Daily Briefing: Singapore and Indonesia lure 90% of VC deals in SEA; Flex work in Singapore up by 70%

And here's why UOB beats DBS in paying out its dividends even in difficult times.

From Deal Street Asia:

Singapore and Indonesia ate up more than 90% of venture capital deals in Southeast Asia, a recent report from Singapore Venture Capital & Private Equity Association (SVCA) revealed.

"As Southeast Asia records its highest level of Private Equity (PE) and Venture Capital (VC)-backed investments in 2017 at $23.5 billion riding on growing economies, the deals were not spread throughout the 630-million-people region but concentrated around two nations Singapore and Indonesia.

'Singapore’s comprehensive eco-system continues to be a strong magnet for businesses with ambitions to penetrate the Southeast Asian markets. Pro-business policies, tax treaties and a transparent regulatory regime continue to attract the setup of regional controlling centres for both fund managers and businesses overseeing diverse opportunities in Southeast Asia. Indonesia, on the other hand, is emerging as a strong breeding ground with several startups reaching “unicorn” status such as Go-Jek and PT Tokopedia,' said the report."

Read more here. 

From iCompareLoan:

Flexible work continues to grow in Singapore as the work space footprint of major operators went up by 70% to 900,000 sqft by the end of 2017 from 500,000 sqft at the end of 2014, JLL revealed.

"For example, in Singapore, the government has supported the development of flexible locations such as the JTC LaunchPad, which is home to a number of tech start-ups. Similarly, the New South Wales government supported the development of Sydney Startup Hub, a 17,000sqm tech zone catering to aspiring entrepreneurs. Meanwhile reforms introduced by the Japanese government to improve work-life balance and productivity are also pushing domestic companies to explore more flexible ways of working.

Ms. Tay Huey Ying, Head of Research and Consultancy, JLL Singapore, comments: 'In Singapore, flexible work space footprint by major operators tracked in the report has grown by 70 per cent to 0.9 million sq ft by the end of 2017 from 0.5 million sq ft at the end of 2014. They have capitalised on the soft rental environment amid an influx of new supply to expand their footprint to grab market share. This is particularly the case in the CBD where URA’s statistics showed close to 4 million sq ft of net new supply came on stream between 2014 and 2017.'"

Read more here.

From The Motley Fool:

UOB is able to beat DBS in terms of paying out dividends even in struggling times, The Motley Fool has revealed. DBS has a dividend yield of 3.26% and a dividend payout ratio of 55%. UOB, on the other hand, has a dividend yield of 2.82% with a dividend payout ratio of 39%.

"Finally, the dividend yield measures how much dividends you are getting for every dollar you pay for the stock. It is important for investors who require cashflow from their investments. The dividend payout ratio is another consideration when assessing dividends. The lower the payout ratio, the better, as the bank has more buffer to continue paying out its dividends even in difficult times.

UOB had a slightly lower dividend yield but also has a much lower dividend payout ratio, which means the bank has much more room to pay out more of its dividends in the future."

Read more here.