SINGAPORE/NEW DELHI, Jan 5 (Reuters) – Interest rates in India have peaked, a deputy governor of the central bank said on Thursday, as data showed the food price index dropped for the first time in nearly six years.

Subir Gokarn, who handles monetary policy at the Reserve Bank of India, said that economic growth concerns are back on “center stage”, suggesting that the slowing economy was weighing more on the RBI’s mind as the inflation threat recedes.

“We are basically saying that the cycle has peaked. I don’t think in any of the governor’s statements or in our guidance, we have made any explicit mention of actually starting to bring rates down,” Gokarn told television channel ET NOW after speaking at a conference in Singapore.

“That will depend on how the inflation momentum is playing out,” he said.

The food price index fell in late December on an annual basis for the first time since April 2006, data showed on Thursday, dragged down by a high statistical base effect and improved supply of crops such as pulses, vegetables and potatoes..

That has a triggered hopes that the headline inflation rate for December, due to be released next week, may come in below 9 percent for the first time in a year, which could make it easier for the central bank to relax its hawkish stance.

“The Reserve Bank of India has already given an indication that a reversal of the policy may be possible when there are definite signs of decline in inflation.” said C.Rangarajan, Chairman of the Prime Minister’s Economic Advisory Council.

SINGAPORE (Reuters) – Singapore Prime Minister Lee Hsien Loong and his ministers will see their pay slashed by about 36 percent as the government responds to public discontent over their high salaries, but Lee will remain the world’s best-paid leader.

Singapore pays government members and civil servants generously to attract top talent to the public sector. High salaries have also helped its politicians stay honest in a region where corruption is rife.

Lee earns more than S$3 million a year but will have that reduced to S$2.2 million, a review committee he appointed last year said in recommendations made public on Wednesday.

Lee told local media the government would accept the recommendations.

Despite the pay cut, Lee’s salary will still be three times that of Hong Kong Chief Executive Donald Tsang, the world’s next highest-paid political leader who earns about $550,000 a year.

Australian Prime Minister Julia Gillard will get about A$480,000 a year under proposals unveiled recently, while U.S. President Barack Obama earns about $400,000.

The annual salaries of Singapore ministers will start from S$1.1 million, a cut of 37 percent.

SINGAPORE/HONG KONG, Dec 19 (Reuters) – China Investment Corp (CIC) and Singapore’s Global Logistic Properties (GLP) are teaming up to buy 15 logistics facilities in Japan for $1.6 billion, in what will be the Chinese sovereign wealth fund’s maiden foray into Japanese real estate.

CIC and GLP, whose largest shareholder is Singapore wealth fund GIC, will each take a 50 percent stake in a joint venture that will buy the properties from LaSalle Investment Management. The deal is the largest real estate transaction in Japan this year.

“This is the first ever transaction of real estate investment for CIC in Japan. So for them to pick us as a partner as well as an operator, that shows that they are committed and also confident in us,” said GLP CEO Ming Z Mei.

“Demand for quality modern warehouse space is on the rise, while there remains a lack of supply of modern warehouse,” he said of the Japanese real estate market.

Activity in Japan’s real estate market picked up in the third quarter, following a slowdown caused by the earthquake and tsumani that hit the country earlier this year. Japan is now one of the top targets for property funds over the next 12 months, according to big name players such as Deutsche Bank’s RREEF and GE Capital.

Australia’s Goodman Group, a developer of warehouse and industrial space backed by CIC, has also announced plans to invest in Japan.

Industry sources told Reuters the talks between GLP and LaSalle had been ongoing since July, and that the property fund manager had initially wanted $1.8 billion for a portfolio of 17 properties.

SINGAPORE (Reuters) – Singapore’s multiple train breakdowns have become a political hot potato for Prime Minister Lee Hsien Loong, who must now take steps to assure an angry public that there is accountability in government and that authorities can cope with emergencies.

The Southeast Asian city-state, known for its efficient government, spectacular skyline and dozens of luxurious shopping centres, suffered three major subway disruptions last week, each lasting several hours.

On Thursday, hundreds of commuters were trapped underground without light and ventilation for over an hour before they heard from train operator SMRT (SMRT.SI: Quote, Profile, Research, Stock Buzz).

The breakdown on the north-south line, which connects the north of the island to the city centre and serves the main Orchard Road shopping belt, caused huge traffic jams, with crowds spilling into the streets to try to find a way home.

Singapore, one of the world’s most densely populated countries, discourages car ownership through hefty taxes, leaving most commuters to rely on the subway.

Lee has promised a full inquiry and the government regulator has stepped in to check trains and subway lines.

Lee’s People’s Action Party (PAP.L: Quote, Profile, Research, Stock Buzz) has been in power since independence in 1965. It saw its share of vote dip to just over 60 percent — its lowest share ever — in May parliamentary elections with government accountability, inflation, big income gaps and an influx of foreign workers key issues among voters.

SINGAPORE (Reuters) – Buying a mutual fund in Singapore may not be a cakewalk anymore.

Under new investor-protection rules that take effect Jan 1, investors in the tightly controlled city-state must possess certain educational qualifications related to finance or have relevant work or trading experience to buy funds directly.

Those who fail to meet the Monetary Authority of Singapore’s (MAS) requirements will have to prove their competence through various means such as passing a series of online tutorials on the Singapore Exchange website, in what could be a first for investors anywhere in the world.

Thousands of Singaporeans lost money investing in supposedly low-risk Lehman Brothers-linked “Minibonds” in 2008. The new rules follow a review by the country’s monetary authorities.

The regulations have been sharply criticized by some fund managers who fear a loss of business.

“Asking investors to pass a test to invest could be a deterrent to investing,” said Francois Mouzay, head of fund development and services in Asia-Pacific for BNP Paribas Investments Partners.

“To put myself in the shoes of a retail client in Singapore — If I had to certify a lot of things in order to invest, I’d probably think it better to keep my savings in a term deposit,” he added.

SINGAPORE, Dec 19 (Reuters) – Buying a mutual fund in Singapore may not be a cakewalk anymore.

Under new investor-protection rules that take effect Jan 1, investors in the tightly controlled city-state must possess certain educational qualifications related to finance or have relevant work or trading experience to buy funds directly.

Those who fail to meet the Monetary Authority of Singapore’s (MAS) requirements must take a series of on-line tutorials on the Singapore Exchange website, and answer the questions correctly in order to qualify to buy the funds, in what could be a first for investors anywhere in the world.

Thousands of Singaporeans lost money investing in supposedly low-risk Lehman Brothers-linked “Minibonds” in 2008. The new rules follow a review by the country’s monetary authorities.

The regulations have been sharply criticised by some fund managers who fear a loss of business.

” Asking investors to pass a test to invest could be a deterrent to investing,” said Francois Mouzay, head of fund development and services in Asia-Pacific for BNP Paribas Investments Partners.

“To put myself in the shoes of a retail client in Singapore – If I had to certify a lot of things in order to invest, I’d probably think it better to keep my savings in a term deposit,” he added.

SINGAPORE, Dec 7 (Reuters) – Singapore on Wednesday announced new measures to cool the city-state’s housing market, saying foreigners who buy private homes will have to pay an additional stamp duty equal to 10 percent of the property value.

Permanent residents who already own a Singapore home will pay an additional stamp duty of 3 percent when they buy a second and subsequent properties, while citizens who purchase a third and subsequent homes will pay 3 percent.

Singapore residential prices have held up well despite a slowing economy, helped by low interest rates and rising demand from overseas investors, in particular those from China.

The latest measures are, however, expected to have a significant impact.

“In the next one to two months or so, the home-buying demand from non-resident foreigners will almost dry up,” said Nicholas Mak, executive director of SLP International Property Consultants.

“From 1995 to 2006, about 10-20 percent of the private homes transacted in the primary and secondary markets were bought by non-Singaporeans… In the first 11 months of this year, the percentage was 28 percent,” he added.

A property fund manager, who declined to be named, said shares of Singapore developers such as CapitaLand and City Developments will definitely suffer when the market opens on Thursday.

SINGAPORE (Reuters) – Europe’s debt crisis has significantly worsened, threatening global markets, so it is essential to stabilise the region’s bond markets, European Central Bank governing council member Christian Noyer said on Wednesday.

The ECB will do whatever is necessary to ensure adequate financing is available for companies and households, amid growing signs of funding strains in Europe’s banking system and a jump in government bond yields, Noyer said during a visit to Singapore on Tuesday.

“The situation in Europe and the world has significantly worsened over the past few weeks,” Noyer, who is also French central bank governor, said at a conference.

He was less downbeat about his native France, sceptical of forecasts of recession.

“We do not see on the cards reasons for recession,” he said. “We have probably a weak period at the present moment.”

The latest sign of sovereign stress came from Italy on Tuesday, when a jump in its borrowing costs to a euro lifetime high of nearly 8 percent heaped more pressure on fractious euro zone leaders to staunch the debt crisis that is threatening to splinter the group and push the world economy into a recession.

“The essential weakness of Europe does not primarily lie in the fragility of any of its components,” Noyer said. “Europe’s fragility comes from its difficulty to organise and manage in times of crisis the complex interactions occurring at the heart of its financial system.”

SINGAPORE (Reuters) – European Central Bank governing council member Christian Noyer said on Wednesday Europe’s debt crisis had significantly worsened, threatening global financial markets, but was confident the euro area would emerge stronger and more cohesive.

“The situation in Europe and the world has significantly worsened over the past few weeks,” Noyer said at a conference in Singapore. “Market stress has intensified.”

“We are now looking at a true financial crisis — that is a broad-based disruption in financial markets.”

Italy’s borrowing costs hit a euro lifetime high of nearly 8 percent on Tuesday, heaping more pressure on fractious euro zone leaders to staunch a two-year-old debt crisis that is threatening to splinter the euro zone bloc and push the world economy into a recession.

“In a period of intense market disruption, it is essential to ensure that the monetary policy transmission mechanism actually works. This may involve temporary and exceptional interventions on those market segments where dysfunctions are most apparent,” Noyer said.

He did not elaborate on the remarks.

Sources told Reuters last week that the ECB was looking at extending the term of loans it offers banks to two or even three years to try to prevent the euro zone crisis from sparking a global credit squeeze that will choke the world economy.

SINGAPORE (Reuters) – European Central Bank governing council member Christian Noyer said on Wednesday Europe’s debt crisis had significantly worsened, threatening global financial markets, but was confident the euro area would emerge stronger and more cohesive.

“The situation in Europe and the world has significantly worsened over the past few weeks,” Noyer said at a conference in Singapore. “Market stress has intensified.”

“We are now looking at a true financial crisis — that is a broad-based disruption in financial markets.”

Italy’s borrowing costs hit a euro lifetime high of nearly 8 percent on Tuesday, heaping more pressure on fractious euro zone leaders to staunch a two-year-old debt crisis that is threatening to splinter the euro zone bloc and push the world economy into a recession.

“In a period of intense market disruption, it is essential to ensure that the monetary policy transmission mechanism actually works. This may involve temporary and exceptional interventions on those market segments where dysfunctions are most apparent,” Noyer said.

He did not elaborate on the remarks.

Sources told Reuters last week that the ECB was looking at extending the term of loans it offers banks to two or even three years to try to prevent the euro zone crisis from sparking a global credit squeeze that will choke the world economy.