Industry News

Real estate investment in the Asia Pacific (APAC) region has risen by 15% year-on-year, reaching US$204b by March 2026, according to Colliers’ latest Global Capital Flows report. This growth aligns with the global rate, indicating a resurgence in capital directed towards standing assets despite geopolitical and economic challenges.

The report identifies Japan as the largest investment market in the region, with transactions totalling US$50.5b, followed by Australia, China, South Korea, and Singapore. Theo Novak, Managing Director of Capital Markets & Investment Services at Colliers, noted, “Asia Pacific is becoming more resilient and investable, attracting capital to markets with strong fundamentals and long-term growth potential.”

Japan and Australia are particularly appealing to offshore investors, with cross-border investments making up about 25% of their total transaction volumes. In contrast, China’s cross-border inflows remain limited at 3.4% of activity. The office sector has been the standout performer in APAC over the past two years, diverging from global trends where multifamily investments dominate.

Colliers’ research also indicates that APAC-focused fundraising in Q1 2026 has returned to 2024 levels, suggesting that investors are prioritising clear and focused regional strategies. Novak added, “Capital is returning to Asia Pacific with greater discipline in 2026, focusing on markets that offer scale, liquidity, and transparency.”

As the region’s investment recovery continues, supported by core market depth and improving capital deployment conditions, cross-border activity is expected to gradually increase, driven by clearer interest rate trends and emerging pricing opportunities.

Organisations across the Asia-Pacific (APAC) region are facing significant financial losses due to downtime incidents, with an average annual cost of US$300m, according to new research by Splunk and Oxford Economics. The study reveals that lost revenue alone accounts for US$104m of this impact, as businesses grapple with the challenges posed by AI risks and cloud complexity.

The research comes at a crucial time for Singapore, following the AI Verify Foundation’s initiative to enhance trusted AI deployment. Despite the rapid adoption of AI, many businesses express concerns about operational risks, including outages and unpredictable AI behaviour. Notably, 75.6% of surveyed organisations report that rising customer expectations for uninterrupted digital services have heightened the priority of reducing downtime.

Human error remains a prevalent cause of downtime, even as AI adoption increases. Alarmingly, 41.1% of organisations acknowledge that their AI usage has elevated the risk of downtime. Kamal Hathi, SVP and GM of Splunk, emphasised, “Downtime is inevitable; prolonged disruption is not. The most resilient organisations align technology with business outcomes.”

The study also highlights the broader impact of downtime, with financial and market erosion, customer churn, and escalating ransomware costs being significant concerns. The average cost of downtime has reached US$15,000 per minute, and organisations experience an average 3.4% drop in stock price following such incidents.

As businesses increasingly rely on AI for resilience, the need for robust governance and human oversight becomes paramount. The report underscores the importance of end-to-end visibility and proactive investment strategies to mitigate downtime risks.

The luxury hotel market in Asia Pacific has experienced a significant surge in investment, with transaction volumes increasing by 77% from 2017 to 2025, according to JLL. This growth reflects a robust confidence in luxury hospitality as a valuable and income-generating asset, with 2025 transactions reaching approximately $2.1b.

Luxury hotel transactions in 2025 accounted for nearly 20% of all hotel deals in the region, a substantial increase from the 8% share in 2017. This marks a return to pre-COVID levels, with 2025 volumes among the highest since 2019, when transactions exceeded $2.4b. Xander Nijnens, Head of Advisory and Asset Management, Asia Pacific, JLL Hotels & Hospitality Group, noted the sector’s resilience and the growing interest from diverse investors seeking prestige and long-term growth.

The luxury hotel segment is evolving, with a narrowing occupancy gap between luxury and mainstream hotels, indicating year-round demand. This shift is attracting both capital and development, with luxury hotel supply growing at a steady 4% annually over the past decade. Global operators are introducing new concepts, such as wellness retreats and culturally immersive experiences, to cater to specific guest preferences.

Despite higher operating costs, luxury hotels maintain competitive profit margins, demonstrating strong pricing power. Markets like Tokyo, Hong Kong, and Seoul have emerged as leaders in the luxury segment. Marina Bracciani, Vice President, Hotels Research Lead, Asia Pacific, JLL, highlighted the segment’s ability to adapt to changing guest preferences whilst maintaining premium positioning, suggesting continued growth and pricing power in the coming years.

Global investor services group IQ-EQ has announced that its subsidiary, Gordian Capital, has received regulatory approval to expand its institutional cross-border fund platform into Dubai. This expansion, facilitated by a new office at the Dubai International Financial Centre (DIFC), allows Gordian to offer a comprehensive suite of institutional fund services, including managing collective investment funds and advising on financial products.

The licence, granted by the Dubai Financial Services Authority (DFSA), enables Gordian to serve experienced investment professionals with regulated fund infrastructure, allowing clients to focus on investment strategies. This move is part of IQ-EQ and Gordian’s strategic growth plans, aiming to leverage their strong presence in the Asia-Pacific region to tap into the Middle East’s evolving financial ecosystem.

Gordian Capital, acquired by IQ-EQ in July 2025, is the Asia-Pacific region’s first and largest institutional cross-border fund platform. With offices in Singapore, Tokyo, Hong Kong, Shanghai, Melbourne, and now Dubai, Gordian manages $22b across various strategies. The expansion into Dubai is seen as a significant milestone, reinforcing IQ-EQ’s position as a leading provider of regulated market entry offerings across APAC and EMEA.

Mark Voumard, Gordian’s founder and Managing Director, highlighted the challenges of cross-border operations, stating, “Leveraging Gordian’s 20 years’ experience in APAC, we can provide a highly regulated market entry pathway.” Richard Surrency, IQ-EQ’s Group Chief Commercial Officer, expressed confidence in the UAE’s market resilience, emphasising its central role in the company’s Middle East growth plans.

Salmaan Jaffery, Chief Business Development Officer at DIFC Authority, welcomed Gordian’s expansion, noting its contribution to DIFC’s asset management ecosystem. This development underscores DIFC’s status as a leading centre for asset management in the region.

Global Healthcare Opportunities (GHO) and CBC Group have announced a definitive agreement to merge, creating the world’s largest dedicated healthcare investment firm with over US$21b in assets under management (AUM). This strategic alliance unites two leading healthcare investors, aiming to enhance global healthcare access and innovation.

The new firm will operate with more than 200 professionals across 13 offices in North America, Europe, and the Asia-Pacific region, which collectively account for 90% of global healthcare research and development spending. This extensive network is set to capitalise on high-growth, innovation-led opportunities in the world’s largest healthcare markets.

The merger will empower portfolio companies to scale internationally, offering investors access to private equity, private credit, and real estate assets focused on healthcare and life sciences. GHO’s North American and European portfolio will gain enhanced access to Asia-Pacific’s dynamic healthcare market, whilst CBC’s Asian portfolio will benefit from global market insights and execution support.

Mike Mortimer, Co-Chief Executive of the new firm, stated, “We are reinforcing our position as dedicated healthcare specialists, expanding our global reach, and empowering our portfolio companies to compete and win in an increasingly dynamic global healthcare market.”

The transaction is expected to close in early 2027, subject to customary conditions and regulatory approvals. Until then, GHO and CBC will continue to operate independently, focusing on their existing fund mandates. This merger marks a pivotal moment for both firms, aiming to accelerate patient access to affordable care and support innovation in addressing unmet medical needs globally.

Nonprofit organisations in Southeast Asia are facing significant challenges due to systemic constraints, according to a new study by The Bridgespan Group. The research, which surveyed nonprofit leaders across Indonesia, Malaysia, and Singapore, found that 70% of respondents identified the lack of long-term, flexible funding as a critical barrier to scaling their impact.

The study comes at a time when private wealth and philanthropic ambitions are growing in the region, yet these have not translated into a stronger nonprofit sector. This is particularly concerning as demand for nonprofit services is increasing due to demographic changes, climate pressures, and gaps in public systems.

Keeran Sivarajah from The Bridgespan Group highlighted the importance of nonprofits, stating, “Nonprofits in Southeast Asia are a critical part of the region’s social fabric, serving as key partners in delivering essential services, informing policy, and catalysing social and climate innovation.”

The research outlines five strategic shifts for funders and intermediaries to strengthen nonprofit impact. These include increasing long-term funding, enhancing capacity-building efforts, and fostering collaboration among stakeholders. The findings underscore the need for a more robust support system to enable nonprofits to meet rising demands effectively.

As Southeast Asia continues to evolve, the role of nonprofits will be crucial in addressing social and environmental challenges. The study’s recommendations aim to equip these organisations with the necessary resources and strategies to achieve sustainable and scalable impact.

Aon plc has unveiled insights from its 2026 Global Construction Insurance and Surety Market Report, highlighting the resilience of construction activity in the Asia Pacific region. The report underscores the impact of sustained investments in digital infrastructure, which are reshaping construction risks and driving demand for insurance.

The report reveals that the construction insurance market remains growth-oriented, bolstered by abundant capacity and insurer ambitions. However, insurers are increasingly emphasising natural catastrophe exposure, project governance, and delay risks due to the growing scale and complexity of projects. Terence Williams, head of Commercial Risk in APAC for Aon, noted that “hyperscale data centres, battery and semiconductor plants are driving demand for higher-value, more complex builds.”

In markets like China and India, capacity remains robust and pricing competitive, whilst Japan faces pressure from regulatory developments and heightened natural catastrophe exposure. The report also highlights the emergence of technology-led construction as a significant growth area, with data centres and semiconductor plants requiring tailored underwriting approaches.

Vincent Banton, head of construction and infrastructure in Asia for Aon, stated, “Asia remains a region of opportunity but with increasing risk complexity.” Insurers are backing projects with strong governance frameworks, emphasising early engagement and disciplined risk management.

Additionally, the report notes steady growth in the Asia Pacific surety market, driven by infrastructure investment and regulatory capital requirements. Surety capacity is expanding, particularly outside Australia, positioning it as an attractive alternative to traditional bank guarantees.

Forvis Mazars, a global professional services network, has appointed Anthony Atkins as Partner for Consulting (Actuarial Services) in Singapore. With over 20 years of experience in insurance and actuarial fields, Atkins is set to bolster the firm’s presence in the Asia Pacific region. His appointment comes amidst rising demand for actuarial expertise, driven by the complexities of IFRS 17 and increased M&A activity.

Atkins will join the Financial Services Consulting team, complementing the existing insurance practice in Singapore, which includes Tan Yan Song, Partner in Audit and Assurance. The team operates under the leadership of Rudi Lang, APAC Financial Services Leader, offering a comprehensive suite of services including actuarial advisory, audit and assurance, and financial consulting.

Rick Chan, Managing Partner Singapore, expressed enthusiasm about Atkins’ addition, stating, “Tony’s appointment reflects our continued investment in deepening our insurance and actuarial capabilities across Asia Pacific.”

The insurance sector in Asia Pacific is experiencing significant transformation, with IFRS 17 now active in major markets like Singapore, Hong Kong, and Malaysia. Atkins’ extensive background, including leadership roles at a Big Four firm and as Asia Pacific Head of Actuarial Consulting at a global broking firm, positions him well to navigate these changes. His expertise in M&A, market entry, and actuarial due diligence will be invaluable as insurers adapt to new challenges.

Atkins remarked, “I am excited to join Forvis Mazars at such a key moment for the insurance industry across Asia Pacific. The firm’s commitment to supporting clients in financial services and its strong regional network provide an excellent base for trusted actuarial advisory.”

Cushman & Wakefield’s initial findings from the 2026 Asia Pacific Living Survey reveal that the ongoing Middle East crisis is influencing investor behaviour in the region’s Living sector. Whilst investors are becoming more cautious, there is no significant withdrawal from the sector. The survey, which began in April 2026, aims to understand investor intentions and priorities across the Living sector in Asia Pacific.

The survey highlights that 62% of investors are slightly more cautious due to the crisis, with only 4% pausing new deployments. The main impact is on the pace and timing of investments rather than a change in conviction. Investors are expected to demand stronger assurance on income resilience, market fundamentals, and pricing.

Key concerns for investors include higher interest rates and inflation risks, with 77% and 69% of respondents, respectively, identifying these as major issues. The geopolitical situation is primarily affecting financial aspects, such as pricing and leverage, rather than the potential for escalation or de-escalation of the crisis.

The survey also indicates a shift in investor preference towards income-producing, operational assets, with increased caution around development and repositioning risks. If the crisis persists, investors anticipate higher finance costs and required returns, suggesting that deals will need to adapt to a more challenging financial environment.

Cushman & Wakefield plans to release the full survey results in July, providing further insights into the evolving investment landscape in the Asia Pacific Living sector.

Business leaders in Singapore and Hong Kong are more optimistic about the impact of artificial intelligence (AI) than their global counterparts, according to a new survey by QBE Insurance. The survey, which involved over 6,000 participants from 15 markets, found that 96% of Hong Kong and 97% of Singapore business leaders expect AI to positively impact their operations over the next two years.

In Hong Kong, 56% of businesses are using AI to boost operational awareness, whilst 43% focus on agility and 26% on revenue growth. Meanwhile, Singaporean companies are prioritising productivity, with 54% of respondents citing it as a key focus, alongside innovation and competitive advantage, both at 40%.

Despite the optimism, the survey highlighted significant cyber risks. Nearly half of businesses in both cities have experienced cyber-attacks linked to suppliers, surpassing the global average of 38%. Concerns about supplier-related cyber risks are high, with 64% of Hong Kong and 78% of Singapore business leaders expressing worry.

Sam Russell-Vick, Regional Cyber Lead at QBE Asia, emphasised the importance of addressing supplier vulnerabilities, stating, “Companies can no longer be solely concerned with their own cyber defences. They must now consider the cyber vulnerabilities of their suppliers.”

The survey also revealed gaps in cyber insurance coverage, with 22% of Hong Kong and 18% of Singapore businesses lacking insurance. This is particularly pronounced in sectors like construction and manufacturing, where significant portions remain uninsured. The findings underscore the need for businesses to bolster their cyber defences and insurance coverage to mitigate potential risks.