Industry News

Oriental Kopi Holdings Berhad is set to broaden its international footprint by entering the Indonesian and Mauritian markets. The café chain operator has formed a joint venture with PT Era Boga Nusantara, part of the Indonesian retail giant Erajaya Group, to establish Oriental Kopi cafés in Indonesia. Additionally, a franchise agreement with Mauritius-based Coffee Time Ltd will introduce the brand to Mauritius.

In Indonesia, the joint venture will see Era Boga Nusantara holding a 60% stake in PT Era Oriental Kopi, with Oriental Coffee International, a subsidiary of Oriental Kopi, holding the remaining 40%. The initial focus will be on the Greater Jakarta area, with the first café expected to open by the end of 2026 at Central Park Mall, West Jakarta. This move follows Oriental Kopi’s successful entry into Singapore and aims to leverage Erajaya’s extensive retail network and local expertise.

Erajaya, established in 1996 and listed on the Indonesia Stock Exchange since 2011, operates over 2,400 stores and manages several international F&B brands in Indonesia. The partnership is expected to combine Oriental Kopi’s brand strength with Erajaya’s market presence to enhance the café’s growth in Indonesia. The venture will also seek halal certification to cater to Indonesia’s large Muslim population.

In Mauritius, the franchise agreement grants Coffee Time Ltd exclusive rights to develop and operate Oriental Kopi restaurants. This asset-light model allows Oriental Kopi to enter a new market efficiently.

Managing Director Calvin Chan expressed enthusiasm for the expansion, highlighting the shared culinary heritage between Malaysia and Indonesia and the potential for growth through these strategic partnerships.

United Overseas Bank (UOB) has reported a net profit of S$1.5b for the second quarter of 2026, marking a 10% increase from the previous year. This growth underscores the bank’s resilience amidst economic uncertainties and market volatility. For the first half of 2026, UOB’s net profit rose by 3% compared to the same period last year.

The bank’s board has declared an interim dividend of 88 cents per ordinary share, reflecting a payout ratio of approximately 50%. Despite a healthy 5% loan growth and active balance sheet management, net interest income decreased by 2% due to margin pressures from a lower interest rate environment. However, net fee income rose by 5% year on year to S$665m, driven by record wealth management fees.

UOB’s non-performing loan ratio stood at 1.6%, with credit costs for the quarter remaining within expectations at 28 basis points. The bank’s Group Wholesale Banking division continued to perform well, with transaction banking contributing nearly half of the total wholesale banking income. Trade loans increased by 33% year on year, and CASA (current account savings account) balances grew by 9%.

In the ASEAN-4 markets of Malaysia, Indonesia, Thailand, and Vietnam, trade loans rose by 14% and CASA balances by 9%, highlighting UOB’s strong regional franchise. Wealth management income for the first half of 2026 increased by 16%, with assets under management reaching S$204b, a 7% rise from the previous year.

UOB’s Deputy Chairman and CEO, Wee Ee Cheong, stated, “Our results reflect the resilience of our diversified franchise, and the momentum building across our key ASEAN markets. Looking ahead, we see significant opportunities to grow wealth, support cross-border ambitions and capture a larger share of trade and investment flows across ASEAN.”

Yangzijiang Maritime Development Ltd. has announced the sale of four newbuild bulk carriers, each approximately 40,000 deadweight tonnes, with deliveries scheduled between April 2027 and May 2028. This move is part of the company’s broader strategy to monetise maritime assets, having entered into contracts to sell a total of 12 newbuild vessels for an aggregate value of $500m over the past nine months.

The company, a prominent maritime financial solutions provider, also reported the delivery of the first of four medium-range tankers, initially announced in November 2025 with a total contract value of $180m. The first tanker was delivered on 30 July 2026, with subsequent deliveries expected in November 2026 and throughout 2027.

Ren Yuanlin, Executive Chairman and CEO of Yangzijiang Maritime, highlighted the company’s strategic focus on asset monetisation. “Our ability to consistently originate, invest, monetise, and recycle maritime assets is central to the Group’s long-term growth strategy and a core differentiator of Yangzijiang Maritime,” he stated. He emphasised the repeatability of their business model, which allows the company to crystallise value at optimal market points and reinvest capital into new opportunities.

These transactions are anticipated to positively impact the Group’s financial performance in the fiscal years 2026, 2027, and 2028, contingent on delivery schedules and accounting recognition. Yangzijiang Maritime continues to position itself as a key player in the global maritime industry, leveraging its strategic partnerships and diversified investment portfolio.

Southeast Asia is set to deliver less than one-third of its planned gas-fired power capacity by 2030, according to Wood Mackenzie. The research highlights that only 14.9 gigawatts (GW) of the anticipated 53 GW will be operational, as turbine shortages, financing issues, and growing dependence on liquefied natural gas (LNG) hinder progress.

The report, “Is Southeast Asia Being Gaslighted? A Deep Dive Into Southeast Asia’s Gas-to-Power Market,” reveals that only 11 GW of the planned capacity has secured gas turbines, with the rest facing delivery lead times of at least five years. Alvin Tan, a research analyst at Wood Mackenzie, noted, “The challenge today is not planning power projects but executing them.”

Vietnam faces the largest gap, with only 3.7 GW of its targeted 29.4 GW expected to come online by 2030. Malaysia is extending existing capacity to manage risks, whilst Indonesia struggles with equipment constraints, securing turbines for only 200 megawatts (MW) of its planned 8.4 GW. Singapore, although better positioned, will face challenges in its next procurement round for hydrogen-ready generation capacity.

The Philippines and Thailand also face significant hurdles. The Philippines is projected to deliver only 0.4 GW of new capacity against a 2 GW target, whilst Thailand must manage an oversupplied system with only 0.5 GW expected from a 1.4 GW target.

Wood Mackenzie forecasts that Southeast Asia will become a net gas importer by 2033, with LNG meeting over 80% of regional demand by 2050. This shift adds complexity to the region’s energy transition, challenging the role of gas in future energy security.

Commercial real estate investment in the Asia Pacific region soared to a record US$92.5b in the first half of 2026, according to JLL. This marks a 35% year-over-year increase, despite challenges such as energy inflation and currency volatility. The second quarter alone saw investments of US$45.5b, a 38% rise from the previous year.

Japan led the region with US$10.6b in Q2 investments, driven by strong office sector activity. Meanwhile, Hong Kong experienced the highest growth, with a 129% increase to US$3.1b, fuelled by retail and office deals. Singapore also saw significant growth, with investment volumes rising 108% year-over-year to US$6.7b, anchored by major deals such as CICT’s acquisition of Paragon mall.

Stuart Crow, CEO of Asia Pacific Capital Markets at JLL, noted, “The sheer scale of transactions this quarter shows that capital remains abundant.” He highlighted the compelling rental growth prospects across major markets, driven by limited supply and rising replacement costs.

The report indicates a shift towards technology-supporting assets and value-add real estate, with data centres and logistics portfolios seeing strong demand. Despite geopolitical uncertainties, the appetite for Asia Pacific real estate remains robust, as investors focus on sectors with structural demand, such as data centres in Japan and logistics in Australia.

Pamela Ambler, Head of Investor Intelligence at JLL, remarked, “Investors are pivoting toward sectors with strong structural demand or targeting assets that offer immediate yield stabilisation.” As the year progresses, the focus will likely remain on defensive sectors amidst ongoing economic uncertainties.

Islamic finance is transforming into a pivotal connector for global capital, trade, and digital infrastructure, according to a new report by Standard Chartered. The report, titled ‘Islamic Banking for Financial Institutions: The Islamic Finance Connector Era’, highlights the industry’s evolution from a traditional funding source to a strategic bridge linking liquidity-rich markets with burgeoning economies.

The report reveals that Islamic finance now encompasses approximately US$6t in assets across nearly 100 jurisdictions. This growth positions it as a critical enabler of capital flows between regions such as the Gulf Cooperation Council (GCC), ASEAN, South Asia, and Africa. Despite this, only 6% of global sukuk capital currently reaches South Asia and Africa, indicating a significant opportunity for expansion.

Khurram Hilal, CEO of Group Islamic Banking at Standard Chartered, emphasised the growing importance of Islamic finance in facilitating cross-border trade and investment. “Islamic finance is becoming a critical enabler of cross-border connectivity,” he stated, urging financial institutions to integrate Islamic finance into their strategic agendas.

The report identifies three emerging trade corridors—GCC-centred, China-centred, and Middle East-Türkiye—as priority channels for Islamic finance. These corridors are expected to enhance trade, investment, and working capital flows, bolstering the resilience of global commerce.

Additionally, the report underscores the potential of digital assets and private credit in expanding Islamic finance’s reach. As digital infrastructure becomes increasingly vital, tokenisation and digital assets could improve efficiency and broaden investment opportunities across markets.

Standard Chartered, the only international bank with a global Islamic banking franchise, continues to support clients through Shariah-compliant solutions and cross-border capabilities. The full report is available on their website for those interested in exploring these emerging opportunities.

Singapore-led HeartSpan.ai has achieved a significant milestone by facilitating Indonesia’s first successful implantation of the world’s smallest and lightest left ventricular assist device (LVAD). This was accomplished through a collaboration with Dr Cipto Mangunkusumo National Central General Hospital (RSCM) in Jakarta and Fuwai Hospital in Beijing. The procedure, completed on 1 August, marks the first successful use of the device in Southeast Asia, offering new hope to patients with advanced heart failure.

The initiative is part of HeartSpan.ai’s broader strategy to establish a regional model that integrates advanced medical technology with specialist expertise, structured clinical training, and a medical knowledge-sharing cloud. This model aims to enable hospitals across Southeast Asia to adopt advanced heart failure therapies effectively.

Dr Wei Siang Yu, Founder of HeartSpan.ai, emphasised the innovative nature of the project, stating, “We are creating an IP-led healthcare model that brings together medical technology, clinical protocols and procedures, specialist know-how, training, agentic AI and a medical knowledge-sharing cloud into one scalable platform.”

The successful implantation was performed on a 45-year-old woman with advanced heart failure, demonstrating the potential for hospitals to sustain such therapies independently. Dr Supriyanto Dharmoredjo, President Director of RSCM, highlighted the achievement’s significance, noting that it brings new hope to patients who previously had limited treatment options.

HeartSpan.ai’s initiative aligns with Singapore’s S$37b RIE2030 plan, which focuses on advancing biomedtech and translating research into practical healthcare solutions. As the company expands its model across the region, it aims to position Singapore as a hub for deploying healthcare technologies and clinical models.

ESR, a prominent Asia-Pacific real asset owner and manager, has exceeded its initial US$2b refinancing target by exercising its upsize option, driven by robust demand from a global lender syndicate. This move underscores the lenders’ confidence in ESR’s long-term growth strategy, which focuses on logistics real estate, data centres, and energy infrastructure.

The refinancing enhances ESR’s financial flexibility, enabling it to pursue strategic growth initiatives across key Asia-Pacific markets. In 2025, ESR completed approximately US$1.1b in net debt repayment, with further deleveraging planned for this year. Matthew Lawson, Chief Financial Officer of ESR, stated, “This refinancing is a tangible demonstration of ESR’s disciplined approach to capital management for long-term growth. The oversubscription reflects strong lender conviction in our sharpened strategy.”

The transaction was fully underwritten by leading global and regional banks, including HSBC, Mizuho, Qatar National Bank, UOB, Maybank, and OCBC. The five-year sustainability-linked refinancing consolidates existing loan facilities into a multi-currency structure, expanding ESR’s lender base with new banking relationships in Europe and the Middle East.

This refinancing aligns with ESR’s strategy to simplify its business and expand its core logistics and data centre operations, positioning the company to seize long-term growth opportunities and deliver value to its capital partners and customers across the region.

Booking.com has launched its inaugural Travel Happiness Index, revealing that travellers across the Asia Pacific (APAC) region remain committed to travel despite facing uncertainties such as extreme weather, political instability, and rising costs. The index, based on insights from 10,000 travellers across 10 APAC markets, highlights the emotional and social value of travel, with 84% of respondents stating that travel helps them reset mentally and emotionally.

The research indicates that nine in 10 APAC travellers prefer to adapt their plans rather than cancel when disruptions occur. This adaptability underscores the importance of travel as a source of joy and fulfilment, with 86% of participants noting that having a trip to look forward to lifts their mood. The findings also show a shift towards valuing simple experiences, such as enjoying natural scenery and quality time with loved ones, over packed itineraries.

Laura Houldsworth, Managing Director, Asia Pacific at Booking.com, commented, “This report makes it clear that for many people across APAC, travel is more than just about getting away—it is about feeling better, having something to look forward to, reconnecting, and having the confidence to keep exploring even when the world feels uncertain.”

The index also highlights the role of digital tools in enhancing the travel experience, with 84% of travellers acknowledging that technology simplifies planning and booking. As APAC travellers continue to seek meaningful and worthwhile trips, the use of trusted platforms and AI-powered tools is becoming increasingly significant in their travel planning journey.

Allianz Global Investors (AllianzGI) has announced an agreement to acquire UOB Asset Management (UOBAM), the asset management arm of UOB Group, for S$555m (€376m). The acquisition, expected to complete in 2027 pending regulatory approvals, will significantly bolster AllianzGI’s presence in the Asia Pacific region, doubling its assets under management in Singapore and increasing its regional assets to over €170b.

The acquisition is complemented by a long-term distribution agreement with UOB, which will leverage UOBAM’s South-East Asian investment expertise and UOB’s extensive retail network. This partnership aims to deliver a broader range of investment solutions to clients across the region. Tobias Pross, CEO of AllianzGI, stated, “Adding their complementary South-East Asian investment expertise to our global platform will boost our combined offering and significantly accelerate our growth in this dynamic region.”

The deal provides AllianzGI with an established presence in high-growth markets such as Thailand, Malaysia, and Vietnam, enhancing its ability to offer innovative investment capabilities. UOB’s Deputy Chairman and CEO, Wee Ee Cheong, highlighted the partnership’s potential to meet the evolving wealth and investment needs of over 8 million ASEAN customers.

This strategic move underscores AllianzGI’s commitment to expanding its market reach and enhancing client offerings in South-East Asia, promising new opportunities for both firms and their clients. Completion of the transaction will mark a significant milestone in AllianzGI’s growth trajectory in the region.