It's been barely five years since Singapore announced that it would develop integrated casino resorts, yet already the island nation has become a serious rival to Las Vegas, with just two major casinos.
Second quarter 2010 winnings put Singapore on track to have a $4 billion casino market on an annualized basis according to the Wall Street Journal. That's just 20% shy of what Las Vegas is expected to do this year, and even Las Vegas is impressed:
WSJ:
"It's just proof that if you build it they will come and in Singapore they built two products that are worthy of that title," says Andy Nazarechuk, Dean of University of Nevada Las Vegas' Singapore campus.
"Las Vegas will continue to attract (Asian visitors) but instead of the player making two or three trips to Las Vegas in the year they may make only one trip and the other two trips may be more closer regionally."
Even the bears expect a substantial market size for Singapore:
Las Vegas-based gambling consultancy Galaviz & Company has relatively conservative forecasts for actual earnings in Singapore of $3.5 billion in 2011 and projects the Las Vegas strip will earn $5.8 billion, a modest improvement on the $5.1 billion expected in 2010.
And the bulls think Singapore could torpedo Las Vegas's market position within just the next few years:
However, some among the investment community believe the Singapore market will approach the sorts of numbers Galaviz expects for the Las Vegas strip, which accounts for about half of the state of Nevada's gaming revenue, by 2012.
Aaron Fischer of CLSA has some of the more bullish forecasts, expecting the combined gaming revenues of both Singapore resorts to generate $5.1 billion in 2011, up from his previous estimate of $3.9 billion. Goldman Sachs also expects the sector could bring in $5 billion in 2011.
Combined with the development of Macau, it seems like Las Vegas's leadership position could be toast over the next decade, even should the U.S. economy rebound well past its past peak. Las Vegas probably needs to roll out some heavy branding initiatives in Asia.
Note however that Steve Wynn, the founder of Wynn Casinos (WYNN), isn't waiting for any magic from the Nevada government. He's planting himself in Asia quite often, even if he's backed off from plans to move his HQ to Asia, realizing that Wynn's long-term success revolves around being a global company, like Hilton. It's not about being stuck in Las Vegas alone.
Thus it's not the U.S. casinos that need to be worried about the rise of Asian casino hubs per se, but more Nevada state. Nevada better move fast, given the ambition and well organized government efforts in Singapore and Macau. Heck, I've never been to Vegas, but I'm already dying to jump into Singapore's new infinity pool...
Now see jaw-dropping pictures of Singapore's casino-skyscraper infinity pool >
Thursday, August 19, 2010
SCHRODER'S QUICK COMMENT - Money Mind
SCHRODER'S QUICK COMMENT: in June China became the world's second largest economy with economic output at US$1.337 trillion in the second quarter, compared to US$1.288 trillion for Japan. China's annualised growth in the second quarter was 10.3%, a rate of growth which - if sustained - would make China the world's largest economy, overtaking the US, at some point in the mid-2020s.
Temasek appoints Gregory Curl as president
Temasek Holdings said Gregory Curl will join the Singapore state-owned investment company as president.
CapitaMall Trust said to sell $300m of 4, 7-year notes
Written by Bloomberg
Thursday, 19 August 2010 16:42
CapitaMall Trust sold $300 million of four-year and seven-year bonds, according to a person familiar with the matter.
The $150 million of four-year bonds were priced to yield 2.85% while the $150 million of seven-year bonds were priced to yield 3.55%, the person said, asking not to be identified as details are private.
DBS Group Holdings managed the sale, the person said.
Thursday, 19 August 2010 16:42
CapitaMall Trust sold $300 million of four-year and seven-year bonds, according to a person familiar with the matter.
The $150 million of four-year bonds were priced to yield 2.85% while the $150 million of seven-year bonds were priced to yield 3.55%, the person said, asking not to be identified as details are private.
DBS Group Holdings managed the sale, the person said.
2H10 challenging for Singapore banks: DBS Vickers
Written by The Edge
Thursday, 19 August 2010 12:08
The second-half of the financial year will be a challenging one for Singapore banks with net interest margin still under pressure, loan growth moderating, says DBS Vickers, according to Dow Jones.
With provisions almost at all-time lows, non-interest income will be key factor determining earnings performance. Expects fee income to remain robust in 2H10 given strong capital markets.
Thursday, 19 August 2010 12:08
The second-half of the financial year will be a challenging one for Singapore banks with net interest margin still under pressure, loan growth moderating, says DBS Vickers, according to Dow Jones.
With provisions almost at all-time lows, non-interest income will be key factor determining earnings performance. Expects fee income to remain robust in 2H10 given strong capital markets.
CapitaMall Trust said to plan sale of $300m bonds
Written by Bloomberg
Thursday, 19 August 2010 11:03
CapitaMall Trust plans to sell $300 million of four-year and seven-year bonds, according to a person familiar with the matter.
The $150 million of four-year bonds may price to yield about 2.85%while the $150 million of seven-year bonds may price to yield about 3.55%, the person said, asking not to be identified as details are private.
DBS Group Holdings is managing the sale, the person said.
Thursday, 19 August 2010 11:03
CapitaMall Trust plans to sell $300 million of four-year and seven-year bonds, according to a person familiar with the matter.
The $150 million of four-year bonds may price to yield about 2.85%while the $150 million of seven-year bonds may price to yield about 3.55%, the person said, asking not to be identified as details are private.
DBS Group Holdings is managing the sale, the person said.
Singapore retains Fitch’s top credit rating on stable outlook
Written by Bloomberg
Wednesday, 18 August 2010 17:16
Singapore retained its top credit ranking of AAA at Fitch Ratings, which cited the country’s “exceptionally strong external financial and fiscal positions.”
“The exposure to external shocks and greater volatility associated with a small and very open economy is more than offset by the strength of Singapore’s external and fiscal buffers, as well as the credibility of its economic policy framework,” the company said in a statement today.
Wednesday, 18 August 2010 17:16
Singapore retained its top credit ranking of AAA at Fitch Ratings, which cited the country’s “exceptionally strong external financial and fiscal positions.”
“The exposure to external shocks and greater volatility associated with a small and very open economy is more than offset by the strength of Singapore’s external and fiscal buffers, as well as the credibility of its economic policy framework,” the company said in a statement today.
Singapore gaming may rival Las Vegas by 2012
Written by The Edge
Wednesday, 18 August 2010 16:24
Singapore’s very young gaming sector revenues could rival those from Las Vegas strip in next two years, according to some estimates, according to Dow Jones.
CLSA expects sector to generate US$5.1 billion ($19 billion) in 2011, which compares with Galaviz & Co.’s 2011 estimate of US$5.8 billion for Las Vegas strip for 2011.
Reflects weakness in gaming revenues in traditional US gambling Mecca of Las Vegas, especially as Asian players look closer to home at venues in Macau and now increasingly Singapore following opening of Las Vegas Sands’ (LVS) Marina Bay Sands and Genting Singapore’s (G13.SG) Resorts World Sentosa earlier this year.
“The appetite for gambling in Asia is significantly higher than it is outside of Asia,” CLSA analyst Aaron Fischer says.
Wednesday, 18 August 2010 16:24
Singapore’s very young gaming sector revenues could rival those from Las Vegas strip in next two years, according to some estimates, according to Dow Jones.
CLSA expects sector to generate US$5.1 billion ($19 billion) in 2011, which compares with Galaviz & Co.’s 2011 estimate of US$5.8 billion for Las Vegas strip for 2011.
Reflects weakness in gaming revenues in traditional US gambling Mecca of Las Vegas, especially as Asian players look closer to home at venues in Macau and now increasingly Singapore following opening of Las Vegas Sands’ (LVS) Marina Bay Sands and Genting Singapore’s (G13.SG) Resorts World Sentosa earlier this year.
“The appetite for gambling in Asia is significantly higher than it is outside of Asia,” CLSA analyst Aaron Fischer says.
SM Goh re-appointed MAS chairman
Written by The Edge
Wednesday, 18 August 2010 12:39
Senior Minister Goh Chok Tong has been re-appointed as Chairman, the Monetary Authority of Singapore (MAS) said today. His appointment is for a further period of two years with effect from August 20, 2010.
Wednesday, 18 August 2010 12:39
Senior Minister Goh Chok Tong has been re-appointed as Chairman, the Monetary Authority of Singapore (MAS) said today. His appointment is for a further period of two years with effect from August 20, 2010.
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