Industry News

The latest Transition Finance Tracker from the MSCI Sustainability Institute has unveiled significant climate and investment risks across the Asia-Pacific (APAC) region. The report projects that by 2050, cities such as Melbourne, Tokyo, and Shanghai could experience up to a 31% increase in extreme heat days under a 3°C warming scenario.

Additionally, over 70% of listed companies in major APAC markets, including Singapore, Hong Kong, and Mainland China, are on emissions trajectories exceeding the 2°C threshold.

The report underscores the urgency for investors to manage both transition risks and the immediate financial implications of climate-induced disruptions. It highlights that nearly two-thirds of listed firms globally are on warming paths above 2°C, with a global average of 2.7°C. In Singapore, 81% of listed companies are on an emissions trajectory breaching the 2°C threshold, with 28% exceeding 3.2°C.

Despite these challenges, the report identifies progress in transition-focused climate funds, which have seen assets rise nearly 20-fold to $590 billion since 2018. These funds are increasingly targeting high-emission sectors like utilities to accelerate decarbonisation. Publicly traded climate funds now account for almost 40% of all climate funds, with significant investments in transition-enabling sectors such as information technology and materials.

The findings suggest a growing recognition among investors of the need to finance hard-to-abate industries to achieve real-world emissions reductions. As climate funds continue to grow, they predominantly invest in US-listed companies, with a notable presence in Europe and APAC.
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Airwallex, a global fintech platform, has launched Airwallex Yield in Singapore, an investment fund management service designed to help businesses earn competitive returns on surplus funds. This development follows the approval of a Capital Markets Services (CMS) licence by the Monetary Authority of Singapore (MAS), allowing Airwallex to offer regulated investment solutions and custodial services through its Singapore entity, Airwallex Capital Singapore Pte Ltd.

Airwallex Yield enables businesses to maximise returns on their multi-currency funds by investing in highly rated money market funds, grow foreign currency balances without opening additional accounts, and maintain liquidity with no lock-up periods. The service allows businesses to move funds between cash balances and Yield accounts as needed. Fullerton Fund Management and Goldman Sachs Asset Management will manage the Singapore Dollar (SGD) and US Dollar (USD) solutions, respectively.

Arnold Chan, General Manager for Asia Pacific at Airwallex, expressed enthusiasm about the launch, stating, “Launching Airwallex Yield in Singapore is a significant milestone as we continue to innovate and empower businesses here to unlock new opportunities to thrive.”

Gary Harvey, Executive Director of Airwallex Capital Singapore, highlighted the importance of cash management, saying, “With Airwallex Yield, we are giving businesses a simple and flexible way to grow their idle funds.”

The launch in Singapore follows successful rollouts in Australia and Hong Kong, reinforcing Airwallex’s strategy to empower companies to grow faster and smarter.
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American Century Investment has increased its stake in Rex International, a Singapore-listed company, through the Avantis International Small Cap Value ETF (AVDV ETF). This move, announced on 17 July, saw the Kansas City-based investment firm surpass the 5% substantial shareholder threshold, acquiring 2,436,200 shares at S$0.178 each. The AVDV ETF, which targets small-cap stocks in non-US developed markets, now holds 5.3% of Rex’s outstanding shares.

The AVDV ETF, with assets under management close to $11 billion, includes 30 Singapore-listed stocks. Yangzijiang Financial Holding is the largest Singapore weight in the ETF at 0.61%, followed by First Resources at 0.18%. Rex International accounts for 0.09% of the ETF’s portfolio. The ETF’s strategy focuses on stocks with low valuations and strong profitability to enhance expected returns.

The ETF’s inclusion of 30 Singapore stocks has seen a significant increase in their Average Daily Turnover (ADT) in 2025, rising to S$52.9 million from S$29.3 million in 2024. These stocks have delivered an average total return of 42% and a median total return of 25%.

The AVDV ETF’s investment approach evaluates companies based on financial metrics such as book value and cash flow, aiming to build a diversified portfolio adjusted for market capitalisation, value, and profitability. This strategic move highlights the growing interest in Singapore’s small-cap market, potentially influencing future investment trends.
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SIA Engineering (SIE) has downgraded its stock rating from Add to Reduce following a significant 54% increase in its share price over the past three months. The company reported a net profit of $31.5 million (S$42.9 million) for the first quarter of FY26, exceeding expectations and representing a 29% increase quarter-on-quarter. This surge was attributed to a 36% rise in profits from its associates and joint ventures, particularly in engine and component maintenance.

Despite the positive earnings outlook, SIE’s operating profit fell slightly from $4.7 million (S$6.4 million) in the previous quarter to $3.7 million (S$5.1 million), due to start-up costs associated with its overseas expansion initiatives. These include new maintenance facilities in Malaysia and a joint venture in Cambodia, expected to commence operations later this year.

The company’s new contracts with Singapore Airlines (SIA) and Scoot, effective from 1 April 2025, are anticipated to boost manpower charge-out rates, aligning with rising labour costs. However, SIE remains cautious, expecting to fully realise these benefits in the second half of FY26, contingent on meeting performance metrics.

Whilst the medium-term outlook remains positive, the share price already reflects the current earnings trajectory. The company warns of potential derating catalysts, such as increased start-up and gestation losses, although there is an upside risk if performance metrics are met. The target price remains at $2.28 (S$3.10), with a current price of $2.46 (S$3.35), indicating a downside of 7.5%.
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Singapore’s core and headline inflation rates remained unchanged in June 2025, standing at 0.6% and 0.8% year-on-year, respectively, according to recent data. These figures, slightly below Bloomberg’s consensus estimates, indicate a stabilisation in price pressures across most major components of the Consumer Price Index (CPI), except for retail and other goods which saw some upward movement.

Private transport costs experienced a notable increase, with inflation rising to 2.0% year-on-year, reversing a three-month decline. This surge was driven by higher Certificate of Entitlement (COE) premiums, which saw Category A and B prices rise by 1.2% and 3.2%, respectively. Analysts suggest this rebound is due to consumers re-entering the market after a previous dip in prices.

The Monetary Authority of Singapore (MAS) is expected to adopt a more dovish stance in its upcoming policy meeting, influenced by the easing core inflation. The MAS noted that global crude oil prices have softened, and food commodity prices are expected to remain stable. Despite global trade tensions, the impact on Singapore’s import prices is likely to be minimal due to disinflationary pressures from weaker global demand.

Looking ahead, the MAS may adjust its policy to support economic growth amidst external uncertainties. The current forecast for the Consumer Price Index (CPI) remains at 1.0% for 2025, reflecting a broader trend of moderating price pressures.
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Food Empire Holdings (FEH) presented its strategic outlook at a Singapore Exchange event on 23 July, highlighting its plans to reduce reliance on the Russian market and expand in Southeast Asia. The company is navigating challenges such as competition and raw material costs, whilst also being seen as a potential acquisition target for Chinese firms seeking international expansion.

FEH’s management addressed key concerns, noting that food products are generally not subject to sanctions, and the company has measures in place to ensure compliance with international regulations. The competition in Russia’s 3-in-1 coffee mix market primarily comes from local and Western brands, with no significant Chinese competitors currently. FEH’s strategic positioning in Russia, the Commonwealth Independent States (CIS), Vietnam, and its manufacturing presence in India and Malaysia make it an attractive prospect for mergers and acquisitions.

The company is also benefiting from easing raw material prices, which have contributed to margin expansion. FEH’s efforts to grow its business align with the Monetary Authority of Singapore’s (MAS) S$5 billion Equity Market Development Programme (EMDP), which could enhance its valuation.

Despite a potential $20 million (US$20 million) non-cash revaluation loss, analysts view any share price weakness as an opportunity to invest in FEH. The company’s projected earnings per share growth of 10.3% from FY24 to FY27 supports a positive outlook. Re-rating catalysts include improved operating margins and a resolution to the Russia-Ukraine conflict, whilst risks involve geopolitical tensions and currency fluctuations.

Overall, FEH’s strategic initiatives and market positioning suggest promising growth prospects, bolstered by supportive market conditions and strategic investments.
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Changi Airport commenced its SG60 celebrations with a charity walk and a spectacular light-up along Airport Boulevard. The event, attended by over 1,200 participants, was inaugurated by Acting Minister for Transport and Senior Minister of State for Finance Jeffrey Siow. The charity walk raised more than $220,000, thanks to contributions from registration fees, public donations, and matching funds from the Changi Foundation and SG Gives. The funds will support programmes for youth-at-risk and children with special needs.

The SG60 light-up, launched by the Acting Minister, features iconic Singapore landmarks along Airport Boulevard, including Gardens by the Bay and the Merlion, adorned with over 100 kilometres of LED lights. This display, celebrating ’60 Years of Homecoming’, will remain until the end of the year, greeting travellers and visitors alike.

Participants of the charity walk enjoyed a two-kilometre scenic route from Terminal 2, complete with interactive trivia and nostalgic treats like iced gem biscuits. The walk concluded at Terminal 4, where finishers received commemorative medallions and SG60 plush keychains. An optional extension to the Jurassic Mile offered a whimsical end to the evening with dino-themed light installations.

Changi Airport will continue its SG60 festivities with events such as the SG60 Homecoming Concert on 1 August, featuring local musical talents, and a live screening of the National Day Parade on 9 August. Visitors can also explore horticultural displays, including a seven-metre Vanda Miss Joaquim centrepiece at Terminal 3. These celebrations aim to engage the community and honour Singapore’s 60th birthday.
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RSM Singapore, a leading professional services firm, has announced the establishment of the RSM Endowment Scholarship Fund, committing $4 million to support nine local tertiary institutions. This initiative aims to provide students from less privileged backgrounds with improved access to education. Additionally, the firm will donate $900,000 to the Community Chest over three years, participating in the SG Gives Enhanced Matching Programme, which will see the government match 1.5 times the donation.

The announcement was made during RSM Singapore’s 40th Anniversary Charity Walk and Carnival at Southside, Sentosa, attended by Desmond Lee, Minister for Education and Minister-in-Charge of Social Services Integration. RSM Singapore’s Chairman, Kaka Singh, and CEO, Chio Kian Huat, were present alongside senior management. Chio emphasised the importance of education and societal contribution, stating, “Progress carries with it the responsibility to uplift those who may be left behind.”

The nine institutions benefiting from the scholarship fund include Nanyang Polytechnic, Singapore Management University, and the National University of Singapore, among others. Jack Lim, Managing Director of the Community Chest, received the first tranche of $400,000.

In addition to the endowment, RSM Singapore raised an extra $400,000 through a dollar-for-dollar fundraising initiative involving clients, staff, and business associates. Approximately 1,500 participants attended the charity event, underscoring the firm’s commitment to fostering a compassionate society.
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Over 4,000 residents embarked on their lifelong learning journeys at the SkillsFuture Festival Central 2025, held at Bishan Junction 8. Organised by the Central Singapore Community Development Council in collaboration with SkillsFuture Singapore and Lifelong Learning Singapore, the festival is part of the nationwide SkillsFuture movement, celebrating its 10th anniversary this year.

The event spotlighted upskilling opportunities in the digital economy, focusing on artificial intelligence, cybersecurity, and cloud computing. These areas are crucial as they transform sectors and demand expertise in threat detection, data analytics, and AI applications. The festival featured 18 partners, including Institutes of Higher Learning, public agencies, and corporates, offering activities, demonstrations, and educational excursions.

Participants engaged in learning journeys, exploring sustainability, digitalisation, and electrification technology. The Skills Marketplace provided interactive booths where attendees could test cybersecurity skills and explore AI applications. Career coaches from the Employment and Employability Institute and skills ambassadors from Lifelong Learning Singapore guided attendees in identifying skill gaps and training needs.

Mid-career individuals explored booths by training providers, learning about the SkillsFuture Career Transition Programme, which offers subsidised courses, and the SkillsFuture LevelUp Programme, providing additional credit for course fees. Onsite job interviews offered direct access to hiring companies, with over 20 vacancies available in roles such as Mobile Application Test Engineer and Software Developer.

Denise Phua, Mayor of Central Singapore District, emphasised the festival’s role in empowering residents to self-drive their learning and explore new career paths. The event underscores Singapore’s commitment to lifelong learning and adapting to future trends in technology.
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Searches for stock-related queries in Singapore have surged following former US President Donald Trump’s announcement of a new tariff deadline on 1 August. Notably, searches for “is Trump good for the stock market” increased by 170% in the past month. Whilst Tesla’s stock faced scrutiny as searches for “should I sell Tesla stock now” skyrocketed by over 5,000%, following Trump’s public dismissal of Elon Musk’s political ambitions.

Nvidia emerged as the most searched stock in Singapore, with 276,600 monthly searches, reflecting its global prominence after becoming the first company to reach a $4 trillion market value. Tesla followed closely, with 192,600 searches, despite a recent dip in its share price due to the Trump-Musk feud. Palantir, a software provider to US military and intelligence agencies, ranked third with 57,340 searches, having recently joined the ranks of the 20 most valuable US companies.

Meta and Alibaba completed the top five most searched stocks in Singapore, drawing 56,170 and 45,750 monthly searches, respectively. Meta’s recent $14.3 billion investment in Scale AI highlights its commitment to advancing artificial general intelligence.

Adam Nasli from BrokerChooser explained that stock market participation varies globally due to factors like financial infrastructure and economic development. The US leads with 55% of its population invested in the stock market, followed by Canada and Australia. In contrast, countries with lower participation rates face barriers such as limited financial literacy and cultural perceptions of risk.

As trade tensions continue, these search trends underscore the shifting interests and concerns of investors in Singapore and beyond.
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