Industry News

AIA Singapore has unveiled its latest findings from the AIA Live Better Study, highlighting that over 4 in 5 Singapore residents are actively managing their finances in anticipation of a challenging economic year in 2025. The study, conducted in November 2024, reveals a generational divide in financial optimism and preparedness, with younger adults aged 18-29 feeling more financially secure than their 40-49-year-old counterparts.

The study indicates that only 47% of Singaporeans remain optimistic about the economy, with inflation and the cost of living being the primary concerns for 50% of the population. Despite these challenges, Singaporeans are focusing on financial resilience, with 54% prioritising long-term financial readiness. Key strategies include building emergency funds, planning for retirement, and diversifying investments.

Insurance plays a crucial role in financial security, with 48% of respondents recognising its importance. AIA Singapore’s Chief Marketing and Healthcare Officer, Irma Hadikusuma, noted, “Despite the expectation of challenging times, the people of Singapore are showing remarkable resilience and proactiveness.”

Healthcare costs also pose a significant concern, with 53% of residents finding them expensive. However, less than half feel financially prepared to manage these expenses, prompting calls for increased support from both government and private sectors.

The study highlights a stark contrast between age groups, with younger Singaporeans less worried about economic pressures and more focused on experiences. In contrast, those in their 40s are more concerned about financial stability, reflecting their life stage responsibilities. As Singapore celebrates its 60th birthday, the findings underscore the nation’s evolving financial priorities and resilience.

Singaporeans are among the world’s most active social media users, with 88.2% of the population engaging on platforms, according to the latest Digital 2025 report by Meltwater and We Are Social. The report highlights that Singaporeans aged 16 and above spend an average of 2 hours and 2 minutes daily on social media, using approximately 7.24 platforms each month.

The report also reveals concerns among Singaporeans regarding misinformation and data privacy. A significant 71.4% of adults express worries about distinguishing real from fake information online. Additionally, 36% of internet users are apprehensive about how companies handle their personal data, with 39% declining cookies on websites at least occasionally, surpassing the global average of 34.5%.

Reddit and Telegram have emerged as popular platforms in Singapore. Reddit users on Android devices open the app 116.9 times monthly, the highest globally, spending nearly four hours on it. Similarly, Telegram users open the app 237 times a month, ranking Singapore third worldwide, behind Russia and Finland.

Despite TikTok’s global popularity, Singaporean users spend slightly less time on the app, averaging 34 hours and 29 minutes per month, just below the global average of 34 hours and 56 minutes.

The findings underscore the significant role of social media in Singaporeans’ daily lives, reflecting broader global trends in digital engagement and privacy concerns. As social media continues to evolve, these insights highlight the need for ongoing attention to digital literacy and data protection.

CapitaLand Integrated Commercial Trust (CICT), Singapore’s largest real estate investment trust, has reported a robust performance for the fourth quarter of 2024, with occupancy rates improving across its segments.

The results for the second half and full year of 2024 were in line with expectations, showcasing strong positive rent reversions, which are expected to continue at a moderated pace into 2025. CICT’s sturdy balance sheet and comfortable gearing level provide it with the flexibility to pursue tactical acquisitions, further strengthening its position in the market.

Analyst Vijay Natarajan highlighted that CICT is trading at a 10% discount to its book value, making it an attractive investment option. The trust’s performance is buoyed by its strategic positioning and the overall economic growth of Singapore, making it one of the top picks in the sector.

Looking ahead, CICT’s ability to maintain high occupancy rates and leverage its strong financial position for potential acquisitions positions it well for continued growth. The trust’s strategic initiatives and market conditions suggest a promising outlook for investors seeking stable returns in the real estate sector.

Artyzen Singapore has been named the top hotel in Singapore according to the newly released Hotel Service Index: 2024 APAC Edition by Atiom, a technological behavioural change platform. The report, which aims to help hospitality professionals benchmark their service against industry standards, also ranked Mandarin Oriental and the Capitol Kempinski Hotel as second and third, respectively.

The Hotel Service Index is part of Atiom’s initiative to provide insights into service trends and customer preferences across the Asia-Pacific (APAC) region. The report analysed publicly available reviews from popular online travel platforms, covering 1,623 properties in countries including Singapore, China, and Japan. This comprehensive analysis allows hospitality leaders to assess their service levels and align operations with customer expectations.

Matthew Spriegel, CEO of Atiom, highlighted the importance of understanding evolving guest expectations, stating, “Guest expectations are evolving faster than ever, and staying ahead means understanding the nuances of what makes a truly exceptional experience.”

The report’s findings are particularly relevant as Singapore continues to be a leading business travel destination in the APAC region. According to GetGoing, Singapore ranks highest for business travel, while Expedia’s Travel Insights report shows a 35% year-on-year increase in search volume for the region.

Atiom plans to expand the Hotel Service Index to other regions, such as the Middle East, in future editions. This expansion aims to further support the hospitality industry in enhancing service excellence and fostering a culture of continuous growth and engagement.

Chocolate Finance has partnered with HeyMax to introduce Singapore’s first Visa debit card that rewards users with miles for everyday spending. From 11 February 2025, cardholders can earn 2 Max Miles for every $1 spent, which can be redeemed for flights, hotels, and other travel benefits.

The new debit card stands out by offering rewards on a wide range of spending categories, including dining, groceries, utilities, insurance, school fees, and donations—areas typically not rewarded by debit cards. Users can earn full rewards on the first $1,000 spent each month, with a reduced rate of 0.4 Max Miles per $1 for spending beyond this cap.

Max Miles, which never expire, can be redeemed at a fixed 1:8 ratio through HeyMax’s Fly Anywhere programme or converted 1:1 to 27 airline and hotel partners. Additionally, a limited-time bonus offer allows cardholders to earn up to 5 Max Miles per $1 spent on SMRT travel from 11 to 28 February 2025, or until 1 million Max Miles are awarded.

This innovative partnership aims to redefine rewards for debit card users in Singapore, ensuring that every dollar spent contributes towards travel goals. For instance, a Chocolate Finance Visa Debit Card user spending S$1,000 monthly on everyday expenses can accumulate 12,000 Max Miles in six months, enough for a short-haul flight to destinations like Bali or Bangkok.

Coopers Hill, a Singapore-based international consultancy specialising in landscape architecture, has announced its acquisition of Scape Design, a leading UK firm in hospitality and luxury lifestyle landscape architecture.

This strategic move establishes Coopers Hill’s first European office in London, following its Dubai opening in 2023, and marks the firm’s seventh international office.

With a legacy spanning 40 years, Coopers Hill has developed a robust portfolio of luxury hotels and resorts across various ecosystems. The merger with Scape Design, led by Founder and Managing Partner Allen Kerton, aims to create a formidable presence in the hospitality landscape design sector across Asia Pacific, Europe, the Middle East, and North Africa. “The merger with Scape represents a significant milestone enabling us to realise our ambition of delivering a truly global service offering for our clients,” said Kerton.

Philip Jaffa, who will serve as Partner and Design Director from London, expressed enthusiasm for the merger, stating, “This marks the beginning of an exciting new era for Coopers Hill. The merger provides an incredible opportunity to drive sustainable and evocative landscape architecture solutions for the hospitality industry’s future.”

Coopers Hill’s extensive portfolio includes collaborations with renowned brands such as Capella, W Hotels, and The Ritz-Carlton. The firm now comprises over 120 professionals with experience in more than 60 countries. Scape Design’s notable projects include the Ritz-Carlton Rabat in Morocco and COMO Laucala Island in Fiji.

This acquisition not only strengthens Coopers Hill’s global leadership but also enhances its ability to deliver innovative and sustainable landscape architecture solutions worldwide.

Singapore’s retail sector experienced a challenging year in 2024, with sales contracting for two consecutive months, according to a report by UOB Global Economics and Markets Research.

December saw a 1.5% month-on-month decline, following a 2.8% drop in November. The downturn is attributed to sluggish tourist arrivals, which reached only 81% of 2019 levels, and a shift in resident spending abroad due to a strong Singapore dollar.

Despite a modest 1.2% growth in retail sales for the entire year, this was largely driven by a 17.1% increase in motor vehicle sales. Excluding motor vehicles, retail sales actually fell by 0.7%. Categories such as food and beverages, medical goods, and toiletries saw slight increases, whilst eight out of 14 retail categories recorded declines.

Looking ahead, the opening of new attractions, including a local theme park expansion in February 2025 and Singapore’s fifth zoological park, Rainforest Wild Asia, in March 2025, is expected to bolster domestic tourism. Additionally, an expansionary Budget 2025, featuring measures like CDC vouchers and increased cash support under the Assurance Package, is anticipated to further support retail sales.

The report highlights the potential for these developments to aid in the recovery of tourist arrivals and, consequently, retail sales in 2025. As Singapore continues to navigate the post-pandemic landscape, these initiatives may provide the necessary boost to revitalise the retail sector.

The Coastal Sustainability Alliance (CSA), led by Kuok Maritime Group, has launched Singapore’s largest fully electric supply boat, marking a significant step in maritime decarbonisation.

The launch took place at PaxOcean Batam, Indonesia, alongside the keel laying of the first fully electric tug, underscoring CSA’s commitment to marine electrification and energy-efficient logistics.

The PXO-EXL-1 electric supply boat, dual-classed by Bureau Veritas and RINA, is a Tier 1 design selected by the Maritime and Port Authority of Singapore (MPA).

It is designed to operate in Singapore’s waters, aligning with the nation’s goal for all new harbour craft to be fully electric or compatible with net-zero fuels by 2030. Tan Thai Yong, Managing Director and CEO of PaxOcean Group and Chairperson of CSA, stated, “The launch of the PXO-EXL-1 e-supply boat is a testament to our commitment to decarbonising Singapore’s coastal logistics ecosystem.”

The PXO-EXL-1 boasts a high-performance, energy-efficient design, capable of cruising at 8 knots with zero emissions. It can carry a payload of 40 tonnes or 60 pallets, achieving 60% energy savings over conventional vessels. This efficiency promises significant cost and carbon emission reductions for the industry.

Additionally, the PXO-ACE-1 electric tug, supported by the MPA Maritime Innovation and Technology Fund, is set to redefine harbour operations with its zero-emission capabilities. The tug incorporates advanced propulsion and energy storage technologies and is future-ready for zero-carbon fuels.

The CSA plans to trial the electric supply boat in the latter half of 2025, with the electric tug’s construction expected to complete by the first quarter of 2026. These developments are pivotal steps towards a sustainable maritime future, coinciding with Singapore Maritime Week 2025.

The Dormitory Association of Singapore Limited (DASL) and Knight Frank Singapore have unveiled the first edition of the Worker Dormitories in Singapore report, marking a significant step in understanding the evolution of migrant workforce accommodation in the city-state.

The report, released on 5 February 2025, sheds light on the current landscape, challenges, and opportunities within this niche real estate sector.

The report reveals that Singapore’s dormitory market comprises 1,441 facilities with a total of 439,198 beds. Purpose-built dormitories (PBDs) account for 63.5% of this capacity, underscoring their importance in housing the migrant workforce.

The sector has maintained a near-full occupancy rate of 96.7% in the second half of 2024, driven by robust economic recovery and labour demand in key industries.

Rising rents have been a notable trend, with monthly rates ranging from $390 to $510 per bed, averaging $460. This marks a significant increase from pre-pandemic levels of $270. The report also highlights heightened investment activity, including the $63.5m sale of Homestay Lodge and Bain Capital’s impending $750m purchase of Avery Lodge.

Regulatory changes, such as the Foreign Employee Dormitories Act (FEDA) and the Ministry of Manpower’s new Dormitory Transition Scheme (DTS), continue to shape housing standards. As of June 2024, the number of work permit holders in the construction, marine shipyard, and process (CMP) industries rose by 24.5% since December 2018.

Johnathan Cheah, President of DASL, emphasised the importance of the report in promoting awareness and understanding of the sector’s performance and challenges. Leonard Tay, Head of Research at Knight Frank Singapore, noted the potential for high yields in the dormitory sector due to strong demand and limited supply.

Future editions of the report will continue to track market performance and regulatory developments, providing valuable insights for stakeholders in this critical asset class.

The World Gold Council (WGC) has reported a record-breaking year for global gold demand in 2024, with total demand reaching 4,974 tonnes. Singapore mirrored this global trend, with bar and coin demand rising by 22% to 6.5 tonnes, marking significant growth across ASEAN markets.

The global surge was primarily driven by robust central bank purchases and increased investment demand, resulting in the highest-ever total value of demand at $382b.

Central banks purchased over 1,000 tonnes of gold for the third consecutive year, with a notable increase in the fourth quarter.

Investment demand saw a 25% year-on-year increase, reaching a four-year high of 1,180 tonnes.

This was largely due to a resurgence in gold exchange-traded funds (ETFs), particularly in the latter half of the year.

Despite the high prices, which dampened jewellery demand by 11% globally, the technology sector experienced a 7% increase in gold demand, driven by advancements in artificial intelligence and electronics.

The total gold supply also saw a slight increase, reaching a new high of 4,794 tonnes due to growth in mine production and recycling.

Shaokai Fan, head of Asia-Pacific (ex-China) and Global Head of Central Banks at the WGC, highlighted the strategic role of gold as a safe-haven asset amidst geopolitical and economic uncertainties.

Looking ahead, the WGC anticipates continued strong demand from central banks and ETF investors in 2025, although jewellery demand may remain under pressure due to high prices and economic challenges.