Recycling Waste to Riches

Any idea how to put waste to good use?? And to top that: turn that into a million dollar venture?

Well.. here's a basic idea how Enviro-Hub's plant works:

1. Mixed waste plastic is fed to a reactor to be melted at 350 deg C.

2. A special catalyst is added at controlled intervals, whereby a process called depolymerisation starts.

3. The catalyst 'cracks' the polymers of the waste plastic, producing three by-products: diesel, liquid petroleum gas and coke.

And this technology comes from India.. below is a story of how homegrown Singaporean Company turns waste into good money making opportunities...

AN EXCITING new use has been found for the annoying plastic waste that often washes up on beaches and clogs rubbish dumps: fuel. The waste management and recycling firm yesterday announced the construction of Singapore's first $50 million plastic-to-fuel plant - which converts waste plastic into useable fuels and gases.

Its executive chairman, Mr Raymond Ng, told The Straits Times that Enviro-Hub had been researching a long-term environmental solution for plastics since 2005. Success came only last month, when a pilot plant it built proved that the technology imported from India worked.

A special catalyst is added at controlled intervals, whereby a process called depolymerisation starts. The catalyst 'cracks' the polymers of the waste plastic, producing three by-products: diesel, liquid petroleum gas and coke.

Source: The Straits Times

A new form of wealth creation- Having Wines?

NEW-GENERATION ASSETS: Intoxicating Investments

In the final instalment of a four-part weekly series featuring alternative investment options, GABRIEL CHEN explores the love affair that an increasing number of Singaporeans are having with premium wine

BLUE-CHIP WINES can earn investors annual returns of 10 to 12 per cent, if not more, because of the fairly limited supply. However, risks can be high too, especially for those who buy at a high price and pay hefty commissions to their brokers.

THE stock markets are volatile and property is starting to look a bit shaky, but Mr Andrew Soh is a happy man and quick to raise a glass to toast his own investing skills.
The real estate agent plonked his money into wine investments in 2005 and is now firmly in the red - and white and rose for that matter.

In fact, Mr Soh, 37, is having a vintage year, with paper gains of about 32 per cent after expenses are deducted.

His initial investment was about $80,000. After just a few months, he added another $120,000 worth of wine to his collection.

His portfolio - which includes premium French labels such as Ch�teau Lafite Rothschild and Ch�teau Latour - is now valued at about $300,000, says Mr Soh, a wine drinker himself.
If he were to liquidate his holdings, he would be sitting on a tidy profit of $64,000, after paying commissions of 12 per cent to his wine broker, Premium Liquid Assets.

Pay now, take delivery later

THERE is a wine futures market, or en primeur as it is better known in French, where people buy wine early.Buying en primeur means you buy futures in a wine hoping its quality and value will leap in later years. When you buy en primeur, you pay for the wines upfront, with the merchants' assurance that you will get the wine when it is released from the chateau or vineyard two years after the vintage.

Liquid assets

If Mr Soh were to liquidate his holdings - which include premium French labels such as Chateau Lafite Rothschild and Chateau Latour - he would be sitting on a tidy profit of $64,000.Not bad for someone who describes himself as a conservative investor.

Mr Soh, who has sunk 40 per cent of his investment portfolio into wine and the remainder into stocks and property, is just one member of a growing breed in Asia.

These new-breed investors enjoy drinking the wine while participating in the monetary returns it offers, says Premium Liquid Assets chief executive Eldric Ko.

The benefits are tempting. A portfolio of blue-chip wines can yield annual returns of 10 to 12 per cent, if not more, thanks to the relatively limited supply, experts say.

But wine investing involves various commissions and fees that can eat into gains. A broker can charge 5 to 12 per cent to buy and sell the wines, and there are also storage, insurance and shipping fees.

At one broker, Australian Wine Index, clients often invest at least $10,000, which covers shipping, insurance and three years of storage. Its wines from Down Under cost between $60 and $500 a bottle, and are stored at a temperature-controlled warehouse run by Cougar Express Logistics in Boon Lay Way.

The greatest risk, especially for alternative assets such as wine, is buying at too high a price, says investor Curtis Montgomery. Some of his 10,000 bottles are from Australia, but most are from the Bordeaux region in France.

'There are wine brokers who charge a large premium. An uninformed investor using such a broker might overpay significantly and have to wait many years to reap a profit,' says Mr Montgomery, whose portfolio is worth more than $2 million.

While commissions might be high, wine brokers now offer a service that used to be extended to old money only. They undertake the difficult and time-consuming task of analysing and recommending investment-grade wines.

Investors should pick brokers who have demonstrated their ability to sell wines and who have adequate exit strategies, backed by an international network of dealers, importers, traders and auction houses.

Investors who feel confident about investing on their own can buy wines from distributors such as Crystal Wines, Condale Consultants, Vinum and Grand Vin.

'The worst thing you can do is put the wine in your home cellar and watch the value fall,' says Mr Clinton Ang, the managing director of Hock Tong Bee, which has been in the wine and spirits trade for more than 60 years.

'It is not just about getting a 12-degree environment, but also about finding a facility that is recognised worldwide or one that is owned by a wine specialist that is recognised worldwide.'

Some private banks offer wine funds. SG Private Bank's Ultimate Wine Fund, which partners wine specialist Ficofi, invests in premium wine from Bordeaux, but to get on board, you must have at least US$300,000 (S$432,840).

Mr Tommy Lam, who owns the Cafe de Amigo restaurant at Funan DigitaLife Mall, recommends that novice investors keep risks low by sticking to the most reputable wines in the best vintages.

'If you could always get your hand on first-growth Bordeaux, you would hardly lose any money,' said Mr Lam, who holds a wine MBA from Bordeaux Ecole de Management in France.

Wines fall into various classifications and most first-growth or premier cru wines come from Bordeaux. These include Chateau Lafite Rothschild, Chateau Haut-Brion, Chateau Mouton Rothschild, Chateau Latour, Chateau Margaux and Chateau d'Yquem.

Experts say another important factor is vintage, which refers to both the year the grapes were harvested and the wines made from those grapes. Warmer seasons will produce riper grapes and better wine, while a poor growing season can significantly lower a wine's quality.

Certain vintages are so poor that some regions might have no investment-grade wines for those years. Bordeaux faced this problem in 1991, 1992 and 1993, whereas vintages from there in 1990, 1995, 1996, 2000, 2003 and 2005 are outstanding, says Mr Montgomery.

The value of wines can also be dictated by renowned wine critics, such as Mr Robert Parker, Mr Jeremy Oliver and Mr James Halliday. For example, a perfect 100-point rating or one in the high 90s from Mr Parker could send the price of a wine soaring, even if it did not belong to the finest vintage.

'They are what the industry refer to as the litmus test of wine labels and vintages,' says Mr Dominic Sim, the chief executive of Universal Assets Group, a wine investment firm.

Singapore Shop Rents Rising FASTER in City Fringe..than Orchard

Singapore Shop rents rising faster in city fringe, suburbs than in Orchard
Landlords enjoy good takings as demand spills over from prime belt


ORCHARD Road may be the epicentre of shopping buzz, but malls in quieter areas are coming into their own.Rents of shops on the city fringe and in suburban areas rose faster than those in the prime shopping belt in the October to December period, according to Knight Frank.

The property consultancy said the biggest increase in rents came from shopping malls on the fringe of Orchard Road, such as Tanglin Mall and Park Mall. Retail rents in this area climbed by 8.9 per cent in the quarter, thanks to a spillover from Orchard Road and a better tenant mix, said Knight Frank.

In contrast, rents of malls in Orchard Road proper - including Wisma Atria and Ngee Ann City - rose only 2.6 per cent. Suburban malls such as Tampines Mall and Jurong Point fell in between, with rents rising 5.8 per cent.

The main reason for this is rents in Orchard Road have already risen so much that any further increases will be quite small, said Knight Frank’s director of research and consultancy, Mr Nicholas Mak.

On the other hand, retail rents in suburban and fringe areas are starting from a lower base, so they will rise by more, he added.

Indeed, Knight Frank’s data shows that despite having the smallest rent increases, the central areas still have the highest rents, and vice versa.

In the heart of Orchard Road, average gross monthly rents have soared to double those of malls on the fringes. This is because over this year, rents in Orchard Road central have gone up the most. They rose by 17.2 per cent this year, almost double the 9.9 per cent rise in Orchard Road fringe malls. In suburban malls, retail rents rose just 7.5 per cent for the year.
But overall, it has been a good year for landlords of shopping malls islandwide.

They have raised rents by more than market experts had forecast, thanks to higher wages, a strong economy and a booming property market.

Islandwide, shop rents in well-located malls jumped by a better-than-expected 22.1 per cent for the whole year, said Knight Frank. Its report on retail rents analysed prime shop space of between 400 and 800 sq ft, typically located on the ground floor of malls, with good frontages.
But rent growth is expected to moderate next year to 10 to 15 per cent, it said. While retail sales and demand for shop space are likely to stay strong, new malls will open with 2.3 million sq ft of space. These include West Coast Plaza, Iluma at Bugis, Ion Orchard, Orchard Central and Jurong Point’s new wing.

‘Landlords who try to raise rentals in the later part of next year are likely to face stronger resistance from retailers,’ said Mr Mak.

This may come as a relief to retailers. One retailer, who asked not to be named, said she had to move a boutique out of Paragon last year when rents nearly doubled. Another outlet at Suntec City has had rents rise by 30 to 40 per cent.

‘We used to be making money at most of our shops, but now because of the rental increases we are only breaking even at some,’ she said.

‘We can handle rents rising to a certain point, but after that it is untenable.’

Source : Straits Times

Money Making 123

The Basics of Moneymaking
by Ram Charan


Here's a question to test your prospects as a business leader: How does your company make money?

If you can't answer it, you're hardly alone. Many MBAs can't answer it. Many CFOs and vice presidents can't answer it. Experienced CEOs sometimes struggle to answer it.

What I'm testing with this question is your business acumen.

The Universals of Business

At the core of every successful business, from a global giant to a corner store, are the same fundamentals of moneymaking: cash, margin, velocity, return, and growth. And at the core of every successful business leader is an intuitive understanding of the relationships among them.
It's easy to think the basics of business are for beginners. Everyone knows what cash is, and that companies must make a profit.

But business acumen isn't about knowing definitions. It's about keeping the basics of
moneymaking in sharp focus and balancing them in a way that's healthy for the business.

When you have business acumen, you realize the importance of every job at every stage of your career. A mailroom clerk with business acumen knows that getting checks to the accounts receivable department more quickly will ease the company's cash flow. And a sales rep with business acumen knows that higher-margin products will increase the company's return.

Moneymaking Basics

As the complexity of your job increases, it's easy to lose sight of the fundamentals. If your business acumen doesn't develop, you can stumble -- focus too much on revenue growth and overlook cash, or focus too much on cash and overlook growth.

That's why you should never consider it beneath you to revisit the moneymaking basics. They should be front and center in your diagnosis and decision making in every job you have.
Here are the basics:

• Cash

No business survives long without it. You should know how much cash your business generates and how much cash it consumes.

What are the sources of it? What drains it? What's the timing of the inflows and outflows and how is it changing? More revenues (sales) often means more cash. But growing a business consumes cash. How fast can the company expand without straining its cash flow?

• Margin

When people talk about the bottom line, they generally mean net profit margin -- the money the company earns after paying all its expenses, interest, and taxes. But gross margin is important, too.

Gross margin -- the difference between a product's selling price and what it costs to make the product (the "costs of goods"), expressed as a percent of the selling price -- can signal important shifts in a business. When PC makers saw their 32 percent gross margins decline to 20, they knew (or should have known) the competitive landscape had changed.
You have to know how changes inside or outside the business affect gross margin. Are there new entrants in the market who are winning customers? A competitor who's found a clever way to reduce costs and prices? A change in the pricing power of suppliers?

• Velocity

Velocity refers to speed, turnover, or movement.
How much revenue do you turn over, or generate, for each dollar of inventory? If you have $1 million in inventory for the year and revenues of $10 million, your inventory velocity is 10. This tells you how fast you're moving raw materials through the factory, turning them into finished products, and moving those products off the shelf to customers. The faster, the better.
Service businesses can track velocity, too. For banks, velocity of equity -- how much revenue is generated per dollar of equity -- is a useful measure. The concept applies to every business.

• Return

Margin multiplied by velocity equals return. If your return is lower than your cost of capital, your business is likely to be in trouble. That's when shareholders get concerned.
How do you boost your return? See if you can boost your margin or increase your velocity -- or, better yet, both.

• Growth

Every business needs to grow to stay in business. How do you grow in a way that keeps the other aspects of moneymaking in balance? There's no formula -- people with business acumen figure it out.

Where Business Acumen Counts Most

Street vendors in villages around the world use business acumen every day. They have to -- their next meal often depends on it.

In companies, business acumen is crucial when the external world changes and there's a need to reposition the business.

Like when Hollywood studios started selling videocassettes directly to the public at the same time it sold them to video rental companies. That's when Blockbuster's rental business started to slide.

People wanted to buy movies, not just rent them, so Blockbuster started selling them. But the moneymaking was completely different.

Blockbuster was used to buying videocassettes on credit and making payments with the cash from renting them. Returns were high.

Selling videocassettes meant laying out the cash up front, holding lots of inventory, and waiting for the cash to come in when the videocassettes were sold. Cash flow, velocity, and return were all adversely affected.

Where Do You Want to Go?
You don't need business acumen to make a meaningful contribution to a business. But you'll need it to rise through the leadership ranks.

You can't acquire it at a seminar or in a quick read. You learn it by using it in real business situations.

Start now by applying it to your company. Ask for the numbers or pull them from the annual report. Precision isn't necessary -- knowing what to focus on is.

Lessons from Financial Trainer

Dec 9, 2007

Financial trainer banks on experience from running six businesses
NowAsia founder, whose food business has proved most successful, also invests in stocks and property

By Lorna Tan, Finance Correspondent

MR ABUAYUBUL, 35, AND HIS WIFE, MADAM ZAHIRA BANU, 29, have invested in insurance plans for each of their three children - Muhammad Amzath Khan, seven, Aisya Shafika, six, and Muhammad Ahshik, 11 - with monthly premiums costing $100 per plan.

LIFE can present plenty of challenges but few people have dealt with ones so traumatic as those Mr Abuayubul Ansari faced 13 years ago.

Mr Abuayubul, now 35, was driving his parents from Johor Baru to Penang when their car hit the road divider and his parents were flung out. His father died on the spot and his mother three months later. Mr Abuayubul suffered back injuries but fortunately recovered after 20 days.

With four younger siblings, then aged seven to 19, to support and no relatives to turn to, he had to rely on himself to get their lives back on track.

His parents had been running a sundry shop business and had debts of a few thousand dollars.
Mr Abuayubul was then 22 and doing a diploma course in Singapore. He quit his studies and returned to Johor Baru where he sold nasi lemak. But one job was not enough. So he travelled daily to Singapore to work at Newton Hawker Centre for $40 a shift.

Mr Abuayubul, who has been dabbling in stocks since he was 19, had a stock portfolio worth almost $100,000, and with cash so desperately needed, he sold everything.
Things started improving. His food business expanded and he even managed to put a brother through medical school in Britain.

Before long, he was venturing into businesses such as sports accessories, gifts and books. He also bought shophouses in Johor Baru to rent out.

His strategy was partly influenced by wealth guru Robert Kiyosaki's concept of building passive income. But not all the six businesses he started turned to gold.

In 2003, he set up NowAsia, which trains people in entrepreneurship, financial literacy, personal development and Internet marketing.

Mr Abuayubul is head of the Young Entrepreneurs Club and vice-president of the Young Entrepreneurs Network of the Singapore Malay Chamber of Commerce and Industry.

Q What are your money habits?

A I had a very bad habit of never recording all my expenses. Now, my savings are always three months' worth of monthly expenses.

Q What financial planning have you done?

A I follow a formula I call the 'bucket system', something I learnt from wealth guru Anthony Robbins. I am a short-term, high-risk investor. About 30 per cent of my investments is channelled into the stock markets in Singapore and the United States - what I consider my short-term growth bucket - with returns of 5 to 20 per cent per annum.
I go for penny stocks such as Goldtron. I'm an active trader and I pick stocks that are in the top losses list and sell them fast. I'm able to generate an average of $2,000 a month.
Sixty per cent of my investments are in a few businesses that I started, with returns of about 20 per cent a year. The remaining 10 per cent of investments are in my long-term growth bucket, which comprises property investments including land.

Q What about insurance planning?

A In 1992, I bought a life policy that comes with a sum assured of RM1 million (S$433,000). It required me to pay premiums for only eight years. I also have an insurance plan for each of my three children with a monthly premium of $100 per plan.

Q What property investments do you have?

A I have property in Malaysia and India. I bought a few acres of land near Chennai for less than $10,000.
I have three double-storey shophouses in Johor Baru. The first was bought in 1994 and cost RM450,000. I'm renting it out for RM 3,800 a month. My food business is run from this shophouse and it is giving me a monthly income stream of RM4,000.
In 1995, I bought another shophouse for RM180,000; it is rented out for RM2,500. I bought my third shophouse for RM237,000 and it is rented out for RM2,500. I also have a house in Skudai Baru which I bought for RM60,000 in 1995 and is now worth RM200,000. I have a 1,000 sq ft apartment in Skudai that was bought for RM28,000 and is now worth RM60,000.

Q How did you get interested in investing?

A When I was helping to sell newspapers at my uncle's shop in Singapore after my O levels, there was an elderly man who would always come to the shop and read newspapers without buying them.

We started talking and he told me the back pages helped a lot of people to make money. Those were the stock listing pages and I insisted on learning about investing. I started by investing in a Clob share - one lot of Esso shares worth $2,300. In eight months, I had built a portfolio worth about $100,000 through contra trading.

Q What has been a bad investment?

A My worst investment was a double-storey shophouse in Malaysia which I bought for RM180,000 and sold for RM140,000.

Also, I lost about $70,000 in my sport accessories and gift shops.

Q Your best investment?

A I have attended many seminars and workshops on wealth building and self-development. I have invested more than $40,000 in attending different kinds of seminars. In return, I have learnt so many things that made me invest in a few businesses and also create new businesses.
I am a director of an interior design firm in Kuala Lumpur and a manpower agency in Johor Baru.

Q What's your retirement plan?

A I will retire only when I die. I enjoy what I am doing now. I want to travel and share my experiences with people, which I believe can have a positive impact on their lives.

Q And your home is...?

A I have a double-storey house in Johor Baru. In Singapore, I live in a rented 1,200 sq ft apartment in Red Hill.

Q And your car is...?

A My car is a BMW.T series - bus, MRT, walk and also taxi.

Source: The Straits Times

Coffee Shops fetches Record Price

Dec 4, 2007

$12M: Coffee shop in Jurong fetches record price

A COFFEE shop in an HDB parking building has sold for a record-breaking $12 million.
The eatery called VariNice is just a stone's throw from the Jurong East MRT and bus interchange.

Its huge catchment area of residential blocks and business parks nearby makes it a prize location, said property analysts.

The eatery - which boasts 12 stalls selling a variety of food from duck rice, to seafood and western food - has been going for about 20 years.

It was sold off by the Government in the 1990s and changed hands again in 2000 for about $10 million.

Its latest buyer is well-known foodcourt operator Koufu, which runs 37 food and beverage outlets across Singapore.

Lianhe Wanbao reported yesterday that Koufu was believed to have paid $13 million for the premises, and is collecting $12,000 a month in rent from each stall.

But Koufu founder and managing director Pang Lim told The Straits Times last night that the price tag and rental were less than that. The firm paid about $12 million and collects monthly rent of $6,000 from each stall.

The sale price works out to $2,553 per square foot for the 4,700 sq ft premises - well above the old reported record set by an 8,000 sq ft coffee shop in Ang Mo Kio which sold for $17.8 million, or $2,225 psf, in 2004.

The payback period for Koufu's latest buy is about 13 to 14 years.

Mr Pang said the deal was its biggest purchase but added that it was a long-term investment.
'It was a high price, but we need good locations and in the long term, it'll be worth it,' said Mr Pang.

PropNex chief executive Mohamed Ismail told The Straits Times that the value of coffee shops depends purely on traffic. 'Good business locations will always command a premium,' he said.
Mr Nicholas Mak, head of research and consultancy at Knight Frank, said bullish market expectations paved the way for the record deal.

This was especially so as the recent slowdown in residential property has not touched the retail and food and beverage scene.

'This is likely to be few and far between, however,' he added, 'as few shops get transacted at such a high price.'

Earlier this year, a coffee shop in Block 501, Jurong West Street 51, sold for $9 million.

Three coffee shops - in Tampines, Yishun and Bukit Batok - are on the market for $15 million apiece with no takers to date.

Source: The Straits Times

New Ideas: Creating a Barter Exchange on the Web..Does it work?

Dec 4, 2007

No cash, no sweat as firms swop goods online
More turning to online barter to save money and market products

SITTING PRETTY: Ms Daisy Leng, the owner of Beauty Reformings, caught on to the barter trade craze and saved $2,800 on advertising and computer software. -- ST PHOTO: ALAN LIM












BARTER, that age-old form of trade, is heating up here, with the Internet as a modern-day matchmaker. A multimillion-dollar business has mushroomed online for mainly small businesses to exchange goods and services.

Two online brokerages here raked in close to $4 million in transactions this year and membership is booming.


One member is beauty salon owner Daisy Leng, who this year saved $2,800 on advertising and computer software, which she paid for with her beauty products instead of cash.

'The savings are very important to a small setup like mine,' said Ms Leng, now a regular barter trader.

Another local set-up, accounting software company A2000 Solutions, saved $10,000 on printing by redeeming credits earned from selling accounting software in a barter trade.

Making a trade


TO START, locally registered companies sign up on the websites of the two online brokerages here - BarterXchange and Ozone Barter.To minimise fraud and scam, members' details are checked against the Accounting and Corporate Regulatory Authority's records.

Bartering helps companies save money, as they can use their products to earn credits to pay for their purchases, rather than coming up with cash up front.

There are two online barter brokerages in Singapore: BarterXchange, set up in 2003, and Ozone Barter, founded two years ago.


This year, BarterXchange saw its membership rise by 47 per cent to 250, with transactions worth over $2.5 million, compared to $1.4 million last year. And at 300 members, Ozone
Barter's current user base is more than triple last year's count. Its trade volume has reached almost $1 million, up from $180,000 last year.

Advertising and printing services and restaurant vouchers are the hottest items on the two exchanges. Other goods in demand include computer software, executive training and Web hosting.


Buyers and sellers use a medium of exchange called barter points. With each transaction, points are debited against the buyer's account and credited to the seller's account. Each point is equivalent to one Singapore dollar.

To earn points, Ms Leng sells beauty products and spa vouchers, which are often given away as corporate gifts. She recently acquired $2,000 worth of computer software from technology company NextLogic. Both firms met on Ozone Barter.


Ms Leng, who has 'sold' $5,000 worth of goods so far, admitted she was sceptical about online trading at first. But her fears of being cheated were allayed after networking sessions with fellow members, she said.

She added that bartering has also widened her reach, allowing people to sample her products without paying cash at first.


'When customers are happy, they will come to my shop and pay cash for more services,' she said.
NextLogic, which offers technology that allows companies to manage customer data, has had the same experience.

Said Mrs Dagmar Alexyova, founder of NextLogic: 'It is an excellent way for small companies to try out my product.


'When they buy an upgrade later, they can pay cash.'


Source: The Straits Times