Industry News

A recent study by JLL reveals that Asia Pacific is at the forefront of artificial intelligence (AI) adoption in real estate, yet the region grapples with a significant skills gap. The 2026 Future of Work Survey, conducted by JLL, indicates that 61% of senior business leaders in the region anticipate workforce growth despite the acute shortage of AI talent.

The survey, which involved over 2,200 C-suite and corporate real estate (CRE) leaders across 21 countries, highlights that Asia Pacific leads globally in AI adoption for technology management (52%), portfolio optimisation (51%), and CRE strategy development (47%). However, only 31% of organisations are preparing to redesign spaces for human-AI collaboration, and a mere 15% have reached the optimisation stage of AI adoption.

Susheel Koul, CEO of Real Estate Management Services, APAC at JLL, noted, “The companies pulling ahead aren’t necessarily the ones with the biggest budgets; they’re the ones building adaptive capability and treating AI as a growth enabler.”

The skills gap is a pressing concern, with 42% of respondents in Asia Pacific identifying it as their primary constraint, the highest globally. This shortage is expected to shape the workforce landscape over the next three to five years, with nearly half of APAC organisations anticipating talent scarcity due to AI reskilling demands.

As organisations navigate this “technology dilemma,” they are reorienting investment priorities towards advanced technology and AI support to enhance productivity. The study underscores the need for strategic outsourcing and capability building to bridge the skills gap and sustain AI-driven growth.

The Singapore Good Soil Foundation has successfully concluded its third Next Generation Philanthropy Leadership Programme at the University of Hong Kong. This marks the programme’s first international edition, bringing together 58 in-person and 45 online Student Fellows from diverse countries including Singapore, the US, and Kenya. The five-day event focused on “Art & AI for Social Good,” exploring how technology and creativity can address global challenges.

Participants engaged in interdisciplinary learning, covering artificial intelligence, leadership, and social innovation. The programme aims to empower young individuals to become future philanthropic leaders who can drive positive change in their communities. Notably, three scholarship recipients from rural China were fully funded to attend, highlighting the foundation’s commitment to inclusivity.

The event featured speakers from various fields and included visits to local cultural sites, such as the Hong Kong Jockey Club and M Museum. These experiences provided insights into Hong Kong’s multicultural society and the role of civic institutions. A standout session was the Improvisational Speaking Masterclass, which received high praise from participants.

The programme’s centrepiece, the Charity Pitch Challenge, encouraged students to develop innovative solutions to social issues using AI and human-centred design. The foundation emphasises that AI is a tool, not the goal, and that the future will be shaped by the values of those who wield it.

Looking ahead, the Singapore Good Soil Foundation aspires to cultivate a generation of leaders defined by compassion, integrity, and a commitment to the common good, ensuring technology serves humanity.

OCBC has entered into a strategic cooperation agreement with ZGC International, a Beijing state-owned enterprise, to aid the expansion of high-growth Chinese technology companies into the ASEAN region. This partnership aligns with OCBC’s corporate strategy, The Next Frontier, which focuses on capturing ASEAN-Greater China trade and investment flows.

The collaboration will leverage ZGC’s extensive network of technology parks and innovation clusters across key Chinese cities, including Beijing, Tianjin, and Guangzhou. This network, comprising over 14,000 technology companies, will provide OCBC with direct access to high-growth Chinese firms planning to expand into ASEAN. The sectors identified for strong cross-border opportunities include artificial intelligence, life sciences, software services, and advanced manufacturing.

Both OCBC and ZGC have committed to facilitating regular engagements, including joint events, technology park visits, and business matchmaking sessions. An event at the ZGC Beijing Software Park in June 2026 saw OCBC engage with 25 attendees from AI and advanced manufacturing companies, indicating the momentum already building from this partnership.

The agreement was signed at OCBC Centre on 31 July 2026 by Lu Peng, Deputy General Manager of ZGC International, and Elaine Heng, Head of Global Commercial Banking at OCBC. Representatives from the Singapore Economic Development Board and other strategic partners were present, underscoring the significance of this collaboration in supporting Chinese corporates’ internationalisation efforts across ASEAN.

ASEAN’s evolving trade landscape is creating significant financial challenges, with a new report from Payoneer revealing that businesses across Vietnam, Thailand, Malaysia, Indonesia, and the Philippines are losing an estimated $2.5b annually due to inadequate payment infrastructure. As tariffs on China-origin goods reshape trade flows, these countries have become key manufacturing and export hubs, leading to complex cross-border payment needs.

The report highlights two major pressure points contributing to this financial leakage. Firstly, foreign exchange (FX) conversion and payment costs account for approximately $1.6b of the total exposure. Secondly, settlement delays and working capital drag result in an additional $930m in annual exposure, as funds can be tied up for extended periods.

Nagesh Devata, SVP of APAC at Payoneer, noted, “Trade diversification has opened a real growth opportunity for ASEAN SMBs, but many are still running it through payment infrastructure built for a single corridor.”

For Singapore businesses, which often serve as regional hubs, this issue is particularly pressing. The complexity of managing multiple currencies and payment corridors is a growing challenge. As ASEAN’s trade map is redrawn, Singapore’s small and medium-sized businesses (SMBs) are urged to adopt integrated financial infrastructure to mitigate these challenges.

Payoneer’s platform, designed to support multi-currency collection and faster disbursements, offers a potential solution. With Singapore’s robust financial ecosystem, local businesses are well-positioned to lead this shift. The future will depend on whether their payment systems can adapt to support new trade corridors effectively.

FIC Global Inc (FICG), a Taiwan-listed technology group, has announced strategic partnerships with AME Elite Consortium Berhad (AME) and Jurong Town Corporation (JTC) to bolster its presence in the ASEAN region. The collaborations, formalised at the ASEAN Conference 2026 in Singapore, aim to integrate advanced manufacturing capabilities in Johor with innovation and supply chain management functions in Singapore.

The partnerships establish the Johor-Singapore Special Economic Zone (JSSEZ) Twinning Strategy, which seeks to combine Malaysia’s manufacturing ecosystem with Singapore’s strengths in innovation and global connectivity. This initiative is part of FICG’s long-term vision to develop a cross-border operating model, enhancing its capabilities across various sectors, including AI, data centres, and semiconductors.

FICG’s subsidiary, PRO3C, will expand its manufacturing capabilities in Johor, supported by AME’s expertise in industrial park development. Concurrently, FICG plans to establish a Regional Innovation and Supply Chain Centre in Singapore, in collaboration with JTC, to deepen cross-border integration and enhance customer responsiveness.

Leo Chien, Chairman of FICG, stated, “By combining Malaysia’s manufacturing strengths with Singapore’s capabilities in innovation, talent, and supply chain management, we are building a more resilient cross-border platform to serve our global customers.”

The initiative is further supported by UOB, whose regional banking capabilities will facilitate investment and business connectivity. FICG’s new manufacturing campus in Johor began operations in late 2025, with a grand opening scheduled for October 2026, marking a significant milestone in the group’s regional development.

Asia-Pacific’s office markets demonstrated resilience in Q2 2026, with prime office rents increasing by 0.6% quarter-on-quarter, according to Knight Frank’s latest report. Despite the addition of nearly 1.5 million square metres of new office space, vacancy rates remained stable, with 18 out of 24 cities experiencing stable or rising rents. This trend highlights the sustained demand for high-quality, well-located office spaces.

Hong Kong SAR led the major office markets, with prime rents surging 12.7% year-on-year and 5.1% quarter-on-quarter, driven by limited prime space availability in Central and a resurgence in demand from businesses re-establishing their presence in core districts. Meanwhile, Phnom Penh in Southeast Asia saw the strongest quarterly rental growth at 7.6%, thanks to new Grade A developments.

India also showed robust activity, with 9.8 million square feet leased during the quarter, surpassing the 7 million square feet of new supply. The demand was particularly strong for flexible workspace solutions, with technology companies, especially AI-related firms, leading the charge. These companies are increasingly opting for newer, well-connected buildings to support expansion and talent acquisition.

Tim Armstrong, Global Head of Occupier Strategies and Solutions at Knight Frank, noted, “Occupiers are entering a new phase of decision-making as tightening supply makes securing the right space in the right location increasingly challenging.” Christine Li, Head of Research for Knight Frank Asia-Pacific, added that the rise in rents reflects a gradual market rebalancing, with financial institutions, technology occupiers, and flex space operators supporting leasing activity.

Looking ahead, supply constraints and sector-specific expansions are expected to drive further rental growth in the latter half of 2026, with AI-related occupiers playing a significant role in the region’s leasing activity.

ADA, the Data and AI Experience Company, has announced the acquisition of Algonomy, a leader in agentic decisioning for retail. This strategic move aims to enhance ADA’s intelligent growth platform by integrating Algonomy’s AI decisioning technology, thereby bridging the gap from data insights to a fully agentic experience. The acquisition extends ADA’s presence to 34 markets across the Asia-Pacific, the US, the Middle East and North Africa, and Europe.

Algonomy, known for its legacy brands Manthan and RichRelevance, is trusted by over 400 leading global brands for delivering hyper-personalised customer experiences. The integration with ADA will enable a platform that not only understands customer needs but also acts on them. “Every customer signal runs through a data foundation where AI agents drive real-time decisions,” said Srinivas Gattamneni, CEO of ADA. He emphasised that the acquisition brings ADA closer to its vision of creating the world’s most intelligent growth platform.

Atul Jalan, CEO of Algonomy, expressed excitement about the merger, stating, “ADA gives it a far bigger stage, and it comes at the precise moment decisioning stops advising and starts acting.” Post-acquisition, clients will continue to have full access to Algonomy’s products and solutions whilst benefiting from ADA’s broader capabilities.

ADA, headquartered in Singapore and Malaysia, serves 1,500 clients across various sectors, including retail and financial services. Algonomy’s AI-enabled solutions for eCommerce, marketing, and supply chain will further bolster ADA’s offerings, promising enhanced customer value and operational efficiency.

Jardine Cycle & Carriage Limited (JC&C), a subsidiary of Jardine Matheson Holdings, has reported an 11% decrease in underlying profit to US$473m for the first half of 2026. The decline is attributed to reduced contributions from portfolio companies, lower dividend income, and the absence of non-recurring foreign exchange gains from the previous year. Net profit also fell by 2% to US$363m.

The company has maintained its interim cash dividend at US¢28 per share, consistent with 2025. Additionally, JC&C has proposed a special dividend of approximately US¢73 per share, which includes a cash distribution and a distribution-in-specie of remaining shares in Toyota Motor Corporation (TMC).

Freddy Lee, CEO of JC&C, highlighted the challenging operating environment in Indonesia, which is expected to persist due to macroeconomic headwinds. Despite this, Lee expressed confidence in the long-term fundamentals of Astra and Indonesia. He also noted positive growth in Vietnam, particularly from THACO and REE.

JC&C is undergoing a strategic review, reaffirming its focus on value creation through its key portfolio companies. The company plans to rename itself Jardine Matheson Southeast Asia Limited to better reflect its strategic direction within the Jardine Matheson Group.

Looking forward, JC&C aims to support its portfolio companies in enhancing investment and financial performance whilst exploring opportunities to deliver shareholder value. The proposed special dividend reflects the company’s commitment to effective capital allocation.

Private equity (PE) activity in Southeast Asia (SEA) experienced a significant slowdown in the second quarter of 2026, with only US$935.5m deployed across 10 deals, according to the EY-Parthenon Southeast Asia Private Equity Pulse. This marks a stark contrast to the first quarter, which saw 19 deals worth US$9.2b. The decline is attributed to heightened geopolitical uncertainty, leading to increased investor caution and prolonged decision-making cycles.

Singapore continued to dominate the region’s PE landscape, accounting for 70% of the deal volume, reinforcing its status as a financial hub. The real estate sector led the way, representing 90.8% of the total deal value, driven by a single transaction that secured US$850m in additional equity capital. In contrast, the technology and consumer sectors accounted for 5.3% and 2.2% of the deal value, respectively.

Despite the slowdown in investments, exit activity showed improvement, with 11 exits generating US$4.2b, the highest liquidity conditions since Q1 2022. Luke Pais, EY-Parthenon Asean Private Equity Leader, noted, “Improving exit activity provides an encouraging signal for capital recycling and points to a more constructive outlook for sponsors in the quarters ahead.”

The report also highlighted the evolving private debt market in SEA, which is benefiting from growing investor interest in the Asia-Pacific region. Although still in its early stages, the market recorded one private debt fund close, raising US$320m. Singapore remains central to this growth, supported by a mature regulatory framework and strong institutional investor participation.

Temus, a Singapore-based AI and digital transformation firm established by Temasek, has announced a strategic acquisition of Thinking Machines Data Science, a Philippines-headquartered company. This partnership aims to scale enterprise AI across Southeast Asia by combining Temus’ transformation delivery infrastructure with Thinking Machines’ decade-long expertise in building data platforms and deploying AI systems.

Thinking Machines, recognised as OpenAI’s first official Services Partner in the Asia Pacific, will continue to operate under its own brand. Founder Stephanie Sy will join the Temus leadership team, co-leading the Applied AI and Data team alongside Sutowo Wong. Sy expressed enthusiasm about the collaboration, stating, “Joining the Temus group means we can pursue our ambition at a scale we could not have reached alone.”

Founded in Manila in 2015, Thinking Machines has trained over 10,000 professionals and co-developed hundreds of AI systems across various sectors, including financial services and retail. The company operates offices in Manila, Singapore, and Bangkok. Its recent recognition as an OpenAI advanced partner highlights its capability in deploying production-grade AI systems.

Temus, with a workforce of 500, provides comprehensive AI transformation services, aligning with Singapore’s Smart Nation and National AI Strategy. The acquisition will enable both firms to accelerate AI deployment from pilot to production across the region, offering expanded capabilities without disrupting existing engagements.

Sng Ren Yeong, CEO of Temus, emphasised the strategic fit, stating, “This investment connects two parts of the system that need to work as one—how AI is built and how it is made to operate at scale.” The collaboration is set to enhance AI impact across Southeast Asia, benefiting clients with a deeper range of AI and data solutions.