Industry News

The Singapore property market experienced a notable resurgence in the fourth quarter of 2024, driven by a surge in homebuyer activity following interest rate cuts by the US Federal Reserve. According to Knight Frank’s analysis of the Urban Redevelopment Authority’s (URA) flash estimates, private residential prices rose by 2.3% quarter-on-quarter, reversing the previous quarter’s decline. This uptick was attributed to pent-up demand and increased sales at new launches, with 3,420 new sales recorded in Q4 alone.

The overall private home sales for 2024 reached 21,950 units, marking a 15.3% increase from the previous year. Knight Frank anticipates this positive momentum to continue into 2025, projecting non-landed new sales volumes between 7,000 and 9,000 units. Prices are expected to grow by 3% to 5%, supported by healthy take-up rates at new launches.

In the Core Central Region (CCR), prices grew by 2.6% quarter-on-quarter, despite muted demand due to the 60% Additional Buyer’s Stamp Duty for foreigners. The landed market remained stable, with prices increasing slightly by 0.9% for the year. Knight Frank predicts a moderate price increase of around 3% in 2025 for landed homes.

The office sector saw a slight decline in rental indices, with a 0.9% drop in Q4 2024. Occupancy levels remained healthy at 89.4%, despite global uncertainties. Retail rents grew modestly by 0.6% quarter-on-quarter, with occupancy levels improving to 93.8%. Knight Frank expects prime retail rental growth to stabilise between 1% and 3% in 2025, despite challenges from a strong Singapore Dollar and inflationary pressures.

AIA Singapore and Raffles Hospital have signed a Memorandum of Understanding (MoU) to improve access to quality healthcare services in Singapore. The collaboration, announced on 23 January 2025, focuses on expanding specialist networks, co-creating healthcare solutions, and managing hospitalisation costs for AIA policyholders.

The partnership will see over 90 private specialist doctors from Raffles Hospital join AIA Quality Healthcare Partners, significantly increasing AIA’s network to nearly 700 medical specialists. This expansion offers Integrated Shield Plan policyholders one of the most comprehensive panels in Singapore.

Both parties will also work on innovative healthcare solutions aimed at enhancing care quality and patient outcomes. This includes sharing quality indicators and patient outcomes to support value-based healthcare. Additionally, the collaboration will ensure hospitalisation bills align with the Ministry of Health’s fee benchmarks, helping to control costs.

Irma Hadikusuma, Chief Marketing and Healthcare Officer of AIA Singapore, emphasised the importance of the partnership in meeting the healthcare needs of an ageing population. “Our priority remains to ensure that AIA policyholders continue to get prompt access to meet their medical and hospitalisation needs,” she stated.

Dr Kenneth Wu, Chief Operating Officer of Singapore Healthcare, Raffles Medical Group, expressed optimism about the collaboration, noting that it would enhance the hospital’s ability to meet evolving patient needs.

This initiative is part of AIA Singapore’s broader efforts to enhance healthcare support, including recent enhancements to corporate insurance policies and access to teleconsultations and mental wellness services.

RHB Bank has projected Singapore’s headline inflation to remain at 2.3% for the full year of 2025, according to its latest Global Economics and Market Strategy Report. The report, attributed to Barnabas Gan, Acting Group Chief Economist and Head of Market Research at RHB Bank, also forecasts core inflation to ease to 1.8% in the same period.

The report highlights that Singapore’s headline Consumer Price Index (CPI) stood at 1.6% year-on-year, consistent with the previous month and surpassing market expectations of 1.5%. Core inflation, which excludes the costs of accommodation and private road transport, eased to 1.8% year-on-year from 1.9% in November, marking the lowest level in three years.

RHB maintains its base case view that the Monetary Authority of Singapore (MAS) will keep its policy parameters unchanged in its upcoming meeting on 24 January 2025. This suggests a stable economic outlook amidst global uncertainties.

Barnabas Gan noted, “We keep Singapore’s full-year headline inflation at 2.3% and core inflation to ease at 1.8% in 2025.” This outlook reflects a cautious optimism in Singapore’s economic stability and inflation management.

The report’s findings are crucial for policymakers and investors as they navigate the economic landscape in 2025. With inflation rates stabilising, Singapore’s economic environment remains conducive for growth, provided external factors remain favourable.

Private home prices in Singapore saw their slowest growth in four years, according to the Urban Redevelopment Authority (URA). The overall price index for private residential properties increased by 2.3% from the third quarter (Q3) to the fourth quarter (Q4) of 2024, resulting in a full-year growth of 3.9%. This marks a significant decline from the 6.8% increase in 2023 and even higher rates in previous years.

The volume of private home sales, excluding executive condominiums (ECs), rose sharply by 38.4% from 5,372 units in Q3 to 7,433 units in Q4 2024. For the entire year, 21,950 private homes were sold, a 15.3% increase compared to 2023. This surge was largely driven by new project launches, with new home sales jumping by 194.8% in Q4 2024, reaching the highest quarterly sales since Q3 2021.

Conversely, the resale market faced challenges, with volumes dropping by 4.1% from Q3 to Q4 2024 due to heightened competition from new projects. Meanwhile, rental prices remained stable in the final quarter, with a slight increase for non-landed properties. Overall, rental prices dipped by 1.9% in 2024, reversing the 8.7% rise seen in 2023.

Looking ahead, rents are expected to recover in 2025, with a projected increase of 2% to 4%, driven by improving economic conditions and reduced housing supply. Christine Sun, Chief Researcher and Strategist at OrangeTee, anticipates private home prices to rise by 4% to 7% in 2025, spurred by more project launches and tighter home supply. Sales are projected to remain steady, with 18,000 to 22,000 units expected to be sold in 2025.

We Are Art Collectors (WAAC) has unveiled Singapore’s inaugural fractional art ownership platform, allowing individuals to invest in local art starting at S$1,000 per lot. Founded by Low Sok Leng, the platform aims to democratise art investment by enabling multiple investors to own shares in high-value artworks by Singaporean artists.

WAAC’s innovative model divides the value of an artwork into smaller, tradable lots, making art investment more accessible. The initial launch features works by second-generation Singapore artists, including oil paintings by Low Hai Hong and Koeh Sia Yong. These artworks are curated for authenticity and potential value appreciation, ensuring quality for investors.

Art is increasingly seen as a viable alternative investment in Singapore. A 2023 survey revealed that 58% of respondents preferred art as their “investment of passion,” surpassing watches and wine. Globally, art purchases by millennials and Gen Z clients surged by 147% last year, according to the Knight Frank Luxury Investment Index.

Low Sok Leng, WAAC’s CEO, highlighted the appeal of fractional art ownership to young investors: “Each lot is priced affordably, and the artworks are curated by experts. This makes art investment much more accessible.” She also noted that experienced collectors could diversify their portfolios by investing in multiple artworks.

Doug Peris, Partner at Founders Bridge, praised the platform’s approach: “WAAC isn’t just an investment vehicle – it’s a way for art enthusiasts to access a market once limited to high-net-worth collectors.”

The artworks are available for viewing at High Street Centre, with six pieces offered for fractional ownership. Interested investors must become WAAC members, paying a one-time fee of S$1,000, and can trade their shares within the platform, providing flexibility and liquidity.

Changi Airport in Singapore reported handling 67.7 million passengers in 2024, marking a 14.8% increase from the previous year and reaching 99.1% of its pre-COVID-19 passenger levels from 2019. Aircraft movements rose by 11.5% to 366,000, while airfreight throughput increased by 14.6% to 1.99 million tonnes. December 2024 was the busiest month, with 6.4 million passengers, and 21 December saw a peak of 226,000 passengers.

North Asia emerged as the fastest-growing region, with a 40% increase in passenger traffic compared to 2023. China was the largest source market, with traffic surpassing pre-pandemic levels by 6%. Hong Kong and Japan also saw significant growth, exceeding 20% year-on-year. The top five passenger markets were China, Indonesia, Malaysia, Australia, and Thailand.

Changi Airport’s CEO, Mr Yam Kum Weng, highlighted the addition of 11 new city links and eight new passenger airlines, enhancing the airport’s connectivity. “We are deeply grateful for the close partnership with our airline partners,” he stated. The airport also welcomed two new freighter airlines, expanding cargo connections.

Looking forward, Changi Airport anticipates further growth in passenger traffic and plans to invest in infrastructure to meet rising demand. As of January 2025, the airport operates over 7,400 weekly flights, connecting Singapore to 163 cities across 49 countries.

Tokio Marine Life Insurance Singapore Ltd (TMLS) has announced significant changes to its senior leadership team, appointing Alistair Chamberlain as Chief Executive Officer, Jun Tokura as Chief Distribution Officer in addition to his role as Deputy CEO, and Kapil Jain as Chief Risk Officer. These strategic appointments are part of TMLS’s plan to drive growth and resilience in the Singapore market.

Alistair Chamberlain brings a wealth of experience to his new role, having previously held senior positions such as Managing Director and CFO of Global Wealth & Insurance at HSBC PLC, and CFO at AIA Singapore. His expertise in actuarial, finance, and marketing is expected to guide TMLS through its next phase of growth, focusing on customer experience and operational excellence.

Jun Tokura, who has a long-standing career with Tokio Marine Group, will now also serve as Chief Distribution Officer. He will lead the development and execution of TMLS’s distribution and marketing strategies, aiming to strengthen the company’s distribution network and enhance client-centric approaches. “His ability to drive strategic initiatives and deliver impactful results makes him the ideal leader to oversee our distribution strategy,” said Chamberlain.

Kapil Jain’s appointment as Chief Risk Officer underscores TMLS’s commitment to a robust risk management framework. With extensive experience in risk management across Asian markets, Jain will play a crucial role in supporting the company’s sustainable growth. Chamberlain noted, “The addition of a Chief Risk Officer, along with the expanded role of our Deputy CEO, underscores our dedication to strengthening risk management framework, governance and client service excellence.”

These leadership changes are designed to position TMLS for continued success and innovation in the competitive insurance landscape.

Zurich Insurance Company (Singapore) Ltd. and ComfortDelGro Corporation Limited have announced a strategic partnership to introduce ‘Zurich Travel Comfort’, an exclusive travel insurance product available through ComfortDelGro’s ride-hailing app, CDG Zig. This collaboration aims to integrate Zurich’s insurance expertise with ComfortDelGro’s transport network, offering seamless protection for over 1 million monthly active users of the app.

The new insurance product provides coverage for travel disruptions, including vehicle breakdowns en route to Changi Airport, with reimbursements up to SGD1,000 for additional expenses. Customers purchasing policies of SGD15.00 and above will receive a SGD5.00 promo code for CDG Zig, valid until fully redeemed. Additional features include real-time flight delay lounge access and 24/7 global assistance.

The initiative is powered by the Zurich Edge platform, ensuring a smooth digital experience for users. Alexandra Cowley, Chief Underwriting Officer at Zurich Singapore, highlighted the partnership as a step forward in offering tailored insurance solutions, stating, “By integrating Zurich Travel Comfort into the CDG Zig app, we’re combining ComfortDelGro’s trusted transport network with Zurich’s deep insurance expertise.”

Tommy Tan, CEO of ComfortDelGro Taxi, expressed enthusiasm for the collaboration, noting its alignment with ComfortDelGro’s commitment to digital-first experiences. Kenny Lok, CEO of ComfortDelGro Insurance, added that the partnership exemplifies how technology is transforming traditional insurance models, making insurance an intuitive part of the customer’s journey.

This strategic collaboration not only enhances customer convenience but also represents a significant shift towards integrating insurance solutions within mobility platforms.

Etiqa Insurance Singapore, the insurance arm of Maybank, has launched Invest future, Singapore’s first Takaful offering in more than ten years. This new Shariah-compliant investment-linked plan (ILP) is designed to meet the growing demand for ethical financial solutions in the region. Maybank Singapore will serve as the exclusive distributor of this product, which aims to support sustainable wealth accumulation through Shariah-compliant investing.

The introduction of Invest future is a significant step in Maybank’s Islamic Wealth Management (IWM) strategy, which focuses on providing values-based financial solutions. Alvin Lee, Maybank Singapore’s Country CEO, highlighted the importance of such offerings, stating, “Values-based financial solutions such as Etiqa’s Takaful ILP are integral to our IWM offerings, aligning with Shariah principles.”

Raymond Ong, CEO of Etiqa Insurance Singapore, expressed enthusiasm for the launch, noting the increasing interest in ethical investing among Singaporeans. “Our Takaful ILP promotes Shariah values of mutual cooperation and purposeful investing,” Ong said. “We aim to provide ethically crafted solutions that all customers can trust.”

Invest future offers several benefits, including investment bonuses, access to Shariah-compliant funds, and comprehensive coverage options. It also allows policyholders to make legacy gifts or charitable endowments, known as wakaf, to loved ones or organisations.

This launch underscores Etiqa’s commitment to providing insurance solutions that align with customers’ ethical and social values, offering a transparent and community-focused approach to financial protection.

Frank Yap, a former engineering student at Nanyang Technological University (NTU), has turned the uniform industry on its head by founding Apparel Empire, a Singapore-based company that specialises in bespoke corporate apparel. Within a year of its inception, Yap achieved his first million in revenue, driven by a vision to make uniforms stylish and reflective of brand identity.

Yap’s journey began when he noticed the uninspiring nature of work uniforms during his university days. Determined to change this, he dropped out of NTU and invested his life savings of S$30,000 to establish his own factory in China. This strategic move allowed him to control every aspect of production, from design to manufacturing, offering clients unparalleled customisation options.

Apparel Empire has since completed over 25,000 projects, collaborating with multinational corporations (MNCs) such as Coca Cola, Crocs, Meta, and Skechers. Yap’s innovative approach has also seen his designs featured in Harvard University’s bookstore in the US. “If you can ask for it, we can make it,” Yap boldly claims, highlighting the company’s commitment to meeting unique client demands.

By eliminating middlemen and reducing minimum order quantities, Apparel Empire provides flexibility and precision in uniform design. The company sources fabrics globally, catering to specific aesthetic and safety requirements, such as using 3M reflective materials for construction uniforms.

Yap’s success story underscores the potential for creativity and innovation in traditional industries. As Apparel Empire continues to grow, it sets a new standard for corporate apparel, transforming uniforms into a tool for brand identity and team cohesion.