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Lucasfilm to cease operations in Singapore amid global business consolidation

Disney announced Lucasfilm will cease its Singapore operations, aiming to consolidate globally. The move follows economic pressures in the entertainment industry. Lucasfilm has been pivotal in Singapore’s media landscape since 2004, producing notable works like “Star Wars: The Clone Wars”.

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SINGAPORE: In a move that speaks to the shifting tides of the global entertainment industry, Disney announced on Tuesday (15 Aug) that Lucasfilm is tapering its operations in Singapore to consolidate its global presence in light of prevailing economic conditions.

Having started its journey in Singapore in 2004 as Lucasfilm Animation Singapore, the studio had been instrumental in creating the animated TV series, “Star Wars: The Clone Wars”.

Two years later, its visual effects and animation studio, Industrial Light & Magic (ILM), began its operations in the city-state.

This decision comes after the sale of its avant-garde establishment, The Sandcrawler in Fusionopolis, to the Blackstone Group early last year.

Besides being Lucasfilm’s hub, the building also accommodated Disney’s Southeast Asian offices.

Disney, in an official statement to CNA, said, “Over the forthcoming months, ILM is set to consolidate its international operations, which includes phasing out its studio in Singapore due to the economic pressures in the industry.”

The company emphasized its commitment to its employees, stating they are giving them considerable notice and offering relocation opportunities to its other burgeoning studios.

ILM, beyond its Singapore and San Francisco bases, also operates out of Vancouver, London, Sydney, and Mumbai.

Collaboratively working with the local business ecosystem in Singapore, Disney has plans to organize a job fair to bridge the talent gap in firms requiring similar expertise.

The Economic Development Board (EDB) and the Infocomm Media Development Authority (IMDA) jointly noted that Lucasfilm’s decision is a reflection of evolving industry landscapes and business conditions.

Highlighting the challenges studios worldwide are grappling with, they said, “From swift technological progress to obstacles concerning talent retention and profitability, the global media sector is in a state of flux.”

Lucasfilm’s stint in Singapore is hailed for its contributions to digital animation expertise. EDB and IMDA proudly acknowledged that Singaporean professionals have made significant impacts on Hollywood mega hits such as “Jurassic World: Dominion” and “Marvel’s The Eternals”.

Both Lucasfilm and governmental agencies are collaboratively working to ensure affected employees transition smoothly into other roles.

EDB and IMDA highlighted, “The multifaceted skills of these employees are highly sought-after, not just in the media sector but also in other industries undergoing digitization.”

In 2005, Lucasfilm’s choice of Singapore as its hub was driven by several factors. George Lucas, in a 2014 statement, commended Singapore’s supportive education initiatives and its efforts to foster a local industry.

Post the 9/11 tragedy, U.S. immigration policies tightened, but Singapore’s liberal stance helped Lucasfilm source global talent effortlessly.

Lucas had also mentioned that while there were other contenders like India, Taiwan, and Japan for expansion, Singapore’s blend of talent, creativity, and quality of life gave it an edge.

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Business

Taiwan’s FSC rejects CTBC Financial’s bid to acquire Shin Kong Financial, favoring Taishin’s merger plans

Taiwan’s Financial Supervisory Commission rejected CTBC Financial’s tender offer to acquire Shin Kong Financial, raising concerns about its plan, while Taishin Financial moves closer to a merger with Shin Kong. Both companies have scheduled shareholder meetings for 9 October.

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17 September 2024

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On 16 September 2024, Taiwan’s Financial Supervisory Commission (FSC) rejected an application from CTBC Financial Holding Co. to launch a tender offer for Shin Kong Financial Holding Co., potentially clearing the path for Taishin Financial Holding Co. to proceed with its proposed merger with Shin Kong Financial.

Jean Chiu, vice chairperson of the FSC, stated at a press conference that CTBC Financial failed to provide a comprehensive implementation plan for the acquisition. CTBC had proposed acquiring between 10% and 51% of Shin Kong Financial’s shares initially, with plans to later fully integrate the company.

However, the FSC raised concerns over CTBC’s lack of detailed provisions on how it would manage various potential outcomes, particularly if it failed to secure full control of Shin Kong.

Additionally, the FSC highlighted gaps in CTBC’s understanding of the financial health of Shin Kong’s life insurance subsidiary, as well as a lack of firm commitments regarding raising the capital size of this subsidiary.

This uncertainty, combined with the method of payment proposed by CTBC—using a mix of cash and its own stock—raised concerns that the tender offer could negatively affect shareholders due to potential fluctuations in CTBC’s stock price during the transaction process.

CTBC’s proposal, announced on 20 August, included an offer of NT$4.09 (US$0.13) per share in cash and an exchange of 0.3132 CTBC shares for each Shin Kong share, amounting to NT$14.55 (US$0.46) per share. This bid was labeled by Taishin Financial as a hostile takeover attempt, as Shin Kong Financial’s board had not approved the offer.

In response, Taishin Financial, which has been vying for Shin Kong through a merger, revised its stock swap offer on 11 September.

The new offer included 0.672 Taishin shares plus 0.175 preferred shares for each Shin Kong share, translating to NT$14.18 per share—closer to CTBC’s offer. Taishin had earlier disclosed on 22 August its original plan to offer 0.6022 shares of its stock per Shin Kong share, which amounted to NT$11.32 (US$0.36).

Chiu emphasized that tender offers based on stock payments are rare in Taiwan, with only six cases since the 2002 revision of tender offer regulations.

She referenced Fubon Financial Holding’s acquisition of Jih Sun Financial in 2023, where cash was used instead of shares, to highlight how tender offers have traditionally been handled in the local market.

Chiu concluded by stating that although Taiwan’s financial market operates on free-market principles, takeovers should avoid disrupting market order and respect corporate stability.

Taishin Financial and Shin Kong Financial are set to hold a special general meeting on 9 October to secure shareholder approval for their merger plan, which will then require the FSC’s endorsement.

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Business

Times Bookstores to close after nearly four decades in Singapore

Times Bookstores will cease operations in Singapore after nearly four decades, with its final outlet at Cold Storage Jelita closing on 22 September 2024. The closure is seen as being attributed to high rents, low sales, and rising operational costs, reflecting challenges faced by physical bookstores in Singapore.

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16 September 2024

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Times Bookstores will end its operations in Singapore after nearly 40 years, as its last remaining outlet at Cold Storage Jelita on Holland Road is set to close on 22 September 2024.

In a farewell statement posted on Instagram on 16 September, the English book retailer, established in 1978, invited customers to visit the store one final time. “Our happily ever after has finally come,” the post read. “It is with both a heavy heart and a sense of fulfilment that we announce the closure of Times Bookstores.”

The closure of Times Bookstores has been anticipated for several years. The company, owned by regional consumer group Fraser and Neave Limited, closed its branches in Plaza Singapura and Waterway Point in February 2024.

The shutdowns triggered a discussion in Singapore’s literary community about how to better support bookstores.

Struggles Facing Book Retailers

Times Bookstores has been affected by increasing rent, low sales, and rising operational costs. The Covid-19 pandemic exacerbated its challenges, with the business quietly closing outlets at Marina Square and Paragon in 2021.

A key warning came in 2019 when the retailer closed its 8,000 sq ft Centrepoint branch, once one of Singapore’s largest bookstores.

These closures reflect a broader struggle for physical bookstores in Singapore. Rising rent, higher goods and services taxes (GST), and increasing printing costs have driven book prices up, making it difficult for traditional retailers to compete.

Popular bookstore also shut its Marine Parade outlet on 18 June 2023, citing similar reasons, while Books Kinokuniya closed its JEM branch on 9 May 2022 due to slow sales and rental costs.

Future of Singapore’s Bookstores

Following the closure of Times, few large bookstore chains remain in Singapore. Books Kinokuniya, the largest bookstore in Singapore, continues to operate its flagship store at Takashimaya Shopping Centre.

According to a spokesperson from Toshin Development Singapore, cited by the Straits Times, Kinokuniya remains a key tenant, though no specific renewal dates were disclosed. The spokesperson added that Kinokuniya continues to engage with the landlord regularly to appeal to patrons and remain in trend.

Although Times Bookstores will no longer have physical stores in Singapore, its book distribution business, which supplies books from international and local publishers to other retailers, continues to operate.

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