Industry News

Demand for logistics space in the Asia-Pacific region has shown resilience in the first half of 2026, driven by manufacturing, e-commerce, and specialised technology supply chains, according to Knight Frank’s latest report. Rental growth increased by 1.2% over the period, with 15 of 18 markets experiencing stable or rising rents. Businesses are now focusing on operational efficiency and securing high-quality facilities to meet evolving supply chain needs.

Brisbane recorded the strongest rental growth, with a 10.4% year-on-year increase, bolstered by significant investments such as Amazon Australia’s A$750m robotics fulfilment centre. Meanwhile, India remains a key market due to manufacturing expansion and domestic consumption growth. Southeast Asia, particularly Vietnam, benefits from electronics manufacturing and logistics demand.

Singapore continues to be a stable logistics hub, with prime logistics rents rising 6.8% year-on-year. The city-state’s strategic connectivity and trade infrastructure support its role as a regional distribution gateway. Recent investments, like Maersk’s fully automated World Gateway II distribution centre, highlight Singapore’s importance in the supply chain network.

Looking forward, occupiers are expected to prioritise flexibility and quality in their logistics decisions. Tim Armstrong of Knight Frank noted, “The Asia-Pacific logistics market has moved into a more mature phase, where occupiers focus on the type of spaces they occupy.” Christine Li added that AI is emerging as a key driver of logistics demand, with significant investments expected by 2030. This trend is exemplified by DHL’s expansion in data-centre logistics across Asia-Pacific.

Singapore’s Dyna.Ai, in collaboration with Dolbix Consulting and Nikkoku Soft, has announced a pilot programme for an AI-powered insurance sales support platform, set to launch in August 2026 across Toyota Corolla Kagawa dealerships in Japan. This initiative seeks to tackle the ongoing labour shortages and stringent compliance requirements in Japan’s automotive retail industry.

The pilot will be tested in live showroom environments, focusing on enhancing the efficiency of sales representatives. It introduces features such as instant policy lookup, compliance checklists, and automatic discussion summaries, which aim to streamline administrative tasks and ensure compliance with Japan’s Insurance Business Act. These tools are designed to help sales staff manage the increased workload resulting from staffing shortages, as highlighted by a Teikoku Databank survey indicating that over 50% of Japanese companies face such challenges.

Joe Shiba, President of Dyna.Ai Japan, stated, “This partnership shows how enterprise AI can be tailored to solve specific operational bottlenecks in regional retail markets.” The platform is built to comply with local regulatory standards, including the Act on the Protection of Personal Information, whilst supporting licensed insurance representatives.

The pilot reflects a broader trend towards embedded finance, with the global market projected to reach $588.49b by 2030, according to Grand View Research. Following initial testing, the companies plan to introduce advanced features later in 2026, paving the way for a nationwide rollout.

Allianz Asia Pacific has reported a strong performance for the first half of 2026, with operating profit, excluding India, increasing by 11.4% to EUR 455m. This growth was driven by significant gains in both the Life & Health and Property & Casualty segments, which rose by 6.4% and 35.0% respectively.

The company’s New Business Value (NBV) also saw a 3.9% increase to EUR 396m, with notable contributions from China, Indonesia, and Malaysia. The Property & Casualty business volume grew by 13.6% to EUR 1.3b, bolstered by impressive growth in Singapore and Malaysia.

Key strategic moves included Allianz’s agreement to acquire HSBC Life in Singapore, a step that underscores its commitment to the region’s insurance and financial sectors. Partnership distribution saw a 12% rise in NBV, particularly strong in China, Malaysia, and Indonesia.

Regional CEO Anusha Thavarajah highlighted the disciplined execution of Allianz’s strategy, stating, “Our strong first-half results reflect the progress we are making across Asia and the disciplined execution of our strategy.”

The company also emphasised its social impact initiatives, being recognised as a Company of Good by Singapore’s National Volunteer & Philanthropy Centre. Allianz’s commitment to inclusion is further demonstrated through its MoveNow Mentoring Programme and support for Paralympic Day 2026.

Looking ahead, Allianz’s acquisition of HSBC Life is expected to close in the first half of 2027, pending regulatory approvals, marking a significant investment in Singapore’s financial landscape.

Office leasing activity in the Asia Pacific region reached an impressive 4.6 million square metres during the first half of 2026, according to Colliers’ latest report. Despite geopolitical uncertainties, the demand for high-quality office spaces remained robust, driven by steady business momentum.

India, Mainland China, and Japan were the primary contributors, accounting for over 95% of the leasing activity. These markets also represented more than 90% of new office supply. Meanwhile, Hong Kong and Taiwan experienced significant demand growth, contrasting with notable declines in leasing volumes in New Zealand, Indonesia, and Singapore.

Mike Davis, Managing Director of Occupier Services at Colliers Asia Pacific, highlighted the region’s momentum: “As occupiers double down on high-quality workplaces to attract talent, drive productivity, and support business growth, regional demand is increasingly concentrating in best-in-class assets.”

The report noted that new office supply was subdued at 3 million square metres, marking a 37% year-on-year decline. India and Mainland China dominated new completions, accounting for over 80% of the total.

Looking ahead, the Asia Pacific region is expected to maintain its role as a key contributor to global economic growth. The report suggests that stable interest rates and resilient growth prospects will bolster business confidence and investments, although geopolitical risks remain a concern. Davis added, “Vacancy levels are likely to remain stable across most markets, whilst sustained demand is expected to drive average rentals upward.”

Malaysia and Bangladesh are advancing their healthcare collaboration, following a meeting between the Malaysian Healthcare Travel Council (MHTC) and Bangladesh’s Health Ministry. The meeting, held in Dhaka, aimed to further develop medical tourism and patient access between the two nations.

The discussions were part of MHTC’s visit to Bangladesh from 17 to 20 August, building on the momentum from the Bangladeshi Prime Minister’s visit to Malaysia in June. The leaders of both countries had expressed optimism about expanding bilateral cooperation in healthcare, particularly in light of Malaysia Year of Medical Tourism 2026 (MYMT2026).

The collaboration is driven by increasing demand, with healthcare travel revenue from Bangladeshi patients to Malaysia rising from RM2.2m in Q1 2025 to RM2.7m in Q1 2026, marking a 22.7% increase. This growth underscores Bangladesh’s potential as a significant market for Malaysian healthcare services.

Dato’ Suriaghandi Suppiah, CEO of MHTC, stated, “Malaysia and Bangladesh have built more than five decades of partnership, and in June our leaders agreed to extend that partnership into healthcare. Our responsibility now is to translate that commitment into practical cooperation, not only in healthcare travel, but in the exchange of skills, standards and knowledge that strengthens both our systems.”

Bangladesh’s Health Minister highlighted the importance of making Malaysian healthcare more accessible and affordable to the Bangladeshi population, emphasising competitive pricing and broader access. This cooperation is expected to strengthen the longstanding relations between the two countries and enhance healthcare opportunities for Bangladeshi patients.

DBS has launched an innovative agentic AI solution aimed at transforming the preparation of complex credit assessments for corporate clients. This tool, now available to 1,500 bankers globally after a successful pilot with 150 users, automates over 70 tasks to produce a review-ready first draft of credit memos. This advancement allows relationship managers to dedicate more time to strategic client engagements.

Credit assessments are crucial for evaluating a company’s financial health and risk profile, but they are traditionally time-consuming. Relationship managers often spend up to 40% of their time on these tasks, which involve analysing vast amounts of data from various sources. DBS’s AI solution aims to cut this time by at least 30%, enabling managers to focus on strategic conversations and risk managers to concentrate on portfolio strategy and emerging risks.

Han Kwee Juan, Group Head of Institutional Banking at DBS, stated, “We believe that agentic AI can help to reimagine corporate banking. Through this capability, we have been able to capture the knowledge and insight of our best relationship managers and credit risk managers, turning these into a solution which enables us to level up the quality of our credit analysis at scale.”

This initiative is part of DBS’s broader strategy to integrate AI across its operations, enhancing both customer and employee experiences. The bank recently upgraded its virtual assistants, DBS Joy and DBS digibot, to serve 10 million customers across Singapore, Hong Kong, and Taiwan. As DBS continues to embed AI into its processes, it aims to amplify human expertise and focus on what matters most.

Raffles Education Limited has announced it expects to receive approximately RMB270.68m (S$49.89m) in net cash proceeds following the compulsory acquisition of its land by the People’s Republic of China (PRC) government. The land, located in Gu’an County, Hebei Province, was acquired in 2008 for RMB190 million and was designated for educational and scientific purposes.

The acquisition, announced on 30 January 2026, is part of urban planning needs for the Langfang Development Zone. The total compensation agreed upon is RMB293m (S$54m), payable in two phases. The first phase of RMB150m is due within a week after the transfer of a portion of the land, whilst the second phase of RMB143.26m is expected by the end of 2026.

Chairman and CEO of RafflesEducation, Chew Hua Seng, stated, “This represents a pragmatic and value-accretive outcome for the Group, particularly against the backdrop of the challenging property market conditions in China.” He noted that despite the book value of the land being higher than the sale price, the transaction provides certainty and strengthens the company’s net cash position.

The land’s restricted use for educational purposes and adverse changes in regulations have hindered its development, making it difficult to market. The proceeds from this acquisition are expected to significantly enhance RafflesEducation’s financial standing, representing a substantial portion of its market capitalisation of approximately S$206 million as of 17 August 2026.

United Overseas Bank (UOB) has appointed Tan Choon Hin as its Head of ASEAN and Greater China, effective 1 September 2026. In this newly created role, Tan will oversee UOB’s regional business operations, including subsidiaries in Malaysia, Indonesia, Thailand, Vietnam, and mainland China, as well as branches in Hong Kong SAR and Taiwan. He will collaborate with country CEOs to strengthen connectivity and accelerate cross-border opportunities.

Tan will also lead UOB’s Foreign Direct Investment (FDI) Advisory unit, which has supported over 300 cross-border expansion plans in the past six months, with projected investments of S$5.6b. This initiative reflects UOB’s strategy to capture the growing trade and investment flows between ASEAN and Greater China.

Wee Ee Cheong, Deputy Chairman and CEO of UOB, stated, “ASEAN is at the heart of UOB’s growth strategy and is becoming an increasingly important global economic hub.” He emphasised that Tan’s experience positions him well to drive growth across UOB’s regional franchise.

Tan, currently UOB’s Deputy Chief Risk Officer, brings over 30 years of experience in banking, credit, and risk management. He joined UOB in 2012 and has held various leadership roles, including CEO of UOB Thailand. Under his leadership, UOB Thailand became the second largest foreign bank in the country.

This appointment is part of UOB’s leadership transformation, aiming to deepen regional connectivity and support customers in seizing cross-border growth opportunities.

OUE Healthcare Limited has officially opened its flagship Shenzhen China Merchants-Lippo Prince Bay Hospital, marking a significant expansion in the Greater Bay Area. The hospital, which opened on 24 July 2026, is strategically located in Shenzhen’s Shekou area and aims to provide holistic care across the patient life cycle.

The Prince Bay Hospital, operated by OUE Healthcare’s joint venture, China Merchants Lippo Hospital Management, spans approximately 42,000 square metres and houses over 230 beds. It offers a comprehensive range of services based on the 4P principles—Predictive, Preventive, Personalised, and Participatory. The hospital is designed to cater to both local and international patients, with multilingual specialists and service staff.

Key facilities include the International Medical Centre, Minimally Invasive Surgery Centre, and Health Management Centre. Additionally, the hospital specialises in areas such as Pain Management, Rehabilitation, Gynaecology, Traditional Chinese Medicine, Gastroenterology, and Respiratory Medicine. Payment options are enhanced through dual channels, including China’s national medical insurance system and major commercial insurers like Bupa Group and Cigna & CMB Life Insurance.

Lee Yi Shyan, Chairman of OUE Healthcare, highlighted the hospital’s role in building a regional healthcare ecosystem anchored on Singapore’s medical excellence. Yet Kum Meng, CEO of OUE Healthcare, emphasised the hospital’s competence in offering minimally invasive procedures for improved patient outcomes.

Prince Bay Hospital has formed alliances with institutions such as the First Affiliated Hospital of Jinan University and the Chinese University of Hong Kong. The hospital plans to continue partnering with healthcare institutions to advance healthcare innovations and deliver high-quality care.

Southeast Asia’s financial services mergers and acquisitions (M&A) activity remained steady in the first half of 2026, with 31 publicly disclosed deals, according to the latest EY analysis. Despite maintaining the same number of deals as H1 2025, the total disclosed deal value fell significantly from $1.6b to $936m.

Globally, the financial services sector saw a 3% increase in deal volume, with 1,137 deals announced compared to 1,101 in H1 2025. However, the total deal value declined from $191.3b to $134.5b, with fewer megadeals over $1b. Omar Ali, EY Global Financial Services Leader, noted that firms have adapted to uncertainty, but unpredictability and slower economic growth have impacted deal values.

In Southeast Asia, the stability in deal volume reflects a market engaged despite economic volatility. Stuart Last, EY-Parthenon Partner, highlighted that M&A activity focused on smaller and mid-sized transactions, suggesting a disciplined approach by investors. He anticipates a rise in larger transactions in the latter half of 2026 as financing conditions improve.

Sector-specific trends in Southeast Asia showed a decline in banking deal volume from 20 to 14, with deal value dropping from $1.1b to $669m. Conversely, insurance deals increased from eight to nine, although their value fell from $478m to $123m. Wealth and asset management saw a rise in both deal volume and value, indicating growing investor interest in the region’s expanding affluent population.