Aiyo , our Elites team where got interest in this kind of industries , most likely those 400jobs will go to FTs anyway . Even semicon , pcs , handphones ... all cannot survive in Singapore , how ?
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Economic News
- Thread starter FHBH12
- Start date
Aiyo , our Elites team where got interest in this kind of industries , most likely those 400jobs will go to FTs anyway . Even semicon , pcs , handphones ... all cannot survive in Singapore , how ?
what you talking about.?
Hang on tight. War might erupt in Ukraine.
http://money.cnn.com/2014/03/02/news/economy/ukraine-economy/index.html
http://money.cnn.com/2014/03/02/news/economy/ukraine-economy/index.html
Likely to have economic sanctions. By the way, Singapore is trying to make friends with Russia, a super resource rich country: http://en.wikipedia.org/wiki/Russia–Singapore_relations
Ukraine crisis spooks global stocks, sparks surge in oil and gas prices
By Neil Behrmann in London
Published March 04, 2014
RUSSIA's intervention in the Ukraine has caused a plunge in global equities and a surge in oil and gas prices.
Market participants fear that Group of Seven sanctions against Russia would precipitate retaliation, notably energy-supply cuts and price hikes of the nation's supply to Europe.
As The Business Times went to press, the German market tumbled by 2.5 per cent, France by 2 per cent and the United Kingdom, by 1.5 per cent. Wall Street tumbled in early trade as the Dow slumped 100.31 points to 16,221.40. Brent crude oil jumped by 2.2 per cent to US$111.41 a barrel on the ICE Futures Europe exchange in London, while British gas prices soared by 10.3 per cent to almost 62 pence a therm (US$10 per million British thermal units) - the most in 17 months and the highest price since Jan 31.
US gas futures jumped as much as 2.8 per cent to US$4.736 per million British thermal units in electronic trading on the New York Mercantile Exchange.
The reason for the price surge is that Russia controls gas flow into Ukraine and the pipelines continue into European countries, which are large consumers.
Russian supply cuts and price hikes have precedent. In January 2009, Russian gas supplies via Ukraine came to an abrupt halt following a dispute over transit terms and prices.
This time, however, Europe has a larger stockpile to cover demand for a limited period, and the northern hemisphere summer is only two months away.
It is noted too that Russia, which had a dramatic 9 per cent stockmarket slump and a 2 per cent depreciation of its rouble yesterday, is highly dependent on these energy exports. Indeed, the Russian central bank raised interest rates by 1.5 per cent to 7 per cent to support the floundering currency. Oil analysts and traders believe that the nation cannot afford prolonged oil cuts as it is already in an economic slowdown.
From protests and the ousting of former President Viktor Yanukovych, the Ukrainian crisis has deteriorated into a geo-political issue. Russia's Black Sea Fleet has told Ukrainian forces in Crimea to surrender by 11am today or face a military assault, Interfax news agency quoted a source in the Ukrainian Defence Ministry as saying.
The Group of Seven nations - the US, UK, Germany, France, Japan, Italy and Canada - have strongly condemned Russia's action, and British Premier David Cameron has briefed journalists on possible sanctions.
Indeed, the new government of Ukraine wants the nation to be a member of the European Union, but the West is concerned that the Ukraine, which requires an estimated US$35 billion in two years, could default.
On the other hand, Russia, through its historic links, including imports of grain and other agricultural crops, wants to maintain its strong ties with the nation; from a military standpoint, the Russian navy has a significant base in Sebastopol. Thus President Putin's reaction is not surprising, given that he and Russian parliamentarians say the US has meddled in Ukrainian affairs.
Simon Hunt Strategic Services, an economic and geo-political consultant, said: "The Ukraine sits on the crossroads of Europe and Russia. It is criss-crossed with pipelines from Russia to Europe. It is part Russian and part European, but has had a medieval and modern association with Russia.
"Europe and the USA want to wrest Ukraine away from the Russian orbit, but we are fairly certain that Ukraine's uprising has been aided and abetted by the intelligence forces of the West, as Putin has suggested."
The firm agrees with the Putin and Russian Parliament view that the ultra-right Svoboda Party is a major force in the new Ukrainian government of Arsenly Yatsenyuk.
"Svoboda is the Neo-Nazi, ultra-right, anti-Semitic, Russo-phobic party with its support based in Western Ukraine," said Simon Hunt. "The party's co-founder Andriy Parubiy was made Secretary of the Security and National Defence Committee. In this position, Parubiy is in a position to control important appointments to the provisional government and has succeeded in its long-term goal of legalising discrimination against Russians ... Other right-wing associates have been appointed to the National Assembly. These right-wing groups now have key positions in defence, law enforcement, education and economic affairs."
http://www.businesstimes.com.sg/pre...ocks-sparks-surge-oil-and-gas-prices-20140304
By Neil Behrmann in London
Published March 04, 2014
RUSSIA's intervention in the Ukraine has caused a plunge in global equities and a surge in oil and gas prices.
Market participants fear that Group of Seven sanctions against Russia would precipitate retaliation, notably energy-supply cuts and price hikes of the nation's supply to Europe.
As The Business Times went to press, the German market tumbled by 2.5 per cent, France by 2 per cent and the United Kingdom, by 1.5 per cent. Wall Street tumbled in early trade as the Dow slumped 100.31 points to 16,221.40. Brent crude oil jumped by 2.2 per cent to US$111.41 a barrel on the ICE Futures Europe exchange in London, while British gas prices soared by 10.3 per cent to almost 62 pence a therm (US$10 per million British thermal units) - the most in 17 months and the highest price since Jan 31.
US gas futures jumped as much as 2.8 per cent to US$4.736 per million British thermal units in electronic trading on the New York Mercantile Exchange.
The reason for the price surge is that Russia controls gas flow into Ukraine and the pipelines continue into European countries, which are large consumers.
Russian supply cuts and price hikes have precedent. In January 2009, Russian gas supplies via Ukraine came to an abrupt halt following a dispute over transit terms and prices.
This time, however, Europe has a larger stockpile to cover demand for a limited period, and the northern hemisphere summer is only two months away.
It is noted too that Russia, which had a dramatic 9 per cent stockmarket slump and a 2 per cent depreciation of its rouble yesterday, is highly dependent on these energy exports. Indeed, the Russian central bank raised interest rates by 1.5 per cent to 7 per cent to support the floundering currency. Oil analysts and traders believe that the nation cannot afford prolonged oil cuts as it is already in an economic slowdown.
From protests and the ousting of former President Viktor Yanukovych, the Ukrainian crisis has deteriorated into a geo-political issue. Russia's Black Sea Fleet has told Ukrainian forces in Crimea to surrender by 11am today or face a military assault, Interfax news agency quoted a source in the Ukrainian Defence Ministry as saying.
The Group of Seven nations - the US, UK, Germany, France, Japan, Italy and Canada - have strongly condemned Russia's action, and British Premier David Cameron has briefed journalists on possible sanctions.
Indeed, the new government of Ukraine wants the nation to be a member of the European Union, but the West is concerned that the Ukraine, which requires an estimated US$35 billion in two years, could default.
On the other hand, Russia, through its historic links, including imports of grain and other agricultural crops, wants to maintain its strong ties with the nation; from a military standpoint, the Russian navy has a significant base in Sebastopol. Thus President Putin's reaction is not surprising, given that he and Russian parliamentarians say the US has meddled in Ukrainian affairs.
Simon Hunt Strategic Services, an economic and geo-political consultant, said: "The Ukraine sits on the crossroads of Europe and Russia. It is criss-crossed with pipelines from Russia to Europe. It is part Russian and part European, but has had a medieval and modern association with Russia.
"Europe and the USA want to wrest Ukraine away from the Russian orbit, but we are fairly certain that Ukraine's uprising has been aided and abetted by the intelligence forces of the West, as Putin has suggested."
The firm agrees with the Putin and Russian Parliament view that the ultra-right Svoboda Party is a major force in the new Ukrainian government of Arsenly Yatsenyuk.
"Svoboda is the Neo-Nazi, ultra-right, anti-Semitic, Russo-phobic party with its support based in Western Ukraine," said Simon Hunt. "The party's co-founder Andriy Parubiy was made Secretary of the Security and National Defence Committee. In this position, Parubiy is in a position to control important appointments to the provisional government and has succeeded in its long-term goal of legalising discrimination against Russians ... Other right-wing associates have been appointed to the National Assembly. These right-wing groups now have key positions in defence, law enforcement, education and economic affairs."
http://www.businesstimes.com.sg/pre...ocks-sparks-surge-oil-and-gas-prices-20140304
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Ukraine crisis pushes up gold, oil, grains
Published March 04, 2014
[LONDON] Gold, crude oil and grains surged on Monday while industrial metals slid as investors reacted to escalating tensions between Moscow and Kiev after the Russian military tightened its grip on Ukraine's Crimea region.
Concern about supplies pushed up crude oil prices by more than US$2 a barrel and wheat and corn by 4-6 per cent. Safe-haven buying sent gold prices to four-month highs.
Base metals such as copper fell along with shares as investors ditched higher-risk assets and due to worries that a conflict could damage global growth. "Trade sanctions and a general ratcheting up of global tensions could also endanger the fragile global economic recovery now under way, hurting commodity prices in the process," analyst Edward Meir at broker INTL FCStone said.
Ukraine said Russia was building up armoured vehicles on its side of a narrow stretch of water closest to Crimea after President Vladimir Putin declared at the weekend Russia had the right to invade his neighbour to protect Russian interests.
Russia is one of the world's biggest oil producers. Newly installed Ukrainian Prime Minister Arseny Yatseniuk said Moscow's move to use military force was a "declaration of war".
Brent crude climbed 3 per cent to a session high of US$112.39 per barrel, its loftiest since Dec 30.
US crude for April delivery jumped as much as 2.3 per cent to a high of US$104.97 a barrel, the strongest since Sept 23. "Oil markets are reacting on the potential that the situation could worsen," said Ben Le Brun, market analyst at OptionsXpress in Sydney. "But I definitely suspect oil will move much higher, if it actually comes to war. US crude could easily surpass US$110 and a US$120 target is not out of the question."
SAFE-HAVEN GOLD
Spot gold skated 1.9 per cent higher to a peak of US$1,350.80 an ounce, the highest since Oct 30 as investors fled to assets regarded as safe havens. Gold was also headed for its biggest daily gain since Jan 23. "There is an ongoing shift in sentiment indicative of investors seeing some upside from geopolitical concerns, some safe-haven bids coming out of emerging markets and possibly a more neutral outlook towards equities," Mitsubishi Corp analyst Jonathan Butler said.
Industrial metals went the opposite direction.
Copper on the London Metal Exchange gave up 0.9 per cent to a low of US$6,944, its weakest since early December, and aluminium dropped 2.2 per cent to a low of US$1,715.
The sabre-rattling in Ukraine weighed on the euro and helped bolster the dollar, making dollar-priced metals costlier for non-US investors.
Also hitting metals was data that showed activity in China's factory sector slowed to an eight-month low in February, reinforcing signs of a modest slowdown in the world's No 2 economy as demand weakens.
China is the world's top user of the base metal, accounting for about 40 per cent of global demand.
GRAIN RALLIES
Wheat futures rose nearly 6 per cent and corn about 4 per cent as tensions in Ukraine stoked fears of disruption to shipments from the Black Sea, one of the world's key grain-exporting zones.
Chicago Board of Trade May wheat jumped as much as 5.9 per cent to US$6.38 a bushel, a level last seen on the contract in mid-December.
Ukraine, among the world's top suppliers of wheat, is forecast to export 10 million tonnes of the grain in 2013/14, according to estimates from the US Department of Agriculture (USDA). Russia's shipments are projected to reach 16.5 million tonnes.
Chicago corn climbed 4.2 per cent to a session high of US$4.82-3/4, marking a level last seen in mid-September.
Ukraine is forecast to export 18.5 million tonnes of corn in the current marketing season, representing 16 percent of world trade, according to the USDA. "The market is concerned that the tensions in that part of the world could curb export activity," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia."The importance of the Black Sea region to global grain markets should not be understated." In soft commodities, arabica coffee futures turned lower after climbing to a 17-month high as dealers sought to assess the extent to which dry weather in Brazil in the last couple of months will reduce the size of this year's crop. - Reuters
http://www.businesstimes.com.sg/breaking-news/world/ukraine-crisis-pushes-gold-oil-grains-20140304
Published March 04, 2014
[LONDON] Gold, crude oil and grains surged on Monday while industrial metals slid as investors reacted to escalating tensions between Moscow and Kiev after the Russian military tightened its grip on Ukraine's Crimea region.
Concern about supplies pushed up crude oil prices by more than US$2 a barrel and wheat and corn by 4-6 per cent. Safe-haven buying sent gold prices to four-month highs.
Base metals such as copper fell along with shares as investors ditched higher-risk assets and due to worries that a conflict could damage global growth. "Trade sanctions and a general ratcheting up of global tensions could also endanger the fragile global economic recovery now under way, hurting commodity prices in the process," analyst Edward Meir at broker INTL FCStone said.
Ukraine said Russia was building up armoured vehicles on its side of a narrow stretch of water closest to Crimea after President Vladimir Putin declared at the weekend Russia had the right to invade his neighbour to protect Russian interests.
Russia is one of the world's biggest oil producers. Newly installed Ukrainian Prime Minister Arseny Yatseniuk said Moscow's move to use military force was a "declaration of war".
Brent crude climbed 3 per cent to a session high of US$112.39 per barrel, its loftiest since Dec 30.
US crude for April delivery jumped as much as 2.3 per cent to a high of US$104.97 a barrel, the strongest since Sept 23. "Oil markets are reacting on the potential that the situation could worsen," said Ben Le Brun, market analyst at OptionsXpress in Sydney. "But I definitely suspect oil will move much higher, if it actually comes to war. US crude could easily surpass US$110 and a US$120 target is not out of the question."
SAFE-HAVEN GOLD
Spot gold skated 1.9 per cent higher to a peak of US$1,350.80 an ounce, the highest since Oct 30 as investors fled to assets regarded as safe havens. Gold was also headed for its biggest daily gain since Jan 23. "There is an ongoing shift in sentiment indicative of investors seeing some upside from geopolitical concerns, some safe-haven bids coming out of emerging markets and possibly a more neutral outlook towards equities," Mitsubishi Corp analyst Jonathan Butler said.
Industrial metals went the opposite direction.
Copper on the London Metal Exchange gave up 0.9 per cent to a low of US$6,944, its weakest since early December, and aluminium dropped 2.2 per cent to a low of US$1,715.
The sabre-rattling in Ukraine weighed on the euro and helped bolster the dollar, making dollar-priced metals costlier for non-US investors.
Also hitting metals was data that showed activity in China's factory sector slowed to an eight-month low in February, reinforcing signs of a modest slowdown in the world's No 2 economy as demand weakens.
China is the world's top user of the base metal, accounting for about 40 per cent of global demand.
GRAIN RALLIES
Wheat futures rose nearly 6 per cent and corn about 4 per cent as tensions in Ukraine stoked fears of disruption to shipments from the Black Sea, one of the world's key grain-exporting zones.
Chicago Board of Trade May wheat jumped as much as 5.9 per cent to US$6.38 a bushel, a level last seen on the contract in mid-December.
Ukraine, among the world's top suppliers of wheat, is forecast to export 10 million tonnes of the grain in 2013/14, according to estimates from the US Department of Agriculture (USDA). Russia's shipments are projected to reach 16.5 million tonnes.
Chicago corn climbed 4.2 per cent to a session high of US$4.82-3/4, marking a level last seen in mid-September.
Ukraine is forecast to export 18.5 million tonnes of corn in the current marketing season, representing 16 percent of world trade, according to the USDA. "The market is concerned that the tensions in that part of the world could curb export activity," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia."The importance of the Black Sea region to global grain markets should not be understated." In soft commodities, arabica coffee futures turned lower after climbing to a 17-month high as dealers sought to assess the extent to which dry weather in Brazil in the last couple of months will reduce the size of this year's crop. - Reuters
http://www.businesstimes.com.sg/breaking-news/world/ukraine-crisis-pushes-gold-oil-grains-20140304
Singapore named the world's most expensive city
3 March 2014 Last updated at 23:19
Singapore has topped 131 cities globally to become the world's most expensive city to live in 2014, according to the Economic Intelligence Unit (EIU).
The city's strong currency combined with the high cost of running a car and soaring utility bills contributed to Singapore topping the list.
It is also the most expensive place in the world to buy clothes.
Singapore replaces Tokyo, which topped the list in 2013.
Other cities making up the top five most expensive cities to live in are Paris, Oslo, Zurich and Sydney, with Tokyo falling to sixth place.
The EIU's Worldwide Cost of Living Survey is a relocation tool that uses New York city as a base. It looks at more than 400 individual prices.
Continue reading the main story
Top 5 most expensive cities
Sydney opera house
1.Singapore, Singapore
2.Paris, France
3.Oslo, Norway
4.Zurich, Switzerland
5.Sydney, Australia
Soaring Asia
The top 10 cities this year have been dominated by Asian and Australasian cities as well as some in Europe.
"Improving sentiment in structurally expensive European cities combined with the continued rise of Asian hubs means that these two regions continue to supply most of the world's most expensive cities," said the editor of the report, Jon Copestake.
"But Asian cities also continue to make up many of the world's cheapest, especially in the Indian subcontinent."
Most Asian cities that top the list are there for predominantly higher costs of groceries. Tokyo is still at the top of the list for everyday food items.
Inexpensive India
However, not all Asian cities are tough on the wallet.
India's major cities - including Mumbai and New Delhi - were found to be among the least expensive in the world.
Mumbai's prices are kept low by large income inequality.
The low wages of many of the city's workers keep spending low, and government subsidies have helped them stay that way.
Outside of the subcontinent, Damascus in Syria saw the largest drop, becoming the fourth cheapest city in the world as the country's ongoing conflict has led to plummeting prices.
While the EIU's survey takes into account the cost of living, other firms employ different research methods.
Mercer conducts research to determine the most expensive cities for expatriate living.
It found that in 2013, Luanda, Angola was the hardest on expatriate wallets due to the difficulty of finding adequate secure housing, and the high price of imported goods.
http://www.bbc.com/news/business-26412821
3 March 2014 Last updated at 23:19
Singapore has topped 131 cities globally to become the world's most expensive city to live in 2014, according to the Economic Intelligence Unit (EIU).
The city's strong currency combined with the high cost of running a car and soaring utility bills contributed to Singapore topping the list.
It is also the most expensive place in the world to buy clothes.
Singapore replaces Tokyo, which topped the list in 2013.
Other cities making up the top five most expensive cities to live in are Paris, Oslo, Zurich and Sydney, with Tokyo falling to sixth place.
The EIU's Worldwide Cost of Living Survey is a relocation tool that uses New York city as a base. It looks at more than 400 individual prices.
Continue reading the main story
Top 5 most expensive cities
Sydney opera house
1.Singapore, Singapore
2.Paris, France
3.Oslo, Norway
4.Zurich, Switzerland
5.Sydney, Australia
Soaring Asia
The top 10 cities this year have been dominated by Asian and Australasian cities as well as some in Europe.
"Improving sentiment in structurally expensive European cities combined with the continued rise of Asian hubs means that these two regions continue to supply most of the world's most expensive cities," said the editor of the report, Jon Copestake.
"But Asian cities also continue to make up many of the world's cheapest, especially in the Indian subcontinent."
Most Asian cities that top the list are there for predominantly higher costs of groceries. Tokyo is still at the top of the list for everyday food items.
Inexpensive India
However, not all Asian cities are tough on the wallet.
India's major cities - including Mumbai and New Delhi - were found to be among the least expensive in the world.
Mumbai's prices are kept low by large income inequality.
The low wages of many of the city's workers keep spending low, and government subsidies have helped them stay that way.
Outside of the subcontinent, Damascus in Syria saw the largest drop, becoming the fourth cheapest city in the world as the country's ongoing conflict has led to plummeting prices.
While the EIU's survey takes into account the cost of living, other firms employ different research methods.
Mercer conducts research to determine the most expensive cities for expatriate living.
It found that in 2013, Luanda, Angola was the hardest on expatriate wallets due to the difficulty of finding adequate secure housing, and the high price of imported goods.
http://www.bbc.com/news/business-26412821
Being the most expensive city is okay as long as the lowest and average workers salaries - not minister salary - are the most highest too...PAP failed miserably on this, they themselves win lah! Singaporeans are real poor thing living in not just most expensive city but most expensive country with no other cheaper options!
Last edited:
Can try the cheaper option of putting up a tent at East Coast Park. Beachfront living too.
Lego to build on movie success, tackle globalisation challenge
Published March 12, 2014
When Joergen Vig Knudstorp took the helm in 2004, vulture capitalists were circling the ailing company, into which Lego heir Kjeld Kirk Kristiansen had just injected 800 million kroner of his own money - PHOTO: AFP
[BILLUND] With record sales and a hit movie expected to propel them further, Lego could be expected to bask in its successful turnaround, but the Danish maker of colourful toy blocks is pressing ahead to face the challenges of globalisation.
Last month, the world's second largest toymaker reported a nine per cent rise in annual net profit to 6.12 billion kroner (US$1.12 billion). The 10-per cent increase in sales to 25.38 billion kroner marked a quadrupling in just 10 years.
By contrast, the traditional toy market is expected to grow marginally or not at all as it loses sales to video games.
The performance is even more remarkable since just a decade ago the company was on the ropes, posting massive losses and laying off thousands of workers.
When Joergen Vig Knudstorp took the helm in 2004, vulture capitalists were circling the ailing company, into which Lego heir Kjeld Kirk Kristiansen had just injected 800 million kroner of his own money.
"There was an emphasis on stretching the brand and moving into adjacent businesses. Apparel, theme parks, a lot of consumer electronics and so on," Vig Knudstorp told AFP in an interview.
The ideas weren't necessarily bad - sales were rising - but they weren't a good match with Lego, which failed to make them profitable. It also lost focus on the original toy operation, where revenues plunged.
In addition to spreading itself too thin, Lego had failed to adapt to consumers' shift away from local "mom and pop" stores to big-box retailers like Wal-Mart and Toys'R'Us.
The first chief executive from outside the founding Kirk Christiansen family overhauled the supply chain and withdrew from high-cost manufacturing locations such as Switzerland in favour of "mid-cost" countries like Hungary and the Czech Republic.
The Legoland theme parks were spun off and merged with Merlin Entertainment, the private-equity backed owner of Madame Tussauds.
"We decided to only do the core business and leave these adjacent businesses to other operators and earn a licensing income," Mr Knudstorp said.
SILVER SCREEN
The Lego Movie, a smash-hit animated film that has won over both audiences and critics, is a case in point of how the group is profiting from letting other companies use its brand.
A Warner Brothers team spent five years immersing itself in the company's culture before the movie hit the screens.
"We gave (Warner Brothers) very broad artistic degrees of freedom because we think it's so crucial that when you take a risk you also be able to make decisions," said Mr Knudstorp.
Many Lego fans still build "freestyle" and post video clips of their creations on YouTube, where the company boasts 7.5 billion viewings, 99 per cent of which are user generated and, according to the group, putting it in the top three of all brands on the video sharing site.
But over the years, Lego has gone from being a purveyor of simple plastic bricks to selling toys that come with pre-written storylines, such as the Harry Potter theme released in 2001 and last year's megahit Legends Of Chima, where animal tribes battle for world dominance.
The new product ranges now account for 60 per cent of sales.
"If you look at who is successful in this not-so-successful traditional toy industry it is those (with) big stories," said Mr Knudstorp.
Although the company likes to emphasise that the appeal of its bricks is universal, it recognises there are significant cultural differences between how children in different countries react to themed collections that come with a storyline.
"We're very aware of how kids in China, South Korea, Japan, the US and Germany for instance, react to these types of themes," Mr Knudstorp said.
Successful marketing campaigns also tend to require international talent, he added.
This makes attracting the right talent crucial, but Lego's management is still for the most part in Billund, a 3-hour journey by train and bus from Copenhagen.
The company has had trouble recruiting the staff it seeks given the remoteness of the town, and the fact with a population of just 6,200 it has few professional opportunities for spouses.
While the company isn't abandoning its hometown, it plans to set up new management hubs in London, Singapore and Shanghai as well as at an existing facility in Connecticut in the United States.
Lego hopes this will help it tap into greater talent pools and bring it closer to developing economies where future growth will come from. The company expects 600 million people to join China's urban middle class within a decade.
While many voices in the industry saying that the future of toys is digital, the company is confident it can continue to see off the challenge.
The company has let partners develop video games for various consoles for the themed Lego toys.
Traditional Lego toys and digital applications "can co-exist, that's my strong belief," Mr Knudstorp said, drawing an analogy to football.
"It's great to play soccer on the computer," he said.
"But put a ball in front of a bunch of kids at school, green field of grass, moving around, passing the ball along - they can't help themselves," he added.
"And that is exactly what we see with the bricks. You roll out all those bricks in front of kids in a school, they start building. They can't help themselves." - AFP
http://www.businesstimes.com.sg/bre...ccess-tackle-globalisation-challenge-20140312
Published March 12, 2014
When Joergen Vig Knudstorp took the helm in 2004, vulture capitalists were circling the ailing company, into which Lego heir Kjeld Kirk Kristiansen had just injected 800 million kroner of his own money - PHOTO: AFP
[BILLUND] With record sales and a hit movie expected to propel them further, Lego could be expected to bask in its successful turnaround, but the Danish maker of colourful toy blocks is pressing ahead to face the challenges of globalisation.
Last month, the world's second largest toymaker reported a nine per cent rise in annual net profit to 6.12 billion kroner (US$1.12 billion). The 10-per cent increase in sales to 25.38 billion kroner marked a quadrupling in just 10 years.
By contrast, the traditional toy market is expected to grow marginally or not at all as it loses sales to video games.
The performance is even more remarkable since just a decade ago the company was on the ropes, posting massive losses and laying off thousands of workers.
When Joergen Vig Knudstorp took the helm in 2004, vulture capitalists were circling the ailing company, into which Lego heir Kjeld Kirk Kristiansen had just injected 800 million kroner of his own money.
"There was an emphasis on stretching the brand and moving into adjacent businesses. Apparel, theme parks, a lot of consumer electronics and so on," Vig Knudstorp told AFP in an interview.
The ideas weren't necessarily bad - sales were rising - but they weren't a good match with Lego, which failed to make them profitable. It also lost focus on the original toy operation, where revenues plunged.
In addition to spreading itself too thin, Lego had failed to adapt to consumers' shift away from local "mom and pop" stores to big-box retailers like Wal-Mart and Toys'R'Us.
The first chief executive from outside the founding Kirk Christiansen family overhauled the supply chain and withdrew from high-cost manufacturing locations such as Switzerland in favour of "mid-cost" countries like Hungary and the Czech Republic.
The Legoland theme parks were spun off and merged with Merlin Entertainment, the private-equity backed owner of Madame Tussauds.
"We decided to only do the core business and leave these adjacent businesses to other operators and earn a licensing income," Mr Knudstorp said.
SILVER SCREEN
The Lego Movie, a smash-hit animated film that has won over both audiences and critics, is a case in point of how the group is profiting from letting other companies use its brand.
A Warner Brothers team spent five years immersing itself in the company's culture before the movie hit the screens.
"We gave (Warner Brothers) very broad artistic degrees of freedom because we think it's so crucial that when you take a risk you also be able to make decisions," said Mr Knudstorp.
Many Lego fans still build "freestyle" and post video clips of their creations on YouTube, where the company boasts 7.5 billion viewings, 99 per cent of which are user generated and, according to the group, putting it in the top three of all brands on the video sharing site.
But over the years, Lego has gone from being a purveyor of simple plastic bricks to selling toys that come with pre-written storylines, such as the Harry Potter theme released in 2001 and last year's megahit Legends Of Chima, where animal tribes battle for world dominance.
The new product ranges now account for 60 per cent of sales.
"If you look at who is successful in this not-so-successful traditional toy industry it is those (with) big stories," said Mr Knudstorp.
Although the company likes to emphasise that the appeal of its bricks is universal, it recognises there are significant cultural differences between how children in different countries react to themed collections that come with a storyline.
"We're very aware of how kids in China, South Korea, Japan, the US and Germany for instance, react to these types of themes," Mr Knudstorp said.
Successful marketing campaigns also tend to require international talent, he added.
This makes attracting the right talent crucial, but Lego's management is still for the most part in Billund, a 3-hour journey by train and bus from Copenhagen.
The company has had trouble recruiting the staff it seeks given the remoteness of the town, and the fact with a population of just 6,200 it has few professional opportunities for spouses.
While the company isn't abandoning its hometown, it plans to set up new management hubs in London, Singapore and Shanghai as well as at an existing facility in Connecticut in the United States.
Lego hopes this will help it tap into greater talent pools and bring it closer to developing economies where future growth will come from. The company expects 600 million people to join China's urban middle class within a decade.
While many voices in the industry saying that the future of toys is digital, the company is confident it can continue to see off the challenge.
The company has let partners develop video games for various consoles for the themed Lego toys.
Traditional Lego toys and digital applications "can co-exist, that's my strong belief," Mr Knudstorp said, drawing an analogy to football.
"It's great to play soccer on the computer," he said.
"But put a ball in front of a bunch of kids at school, green field of grass, moving around, passing the ball along - they can't help themselves," he added.
"And that is exactly what we see with the bricks. You roll out all those bricks in front of kids in a school, they start building. They can't help themselves." - AFP
http://www.businesstimes.com.sg/bre...ccess-tackle-globalisation-challenge-20140312
Firms eligible for GST must register by 1 Jan 2015 to avoid penalty
First Published: 6:22pm, Mar 24, 2014
Last Updated: 6:22pm, Mar 24, 2014
by Bernama
KUALA LUMPUR (March 24): Companies that qualify to register for the goods and services tax (GST) will be charged a penalty, if they fail to register with the Royal Customs Department by Jan 1, 2015, at the latest.
Companies earning more than RM500,000 profit in the 11 months before the date of registration, or are expected to hit the amount in 11 months, are mandated to register with the department, to avoid paying a penalty.
The Royal Malaysia Customs senior assistant director (I) Rohana Ahmad, said the penalty was to ensure that all companies complied with the guidelines for the GST, which would come into force on April 1, next year.
"We are still in the early stage of determining the type of fines to be imposed on companies that failed to register," she told reporters, after a GST seminar organised by the Malaysian Financial Planning Council and the Financial Planning Association Malaysia, in collaboration with the Royal Malaysia Customs.
Rohana said that the duty-free islands — Langkawi, Tioman and Labuan — remained exempted from the GST.
She said goods and services transactions among the three duty-free islands, are also not subjected to GST, but the transactions of goods and services from the islands to the rest of Malaysia, would be charged GST.
"Transactions from other parts of Malaysia to and from the islands, will also be levied GST," she said.
However, overseas goods and services to and from the duty-free islands, are not subjected to GST, she said.
Some 200 participants attended the one-day seminar, themed GST: Its Impact on Financial Planners.
Read more: http://www.fz.com/content/firms-eligible-gst-must-register-1-jan-2015-avoid-penalty#ixzz2wvOW8BTL
First Published: 6:22pm, Mar 24, 2014
Last Updated: 6:22pm, Mar 24, 2014
by Bernama
KUALA LUMPUR (March 24): Companies that qualify to register for the goods and services tax (GST) will be charged a penalty, if they fail to register with the Royal Customs Department by Jan 1, 2015, at the latest.
Companies earning more than RM500,000 profit in the 11 months before the date of registration, or are expected to hit the amount in 11 months, are mandated to register with the department, to avoid paying a penalty.
The Royal Malaysia Customs senior assistant director (I) Rohana Ahmad, said the penalty was to ensure that all companies complied with the guidelines for the GST, which would come into force on April 1, next year.
"We are still in the early stage of determining the type of fines to be imposed on companies that failed to register," she told reporters, after a GST seminar organised by the Malaysian Financial Planning Council and the Financial Planning Association Malaysia, in collaboration with the Royal Malaysia Customs.
Rohana said that the duty-free islands — Langkawi, Tioman and Labuan — remained exempted from the GST.
She said goods and services transactions among the three duty-free islands, are also not subjected to GST, but the transactions of goods and services from the islands to the rest of Malaysia, would be charged GST.
"Transactions from other parts of Malaysia to and from the islands, will also be levied GST," she said.
However, overseas goods and services to and from the duty-free islands, are not subjected to GST, she said.
Some 200 participants attended the one-day seminar, themed GST: Its Impact on Financial Planners.
Read more: http://www.fz.com/content/firms-eligible-gst-must-register-1-jan-2015-avoid-penalty#ixzz2wvOW8BTL
just checked adda heights subsale asking prices on iproperty.com yesterday.
guess what? all asking an extra few hundred thousands compared to end 2013.
Getting more expensive, but I don't think it is bubbly yet for these new landed properties. Prices still have a lot more room to go in 2014 and 2015.
Some Malaysian neigbours keep tell me to sell away my 2sty Cluster to them cheap cheap saying that new cooling measure will crash the market. I rather leave it vacant , wait long long then sell.
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