Industry News

A recent study by SAP Concur has unveiled a significant shift in corporate travel management across Southeast Asia, moving from a focus on cost-cutting to prioritising ‘Total Trip Value’. The 2026 Southeast Asia Business Travel Pulse Survey, which gathered insights from over 150 travel decision-makers in Singapore, Malaysia, Indonesia, Thailand, and the Philippines, highlights a growing emphasis on traveller productivity and operational resilience over mere ticket price reductions.

The survey reveals a widening “expectation gap” between business travellers and travel managers. Whilst 59.5% of travel managers in the region now prioritise flexibility in bookings and cancellations, they face challenges in managing last-minute changes, with 51% citing this as their primary operational hurdle. This surpasses concerns about high costs, which only 38.6% of respondents identified as a major issue.

Moreover, 57.5% of decision-makers prefer using artificial intelligence to suggest itineraries that balance policy, cost, and productivity, rather than simply opting for the cheapest options. Integration with HR and finance functions is also becoming crucial, with 58% of travel managers requiring seamless systems to maintain a unified view of traveller bookings and expenses.

The concept of ‘Total Trip Value’ is gaining traction as organisations realise that minor fare savings can lead to traveller fatigue, ultimately affecting performance during critical engagements. The survey suggests that businesses should adopt intelligent, automated ecosystems to enhance traveller productivity and resilience in high-cost environments.

Contractor confidence across the Asia Pacific region is on the rise, with 70% of respondents in Cushman & Wakefield’s annual Contractor Sentiment Survey anticipating improved market conditions in 2026. This optimism is bolstered by a stronger-than-expected absorption of 92 million square feet of office space in 2025 and a tightening construction pipeline outside India.

The survey, which included 180 respondents, revealed that nearly two-thirds reported project backlogs of around six months, indicating improving project delivery conditions. Whilst Japan and Indonesia face longer backlogs, most markets anticipate stabilisation or slight improvement in delivery timelines next year. Ranee Ng, Executive Director and Head of Project & Development Services in Hong Kong, noted a shift towards flexible designs and sustainable materials, highlighting the demand for efficiency and innovation in high-density environments.

The 2026 Asia Pacific Office Fit Out Cost Guide from Cushman & Wakefield shows a divergence in fit out costs across the region. Japan and Taipei experienced the largest year-on-year increases, with Tokyo’s costs rising to US$215 per square foot from US$195, and Taipei’s to US$145 from US$110. Conversely, costs in Mainland China and South Korea have eased, whilst Singapore and Hong Kong remain steady.

Despite the surge in office demand, new office supply outside India has contracted, intensifying competition for prime space. Dr Dominic Brown, Head of International Research APAC & EMEA, stated that the Asia Pacific office market is transitioning into a more stable phase, with both occupiers and investors poised for renewed momentum in 2026.

FedEx has unveiled its first on-site solar installation at the Shanghai International Express and Cargo Hub, marking a significant step in its sustainability efforts across the Asia Pacific. This installation, covering over 4,000 square metres, is expected to generate approximately 743,000 kilowatt-hours of electricity annually, reducing carbon emissions by nearly 417 metric tonnes each year.

The Shanghai project is part of FedEx’s broader initiative to expand low-carbon operations in the region. The company is already generating more than 50% of its electricity from on-site solar power at its South Pacific Regional Hub in Singapore, which also supports its electric vehicle fleet. Similar efforts are underway in South Korea and China, with ongoing solar deployments and energy-efficient infrastructure.

Salil Chari, president of FedEx Asia Pacific, emphasised the importance of a sustainable logistics backbone for the region’s growth. “We are investing in infrastructure that accelerates decarbonisation at scale,” he stated, highlighting the Shanghai solar installation as a key example of integrating clean energy into operations.

FedEx’s commitment to sustainability extends beyond solar energy. The company has expanded its global electric vehicle fleet to over 8,000 vehicles, with significant adoption in China, Japan, Korea, New Zealand, and Thailand. Additionally, FedEx is leveraging digital tools and emerging technologies, such as AI and IoT, to enhance operational efficiency and support sustainable shipping solutions.

As FedEx continues to advance its sustainability initiatives, the company aims to achieve carbon-neutral operations globally by 2040, reinforcing its role in promoting environmental progress across the Asia Pacific.

Asia Pacific’s real estate market saw a significant resurgence in late 2025, with investment volumes reaching their highest levels since 2022, according to Savills’ Asia Pacific Investment Quarterly. The fourth quarter of 2025 witnessed an 8.7% increase in transaction volumes year-on-year, driven by stabilising yields and improved visibility on US tariff impacts.

In Singapore, the real estate investment market closed Q4 2025 with a robust S$10.97b in total investment sales, marking a 44.4% increase from the previous year. The residential sector was the largest contributor, accounting for 40.3% of total sales, despite a 13.7% quarter-on-quarter decline to S$4.42b. The commercial sector saw a 31.1% rise in investment sales, reaching S$3.45b, bolstered by significant transactions such as Keppel REIT’s acquisition of a one-third interest in Marina Bay Financial Centre Tower 3 for S$1.45b.

Across the region, Australia recorded AU$13.1b in Q4 investments, a 66% year-on-year increase, with office investments leading the charge. South Korea set a new annual record with KRW21.1t in office market investments, whilst Hong Kong’s residential transactions reached their highest since 1995, with 13,800 deals by Mainland buyers.

Neil Brookes, Executive Managing Director at Savills, noted, “The recovery we are seeing is being led by investors with a clear focus on quality, income durability, and pricing discipline.” Looking ahead, Alan Cheong, Executive Director at Savills Singapore, commented on the geopolitical risks, suggesting that 2026 investment volumes could match 2025 levels if conditions remain stable.

Citi has announced the establishment of its Infrastructure Financing & Capital Solutions Group (IFCS), aiming to address the rapidly evolving infrastructure finance and capital markets, particularly in the Asia Pacific region. The group will be co-headed by Eric Farina and Rob Cascarino, both bringing extensive experience in infrastructure finance and debt capital markets.

Eric Farina, previously Head of Infrastructure Finance within Private Capital Markets at Morgan Stanley, will be based in New York. He has over two decades of experience in bespoke structuring solutions across various sectors. Rob Cascarino, who joined Citi in 2025, will expand his role from Co-Head of Debt Capital Markets (DCM) for the UK, Europe, Middle East, and Africa to partner with Eric on a global scale. Rob’s experience includes digital infrastructure and sports stadium financings in the US and EMEA.

The IFCS will operate as a product-agnostic group within Citi’s DCM, focusing on structuring, placement, and lending to provide customised solutions to global clients. In Asia Pacific, Citi’s Banking teams will collaborate closely with the global team to support infrastructure financing needs across the region.

Eric and Rob will report to John McAuley and Chris Munro, Heads of Debt Capital Markets, and will work in conjunction with all Capital Markets groups. This initiative underscores Citi’s commitment to leveraging public and private capital markets to deliver innovative solutions to its clients.

Adjust, a leading measurement and analytics company, has unveiled its Gaming App Insights Report: 2026 Edition, highlighting significant growth in mobile gaming engagement, particularly in the Asia-Pacific (APAC) region. The report reveals a global increase in gaming app sessions, with the paid-to-organic ratio rising by 61%, indicating a strategic shift towards user acquisition and retention.

APAC emerged as the frontrunner in this growth, with the paid-to-organic ratio climbing 45% from 2.05 to 2.97, underscoring intensified investment in paid user acquisition. Tiahn Wetzler, director of marketing at Adjust, noted, “As mobile gaming matures, growth is becoming less about scale alone and more about precision.” This reflects a broader industry focus on retaining high-value players and optimising engagement strategies.

The report details that strategy games experienced the most substantial session growth, increasing by 57% year-on-year, followed by casual and hyper-casual games at 37% and 31%, respectively. Slots, casino, and casual games also saw significant install growth, with increases of 46%, 22%, and 19% year-on-year.

In APAC, gaming engagement remained stable, with sessions per user per day slightly increasing from 1.69 to 1.70. Japan, Singapore, and Thailand recorded a 3% growth in sessions, whilst Indonesia, South Korea, and Vietnam saw a 2% rise. Day 1 retention rates in APAC held steady at 20%, with Japan leading at 25%.

Globally, App Tracking Transparency (ATT) opt-in rates rose to 39% in Q1 2026. April Tayson, Regional Vice President for INSEAU at Adjust, highlighted the sophistication of APAC gaming companies in their growth strategies, focusing on deeper player relationships and better measurement across the player journey. The report also explores trends such as AI-generated creatives and cross-platform strategies shaping mobile gaming in 2026.

A recent analysis by Ember, a global energy think tank, reveals that ASEAN could save up to $67b by replacing its planned gas power expansion with solar energy. The report highlights that the cost of generating electricity from gas-fired power plants could reach $109b annually at projected LNG prices, whereas solar energy could deliver the same electricity for approximately $42b.

The ongoing Gulf crisis, which has disrupted Liquified Natural Gas (LNG) supplies, underscores the vulnerability of ASEAN’s reliance on fossil fuels. The report warns that countries like Singapore, heavily dependent on gas, could see generation costs soar to $260.8 per megawatt-hour, double the levels recorded in February 2026.

Ember’s analysis also points out the broader economic implications, including currency pressure and rising inflation, particularly in countries with high fossil fuel dependence. “Current and past crises have proven that fossil import dependence is risking energy security,” said Dr Dinita Setyawati, Senior Energy Analyst at Ember. The report argues that a pivot to renewable energy is essential to buffer against future energy shocks.

Furthermore, the analysis cautions against reverting to coal as a temporary solution, noting that coal-fired electricity remains more expensive than solar plus storage. Thailand’s increased coal usage could add 3.2 million tonnes of CO2 emissions annually, exacerbating environmental concerns.

The report concludes by advocating for accelerated renewable energy deployment and regional cooperation to enhance energy security and reduce reliance on volatile fossil fuel markets.

Visa’s 2025–2026 Growth Corporates Working Capital Index (WCI) reveals a significant gap between the working capital needs of mid-sized firms in Asia Pacific and the financial tools available to them. Despite rising inflation and liquidity pressures, nearly half of these companies are not using any working capital solutions, even as chief financial officers (CFOs) increasingly seek digital tools to enhance liquidity and drive growth.

The report identifies a misalignment between financial products and operational needs, with 47% of firms not utilising working capital tools due to their incompatibility with operational models. Many firms are calling for simpler digital solutions, with 41% seeking digital tools for credit management and 38% desiring on-demand financing.

Working capital is becoming a strategic growth lever, with firms using these solutions seeing an average $17.7m uplift to their bottom line and a 10% reduction in late-payment losses through digital card payments. The report also notes a shift in demands on banks, with 61% of CFOs using AI for working capital optimisation and prioritising faster, more flexible access to liquidity.

Chavi Jafa, Head of Commercial and Money Movement Solutions, Asia Pacific at Visa, stated, “CFOs across Asia Pacific want flexible, sector-specific tools that match their operational realities.” Visa is partnering to deliver tailored, digital-first commercial solutions to help unlock working capital and accelerate approvals.

As demand for digital finance solutions grows, financial institutions are urged to integrate AI-driven insights and streamline processes to better support the evolving needs of Asia Pacific CFOs.

DFI Retail Group has unveiled its 2025 Sustainability Disclosure, showcasing significant strides in its commitment to sustainability across Asia. The group achieved a 22% reduction in Scope 1 and 2 greenhouse gas emissions from its 2021 baseline, with a target of 50% reduction by 2030. Waste diversion also improved, reaching 66% in 2025, with an 80% target set for 2030.

The group invested $39m in community initiatives, benefiting 125 million people across 12 markets. DFI’s efforts in decarbonising its supply chain included launching 380 tonnes of LowCarbon Rice and sourcing deforestation-free coffee beans for its 7CAFÉ outlets in Hong Kong, Macau, and Singapore. “We remain committed to our purpose of sustainably serving Asia for generations,” said Scott Price, Group Chief Executive.

DFI’s sustainability framework focuses on People, Products, and Planet, with governance as its cornerstone. The group maintained ethical audits of its suppliers and expanded its 7-Eleven Grounds to Green programme, which repurposes used coffee grounds into fertiliser. In 2025, 48% of its Own Brand products carried third-party sustainability certificates, up from 28% in 2024.

The group also made advancements in refrigeration technology, commissioning the first CO₂-based natural refrigerant system in Hong Kong’s food retail sector. Erica Chan, Group Chief Legal, Sustainability, and Corporate Affairs Officer, emphasised the importance of governance and transparency in aligning with global standards.

DFI Retail Group continues to integrate sustainability into its operations, aiming to create long-term value for its customers and the environment.

Southeast Asia’s financial services sector witnessed an increase in deal volume in 2025, with 58 publicly disclosed deals compared to 48 in 2024. However, the total disclosed deal value fell significantly from $4.2b in 2024 to $2.1b in 2025, according to the latest EY financial services M&A analysis.

Globally, the financial services sector saw a 49% year-on-year rise in the total value of mergers and acquisitions (M&A), with 2,236 deals disclosed in 2025, up from 2,219 in 2024. Omar Ali, EY Global Financial Services Leader, noted that despite challenging market conditions, investment appetite remained strong, with transactions exceeding $1 billion rising by more than 70%.

In Southeast Asia, the shift towards smaller acquisitions and minority investments was attributed to high funding costs and valuation gaps, as explained by Sumit Narayanan, EY Asean Financial Services Leader. This trend reflects a cautious approach amid macroeconomic and geopolitical uncertainties, with firms focusing on enhancing capabilities in digital services, payment solutions, and wealth management.

Looking ahead, Southeast Asia remains an attractive region for investment, with Singapore expected to drive increased deal activity in 2026, particularly in the insurance and wealth management sectors. Stuart Last, EY-Parthenon Partner, highlighted the potential for profitable regional platforms in the FinTech sector to move towards initial public offerings (IPOs) in the medium term, supported by interim funding rounds.