Industry News

Singapore’s tourism sector has achieved a historic milestone in 2024, with Tourism Receipts (TR) anticipated to hit the upper limit of the Singapore Tourism Board’s (STB) forecast, marking a new record in tourism expenditure. International Visitor Arrivals (IVA) surged by 21% from the previous year, reaching 16.5 million, underscoring robust growth in the sector.

Between January and September 2024, tourism receipts totalled $22.4 billion, a 10% increase compared to the same period in 2023. The growth was led by Sightseeing, Entertainment & Gaming (SEG), which saw a 25% rise, followed by Accommodation at 17%. Mainland China, Indonesia, and Australia were the top contributors to tourism receipts, generating $3.58 billion, $2.13 billion, and $1.44 billion, respectively.

Chief Executive of STB, Melissa Ow, attributed the success to the industry’s efforts in refreshing products and experiences and forming new collaborations. “These efforts elevated Singapore’s destination appeal and strengthened the sector’s capabilities and competitiveness,” she stated.

Singapore’s appeal was further enhanced by a robust calendar of events, including concerts by Coldplay and Taylor Swift, and major attractions like Gardens by the Bay and Sentosa. The city-state also hosted significant business events such as the World Economic Forum Young Global Leaders Summit 2024.

The hotel industry also saw positive growth, with Average Room Rate (ARR) and Revenue per Available Room (RevPAR) increasing year-on-year. The cruise industry contributed significantly, with 1.8 million passenger throughput from 340 ship calls.

Strategic partnerships with digital travel platforms and aviation partners have been pivotal in promoting Singapore as a preferred travel destination, ensuring continued growth in visitor arrivals and enhancing visitor experiences.

Syfe, a leading saving and investment platform in the Asia Pacific, has announced a non-binding offer to acquire Selfwealth, an Australian digital investing platform, for A$65 million. This strategic move is part of Syfe’s plan to enhance its market reach and product offerings in the region. The acquisition, if successful, will integrate Selfwealth’s platform into Syfe’s operations, significantly boosting its footprint in Australia.

The proposed acquisition aligns with Syfe’s growth strategy, which was highlighted during its Series C-1 fundraising round in 2024. Syfe’s founder and CEO, Dhruv Arora, stated, “This acquisition is a testament to the strength of our business, our ambition, and our belief that wealth management should be accessible and innovative.” The company plans to maintain Selfwealth’s current operations while gradually introducing enhancements through Syfe’s technology and expertise.

Selfwealth’s established user base and brand make it a strategic fit for Syfe, promising a seamless transition for customers. The acquisition will allow Selfwealth users to access Syfe’s broader suite of investment products and solutions. Arora added, “Adding Selfwealth to the Syfe ecosystem strengthens our foothold in the market and accelerates our vision of building Asia Pacific’s most comprehensive digital wealth platform.”

Despite market challenges, Syfe has shown resilience, achieving profitability in early 2024 and securing SGD 105 million in funding. The company continues to expand its influence, with over 5% of Singaporean adults using its platform. This acquisition marks another step in Syfe’s mission to lead the wealthtech sector in the Asia Pacific.

Uni-Fuels Holdings Limited, a Singapore-based global provider of marine fuel solutions, has announced that the underwriter of its initial public offering (IPO) has fully exercised its over-allotment option. This move, completed on 4 February 2025, resulted in the purchase of an additional 315,000 Class A Ordinary Shares at $4.00 per share, generating an extra $1.26 million in gross proceeds. Consequently, the total shares sold in the offering have increased to 2,415,000, raising the gross proceeds to $9.66 million.

The company’s Class A Ordinary Shares began trading on the Nasdaq Capital Market on 14 January 2025 under the ticker symbol “UFG”. The proceeds from the IPO are earmarked for expanding Uni-Fuels’ reselling activities, strengthening its workforce, and enhancing its market presence in new geographical locations. Additionally, funds will be allocated for cash reserves and general corporate purposes.

R. F. Lafferty & Co., Inc. served as the sole book-running manager for the offering, which was conducted on a firm commitment basis. The registration statement for the shares was filed with the U.S. Securities and Exchange Commission (SEC) on 28 October 2024 and became effective on 10 January 2025.

Founded in 2021, Uni-Fuels has rapidly grown into a dynamic company, forming trusted partnerships with shipping companies to optimise fuel procurement across global markets. The company aims to leverage the IPO proceeds to further its growth and operational objectives.

Sabana Industrial Real Estate Investment Trust (REIT) has successfully completed the installation of solar panels across nine of its multi-tenanted properties in collaboration with Keppel Ltd.’s Energy-as-a-Service arm (Keppel EaaS). The installations, which were fully operational by 31 December 2024, mark a significant step in the REIT’s sustainability efforts, aiming to become one of Singapore’s first carbon-neutral industrial REITs by 2040.

The completion was celebrated with a ribbon-cutting ceremony at Sabana@1TA4, a property that received its Temporary Occupation Permit in July 2024 and is certified with the BCA Green Mark Super Low Energy award. The solar systems at Sabana@1TA4 are expected to generate over 1,000 megawatt-hours of energy annually, contributing to the REIT’s overall capacity of 7.6 Megawatt peak (MWp), which can power more than 2,700 three-room HDB flats each year.

Donald Han, CEO of the Manager of Sabana Industrial REIT, highlighted the partnership’s impact, stating, “Our contributions to renewable energy generation are markedly significant. We are well on track to become one of Singapore’s first carbon-neutral industrial REITs by 2040.”

Keppel EaaS’s Executive Director, Lim Yong Wei, expressed satisfaction with the timely completion, noting, “This project success showcases Keppel’s capabilities in the design and execution of on-site renewable energy generation.”

The initiative aligns with the Singapore Green Plan 2030, with the REIT also planning to install electric vehicle charging stations and further enhance energy efficiency at its properties.

The Republic of Singapore Navy (RSN) has commenced operational patrols with its Maritime Security Unmanned Surface Vessels (MARSEC USVs) as of January 2025. These vessels, designed to bolster the security of Singapore’s vital waterways, operate alongside manned ships such as the Littoral Mission Vessels (LMVs) to address evolving maritime threats. The RSN’s initiative aims to enhance surveillance, interdiction, and persistence in monitoring the busy Singapore Strait.

The MARSEC USVs, developed in collaboration with the Defence Science & Technology Agency (DSTA) and Defence Science Organisation (DSO) National Laboratories, are equipped with cutting-edge autonomous navigation systems. These systems include a Collision Detection and Collision Avoidance (CDCA) algorithm, enabling the vessels to navigate safely through congested maritime environments. The CDCA system has undergone extensive testing, completing over 12 million km of simulated distance without collisions, equivalent to 26 years of real-world testing.

These unmanned vessels are resource-efficient, requiring only a two-man crew for remote operations. They are designed to be operated and maintained primarily by National Servicemen, with teams comprising Full-time and Operationally Ready National Servicemen, supported by a few regular servicemen. The USVs are equipped with advanced technology, including a 12.7mm Stabilised Weapon System, navigation radar, and a Global Positioning System, providing comprehensive capabilities for maritime security operations.

The RSN plans to continue experimenting with the MARSEC USVs to expand their operational scope, ensuring enhanced maritime security in Singapore’s congested waters.

Singapore’s Second Minister for Finance, Indranee Rajah, announced in Parliament on 4 February 2025 that Singapore will contribute up to US$87 million to the International Development Association’s (IDA) 21st replenishment. This marks a 24% increase from the previous contribution, reflecting Singapore’s commitment to supporting global development efforts.

The IDA, part of the World Bank Group, provides concessional loans and grants to the world’s least developed countries, including ASEAN members like Lao PDR and Cambodia. The IDA21 replenishment, covering July 2025 to June 2028, comes amid global challenges such as extreme weather events and health emergencies, which have disproportionately affected low-income countries.

Rajah highlighted that the COVID-19 pandemic had reversed three years of progress in reducing extreme poverty in IDA countries, with 651 million people facing food insecurity in 2023. The IDA21 aims to address these issues, with 45% of its commitments directed towards climate mitigation and adaptation, as well as health crisis readiness.

Singapore’s increased contribution is part of a collective effort by IDA donors to expand the replenishment envelope to £100 billion, the largest in IDA’s history. Rajah emphasised the importance of supporting vulnerable nations, noting Singapore’s past benefits from World Bank loans and expertise during its developmental years.

The IDA’s hybrid financing model, which multiplies contributions by four, means Singapore’s pledge will mobilise significant financial support for eligible countries. The motion for this increased subscription was moved by Rajah in Parliament, underscoring Singapore’s role as a responsible global partner.

Singapore’s upcoming Budget 2025, set to be unveiled by Prime Minister and Finance Minister Lawrence Wong on 18 February, is anticipated to register a $6b deficit, equivalent to 0.8% of GDP.

This budget, the last before the General Election, aims to provide substantial support to businesses and households amidst ongoing economic pressures.

According to Maybank Securities’ Chua Hak Bin, Regional Co-head of Macro Research, and Brian Lee, Economist, the government plans to draw down most of its accumulated $6.7b surplus over the electoral term from FY2021 to FY2025.

The budget is expected to focus on easing cost pressures and addressing manpower issues, with initiatives to promote upskilling and investments in artificial intelligence and green solutions.

“We expect generous support for firms and households to defray cost pressures and address manpower issues,” they noted.

Additionally, the budget may introduce details on JS-SEZ incentives, schemes related to the Global Minimum Tax, and early measures to revitalise the stock market. However, property cooling measures and wealth taxes are not anticipated.

Economists Bin and Lee forecast Singapore’s GDP growth to remain resilient, projecting a growth rate of 2.6% in 2025 and 2.3% in 2026, following a strong 4% growth in 2024. The SG60 election budget, alongside easing monetary conditions and the construction of mega infrastructure projects, is expected to cushion the impact of global uncertainties, including potential trade tensions.

As Singapore prepares for its General Election, Budget 2025 will play a crucial role in shaping the nation’s economic landscape, addressing immediate challenges whilst laying the groundwork for future growth.

Retail investors in Singapore have significantly increased their net buying activity, acquiring $487m in shares since the end of 2024.

This marks a substantial rise from the $192m net retail buying recorded in 2024, with the focus shifting towards the Financial Services, Real Estate Investment Trusts (REITs), and Technology sectors.

This trend follows a broader pattern of retail investors buying during weaker market performances and selling during stronger ones.

Over the past five weeks, the 50 Singapore Exchange (SGX)-listed stocks with the highest net retail buying saw an average decline of 2.7%, whilst those with the most net retail selling experienced an average gain of 3.7%.

This behaviour aligns with historical trends, where retail investors tend to buy more during market downturns and sell during upswings. Notably, non-Straits Times Index (STI) stocks such as Keppel REIT, AEM Holdings, and CapitaLand India Trust were among those with the highest net retail buying.

Conversely, stocks like Suntec REIT, Rex International, and Japfa saw the most net retail selling. Despite these trends, some exceptions were observed, with Oversea-Chinese Banking Corporation and Centurion Corporation outperforming the STI, registering gains of 3.4% and 3.1%, respectively, whilst still attracting significant net retail inflows.

The data, based on historical transactions, provides insights into retail investor behaviour but does not predict future trends. It highlights how retail investors have historically reacted to market conditions, offering a glimpse into their strategic shifts in the current economic climate.

Micro, Small, and Medium Enterprises (MSMEs) are pivotal to the economies of Southeast Asia, with Singapore’s SMEs employing two-thirds of the workforce and contributing nearly half of the nation’s GDP.

However, as climate change demands sustainable practices, MSMEs face challenges such as limited access to financing and technical expertise. In response, Singapore’s government has introduced programmes like the Enterprise Sustainability Programme and SMEs Go Digital to aid SMEs in their sustainability journey.

In Indonesia, the Siak Sustainable Creative Centre (Skelas) has launched the Siak Sustainable Business Incubation (Kubisa) programme to support indigenous entrepreneurs in the Siak region of Riau. This initiative focuses on intergenerational collaboration, involving young people in training business owners on digital marketing and product innovation. Kubisa emphasises using locally grown products to minimise environmental impact and empower local communities.

Since its start in 2023, Kubisa has seen growing enthusiasm, with participant numbers tripling in 2024. The programme selected 20 participants, including 17 culinary and three fashion entrepreneurs. Santi Lestari, a participant, noted the programme’s assistance in marketing and packaging her gluten-free product.

Skelas also facilitates connections with investors and governments, organising Demo Days and business matching events. Collaborations with national charities have provided funding of IDR 60 million to 12 selected participants, focusing on those with incomes below IDR 5 million. Cerli Febri from Skelas expressed optimism about the programme’s potential to drive economic and environmental impact in the region.

Singapore’s tech ecosystem experienced a challenging year in 2024, with funding plummeting to $2.1b, a 56% decrease from the previous year’s $4.8b, according to Tracxn’s Annual Report. This marks a stark contrast to the $8.1b raised in 2022, highlighting a significant downturn in investment.

Late-stage funding saw the most dramatic decline, dropping 74.71% to $708m from $2.8b in 2023. Seed-stage investments also fell sharply by 50.6%, reaching £310 million, while early-stage funding experienced a smaller decline of 15.38%, totalling $1.1b.

Despite the overall decrease, certain sectors showed resilience. High Tech funding increased by 4% compared to 2023, although it still represented a 67% drop from 2022 levels. FinTech and Enterprise Applications sectors, however, saw funding decreases of 15% and 29% respectively compared to 2023.

The report also noted a reduction in major funding rounds, with only three exceeding $100m in 2024, down from seven in the previous year. Additionally, three tech companies went public, and the ecosystem saw the emergence of just one new unicorn.

Leading investors such as Wavemaker Partners, Peak XV Partners, and SEEDS Capital continued to support the ecosystem, despite the challenging environment. The year also recorded 39 mergers and acquisitions, with the most notable being PropertyGuru’s acquisition by EQT for $1.1b.

These figures underscore the evolving dynamics and challenges within Singapore’s tech landscape, as it navigates through a period of reduced funding and investment.