OCBC Report 4 Oct 13

Telco Sector: MDA explains BPL ruling                                                                      |
| In a report recently, MDA (Media Development Authority) explained that it forced SingTel to share its BPL  |
| (Barclays Premier League) content as the telco had made it “commercially unviable” for StarHub to separately|
| purchase the rights. The cross-carriage ruling resulted in the two telcos offering hefty “subsidies” to    |
| either lure subscribers to switch or retain subscribers. But we do not expect the migration of Pay TV      |
| customers from SingTel to StarHub to be significant, given that it may still be cheaper for existing        |
| subscribers to watch BPL on the mio TV platform. We have a NEUTRAL rating on the sector, with a HOLD on    |
| SingTel (S$3.81 FV) and SELL on StarHub (S$3.82 FV).  (Carey Wong)                                          |
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| For more information on the above, visit www.ocbcresearch.comfor the detailed report.                      |
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| NEWS HEADLINES                                                                                              |
|                                                                                                            |
| - US stocks closed lower Thu after bouncing off intraday lows following a report that House Speaker John    |
| Boehner is determined to prevent a federal default as the Treasury Department warned that such a default    |
| would have potentially catastrophic effects.                                                                |
|                                                                                                            |
| - M1 has been slapped with the industry's largest fine on record in the country's history - S$1.5m - for the|
| disruption of its 2G and 3G mobile phone services in Jan.                                                  |
|                                                                                                            |
| - China Gaoxian Fibre Fabric Holdings might have resumed trading on the SGX but its past has returned to    |
| haunt it, with a Korean regulatory authority fining it S$2.3m over a securities registration statement      |
| lodged in 2011.                                                                                            |
|                                                                                                            |
| - CapitaMalls Asia and Sime Darby Property yesterday began the construction of their shopping mall on prime |
| commercial land in the Taman Melawati commercial area north-east of Kuala Lumpur.                          |
|                                                                                                            |
| - Hiap Hoe Ltd has entered into an MOU with Probuild Construction (Aust) Pty Ltd to pursue JV opportunities |
| for the group's recently acquired sites in Pearl River Road and Lonsdale Street in Melbourne, Australia.