Industry News

Grab’s on-demand services, including ride-hailing and delivery, have significantly bolstered Singapore’s economy, contributing S$5.2 billion (US$3.9 billion) in 2023, according to a report by Oxford Economics. This contribution represents approximately 0.8% of the nation’s Gross Domestic Product (GDP), highlighting the substantial economic impact of platform companies.

The report, conducted by the global economic consultancy, underscores the multiplier effect of Grab’s operations. James Lambert, Director of Economic Consulting for Asia at Oxford Economics, noted, “For every S$10 of GDP generated by Grab transactions, an additional S$6 of economic activity is created across the broader economy.” This demonstrates the pivotal role of platforms like Grab in advancing Singapore’s digital economy.

Key findings from the report include:
– Grab’s operations generated S$1.2 billion through activities such as hiring employees and purchasing equipment and services.
– Merchant-partners on Grab’s platform contributed S$0.9 billion, driven by sales on GrabFood and GrabMart.
– Driver and delivery-partners generated S$3.1 billion, reflecting the income earned through Grab’s services.

These contributions supported approximately 117,000 earning opportunities and translated to S$2.5 billion in household income. Sectors such as finance, insurance, professional services, real estate, and wholesale and retail benefitted most from these impacts.

Lambert further emphasised the supportive business environment in Singapore, stating, “The report’s findings demonstrate the benefits of Singapore’s conducive business environment and regulatory framework, which have enabled platform companies like Grab to thrive.” This success reflects both Grab’s super-app and the sophisticated nature of the Singaporean market.

KPMG in Singapore has unveiled a strategic guide titled “Advancing Digital Sustainable Talent for the Future,” designed to help local businesses enhance their digital workforce while embedding sustainability into their operations. The guide, developed in collaboration with the Infocomm Media Development Authority of Singapore (IMDA) and the Singapore Computer Society (SCS) Sustainable Tech Special Interest Group, was introduced at the SCS Sustainable Tech Forum 2025 by Dr Janil Puthucheary, Senior Minister of State, Ministry of Digital Development and Information.

The guide is aligned with national initiatives such as the Forward Singapore exercise and the Singapore Green Plan 2030, providing businesses with practical steps to upskill their existing digital talent, including AI specialists and software developers, with green competencies. It advocates for the adoption of “Green by Design” principles, which integrate eco-conscious practices from the outset of business operations.

Lyon Poh, Partner and Head of Corporate Transformation at KPMG in Singapore, emphasised the importance of embedding sustainability into core business strategies. “The green transition is a strategic inflection point for Singapore businesses. To succeed, companies must embed sustainability into their core strategies, not as an afterthought, but as a foundation for innovation and growth,” he stated.

The guide outlines four key focus areas: landscape analysis, “Green by Design” principles, a digital talent roadmap, and recommendations for businesses. These areas aim to help businesses align their talent development with sustainability strategies, optimise operations for energy efficiency, and foster a culture of green innovation.

By equipping businesses with the tools to integrate digital and green priorities, KPMG’s guide seeks to position Singapore as a leader in sustainable innovation, contributing to national and global sustainability goals.

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.