The FTSE ST Industrials Index has recorded a remarkable 40.7% total return for the first 11 months of 2025, buoyed by dividends and target price upgrades among its constituents. The index, which closed at 915.2, saw its consensus target price rise by 33% from 777.9 to 1,031.9, driven by significant inflows and performance improvements.
Hong Leong Asia emerged as the standout performer, delivering a 141% return on $38m (S$53m) in net institutional inflows. This surge was partly attributed to the launch of the MTU Series 2000 engines by its joint venture, MTU Yuchai Power, in August. The company’s average daily turnover increased from $0.79m (S$1.1m) in the first half of 2025 to $2.95m (S$4.1m) in the second half, reflecting heightened investor interest.
In the small and mid-cap segment, Hiap Seng Industries, Soilbuild Construction, and ASL Marine reported the strongest turnover growth in the second half of 2025. Hiap Seng Industries, in particular, saw a significant increase in average daily turnover after Chandra Asri Group acquired an 11.87% equity interest, boosting its share price from $0.005 (S$0.007) to $0.019 (S$0.026).
The industrial sector remains one of ASEAN’s largest by market capitalisation, with policy initiatives driving productivity and resilience. The Economic Survey of Singapore anticipates continued growth in the construction sector, supported by public residential building and civil engineering projects, despite a forecasted slowdown in manufacturing and trade-related services in 2026.
