<CENTER><TABLE id=msgUN cellSpacing=3 cellPadding=0 width="100%" border=0><TBODY><TR><TD id=msgUNsubj vAlign=top>Coffeeshop Chit Chat - Rethink JTC hive-off plan </TD><TD id=msgunetc noWrap align=right>Subscribe </TD></TR></TBODY></TABLE><TABLE class=msgtable cellSpacing=0 cellPadding=0 width="96%"><TBODY><TR><TD class=msg vAlign=top><TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR class=msghead><TD class=msgbfr1 width="1%"></TD><TD><TABLE cellSpacing=0 cellPadding=0 border=0><TBODY><TR class=msghead><TD class=msgF noWrap align=right width="1%">From: </TD><TD class=msgFname noWrap width="68%">kojakbt22 <NOBR></NOBR></TD><TD class=msgDate noWrap align=right width="30%">7:47 am </TD></TR><TR class=msghead><TD class=msgT noWrap align=right width="1%" height=20>To: </TD><TD class=msgTname noWrap width="68%">ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right>(1 of 1) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft width="1%" rowSpan=4></TD><TD class=wintiny noWrap align=right>8529.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt><TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD>March 5, 2009
MAPLETREE RENT SAGA
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->THE unenviable predicament of tenants of factories sold by JTC Corporation to Mapletree Investments, which was reported on Monday ('Mapletree rejects appeal for rent cuts'), is a reminder to the Government to rethink its plan to hive off JTC factories to the private sector.
Once such factories are taken over by the private sector, full market forces must come to bear. As it is a listed real estate investment trust that survives or perishes by rental yield, Mapletree's sole concern is yield maximisation.
Even if the factories were sold to an unlisted private entity, rent maximisation will still be the ultimate objective, although it may not need to be as high-handed in the absence of stock market pressure. Private-sector landlords are just doing what they are supposed to do.
But if factories, as productive entities, have wider added values in the economy (what economists call 'externalities'), then the Government must rethink its plan to leave them at the mercy of yield-maximising private landlords. It is not without economic basis that even in the supposedly ruthless United States free market, state governments regularly offer free industrial land in exchange for agreed investment commitments.
Cheng Shoong Tat
<!-- end of for each --><!-- Current Ratings : start --><!-- Current Ratings : end --><!-- vbbintegration : start --><!---vbbTime (Thread ID: 17468) - Start : Thu, 5 Mar 2009 03:54:47:695---><TABLE cellSpacing=0 width="100%" border=0><TBODY><TR><TD><TABLE id=story_comments cellSpacing=0 width="100%" border=0><TBODY><TR id=comments_body><TD colSpan=2><TABLE cellSpacing=0 width="100%" border=0><TBODY><TR><TD class=heading>Latest comments</TD></TR><TR><TD id=messageDisplayRegion width="100%"><TABLE style="WIDTH: 100%" cellSpacing=2 cellPadding=0><TBODY><TR><TD style="VERTICAL-ALIGN: top" align=left><TABLE style="WIDTH: 100%" cellSpacing=2 cellPadding=0><TBODY><TR><TD style="VERTICAL-ALIGN: top" align=left><TABLE class=Post style="WIDTH: 100%" cellSpacing=0 cellPadding=0><TBODY><TR><TD style="VERTICAL-ALIGN: top" align=left>Very good, let this continue for the next few rounds of GE. This gov is very good at using the nation money to build and give ppl run. A very big Example MRT, spend out money to build everything, then give 3rd party to run and increase price and .... Wat logic is this. The sucessful tenders must be very luck, do transport biz without outfront cost.
</TD></TR><TR><TD style="VERTICAL-ALIGN: top" align=left>Posted by: BuildnGiveppl at Thu Mar 05 09:48:52 SGT 2009
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[email protected]
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MAPLETREE RENT SAGA
</TD></TR><TR><TD><!-- headline one : start --></TD></TR><TR><TD>Rethink JTC hive-off plan
</TD></TR><TR><TD><!-- headline one : end --></TD></TR><TR><TD><!-- show image if available --></TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->THE unenviable predicament of tenants of factories sold by JTC Corporation to Mapletree Investments, which was reported on Monday ('Mapletree rejects appeal for rent cuts'), is a reminder to the Government to rethink its plan to hive off JTC factories to the private sector.
Once such factories are taken over by the private sector, full market forces must come to bear. As it is a listed real estate investment trust that survives or perishes by rental yield, Mapletree's sole concern is yield maximisation.
Even if the factories were sold to an unlisted private entity, rent maximisation will still be the ultimate objective, although it may not need to be as high-handed in the absence of stock market pressure. Private-sector landlords are just doing what they are supposed to do.
But if factories, as productive entities, have wider added values in the economy (what economists call 'externalities'), then the Government must rethink its plan to leave them at the mercy of yield-maximising private landlords. It is not without economic basis that even in the supposedly ruthless United States free market, state governments regularly offer free industrial land in exchange for agreed investment commitments.
Cheng Shoong Tat
<!-- end of for each --><!-- Current Ratings : start --><!-- Current Ratings : end --><!-- vbbintegration : start --><!---vbbTime (Thread ID: 17468) - Start : Thu, 5 Mar 2009 03:54:47:695---><TABLE cellSpacing=0 width="100%" border=0><TBODY><TR><TD><TABLE id=story_comments cellSpacing=0 width="100%" border=0><TBODY><TR id=comments_body><TD colSpan=2><TABLE cellSpacing=0 width="100%" border=0><TBODY><TR><TD class=heading>Latest comments</TD></TR><TR><TD id=messageDisplayRegion width="100%"><TABLE style="WIDTH: 100%" cellSpacing=2 cellPadding=0><TBODY><TR><TD style="VERTICAL-ALIGN: top" align=left><TABLE style="WIDTH: 100%" cellSpacing=2 cellPadding=0><TBODY><TR><TD style="VERTICAL-ALIGN: top" align=left><TABLE class=Post style="WIDTH: 100%" cellSpacing=0 cellPadding=0><TBODY><TR><TD style="VERTICAL-ALIGN: top" align=left>Very good, let this continue for the next few rounds of GE. This gov is very good at using the nation money to build and give ppl run. A very big Example MRT, spend out money to build everything, then give 3rd party to run and increase price and .... Wat logic is this. The sucessful tenders must be very luck, do transport biz without outfront cost.
</TD></TR><TR><TD style="VERTICAL-ALIGN: top" align=left>Posted by: BuildnGiveppl at Thu Mar 05 09:48:52 SGT 2009
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[email protected]
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