SG Morning Highlights | GSS Energy faces S$12m write-off with termination of associate's agreement

Advancers / Decliners is 56 to 98, with 57.53 million securities worth S$64.23 million changing hands.

Singapore Savings Bonds (SSBs) allotted on Wednesday (Dec 28) were marginally oversubscribed, with investors applying for up to S$172,500 being fully allotted in an issuance that offers less attractive yields.

According to the Monetary Authority of Singapore (MAS) website, the fiscal agent for the government bond issuances received S$909.7 million in applications for the allotment of S$900 million.

Due to less competition, applicants were able to get a higher amount fulfilled.

As we move into a new year, the global economy is entering a challenging phase with a substantial increase in risk factors impacting investors and occupiers.

The real estate industry is at the heart of the current economic situation, with a sharp slowdown in activity and notable value adjustments resulting from the rapid shift in the outlook for interest rates and inflation. As a result, we expect to experience a period of adjustment in 2023 while investors, occupiers, lenders, and developers appraise the new valuation landscape.

Even as the economic rebound strengthens post-pandemic across the Asia Pacific (Apac) region, the surging inflation accompanying it has complicated the real estate outlook. As most central banks in the region tighten monetary policies to combat inflation, growth will inevitably slow.

In a bourse filing on Wednesday (Dec 28), HRnetGroup said the S$1 million in share capital has already been injected by the company and its respective co-owners. The money is being used to fund the increased working capital requirements of the subsidiary, RecruitFirst Taiwan, and its branches in Taipei and Kaohsiung, it added.

As for the licence, which was obtained from the Labor Affairs Bureau of Kaohsiung City Government, it would allow the unit to perform domestic and international employment services within the ambit of relevant rules, it pointed out.

In a bourse filing on Wednesday (Dec 28), GSS Energy said the agreement's termination will affect the recoverability of the group's S$2.8 million investment in GSS Energy Trembul Limited (GETL), and a S$9.9 million sum due from GETL and PT SGT. The amounts were calculated based on the latest unaudited financial statements for the financial period ended Jun 30, 2022.

GSS Energy holds a 20 per cent stake in GETL, which in turn holds 49 per cent of PT SGT.