Commentary

You would have to be living on another planet if you haven’t heard about the Facebook IPO by now. Deemed as one of the largest public offerings in the world, it has been a roller-coaster ride for what was once a college social network.

The Monetary Authority of Singapore's proposal to introduce rules for covered bond issuance would be positive for Singaporean banks if enacted, as issuing covered bonds would allow them to potentially diversify their funding base and lengthen their debt maturity profile, Fitch Ratings says. We expect Singaporean banks to take advantage of this opportunity if a formal issuance framework is adopted. However, we think they would take an opportunistic approach to funding through the covered bond market, since they have predominantly deposit-funded balance sheets and this mitigates their wholesale funding needs. This could limit initial issuance compared with other jurisdictions that have introduced covered bond legislation, such as Australia, which saw heavy supply in early 2012 after introducing legislation the previous November. For this reason, Singaporean banks may not start hitting MAS's proposed cap on the value of the assets in the cover pool at 2% of the value of the total assets of the bank any time soon. The proposed 2% cap is strikingly low - it compares with 4% in Canada, 8% in Australia and 10% in New Zealand, for example. But as a starting point in MAS's consultation, it is consistent with the regulator's focus on potential risks to depositors, which in turn reflects their important role in funding Singaporean banks, whose loan-to-deposit ratios averaged 87% at end-2011. We think there is scope for MAS to review the cap if it were comfortable that a higher number was consistent with depositor protection. And while issuing covered bonds should be cheaper than funding via the senior unsecured bond market all other things being equal, the initial costs of setting up a covered bond programme, such as legal and documentation costs, plus the potential premium that investors would demand to buy covered bonds from a new jurisdiction, could be a disincentive for potential covered bond issuers. MAS recently issued a consultation paper outlining its proposed rules for covered bond issuance by banks incorporated in Singapore. As well as the 2% cap, the paper suggests limiting mortgage loans that can be funded through covered bonds to an 80% loan-to-value threshold, and suggests a 3% minimum overcollateralisation between the cover pool and the covered bonds. Under MAS's proposals, only residential mortgages and derivatives held for the purpose of hedging risks arising from covered bond issuance can be included in the cover pool. Fitch will review and submit its views and comments on the covered bond consultation paper in the coming weeks. Our rating outlook for Singaporean banks is stable. Their strong, liquid balance sheets, reasonably diversified loan books, satisfactory risk management, and domestic deposit franchises all help support the banks' high investment grade ratings. Alfred Chan, Director - Financial Institutions, Fitch Ratings Helen Wong, Director - Structured Finance, Fitch Ratings Mark Brown, Senior Director, Fitch Wire

This is one of the most common questions people ask me (after where can I buy your book and how much is your pay cheque?). It's great to know that there are many storytellers amongst us, and heartwarming when they share their book ideas with me.

In a global village, collaboration can occur in every corner of the world. Right now, Asia’s voice is as loud as it has ever been. The region’s influence is growing and major cities like Singapore have become catalysts for the creative world.

SoLoMo. A quick Google search tells you everyone’s talking about it. Singapore’s ready to get more involved. But what is it?

You must be thinking I'm crazy or I have my own agenda (I do run my own recruitment agency in Singapore). But regardless of how you are going to hire, the time has never been better than now.

In Singapore, and quite universally around the world, this is what has been happening since the beginning of the "Branding" and "Advertising" industries.

There’s a lot of buzz about engaging customers using social media, and marketers in Singapore are beginning to embrace the idea a solid digital marketing strategy requires more than Facebook, Twitter, and other established public social media sites can offer.

You’ve heard it before – the war to dominate the online space is all about content, because that’s what people are interested in.

One would assume that a business would aim to impress their customers, and in times of dissatisfaction, find a way to ensure their customers are not aggrieved, in order to maintain customer loyalty. However, despite the rise in competition and the evolving psychology of buying behaviour today , little is being done to remedy the global problem of ‘mediocre customer service’.

Career progression is important to all Singaporean professionals as it offers them the opportunity to develop their skills and broaden their experience. You can achieve this through an internal promotion with your current employer or by seeking external job opportunities.

“The secret of success is to understand the point of view of others,” said the US carmaker Henry Ford, a man who knew a few things about corporate growth. Ford’s advice is especially worth remembering at a time when businesses of all sizes are looking for growth opportunities overseas.

Why outsourcing strategies need to be underpinned by human resource planning. It is said that Henry Ford invented modern capitalist society when he raised his worker's wages to an unprecedented US$5 a day.

Happiness is the key to productivity and learning is the key to happiness.

International Women’s Day is an annual global celebration of women in the world today. Amid the celebrations, we also take time to reflect on what we women have achieved and what more we can do.

Brand pages are changing forever: On 30th March 2012 our Facebook Pages are converted to Timeline, whether we like it or not. What this all boils down to for you is; risks if you are not ready, but great opportunities if you plan ahead. This is a new era for brands on Facebook. We have mapped it out carefully in this guide. Use this as a starting point for a conversation on how to respond. 1. The Big Splash: Cover Photo The cover photo is the first thing people will see when they visit your page, the big chance to make an impact. There are strict guidelines on how it can be used so do check Facebook’s guidelines. Opportunities: The new larger, striking visual can create an impressive impact. The cover photo should be updated regularly to showcase new products and services. Risks: On the 30th March 2012, the page will switch to the new format immediately. If the cover photo isn’t uploaded and activated before then it will leave the page looking somewhat neglected. 2. Old vs. New: Tabs and Apps The format for tabs and apps has changed considerably. You may only display a maximum of three apps/tabs on the front page at any one time. Crucially, default landing tabs (commonly referred to as Fan-Gates) no longer work.