Industry News

RHB has downgraded its outlook for Singapore’s banking sector from “Overweight” to “Neutral” due to a subdued global macroeconomic environment and the impact of US President Donald Trump’s reciprocal tariffs. The financial services group has reduced its earnings forecasts for the sector by 2% to 3% for the fiscal years 2025 to 2027, affecting major banks such as OCBC Bank and United Overseas Bank (UOB), which have both been downgraded to “Neutral” from “Buy”.

The decision comes as RHB Economics adopts a more cautious stance on the global economic outlook, prompting a realignment of its sector view. “The pause provides investors with a reprieve and an opportunity to reposition,” the report noted, highlighting the potential for strategic adjustments in response to market volatility.

DBS remains RHB’s top pick, with the bank expected to maintain strong yields and capital returns despite the challenging environment. The report suggests that investors should stay focused on these aspects as they navigate the current market conditions.

This adjustment in RHB’s outlook reflects broader concerns about the impact of geopolitical tensions and economic policies on financial markets. As the sector faces these headwinds, the emphasis on yields and strategic positioning becomes increasingly crucial for investors.

Looking ahead, the banking sector’s performance will likely hinge on its ability to adapt to these external pressures whilst maintaining robust financial health. The ongoing developments in global trade and economic policy will continue to be closely monitored by market participants.
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Strategic Marine, a full-capacity shipbuilder with a shipyard in Singapore, has successfully delivered two state-of-the-art 42-metre vessels to Truth Maritime Services (TMS) in Thailand, marking another milestone in their collaboration. This delivery, announced on 21 April 2025, further solidifies the partnership between Strategic Marine, Prima Marine Group, and TMS, which began in 2022, to enhance offshore operations in Southeast Asia and the Middle East.

Following the handover of the first two Gen 4 Fast Crew Boats (FCBs), TMS RANOD and TMS RAMAN, in 2024, the new vessels are expected to bolster TMS’s capabilities in offshore petroleum exploration and platform maintenance. TMS, a prominent player in crew boat operations, now boasts a fleet of 17 crew boats and two 300-passenger accommodation barges, enhancing personnel transfers with a focus on efficiency and safety.

“As we continue to strengthen our partnership with Truth Maritime Services and Prima Marine Group, we are proud to see our vessels contributing to their operational success,” said Chan Eng Yew, CEO of Strategic Marine. “The delivery of these new crew boats is a testament to our shared commitment to innovation, quality, and meeting the evolving demands of the offshore industry.”

Strategic Marine’s latest delivery underscores its reputation as a trusted global shipbuilder, providing high-performance vessels to support its partners’ growth. As TMS and Prima Marine expand, Strategic Marine remains committed to delivering cutting-edge solutions to meet future fleet requirements.
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A rare freehold residential site at 835 Upper Serangoon Road, Singapore, has been launched for sale by Colliers International through an Expression of Interest (EOI) exercise. The site, located in District 19, is priced at S$36m and offers developers and investors a unique opportunity to acquire a substantial land parcel in a well-connected area. The EOI exercise will remain open for five weeks, closing on 28 May 2025.

The site spans approximately 23,709 square feet and is strategically positioned just a five-minute walk from Kovan MRT Station, enhancing its appeal due to exceptional connectivity. The land is zoned for residential use under the 2019 Master Plan, with a Gross Plot Ratio of 1.4, allowing for flexible redevelopment options, including flats and various landed residential formats.

Tan Boon Leong, Executive Director and Co-Head of Investment Services at Colliers Singapore, highlighted the site’s potential, stating, “The launch of this freehold residential redevelopment opportunity at 835 Upper Serangoon Road presents a unique chance for developers and investors to acquire a prime land parcel in one of Singapore’s most sought-after districts.”

The property is situated in a mature residential enclave, offering future residents a blend of tranquillity and connectivity. It is within walking distance of Heartland Mall and Kovan Hougang Market and Food Centre, making it highly desirable for homebuyers and tenants.

Interested parties are encouraged to submit their EOI proposals before the deadline. This opportunity is particularly attractive to local developers, private investors, and ultra-high-net-worth individuals seeking to capitalise on the site’s robust redevelopment potential.
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StarCruises has unveiled a new series of shorter itineraries aboard the Star Voyager, departing from Singapore and Ho Chi Minh City. These 3 and 4 Night Cruises are designed to meet the growing demand for brief yet enriching travel experiences, making them ideal for school holidays, first-time cruisers, and busy professionals.

“As travel preferences evolve, more and more people are seeking shorter, yet fulfilling cruise experiences,” said Michael Goh, President of StarDream Cruises. The new itineraries aim to offer flexibility and excitement, appealing to both established cruise hubs like Singapore and emerging markets such as Ho Chi Minh City.

Starting 15 May 2025, the Star Voyager will embark on 3 Night cruises from Singapore to Phuket, Thailand, with additional departures on 18 and 24 May. These voyages promise a blend of relaxation and adventure, with ample time to explore Phuket’s beaches, nightlife, and cultural landmarks.

On 21 May 2025, a special 3 Night cruise will take guests from Singapore to Penang and Melaka, Malaysia. Travellers can immerse themselves in Penang’s UNESCO-listed George Town and Melaka’s historic streets, offering a rich cultural experience.

For those seeking a longer journey, the 4 Night Cruises from Singapore to Ho Chi Minh City will depart on 11, 15, and 19 June 2025. Guests can explore Vietnam’s vibrant southern capital, visiting iconic sites like the Saigon Notre-Dame Cathedral and Ben Thanh Market.

Additionally, Star Voyager will offer 4 Night Cruises from Ho Chi Minh City to Singapore, departing on 13, 17, and 21 June 2025. This marks the first opportunity for Vietnamese travellers to embark on an international cruise from their home city.

Onboard the Star Voyager, guests can enjoy a range of amenities, including Adventure Park, Aqua Park, and live performances at Zodiac Theatre. Accommodation options range from Interior staterooms to luxurious Palace Suites.

With its revitalised approach, StarCruises aims to deliver a lifestyle-driven cruising experience, combining affordability with premium offerings. The Star Voyager sets sail on 26 March 2025, with plans to expand its homeports to include more cities in the future.
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Inchcape+ and BYD have launched the T9R electric lorry, a heavy-duty vehicle designed to boost business efficiency and sustainability. The T9R offers a zero-emission alternative to diesel lorries, featuring a driving range of up to 320 kilometres on a single charge with a full load of 28 tonnes. To encourage adoption, Inchcape+ and BYD are offering an exclusive $40,000 Early Adopter Rebate, alongside S$5,000 in Charging Credits and access to commercial-friendly charging points across the island.

Li Zhengxi, Director of Commercial Vehicles at Inchcape Singapore, stated, “With the Early Adopter Rebate, we are making it even more accessible for businesses to make the shift to electric lorries.” The T9R is powered by BYD’s Blade Battery technology, known for its durability and safety, and features 184kW fast-charging capabilities to minimise downtime.

The lorry is equipped with advanced safety features, including intelligent driver assistance systems and enhanced stability controls, making it suitable for sectors such as logistics, urban deliveries, and waste management. The T9R promises significant cost savings, reducing maintenance costs by up to 50% and saving businesses around S$30,000 annually in diesel expenses.

As global policies increasingly favour greener transportation, businesses investing in electric lorries like the T9R will be better positioned to meet future environmental regulations and benefit from potential tax incentives. The T9R represents a strategic investment in both sustainability and financial efficiency, offering a practical solution for modern commercial needs.
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Singapore-headquartered digital travel platform Agoda is celebrating its 20th anniversary on 19 May with a special sales campaign offering significant discounts on travel bookings. From 7 to 20 May, customers can enjoy up to 60% off on Agoda.com and the Agoda mobile app, with discounts increasing to 70% on 21 May.

Founded in 2005 and headquartered in Singapore, Agoda has evolved from a Southeast Asia hotel booking site into a global travel marketplace. The platform now features over 5 million hotels and holiday properties, more than 130,000 flight routes, and over 360,000 activities and experiences worldwide.

Agoda’s CEO, Omri Morgenshtern, highlighted the company’s growth, stating, “Agoda has truly become one of Asia Pacific’s preferred travel marketplaces. It’s a story of relentless focus on pricing and a deep understanding of Asian cultures.” He also emphasised the role of innovation in Agoda’s future, noting the increasing demand for personalised travel experiences and the potential of technologies like generative AI to enhance the booking process.

Agoda’s commitment to localisation extends beyond technology, with initiatives such as the Eco Deals campaign, which has raised over $1.3 million (£1 million) for the World Wide Fund for Nature. The company also supports educational workshops in Thailand and contributes thousands of volunteer hours globally.

The anniversary sale underscores Agoda’s dedication to providing affordable travel options whilst fostering meaningful connections worldwide. As the company looks to the future, it aims to continue bridging the world through travel for the next 20 years.
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Singapore’s real estate investment trust (REIT) sector is set to make history with the proposed launch of the first China REIT (C-REIT), seeded by assets within the group’s ecosystem.

The initiative involves CapitaLand Investment (CLI), CapitaLand China Trust (CLCT), and CapitaLand Development (CLD), which will collectively own a 20% stake in the new C-REIT. The listing is anticipated to occur within the next year.

The move is part of CLI’s ongoing strategy to expand its funds under management (FUM) by tapping into China’s growing pool of onshore capital.

This development is seen as a significant step in attracting international investors looking to deploy capital into China, despite initial questions about CLCT’s viability and strategy. The REIT is expected to leverage onshore recycling opportunities over time, which could mitigate concerns about its current steep discount to book value.

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CIMB Group Holdings Berhad has pledged $2.27b (RM10b) to enhance economic integration in the Johor-Singapore Special Economic Zone (JS-SEZ). This significant investment aims to unlock cross-border opportunities and facilitate seamless business operations between Malaysia and Singapore. The initiative includes the introduction of the ASEAN Financial Passport, designed to provide businesses with comprehensive cross-border banking solutions.

The JS-SEZ is poised to become a transformative hub for regional economic collaboration, offering a seamless ecosystem for businesses and talent. CIMB’s commitment is expected to catalyse growth for corporates and small and medium-sized enterprises (SMEs), whilst also accelerating investment inflows. The bank’s strategic positioning enables it to connect clients with a robust value chain ecosystem, facilitating swift market entry and operational setup.

Novan Amirudin, Group CEO of CIMB Group, highlighted the initiative’s potential to deepen regional integration and enhance production efficiency. “The JS-SEZ represents a transformative move in regional economic collaboration, deepening connectivity and unlocking new avenues for sustainable growth,” he stated.

CIMB has established a dedicated team of 30 experienced bankers across Singapore and Malaysia to expedite market entry for clients. The bank operates 28 branches in Johor, with six dedicated to supporting growth in the JS-SEZ. Additionally, CIMB is exploring branches near the Johor-Singapore Rapid Transit System Link checkpoints to better serve customers.

Beyond banking, CIMB offers value-added services such as sustainability advisory and integrated payroll solutions, aiming to streamline operations and meet emerging environmental, social, and governance requirements. These efforts underscore CIMB’s role as a regional growth partner, advocating for cross-border business expansion.

($1.00 = RM4.41)
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Singapore’s real estate investment volume reached $4.8b (S$6.5b) in the first quarter of 2025, marking a 7.3% decline quarter-on-quarter (QoQ) but a significant 60.1% increase year-on-year (YoY), according to Colliers’ latest report. The surge was largely driven by Government Land Sales (GLS), which contributed $2.1b (S$2.8b), or 42.9% of the total investments.

Despite the quarterly dip, the market showed resilience, with private transactions focusing on strategic goals like asset consolidation and enhancement. Excluding GLS, the Retail, Residential, and Other sectors were key contributors, accounting for 33.7%, 29.9%, and 21.0% of investments, respectively.

Colliers anticipates a 10–20% increase in investment volumes for 2025, projecting a total of $21.4b to $23.6b (S$29 to $32b). The firm suggests that investors may pivot towards income-driven strategies, such as repositioning older assets, due to the absence of significant yield compression.

Tan Boon Leong, Executive Director at Colliers, noted, “The macroeconomic climate could weigh on investment and occupier sentiment in the near term. However, despite growing global economic uncertainty, Singapore remains well-positioned as a safe haven for capital.”

Catherine He, Head of Research at Colliers, added, “Selective investment opportunities, particularly in redevelopment and value-add plays, have risen in appeal due to their structural tailwinds and favourable market fundamentals.”

As global uncertainties persist, Singapore’s real estate market continues to attract investors seeking stability and strategic growth opportunities.
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Singaporean businesses are increasingly investing in artificial intelligence (AI) to drive digital transformation, according to Autodesk’s 2025 State of Design & Make report. The study, which surveyed over 2,000 respondents across the Asia-Pacific region, including 161 from Singapore, highlights that 72% of local business leaders prioritise AI investments. However, a significant skills gap poses a challenge, with 62% of leaders citing a lack of skilled talent as a barrier to growth.

The report underscores the confidence in AI among Singaporean leaders, with 76% expressing trust in their company’s AI decision-making capabilities, surpassing the Asia-Pacific average of 68%. Despite this optimism, 54% acknowledge that AI could destabilise their industries, indicating a need for new skill sets and work methods.

The skills shortage is a pressing issue, with 32% of leaders ranking talent attraction and retention as a top challenge. This shortage is exacerbated by the rapid pace of technological advancements, including AI, which 30% of leaders also identify as a primary concern. As a result, nearly half of the leaders are prioritising AI skills in their hiring processes.

Efforts to address the talent gap include implementing skilling programmes, as reported by 71% of leaders. However, over half of the professionals lack resources to design effective internal training, and 61% find external programmes inadequate.

In addition to AI, sustainability is a growing focus, with 48% of leaders using AI to enhance sustainability efforts, ranking Singapore second in the region after India. As businesses navigate these challenges, leveraging government initiatives and private sector expertise will be crucial for closing the skills gap and achieving sustainable growth.
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