Top 10 business news headlines of 2016

As 2016 nears an end, Yahoo Singapore looks back at some of the year’s top business news.

10. Chicken rice recipe’s $2 million price tag

It all started when two Singapore hawker stalls made history by getting a Michelin star in July. Two months later, Chan Hon Meng, the owner of the one of these stalls, Hong Kong Soya Sauce Chicken Rice & Noodle, was said to be looking to sell his chicken rice recipe for at least $2 million.

Chan, 51, said he didn’t want to cash out but rather expand his business. Indeed, in October, Chan partnered Hersing Culinary – the owner of franchising rights for the popular Tim Ho Wan chain – to open a restaurant named Hawker Chan in Singapore, with an eye on regional and global expansion.

9. SMRT’s privatisation

On the evening of 25 April, a power fault stopped train operations on three MRT lines and one LRT line, a breakdown of unprecedented scale. Less than two months later, SMRT agreed to sell its operating assets to the government for $1.06 billion, as part of a new rail financing network.

Then, a few days later, on 20 July, a joint statement announced that Temasek Holdings would be buying SMRT and taking it private. This move would “allow SMRT to better fulfil its role as a public transport operator without the pressure of short-term market expectations,” said Koh Yong Guan, SMRT chairman.

On 17 October, the High Court approved the $1.18 billion buyout plan, and shares of SMRT stopped trading on the Singapore Exchange the next day.

8. Finance Minister Heng Swee Keat’s health scare

Finance Minister Heng Swee Keat, 55, collapsed from a stroke during a Cabinet meeting in May. He then spent six weeks recuperating in Tan Tock Seng Hospital.

Law Minister K Shanmugam, who has been working closely with him on a number of matters, said that Heng had been overworking.

Deputy Prime Minister Tharman Shanmugaratnam was appointed to cover Heng’s duties during his recovery. Heng returned to his role on 22 August, more than three months after the incident.

7. Panama Papers

The Panama Papers, a database listing over 214,000 secret offshore entities set up by law firm Mossack Fonseca over the span of nearly 40 years, revealed several names familiar to Singaporeans when it was leaked in April.

A mention in the database doesn’t imply wrongdoing, as offshore entities can provide completely legal tax benefits. Nevertheless, as they can also be used for money laundering and tax evasion, the Inland Revenue Authority of Singapore announced it would check on the Singapore taxpayers identified in the Papers.

Certain names, such as Temasek Wellness Investments, CPF Holdings Co Group and Law Society of Singapore, turned out to have nothing to do with Temasek Holdings, CPF Board and The Law Society of Singapore. The latter said it was investigating the misuse of its name.

6. Banks caught up in 1MDB scandal

The corruption scandal surrounding state-owned investment fund 1Malaysia Development Berhad (1MDB) continued to make headlines in 2016.

The Monetary Authority of Singapore (MAS) ordered two Swiss banks – Falcon Private Bank and BSI Bank – to shut down this year over their involvement in the affair. Three former BSI employees were also charged for failing to disclose suspicious transactions.

In addition, the MAS also fined DBS, UBS, StanChart and Coutts for 1MDB-linked rule breaches.

5. Singapore bond defaults

The Singapore dollar bond market struggled this year, with five defaults recorded since November 2015. There had been no such default since 2009.

Total losses have been estimated at around $1.1 billion, or 0.74% of all bonds outstanding, as a string of companies fell into a liquidity crisis amid a sluggish economy.

The first company to default was mobile phone retailer PT Trikomsel Oke, followed by fishing firm Pacific Andes Resources Development, offshore company Swiber Holdings and a couple more firms in the oil and gas industry.

4. Samsung Galaxy Note 7 fiasco

In October, South Korean technology giant Samsung Electronics had to cease production and recall millions of its flagship Galaxy Note 7 smartphones, which were launched in August, after battery issues caused the devices to overheat and catch fire.

In Singapore, Note 7 customers were offered a choice between a refund or a swop with the S7 Edge phone plus a $250 cheque.

More recently, Samsung also had to recall millions of its top-loading washing machines in the US and its headquarters got embroiled in the scandal surrounding South Korean President Park Geun-hye.

3. Rise of automation

It’s a worldwide trend: as industrial robots become more affordable, they are increasingly replacing lower-skilled workers.

In a bid to increase productivity, Singapore has been on the cutting edge of robotics. For instance, in August, it became the world’s first country to run trials of on-demand driverless taxis.

Singapore’s food industry is also seeing more automation. In an increasing number of restaurants, patrons are now asked to order from a tablet. In a Changi Airport food court, customers order and pay via a machine, and the system is set to be expanded to another outlet next year.

2. Retrenchments in Singapore

Retrenchments often made Singapore’s headlines this year. And indeed, in the first three quarters of the year, 13,610 workers were made redundant in Singapore, a 33 per cent increase vs the same period in 2015, according to preliminary data from the Ministry of Manpower (MOM).

Amid continuing low oil prices, the oil and gas sector was among the hardest hit, with large employers such as Keppel and Sembcorp Marine continuing to slash their workforce, an exercise in cost-cutting that started as early as mid-2014.

In the banking sector, Barclays and ANZ were notably reported to be pruning their Singapore staff-strength. Other big employers, such as Resorts World Sentosa and Singapore Press Holdings, also announced major staff cutbacks.

1. Brexit

The United Kingdom’s popular vote to withdraw from the European Union (EU) on 23 June created shockwaves in international markets and sent the British pound to its lowest level against the US dollar in over 30 years.

The cheaper pound had of course a silver lining – that of making travel to the UK much more affordable.

The UK’s exit from the EU itself is expected to take some time. UK Prime Minister Theresa May has said she will wait till March next year to formally notify the EU. This will trigger a two-year process of exit talks, after which the UK will be free to draft its own trade, immigration and commerce policies.