Industry News

Commercial real estate investment in the Asia Pacific (APAC) region increased by 20% year-on-year in the second quarter of 2026, reaching US$46.1b, according to MSCI’s latest Asia Pacific Capital Trends report. This growth was observed across major sectors and markets despite challenges such as the US-Iran war and rising borrowing costs.

Retail emerged as the strongest sector, with transaction volumes doubling compared to the previous year, surpassing industrial properties for the first half of 2026. Office and industrial sectors also showed growth, with office investments rising 13% to US$15.7b in Q2. Meanwhile, data centre acquisitions saw a decline, although asset-level activity remained robust.

Benjamin Chow, Head of Private Assets Research for Asia at MSCI, noted the resilience of the market, stating, “The second quarter has firmly put to rest any doubts about the durability of Asia Pacific’s ongoing recovery.” He highlighted the increasing cross-border investment interest, particularly in markets like Japan and Australia.

Singapore and Hong Kong were notable performers, with Singapore’s deal volume rising 61% year-on-year to US$2.2b in Q2. Hong Kong’s activity nearly tripled, driven by office and living sectors. Conversely, South Korea experienced an 18% decline due to interest rate concerns.

Cross-border capital played a significant role, with a 38% increase in deal volume in Q2. Despite potential challenges from inflation and interest rate uncertainties, the robust investment and leasing demand in APAC’s commercial real estate markets offer a hopeful outlook for the remainder of the year.

Digital Core REIT has announced a strategic transaction to enter the Singapore market and expand its presence in Japan, whilst reducing its North American asset concentration. The REIT will sell interests in three North American data centres, generating approximately $316m in gross proceeds. These funds will be redeployed to acquire a 2.5% interest in 11 Loyang Close, Singapore, and an additional 25% interest in Digital Osaka 3, Japan, increasing its stake in the latter to 45%.

The transaction is expected to deliver a 4.1% increase in Distribution Per Unit (DPU) and reduce aggregate leverage by nearly 300 basis points, from 39.2% to 36.3%. The move will also double Digital Core REIT’s concentration in the Asia Pacific region. The net proceeds of approximately $140m will be used to pay down $117m in debt and repurchase up to $20m in units.

Gregory S. Wright, Chief Investment Officer of Digital Realty, stated, “With this transaction, we expect to tactically enhance Digital Core REIT’s portfolio mix, leverage and distribution per unit.” John J. Stewart, CEO of Digital Core REIT Management, added, “This transaction marks our entry into Singapore and strengthens our presence in Japan – a pivotal step in our strategy to expand in the Asia Pacific region.”

The transaction is subject to customary closing conditions, including unitholder approval, and is anticipated to close by the end of the year. This strategic shift aims to position Digital Core REIT for future growth opportunities in the data centre sector.

Aoxin Q & M Dental Group Limited has announced a collaboration with the Shenhe District People’s Government to establish a new dental hospital in Shenyang, China. The memorandum of understanding was signed at the 11th Singapore-Liaoning Economic and Trade Council in Shenyang. The project involves an investment of $4.8m (RMB35m) for a facility spanning 2,430 square metres, with a soft opening planned by the end of September 2026.

The new hospital is set to employ over 80 healthcare professionals and 20 support staff. The property acquisition is complete, and interior fit-out is underway. This initiative marks a significant expansion for Aoxin Q & M in its home market of Shenyang.

Chua Ser Miang, Non-Executive and Non-Independent Chairman of Aoxin Q & M, stated, “Shenyang has been the Group’s home market since inception, and this new hospital represents a significant deepening of our commitment to it. Working alongside the Shenhe District People’s Government gives us a strong local foundation to build upon.”

The new facility aims to integrate specialist care, modern equipment, and an experienced clinical team under one roof, enhancing patient services. This development is expected to contribute to sustainable value creation for shareholders over time. The collaboration underscores Aoxin Q & M’s commitment to expanding its healthcare services in China.

Delfi Limited, a chocolate confectionery company listed on the SGX Mainboard, has reported a 2.7% increase in net sales, reaching $266.6m for the first half of 2026. The company’s profit after tax and minority interests (PATMI) rose by 5.4% to $12.9m, despite facing volatile currencies and macroeconomic uncertainties. In constant exchange rate terms, Delfi’s net sales and PATMI grew by 2.9% and 9.4%, respectively.

The company’s Own Brands sales in Indonesia, the Philippines, and Malaysia contributed significantly, with a year-on-year increase of 13.3%, totalling $172.9m. However, Agency Brands sales declined by 12.4% to $93.7m, reflecting the strategic exit from an agency account in Indonesia. Excluding this account, Agency Brands saw a robust growth of 29.0%.

Delfi’s gross profit margin fell by 180 basis points to 25.7%, primarily due to higher raw material costs and currency depreciation in Indonesia and the Philippines. Consequently, EBITDA decreased by 3.7% to $23.4 million. Despite these challenges, Delfi generated $14m in net operating cash flow, maintaining a cash position of $63.3m as of 30 June 2026.

Executive Chairman and CEO John Chuang stated, “Our 1H 2026 performance demonstrates the continued strength of our Own Brands, highlighting the underlying demand of our key brands even as we navigated a challenging cost environment.” Delfi declared an interim dividend of 1.05 US cents per share, representing 50% of the PATMI for the period.

Looking ahead, Delfi anticipates continued volatility in the cocoa market and potential cost pressures due to the ongoing Middle East conflict. The company plans to mitigate these risks through strategic investments and financial discipline, ensuring resilience in uncertain times.

Yangzijiang Maritime Development Ltd. has reported a 49% increase in total income for the first half of 2026, reaching $81.6m. This growth is attributed to the strong performance and strategic expansion of its core Maritime Business, which has bolstered the company’s earnings base. Despite higher operating costs, the expansion has enabled Yangzijiang Maritime to capitalise on value creation opportunities through asset monetisation and resale.

The company has a robust balance sheet with net assets of approximately $1.8b as of 30 June 2026. Over the past nine months, Yangzijiang Maritime has entered into contracts to monetise 12 newbuild vessels, with a total contract value of approximately $500m. These contracts are expected to positively impact the company’s financial performance in the coming years.

Executive Chairman and CEO Ren Yuanlin stated, “Since our listing in November, we have been building a stronger foundation to enhance our earnings capacity through the strategic expansion of our Maritime Business.” He emphasised the importance of early sale contracts to secure capital gains and provide earnings visibility.

The company’s strategic roadmap aims to strengthen its position as a global maritime-focused investment and solutions platform. Looking forward, Yangzijiang Maritime plans to leverage Singapore’s status as a maritime hub and capitalise on macro opportunities, including tighter capital conditions in Western markets and decarbonisation requirements by the International Maritime Organisation.

The Hong Kong Trade Development Council (HKTDC) hosted its flagship event, Think Business, Think Hong Kong (TBTHK), in Kuala Lumpur, bringing together 1,600 business leaders from Malaysia and Hong Kong. The symposium, held on 11 August, aimed to deepen business ties and explore new pathways for regional growth amidst shifting global trade dynamics.

The event featured over 300 tailored business matching meetings, providing Malaysian companies with opportunities to connect with Hong Kong partners and expand into the Guangdong-Hong Kong-Macao Greater Bay Area and beyond. Prof Frederick Ma, Chairman of HKTDC, highlighted the importance of strong networks in navigating geopolitical uncertainties and evolving supply chains.

Algernon Yau, Secretary for Commerce and Economic Development of Hong Kong, emphasised the potential of the Chinese Mainland market for Malaysian companies, noting Hong Kong’s expertise in facilitating access. He mentioned the GoGlobal Task Force, which supports Chinese Mainland enterprises in expanding overseas, including into Malaysia.

The programme included a plenary session chaired by Lincoln Pan, CEO of Jardine Matheson Holdings, with discussions on Asia’s evolving business landscape. The event also featured thematic sessions on trade financing, green finance, regional expansion, and health technology, showcasing Hong Kong’s strategic role in these areas.

TBTHK saw the signing of 10 memoranda of understanding, underscoring growing collaboration between Hong Kong’s services sector and Malaysia’s business community. The event also included exhibitions and business consultations to foster further partnerships.

Asian shopping centres are at the forefront of a global shift towards experience-led retail, according to Cistri’s latest report, “The Changing Face of Malls Globally.” The report, released in 2026, examines 70 super and mega regional malls worldwide, each boasting at least 74,320 square metres of gross leasable area, and highlights the evolving tenant mix and role of these malls since 2018.

The report identifies a decline in traditional department stores, a rise in online retail, and an increased focus on experience, place, and community as key drivers of change. Jack Backen, Regional Director at Cistri, stated, “What this research shows is that the retail sector isn’t in decline, it’s being reshaped.”

Key findings reveal that Asian malls allocate 44% of their floorspace to speciality retail, compared to 32% in the UK and 31% in the US. Additionally, the share of floorspace dedicated to food and beverage is rising, with Asia leading at 17%. Entertainment uses have also expanded, particularly in Asia and the Middle East, each at 14%.

Globally, department stores now occupy only 17% of mall floorspace, down from 29% in 2018. Instead of replacing these anchors, malls are converting space into smaller, more productive formats. This strategy has improved performance in regions like Australia.

The report concludes that the most resilient malls are evolving into mixed-use destinations, integrating non-retail services and focusing on community and experience to remain relevant in a changing retail landscape.

Merck has announced the expansion of its BioReliance® biosafety testing laboratory in Singapore, enhancing the Asia-Pacific (APAC) region’s biopharma quality control capabilities. This expansion, which increases the lab’s size to over 1,000 square metres, introduces the first combined Cell Line Characterisation and GMP Next-Generation Sequencing (NGS) facility in APAC, allowing for advanced local testing and reduced reliance on Western supply chains.

The expansion is a strategic move to bolster the region’s self-reliance in drug development amidst global trade uncertainties. By localising these capabilities, Merck aims to accelerate development timelines and improve operational efficiency for biopharma customers in the region. Paolo Carli, Head of Advanced Solutions for Merck’s Life Science business, stated, “This investment underscores Merck’s commitment to empowering medicine makers by providing industry-leading analytical and biosafety testing services and technical expertise.”

The Singapore lab will also incorporate advanced molecular methods, including the Blazar® platform for rapid virus detection, supporting the industry’s shift towards animal-free testing. This aligns with the 3Rs principle—Replacement, Reduction, and Refinement of animal use.

Goh Wan Yee, Senior Vice President and Head of Healthcare at the Singapore Economic Development Board, expressed optimism about the expansion, noting its potential to strengthen Singapore’s biopharma ecosystem and enhance local workforce capabilities.

Opened in 2018, the Singapore BioReliance® lab’s expansion is part of Merck’s broader strategy to support APAC’s dynamic life science ecosystem and drive scientific progress.

CheckPointSpot Pte. Ltd., a Singapore-based subsidiary of the CheckPointSpot group, has announced a strategic partnership with IM3 Holdings Co., Ltd. to introduce its integrated sports timing solutions and event technology ecosystem in Myanmar. This move marks a significant step in CheckPointSpot’s strategy to expand its presence across Southeast Asia.

The partnership aims to streamline the management of endurance sports events, which are becoming more complex and data-driven. By integrating various aspects of event operations—such as registration, timing, and race results—into a single digital platform, CheckPointSpot seeks to eliminate operational inefficiencies and improve the participant experience.

Benjamin Yeow, CEO of CheckPointSpot Pte. Ltd., and Phyo Myint Han, Managing Director of IM3 Holdings, formalised the partnership, which is expected to support the growth and professionalisation of endurance sports in the region. Yeow stated, “Our integrated platform supports the end-to-end event journey, ensuring data accuracy and operational transparency.”

The platform offers features such as online registration, biometrically secured race pack collection, precision race timing, AI-powered race verification, and post-event analytics. These capabilities aim to provide organisers with a seamless experience, allowing them to manage every stage of an event efficiently.

This expansion into Myanmar is part of CheckPointSpot’s broader strategy to strengthen its regional presence and support the growing demand for advanced event technology solutions in emerging markets.

Asia Pacific’s commercial real estate market has experienced a significant upswing in the first half of 2026, with investment activity increasing by 27% year-on-year, according to CBRE’s latest mid-year review. The office sector played a pivotal role, with investment volumes climbing 29% compared to the previous year. Singapore led the charge, with notable improvements also seen in Hong Kong SAR and stabilisation in mainland China.

Greg Hyland, Head of Capital Markets, Asia Pacific, for CBRE, noted that the investment market is advancing beyond recovery. “Investors are focusing on markets and asset classes where they can capture income, particularly in cities such as Tokyo, Sydney, and Singapore, where rental growth remains strong,” he said.

Despite a 38% year-on-year decline in new Grade A office completions in mature markets, demand remains robust. This is largely driven by AI-related occupiers in Singapore and Global Capability Centres in India. Ada Choi, Head of Research, Asia Pacific, for CBRE, highlighted the resilience of leasing sentiment despite geopolitical tensions, with demand gravitating towards premium office spaces in major markets.

The logistics sector is also seeing concentrated demand in modern facilities, with Greater Tokyo standing out due to strong domestic demand. Meanwhile, the retail sector is benefiting from limited new supply and a shift towards experiential retail, particularly in Tokyo.

In the hotel industry, average daily rates have improved, although occupancy growth is constrained by reduced flights and higher fuel costs. Events and concerts are emerging as key performance drivers, boosting occupancy and room rates during low seasons. As construction costs rise, new supply is limited to high-end products.