mr funny
09-07-11, 03:57
http://www.businesstimes.com.sg/sub/news/story/0,4574,445854-1309636740,00.html?
Published July 2, 2011
MND highlights errors in BT report
THE Ministry of National Development (MND) has written to The Business Times, highlighting errors contained in a recent report. The following is the text of its letter:
THE lead article by The Business Times 'Profit margins for DBSS developers 'look high' ' (June 30) on the developer's alleged 76 per cent profit margin was highly irresponsible as it contained serious errors.
2. For example, it quoted a land price of $82,222,000 and a maximum GFA of 721,188 square feet for the DBSS project, Centrale 8. Both figures were wrong. The correct figures are respectively $178,128,000 and 682,385 square feet. This was a huge difference of almost $100 million, resulting in a gross overestimation of the developer's profit and gross profit margin. Based on these figures alone, the profit margin would have been 26 per cent, instead of 76 per cent.
3.But even the reduced estimate was wrong as the article had failed to take into account key cost components such as financing, marketing and administrative costs. These are significant costs and, when included, would have further lowered the profit margin for all the DBSS projects listed in the article.
4.We are disappointed that The Business Times had not thought it fit to verify the facts. The general public rely on and expect responsible and accurate reporting from the mainstream media. It is unacceptable that BT had not exercised due diligence and professional journalism, which resulted in an erroneous and highly misleading report. These errors could have been easily prevented if BT had been responsible in checking the facts, most of which were published materials.
Han Kok Juan
Director (Housing)
Ministry of National Development
Published July 2, 2011
MND highlights errors in BT report
THE Ministry of National Development (MND) has written to The Business Times, highlighting errors contained in a recent report. The following is the text of its letter:
THE lead article by The Business Times 'Profit margins for DBSS developers 'look high' ' (June 30) on the developer's alleged 76 per cent profit margin was highly irresponsible as it contained serious errors.
2. For example, it quoted a land price of $82,222,000 and a maximum GFA of 721,188 square feet for the DBSS project, Centrale 8. Both figures were wrong. The correct figures are respectively $178,128,000 and 682,385 square feet. This was a huge difference of almost $100 million, resulting in a gross overestimation of the developer's profit and gross profit margin. Based on these figures alone, the profit margin would have been 26 per cent, instead of 76 per cent.
3.But even the reduced estimate was wrong as the article had failed to take into account key cost components such as financing, marketing and administrative costs. These are significant costs and, when included, would have further lowered the profit margin for all the DBSS projects listed in the article.
4.We are disappointed that The Business Times had not thought it fit to verify the facts. The general public rely on and expect responsible and accurate reporting from the mainstream media. It is unacceptable that BT had not exercised due diligence and professional journalism, which resulted in an erroneous and highly misleading report. These errors could have been easily prevented if BT had been responsible in checking the facts, most of which were published materials.
Han Kok Juan
Director (Housing)
Ministry of National Development