggest that clients with a minimum net worth of US$2 million should certainly consider having a structure in place.

‘If you fail to plan, then effectively you plan to fail,’ said Mr Lexmond of UBS. ‘If someone doesn’t participate in the design, that doesn’t mean nothing will happen. There will be something that occurs although it’s more likely to be chaotic.

‘If a family decides to move forward to put a structure in place, the beauty of it is that it allows all the family members to relate to each other. In other words, the patriarch or matriarch can act as mentors to provide the wealth of their experience to the benefit of the next generation in a fairly controlled environment.’

She added: ‘Since the amended Land Titles (Strata) Act came into effect on Oct 4 last year, we have received feedback in letters from the public and through our service enquiry line. We have also noted the feedback from letters to the press and media articles.

‘The types of feedback received, mainly from affected owners, include welcoming the changes; requests to make the collective sale process even more rigorous by introducing more safeguards; suggestions on how the legislative provisions can be further amended to make the collective sale processes more efficient; and requests for clarification on the amended legislation.’

Property agents and lawyers have told BT that the new rules, while introducing more safeguards and transparency for owners, have made the en bloc process longer, more tedious and increased costs for owners. The total cost (including legal fees) of a collective sale to an owner may have doubled or increased even beyond that.

And with weaker sentiment today and a slimmer chance of success of an en bloc deal materialising, the increasing tendency among property consultants is to pass costs such as development baseline searches upfront to owners, instead of bearing them first and then seeking reimbursement later from sales proceeds as in the past, said Savills Singapore director Steven Ming.

‘Some owners baulk at having to make upfront payments and that may prove to be a stumbling block to en bloc sales,’ he added.

Calling for extraordinary general meetings (EGMs) has also become more troublesome under the new rules. And some agents questioned the need for giving owners a five-day cooling-off period after they have signed the collective sale agreement (CSA) on top of requiring a lawyer to witness signatures. ‘We should have just one or the other,’ said Credo Real Estate managing director Karamjit Singh.

But on a more positive note, Mr Singh added: ‘The requirement for extraordinary general meetings gives owners a clear-cut time schedule of events in any upcoming exercise so they can know what to expect. The new rules also streamline requirements for submitting an application to Strata Titles Board (STB), thereby cutting the advertisement costs payable by the owners. And STB can disregard technical irregularities in the applications if they do not prejudice owners’ interests.’

A chunk of the higher costs of an en bloc sale stems from legal fees.

The fees have at least doubled in some cases to reflect the greater scope of work for lawyers under the new rules, said Lee & Lee partner Ow Yong Thian Soo.

Even before they are appointed, lawyers may have to help owners requisition the first EGM where the sales committee is appointed. After being appointed, lawyers’ additional duties, under the revised rules, include witnessing signatures and updating consent levels every four weeks instead of every eight weeks - with no guarantee that they will secure the 80 per cent minimum consent, or that there will be an eventual sale.

Rodyk & Davidson partner Norman Ho said that as a result, his firm has become more circumspect in accepting new en bloc sale appointments, preferring to choose cases where owners’ expectations are realistic and hence chances of a sale are higher.

‘Generally in the industry, lawyers may have charged about $70-150 per unit for upfront disbursements for doing searches to verify ownership of the units, etc, previously. Today, this may cost anywhere from $250-300. And the professional legal fee, collected upon completion of an en bloc sale, has also increased from about 0.15 to 0.2 per cent of the sale price previously to around 0.3 to 0.4 per cent today.’

Mr Ho added: ‘I know of some firms that are proposing to charge an upfront professional fee of $1,000 to $2,000 per unit, which will be offset from the final fee of say 0.4 per cent, if there is a successful sale.’

Property consultants’ fees is also understood to have also increased by about 50 to 60 per cent because of more work, longer gestation period and more meetings.

Also, owners will now have to cough up the cost of a mandatory land valuation, typically about $5,000 to $25,000 (shared among owners) which has to be submitted at the close of tender. They may also have to be prepared to pay for a development baseline search - which could cost $7,000 to $20,000 - in cases where it may be necessary to ascertain the development baseline to provide certainty in calculating the development charge (DC) payable.

In the past, management corporation funds were sometimes used for such searches, while in other instances, majority owners paid first. In some cases, even property consultants footed the bill initially (but were later reimbursed from sales proceeds) - but that was when the market was buoyant. These days, agents are reluctant to pay upfront for development baseline searches.

Mr Singh suggested that the authorities should make it clear whether the management corporation’s funds may be used for development baseline searches to allow owners to price the asset accurately.

Previously, the sales committee could independently call for EGMs but under new rules, these must be requisitioned by at least 25 per cent of owners, or by owners controlling at least 20 per cent of share values in the development, Rodyk’s Mr Ho said.

However, some property consultants and lawyers said that it is not clear whether the sales committee can still call for general meetings without such requisitions under the new rules - and sought for greater clarity on this issue.

Savills’ Mr Ming said that it is not realistic to expect a lawyer to witness signatures as owners may have questions and ‘it should be very much the agent’s role to persuade them on the merits of the en bloc sale’.

The one-night partnership with former Guy Savoy pastry chef Hugues Poguet would have been fun if the dessert element had run through the entire menu. The first course of wild salmon gravlax with kalamansi sorbet and a streak of vanilla chantilly cream worked very well - salmon and vanilla have always made surprisingly compatible partners and with the sorbet, had a successful sweet-savoury effect.

But the rest of the menu was typical degustation fare - yummy poilane toast round topped with lobster and Japanese mushrooms; deep fried cod on a stick topped with savoury sago pearls and crisp bacon, served with leek terrine; and a divine kobe beef square stuffed with foie gras and accompanied by a sweet potato cake.

Hugues Pouget’s thin chocolate tart was a classic hit, although he did do some quirky sweets like diced tofu creme brulee with berries, chocolate and pepper in a parfait glass. But chocolate covered asparagus? Let’s say we won’t be buying a box of them anytime soon.

Still, with champagne such as Dom Perignon, Bollinger and Pol Roger - all 1996 - and more, there was no reason to complain but to hope that next year, we’ll see some real fireworks.

Tung Lok Signatures Central - Up Close with Abalone

It’s hard to resist abalone, even more so if your pocket allows it. Sure, you can cut corners and order the cheaper South African variety but sadly, there is no such thing as a bargain-priced abalone. Not if you want to enjoy the dense, smooth and gently resilient texture of a fine grade abalone. And if you’re obsessive about abalone texture, then you have until tomorrow to bite into the unctuous delight that is a Koh Yong abalone.

Named after its founder, Singapore-born, Australian entrepreneur Simon Koh Yong, this Aussie abalone is processed in a way that when it’s braised, it cuts with a satisfying stickiness, very much like the Chinese New Year rice cake, nian gao. A measure of the abalone’s quality is the way it sticks to your knife, as Mr Koh himself will tell you. He is part of the attraction at Tung Lok Signatures Central, where if you order the WGS Celebratory menu, he will personally serve you your lovingly braised 10 or 12 head abalone.

It’s the second consecutive year that Tung Lok has hosted Mr Koh for the WGS, but there’s no danger of abalone fatigue in this case. At $248++ for lunch, you get a 10 head, palm-sized fella lovingly braised to yield the perfect bite. Add to that a satisfying meal which includes braised shark’s fin with crab meat in a rich orange-hued broth, deep fried battered sea perch in a white wine sauce and pan fried kurobuta pork.

If you order the abalone a la carte, it’s $198++ for the 10 head and $168++ for the 12 head. Yes, it’s a pretty penny to pay, but going by the brisk business the restaurant is enjoying, the Abalone King sure has a lot of fans.

Garibaldi’s Extra Virgin Olive Oil menu

After chef Roberto Galetti’s visually and intellectually scintillating ‘inverted menu’ last year, you’d think he’d be hard put to match his feat last year. But this year’s olive oil menu is no less interesting, if less dramatic, and targets gourmands who appreciate the use of quality base ingredients in their cuisine.

In this case, oil. People are beginning to acknowledge that oil is no longer just ‘grease’ these days, says chef Galetti. At least seven different types of extra virgin olive oil were used for this dinner, most of which were cold-pressed, such as the Cutrera oil from Sicily, which used a single variety of tomato-toned Tonda Iblea olives; and oils from Tuscany, Puglia, Liguria, Veneto, Lombardia and Molise.

The Tuscanian Santa Cristina was bitterly green and very spicy on its own, but its characteristics were submerged in the richness of the langoustine-flavoured cannelini bean soup. The buttery Le Pietre Brune oil from Liguria lovingly wrapped the olive fettucini pasta; while the Puglian Tormasresca was robust enough to be married with a burrata cheese and tomato emulsion, delicious when spread over a bar of crispy puff pastry. Despite all the oils used, you don’t feel like you need to down a teapot of pu erh tea to cleanse your palate - that’s how light and fresh the oils are. The six-course menu is available for lunch and dinner until April 12, at $118++ per person.

Exotic Seasons of India at Rang Mahal

Spring was the main season feted in the Seasons of India themed dinner this past Tuesday, which also saw a Mumbai Se fashion show. Chef Amandeep Singh created food which was light and contemporary, but it was the fashion show which provided more pizzaz and upped the luxe factor of the event rather than the cuisine itself.

What’s more amazing to the non-Indian diner is how the presentation of Rang Mahal’s cuisine constantly surprises, as the complex blend of herbs and ingredients have been prepared in such a way that it’s difficult to identify ingredients in a blind tasting. The fennel flowers and kiwi soup, for instance, tasted much like a gentle potato cream soup with a tangy base. Of course, marinated meats are obvious, but tastily done as well. Every bit of the masala marinade seems to have permeated the pores of the tender lamb morsels, for instance, and the same for the pomery mustard-marinated jumbo tiger prawn. If you’re usually a meat-eater, try going for the vegetarian option for the main course which sees innovative selections, with highlights such as bottle gourd stuffed with cottage cheese, potato and baby corn.

Lunches are buffet style at $42++ per person, while dinner is a six-course degustation menu at $88++ per person.

Many whisky drinkers from that generation have moved on to what they perceive to be more upmarket and sophisticated whiskies, like single-malt scotch, especially big names like The Macallan and The Glenlivet.

But premium bourbon Maker’s Mark has just been launched in Singapore to challenge misconceptions, and let the market here know that bourbon is very much alive. However, you can’t buy it. Production is so limited that South-east Asia is only allocated 600 cases and Singapore is only getting a measly 200 cases.

Since you can’t buy it in a retail outlet, you’ll have to head to a bar - specifically St Regis’ Astor Bar, which official importer Beam Global Spirits & Wine has chosen to launch Maker’s Mark there. But other bars are likely to follow suit.

There’s only one version, with a signature red wax seal, and Astor Bar prices the whisky at $178 per bottle before GST, about $20 per cocktail, and $18 for a single-shot.

Of course, if you really want to get hold of a bottle, there are unofficial channels. Whisky specialist Quaich Bar, for example, has been carrying Maker’s Mark for quite a few months now. So has Japanese outlet Coffee Bar K, which even has rare versions of Maker’s Mark that have either been discontinued, like the high-alcohol content black wax version, and the mint julep cocktail premix topped with green wax that’s only sold in the US state of Kentucky and Japan. But we’re talking about small quantities, so the official Singapore launch marks real availability and visibility.

So why is Singapore getting a comparatively significant portion of the South-east Asian allocation? ‘Maker’s Mark’s entry into Singapore is in direct response to the rising consumer demand for premium brands,’ says Kristian Harmston, Beam Global Spirits & Wine’s regional manager for South-east Asia.

Brand ambassador Ray Radford points to Singapore as a trendsetter in the region - one of the criteria Maker’s Mark uses when picking a market. ‘We’re here because the brand sees Singapore as an enormous gateway opportunity,’ he says.

‘Our whisky is in perpetual allocation, much to the dismay of people, so we’re very particular about the markets we choose to introduce the brand. Singapore is a spot where things evolve outwards, and we feel that as Maker’s Mark gets discovered here, it will get discovered throughout Asia,’ he adds.

The bottom line is that this is a fairly exclusive whisky, and worth a try for several reasons. Most importantly, it doesn’t taste like a typical bourbon. ‘Founder Bill Samuels actually set out to make bourbon that didn’t taste like a bourbon,’ says Mr Radford.

‘Maker’s Mark is actually the most unusual bourbon there is. Bourbon is made with at least 51 per cent corn, plus other grains,’ he explains. ‘Most bourbon makers use rye. We use soft winter wheat.’

Mr Radford uses the analogy of bread made from different grains to illustrate the sweetness of Maker’s Mark. ‘It’s like a sandwich,’ he says. ‘If you have a cheese sandwich on rye, it will have a bit of a bite and tangy tartness. If you have the same sandwich with wheat bread, it will be sweeter in your mouth.’

The distillery’s refusal to declare an age for its whiskies flies in the face of traditional whisky snobbery, and is unusual in a premium whisky where age is often equated with quality assurance.

‘Maker’s Mark is made to a taste, not an age. When you’re storing bourbon, the whisky ages at different rates. Rather than pull out a row of barrels and aim for an average taste among them, we taste each barrel and bottle it when it tastes just right,’ says Mr Radford.