All focused on earnings

Equities, Bonds or Commodities?What’s favourable in today’sinvestment climate and why?

Page 4

Is the greenbackmaking a comeback?

Review how the US dollaris performing and evaluateif it is investment-worthy.

Page 3

Luxury living reaches new highs

With the current privateproperty craze, will prices

continue to soar?Page 5

UOB Privilege TimesPlacing you at the financial forefront

Sign up for UOB Privilege Times today and receive quarterly emaiSign up for UOB Privilege Times today and receive quarterly email alertson the launch of our new issues.

View UOB Privilege Tiew UOB Privilege Times online now atimes online now atuobpr iv i legebanking . com . sg

2010 Issue #2MICA (P) 197/07/2009

QUARTERLYUPDATES

2

A WEALTH OF OPPORTUNITIES BECKONS.

Dear Valued Client,

This issue focuses on opportunities – the opportunities to expand yourinvestment portfolio and enjoy more out of life.

Speaking of opportunities, the burgeoning property market becomes the naturaltopic. Indeed, as local private residential prices continue to reach new pinnacles,the property craze has become no less than a nationwide phenomenon.

That’s why, in this latest quarterly, we study the scintillating performanceof the super luxury private property market (p. 5). We also seek to analyseif the property bubble will remain resilient as we move ahead in 2010.These insights, we hope, will benefit keen investors.

If you have also taken an interest in currency investments, don’t miss ourWealth Speaks section on p. 3, as we pore over the growing strength ofthe US dollar. Then on p. 4, enjoy more investment tips, as we share ourplan for the second quarter’s asset allocation.

But what better investment to make than one that helps stretch your everydollar? Discover PRUlink supergrowth account (p. 6) and UOB GlobalCurrency Premium Account (p. 7) for potentially higher investment gains.For even more advantages in life, you will have to meet the UOB InfiniteCard (p. 7). A truly exclusive card, it is designed to reward you and getyou ahead in life.

So sit back now for a relaxing read. Let us show you the doors to a wholenew world of investment opportunities.

Enjoy the convenience and flexibility of cash withdrawals in Asia. With the regional encashmentservices*, you can withdraw cash of up to USD 50,000^ (or its equivalent in a foreign currency)per transaction per day, at selected UOB branches in Singapore, Malaysia, Indonesia, Thailandand China. To find out more, speak to your Relationship Manager today.

* Disbursement will be made in the currency of the issuing UOB branch. Bank charges apply.^ Disbursement amount may vary and is subject to the Bank’s approval. Other terms and conditions apply.

Regional Encashment Services

Yours faithfully

Kevin LamHead, Sales and DistributionPersonal Financial Services

WEALTH SPEAKS

As the first quarter of 2010 draws to a close, we thought we should spend some time looking atthe foreign exchange (FX) space – how the greenback has performed over the past months and,how it will perform for the rest of this year. 2009 was a year where we saw reallocation towards riskyassets and with the apparent bottoming of the market in March 2009, we witnessed significanttrends developing within the world of FX.

USD takes a turnWe are starting to witness the development of new themes. Admittedly, in our last quarterly FX report,our sentiment for the US Dollar (USD) was mostly bearish against the other major currencies (at leastfor the first half of this year). However, towards the end of last year, the USD began to turn the cornerstaging a notable recovery, leading many to think that greenback-weakness is a thing of the past.The Federal Reserve’s reiteration that rates would remain “exceptionally low for an extended period”has lent further upside strength to the dollar.

There are three main reasons for the recent greenback strengthening.

Firstly, sentiment is slowly improving due to the perceived positive recovery of the US economy.Many are pricing for the Federal Reserve to hike rates even before the European Central Bank orthe Bank of England does. This would explain the recent buying of USD we see, in anticipation ofthe rate hike. However, we maintain our view that the Federal Reserve will remain on hold for themost of 2010, beginning to take action only in the fourth quarter 2010 at the earliest. It may becatastrophic for the USD if the Federal Reserve takes any earlier action.

Secondly, negative news and developments outside the US have been encouraging “flight-to-quality”trades. Europe’s present adverse state of affairs (fiscal deficit problems in Greece, Portugal and Spain)with potential ramifications for the rest of the world’s economies is a classic driving force of the flight-to-quality flow. While these have certainly helped the dollar extend its gains, one must rememberthat the fundamentals of the world reserve currency remain weak (bludgeoning fiscal deficit).

Thirdly, although there are calls to replace the USD as the world’s reserve currency, it seems largelyunimaginable and impractical to expect that this will happen anytime in the near future. 80 percent of trade is quoted in USD; 70 per cent of global central bank foreign reserves are held in UStreasuries; and every day, out of four trillion of FX transactions, 90 per cent are quoted in USD.Besides, a critical assessment of the USD’s reaction in the past month reveals that it has maintainedits appeal as a “safe haven”, and that will suppress the European currencies as long as the creditcrunch persists. As such, there will be strong underlying support for the USD even though it maynot have very sound fundamentals.

Recoveries lend support to firmer Asian currenciesHaving said that, it is unwise to think that the USD’s strength is due to global investors’ confidencethat the US economy is on healthy ground. Because of the massive debt in the American economy,there are still significant concerns and this will weigh on the dollar versus the stronger Asian currencies,which in our view, the latter will, on a relative basis, continue to be valued more attractively. On theback of strong fundamentals and healthy balance sheets of both individuals and corporates in theAsian space, this trend should continue.

Tired antipodeans still holdingFor commodity currencies such as the Aussie and Kiwi, which registered record-breaking gains in2009, our outlook in general, remain positive. Hence, it would not be a bad idea to keep thesecurrencies on your radar screen although we expect gains to be less rosy this year.

Currencies trend may not be that clearAs we head into a period of further lackluster recovery in the global economy, with normalisation ofthe financial system, and rate speculation developing in the background, currencies will remainespecially sensitive to large swings. 2010, as such, will be a volatile year for currencies!

Into Quarter 2 - 2010: How should we view the greenback?

WEALTHGALLERY

Footnote:All views expressed herein are from United Overseas Bank Limited, UOB Economic-Treasury Research.

3

Mr. Jimmy KohHead of Economic-Treasury ResearchGlobal Markets & Investment Management

PRIME MARKET FEEDS

Focus on earningsThe start of 2010 has been choppy for equity markets. Volatility rose as investorswere confronted with uncertainty on several fronts. China embarked on monetarytightening earlier than expected, fiscal risk came to the forefront with Greece’ssovereign debt problems, and the Fed surprised the market by embarking onits ‘exit strategy’.

Although policy uncertainty is likely to linger through the second quarter, webelieve that the market has largely priced in these concerns. The focus of themarket is likely to return to fundamentals – the recovery in the global economyand corporate earnings.

UOB Asset Management Ltd Co. Reg. No. 198600120Z

WEALTHGALLERY

* UOB Asset Management Ltd is a wholly-owned subsidiary of United Overseas Bank Limited.

All views expressed herein are from UOB Asset Management Ltd.

4

Insights from UOB Asset Management*:Quarterly Investment Outlook and Asset Allocation

2ND QUARTER 2010 ASSET ALLOCATION

–Cash instrumentsMoving Underweight

EquitiesRestoring Overweight

• We believe the US labour market is on the edge of creating jobs. This will supportconsumer spending and further stabilise the US housing market.

• The corporate sector was very aggressive in cutting cost and now is enjoying the highoperating leverage. A modest rise in profits would translate into a strong boost for profits.

BondsReturning to Underweight

• The current key risk in the government bond market is political risk.

• Most yield curves remain very steep and the investment opportunities lie in investingin the short end (less than five years).

CommoditiesTurning Overweight

• Gold continues to hold its own as a store of value. It has traded sideways in US Dollarterms but rallied in other currencies, notably in Sterling Pound and the Euro.

• Overweight in Base Metals as China’s trade and industrial production data has continuedto be strong. The recovery of the OECD economies will also keep demand supported.

Key central banks are unlikely to hike policy rates soon as the economic recovery in the developed economies is sub-parand the large amount of spare capacity will keep inflation pressures subdued. Very low interest rates will sustain the searchfor yield and keep risk appetite supported.

We return to an overweight position in Equities and underweight position in Bonds. We are also overweight inCommodities. Within Equities, we have overweight positions in the US and Emerging Markets. We reduce our position inEurope and stay slightly underweight in Japan. In terms of sectors, we prefer the cyclicals – IT, Industrials and ConsumerDiscretionary. In Bonds, we continue to prefer Investment Grade bonds. In Commodities, we are overweight in Gold andBase Metals.

Having weathered the recent Global Financial Crisis, Singapore’s private residential market recovered strongly in the secondhalf of 2009 after its lackluster performance in the first six months of the same year. The mass market segment was thetrail blazer in the property market rebound, which saw continued buoyancy in monthly purchases and price hikes in the thirdquarter of 2009. The total private new home sales stood at 14,688 in 2009, more than that in 2008, and just a shade belowthe 2007 peak. As the economy strenghtens, it seems to have a domino effect on the high-end and super luxury segments.About half of the total units sold in January 2010 were homes located in the Core Central Region, an indication that buyinginterest in upscale properties in the choicest location of Singapore has revived.

According to Savills’ data, the average prices of high-end and super luxury residences which bottomed in the first quarter2009 (1Q09) have consistently improved each quarter thereafter. The high-end residential price increased from S$1,961 persquare feet (sq. ft) in the fourth quarter 2009 (4Q09) to S$2,002 per sq. ft in the first quarter 2010 (1Q10). Similarly, the superluxury residential price rose from S$2,927 per sq. ft in 4Q09 to S$2,984 per sq. ft in 1Q10. In 4Q09, the most expensivehigh-end/super luxury non-landed private home was a unit in Boulevard Vue which sold for S$33 million or S$4,150 persq. ft, followed by a unit in Nassim Park Residences which sold for $22 million or S$3,234 per sq. ft.

PROPERTYFEATURE

5

2010: The Year for High-End and Super Luxury Residential Segments(Contributed by Savills (Singapore) Pte Ltd: Christine Sun – Senior Manager, Research & Steven Ming – Director, Prestige Homes)

The euphoria in new home purchases has also spread to the landed housingsegment, in particular, the Good Class Bungalows (GCBs) segment. Buyinginterest rose sharply with a 24.5 per cent increase in overall landed pricesin the second half of 2009.

Barring any external shocks, prices of high-end and super luxury homesare expected to rise further by 10 per cent to 15 per cent for the whole of2010. The current high-end private home prices are still about 17 per centbelow the 2007 peak while the super luxury property prices are about19 per cent lower. Furthermore, optimism in the two integrated resorts aswell as a more robust global recovery should draw affluent foreign buyersback to Singapore this year.

In the heart of Singapore’s most sought-after neighbourhood liesSingapore’s most coveted address – Nassim Park Residences by UOLGroup Limited, Kheng Leong Co. and Orix. The development is a uniquecollaboration between three internationally-acclaimed creative minds:Singapore-based architect Chan Soo Khian, Japanese landscapearchitect Shunmyo Masuno, and French interior designer ChristianLiaigre. The result is nothing less than extraordinary – the culminationof superlatives on every level designed to offer a phenomenal qualityof life. Luxurious sizes from 3,175 sq. ft. For enquiries, please contactthe marketing agent – Savills Residential Pte Ltd.

Nassim Park Residences: The Epitome of Luxury Living

“…optimism in the two integrated resorts as well as amore robust global recovery should draw affluent foreignbuyers back to Singapore this year.” - Savills

Savills. The leading global real estate service provider.Savills Residential Pte Ltd is a wholly owned subsidiary of Savills (Singapore). Savills (Singapore) is a member of Savills plc, a leading internationalproperty services group listed on the London Stock Exchange and employing over 18,000 staff in more than 200 offices around the world. With anextensive network of offices and associates throughout the UK, mainland Europe, the Americas, Asia Pacific and Africa, Savills provides a wide rangeof high-quality, comprehensive services to developers, owners, tenants and investors. This includes consultancy services, facilities management, spaceplanning, corporate real estate services, property management, leasing, valuation and sales in all the key segments of commercial, industrial, retail,investment and leisure property.

Image courtesy of Savills (Singapore) Private Limited

Source: URA, Savills Research & Consultancy(*Q1/2010 data is from 01Jan to 10Jan 2010)

Average unit price of High-End andSuper Luxury private homes,Q1/2000-Q1/2010

6

PRUlink supergrowth account

UOB is pleased to announce an alliance with Prudential Corporation Asia (Prudential),one of the largest life insurers in Singapore and Indonesia. As a UOB Privilege Bankingclient in Asia, you can now enjoy access to Prudential’s wide array of insuranceproducts, including the PRUlink supergrowth account, an investment-linked insurancepolicy designed to help your investment dollars reach their potential.

An investment that potentially helps your wealth growPRUlink supergrowth account is a single-premium investment-linked insurance planthat gives you the flexibility to invest your money in a wide selection of investmentfunds, all within one single plan. You can enjoy potentially higher investment gainswhile being protected.

PRODUCTFOCUS

Note:[1] Starts with a minimum premium of S$5,000.[2] The net sales charge of 3% of your single premium comprises the initial investment charge (bid-offer spread) of 5% and the allocation rate of 102.11%

of your premium. Please refer to the product summary for an example of how net sales charge is calculated.[3] The minimum premium for top-up is S$2,000. Top-ups are allowed at any time within the permissible age limits.[4] The minimum withdrawal amount is S$1,000. The remaining units in your Account must be worth at least S$1,000 based on the bid price at the time

of the withdrawal. If not, you will not be able to make a partial withdrawal. The sum assured will be reduced proportionately on withdrawals.[5] Subject to availability of other PRUlink funds. The minimum amount to switch out of a PRUlink fund is S$1,000. The remaining units in the PRUlink fund

that you are switching out from must be worth at least S$1,000 based on bid price at the time the switch is carried out. If not, you must switch all theunits out of the PRUlink fund.

Important Notice and Disclaimers:Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the unitsmay fall as well as rise. Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involveshigh cost and the surrender value payable may be less than the total premiums paid.Varying Continuing Investment Charge applies to the respective PRUlink funds. Details (including fees and charges, and specificrisks) of the PRUlink fund can be found in the Fund Information Booklet.This insurance plan is not a bank’s savings or fixed deposit account. This marketing material is not a contract of assurance nor isit intended as an offer or recommendation with respect to the purchase or sale of the above product. The precise terms andconditions of the above product are specified in the policy. The above is for general information only and does not have any regardto your specific investment objectives, financial situation and any of your particular needs. You may wish to seek advice from afinancial adviser before making a commitment to purchase this product. In the event that you choose not to seek advice from afinancial adviser, you should consider carefully whether this product is suitable for you. In case of inconsistency between the Englishand Chinese versions, the English version shall apply and prevail.United Overseas Bank Limited does not hold itself out to be an insurer, insurance broker or insurance agent. The insurance productsand services stated herein are provided by Prudential Assurance Company Singapore (Pte) Ltd.

So many ways to potentially grow your wealthPRUlink supergrowth account gives you the freedom to invest using funds[1] from your CPF Ordinary Account (CPPIS-0A), CPFSpecial Account (CPFIS-SA), Supplementary Retirement Scheme (SRS) or cash so you can potentially make the most out ofyour wealth.

Lower investment costsWhen you invest, you will pay a net sales charge of only 3%[2], allowing you to maximise the potential returns on your investments.

Greater flexibility and controlYou can top-up[3] your policy at any time to take advantage of any investment opportunities that may arise. You can alsowithdraw[4] cash from your account at any time, without incurring any penalty.

Wide selection of fundsWhether you’re an investor with a high-risk appetite or a cautious investment approach, enjoy access to a diversified selectionof funds across asset classes, throughout the world. You can also switch[5] from one PRUlink fund to another PRUlink fundto match your changing investment objectives as many times as you wish, absolutely free!

Hassle-free protectionYou will enjoy a life protection benefit of 110% of the invested capital less withdrawals or the value of your funds at bid price,whichever is higher, without any hassle.

For more information, please speak to your UOB Relationship Manager.

7

PRODUCTFOCUS

Infinite card. Infinitely more

Enter an exclusive realm of privileges with UOB Visa Infinite Card*.

You can look forward to infinitely more opulence, with lifestyle benefits such asprivate access to luxury yacht services, complimentary fine dining and use ofover 450 VIP airport lounges with the UOB Visa Infinite Card.

This exclusive card membership is available only to the select few, by invitation.

To experience the Infinite lifestyle, call 1800 253 2288.

* Terms and conditions apply.

UOB Global Currency Premium AccountPrivileged rates from the first dollar[1] you place

Maximise returns on your every dollar. UOB Global Currency Premium Account isthe first foreign currency savings account that rewards you with attractive dailyinterest[2] earnings, starting from the first dollar you place.

Enjoy greater flexibility too, with five currencies to choose from – AUD, EUR, GBP,NZD and USD. Be it meeting your financial or business objectives, UOB GlobalCurrency Premium Account is your premium choice.

To discover how UOB Privilege Banking can make your money work harderfor you, speak to your UOB Relationship Manager today.

Footnotes:[1] A minimum initial deposit of $10,000 in the applicable currency is required for the opening of each UOB Global Currency Premium Account (“Account”).

Applicable interest will be accorded from the very first dollar in the Account, based on Account balance.[2] The Account interest rates may fluctuate daily and are subject to change at the Bank’s absolute discretion and without prior notice or reason to

the client. The Bank has the absolute discretion and without prior notice or reason to the Client to add, vary, change or remove any foreign currencyavailable to the Account. All deposits placed in the Account may be subject to exchange rate risks and exchange controls which may have animpact on the convertibility of the currency. Once the foreign exchange rate is contracted, the client is bound by it and may not change or cancelthe transaction.

UOB Terms and Conditions Governing Account and Services and Additional Terms and Conditions Governing Accounts and Services apply.

The listed rates are correct as of 27 January 2010 and subject to change without prior notice.

Currency

USD

AUD

EUR

NZD

GBP

Less than $50,000

0.10% p.a.

2.20% p.a.

0.10% p.a.

1.50% p.a.

0.10% p.a.

$50,000 and above

0.40% p.a.

2.70% p.a.

0.20% p.a.

1.80% p.a.

0.20% p.a.

EXCLUSIVEPRIVILEGES

HIGHLIGHTS

Disclaimers:1. This Privilege Banking Newsletter (‘‘Newsletter”) is strictly for information purposes only and shall not be relied upon by any party

for whatever purpose. This Newsletter is not an offer, recommendation, solicitation or advice to buy or sell any financial or insuranceproduct. Any description of financial or insurance products is qualified in its entirety by the terms and conditions of the financialor insurance product and if applicable, the prospectus or constitutive document of the product.

2. Nothing in this Newsletter is intended to be or should be considered as legal, regulatory, tax, financial or other advice. You shouldconsult your own professional advisors about issues mentioned herein that may be of interest to you as this Newsletter is publishedfor general information and does not have regard to the specific investment objectives, financial situation and particular needs ofany specific person who may read or receive this Newsletter.

3. The information contained in this Newsletter, including any data, projections and underlying assumptions, are based on certainassumptions, management forecasts and analyses of known information as of the date of the article, all of which are subject tochange at any time without notice. While every reasonable care has been taken to ensure the accuracy and objectivity of theinformation contained in this Newsletter, United Overseas Bank Limited (“UOB”) and its employees make no representation orwarranty, whether expressed or implied, and accept no responsibility for its completeness or accuracy. As such, UOB and itsemployees do not accept liability for any errors, inaccuracies, omissions or any consequences or any losses/damages howsoeversuffered by any person, arising from any reliance by any person on the views expressed or information in this Newsletter.

4. The UOB Group may have interest in some financial or insurance products and may also perform or seek to perform brokeringand other investment or securities-related services for such products accordingly.

5. United Overseas Bank Limited (“UOB”) assumes no liability or responsibility for the acts or defaults of the merchant(s) or defectin the goods or services offered in the promotion(s) listed in this Newsletter. UOB is not an agent of the merchant(s). Any disputeabout the quality or service standard must be resolved directly with the merchant(s). The merchant(s) may impose conditions forthe redemption of the goods or services. UOB will not be responsible for any injury, loss or damage suffered as a result of theredemption or usage of the goods and services.

United Overseas Bank Limited Co. Reg. No. 193500026Z Apr 20108

Client Referral Programme

A luxurious reward awaits when you refer a friend

Sharing is always rewarding. It’s even more so with UOB Client ReferralProgramme, now extended to 31 May 2010. Share your UOB Privilege Bankingexperience with your friends or family, and indulge in a luxurious escape atBanyan Tree with our compliments*. The more friends you introduce to us, themore enticing the destination.

UOB Privilege Banking Client Referral ProgrammeExclusively from now to 31 May 2010

Footnotes:^Rewards are accorded based on each successful referral.† Alternatively, clients with each successful referral may choose to receive a set of shopping vouchers from a selection of department stores in the region

with the following stipulated value for each referral: Takashimaya Singapore (SGD200), Isetan Malaysia (MYR500), SOGO Indonesia (IDR1.3 million), SOGOTaiwan (TWD5,000) or Jiu Guang (SOGO) Shanghai (CNY1,000). The amount of shopping vouchers per choice of departmental store will be accorded based on the number of successful referrals. A combination of travel and/or shopping vouchers may be accorded to client if the number of successful referral(s) does not fall within the designated tiers.

* Terms and conditions apply. Please visit uobprivilegebanking.com.sg for more details.

Picture by Banyan Tree Hotels and Resorts

3

Referrals^†

Two nights’ stay at Banyan Tree Bintan*,with return ferry and land transfers for two persons

Three nights’ stay at Banyan Tree Maldives Vabbinfaru*,with return flight, speedboat transfer, and daily breakfast for two persons

8

Referrals^†

5

Referrals^†

Two nights’ stay at Banyan Tree Phuket*,with return flight and land transfer for two persons

Your RewardTier

Speak with your UOB Relationship Manager or visit uobprivilegebanking.com.sgto sign up today.