Industry News

Stephanie Leung, Chief Investment Officer at StashAway, has highlighted the potential indirect risks that US tariffs could pose to Singapore’s economy. Whilst direct exports to the US account for approximately 8% to 9% of Singapore’s GDP, the broader concern lies in the tariffs’ impact on major Asian trading partners, such as China and Malaysia, which face tariffs of 54% and 24% respectively. Should these countries experience economic downturns, Singapore might feel the repercussions.

The ultimate effect of these tariffs will depend on the outcome of ongoing negotiations. Leung notes that previous tariff announcements, such as those involving Canada and Mexico, suggest that initial rates may serve as negotiation starting points rather than final terms. This uncertainty is reflected in market sentiment, with local equities and the Singapore dollar experiencing fluctuations amidst global risk-off conditions.

In the coming weeks, market volatility is expected to persist as details of tariff implementations and international responses unfold. Leung emphasises the importance of diversification for Singapore investors, noting that whilst the S&P 500 has declined by 4.8% since the start of the year, global equities outside the US have risen by 6%, and gold has surged by 19%. StashAway’s diversified portfolios have also shown positive returns, with gains of 2.1%, 2.3%, and 0.75% across different risk levels.

In summary, whilst the direct impact of US tariffs on Singapore may be limited, the indirect effects through regional partners could pose significant challenges. Investors are advised to maintain diversified portfolios to mitigate potential risks.
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The Urban Redevelopment Authority (URA) has announced the tender results for the Lentor Gardens government land sales site, with Kingsford Group submitting the highest bid of S$429m. This bid, equivalent to a land rate of S$920 per square foot per plot ratio (psf ppr), is the lowest among the seven plots tendered in the Lentor Hills estate. The site, located in the Ang Mo Kio planning area, is expected to add approximately 500 new residential units to the region.

The Lentor Gardens plot attracted only two bids, with Kingsford’s offer narrowly surpassing a S$905-psf ppr bid from a Hong Leong-led group by 1.7%. Wong Siew Ying, Head of Research and Content at PropNex, noted that the bids were lower than anticipated, given the robust sales of recent projects in the area. “We reckon the restrained bidding for this site may perhaps be due to uncertainty over the depth of demand for new private homes in the Lentor area,” she explained.

Despite the subdued bidding, the Lentor Hills estate has seen healthy sales, with around 94% of units sold across six previously launched projects. The new Lentor Gardens development is projected to have an average selling price above S$2,150 psf.

However, potential risks loom, including the impact of new tariffs on goods entering the US, which could disrupt international trade and affect the global economy. As developers weigh their options, other attractive sites on the government land sales slate may draw interest, such as those on Dunearn Road and Telok Blangah Road.
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Singapore has emerged as the top destination for corporate relocations, according to the latest Savills Dynamic Wealth Indices. The city-state’s favourable corporate tax environment, robust business infrastructure, and significant foreign direct investment volumes have propelled it to the forefront, surpassing Seoul, New York, London, and Abu Dhabi. Meanwhile, for individuals considering relocation, Singapore ranks third, following Dubai and Abu Dhabi, due to its appealing personal tax incentives and high quality of life.

The indices highlight the evolving landscape of global wealth flows, influenced by geopolitical shifts and economic changes. Paul Tostevin, Director of Savills World Research, noted, “Traditional predictors of global wealth flows, such as government policies, taxes and incentives, and the presence of either innovative talent pools or existing communities of similar individuals, have always been key drivers of dynamic footloose companies and individuals.”

Ashley Swan, Executive Director of Commercial & Industrial at Savills Singapore, emphasised the city’s business-friendly environment, stating, “The results of the indices endorse Singapore’s standing among corporates and illustrate the overall business-friendly environment, strong government policies and tax incentives.”

The report also underscores the overlap between corporate and individual priorities, with six of the top 12 locations appearing in both indices. This convergence suggests that businesses are increasingly drawn to locations that offer both a skilled workforce and a high quality of life. Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, remarked on the competitive landscape for attracting high net worth individuals, asserting that Singapore remains a strong contender due to its stable environment and real estate value.
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Bowmore Single Malt Scotch Whisky has launched its prestigious ARC-54, a collaboration with Aston Martin, featuring a global anthem by writer and poet Sophia Thakur. The anthem, inspired by the whisky’s ability to capture moments of stillness, was performed at the global reveal in London. This marks a new chapter for Bowmore, inviting a fresh interpretation of its 240-year heritage.

The ARC-54, limited to 130 bottles worldwide, offers a multi-dimensional drinking experience with zesty citric tones, floral notes, and a signature whisper of peat smoke. The decanter design draws inspiration from the Aston Martin Valkyrie’s aerodynamics and the natural landscapes of Islay. Dr Calum Fraser, Bowmore’s chief blender, emphasised the importance of slowing down and appreciating the craft: “A Bowmore as exquisite and complex as this 54-year-old is testament to the skills of our distillery team, but also the very embodiment of what can be achieved simply by slowing down.”

In Singapore, Bowmore will also release The Bowmore Sherry Oak Collection in April, showcasing the mastery of European oak Sherry casks. The collection includes 12, 15, and 18-Year-Old expressions, each enhancing Bowmore’s rich character with layers of depth and complexity.

The ARC-54 and Sherry Oak Collection highlight Bowmore’s commitment to craftsmanship and innovation, promising a unique experience for whisky enthusiasts worldwide.
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Truly Nuts!, a premium nut brand co-founded by Gareth Lloyd, is revolutionising Singapore’s snack industry with its sustainable and healthy Brazil nuts. The brand, under the umbrella of White Lions, a global Agri-tech group based in Singapore, has established a state-of-the-art facility in the Amazon jungle to ensure sustainable harvesting practices. This innovation allows Singaporeans to enjoy nutritious snacks directly from the source.

The company has achieved a profitable $4m EBITDA and is preparing for an equity event later this year to attract further investment and accelerate its expansion. Gareth Lloyd, who transitioned from Manchester’s electronic music scene to entrepreneurship, aims to build a $100 million revenue business solely from nuts. “We aspire to make humanity healthier, bring wealth to the communities we serve, and leave Earth in better shape than we found it,” he stated.

Truly Nuts! is responding to Singapore’s increasing demand for healthier food options, with 79% of Singaporeans making dietary choices to prevent health conditions. The brand capitalises on the growing plant-based and health-conscious food trends, with the plant-based food market projected to grow at an annual rate of 7.2% over the next five years.

Currently available in major supermarkets and online stores across Singapore, Truly Nuts! is also expanding its reach to the UK, North America, the Middle East, South Korea, Australia, and Europe. As Singapore aims for food security by 2030, Truly Nuts! plays a crucial role in shaping the future of food consumption in the country.
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The Urban Redevelopment Authority has concluded the tender for the Lentor Gardens site, part of the 2H2024 Government Land Sales programme, with Kingsford Huray Development Pte Ltd securing the highest bid at S$429,230,000. This bid, equating to S$920 per square foot per plot ratio (psf ppr), narrowly surpassed the next highest offer by 1.7%, submitted by a consortium including Intrepid Investments Pte Ltd, TID Residential Pte Ltd, and CSC Land Group (Singapore) Pte Ltd, which bid S$422,222,367 or approximately S$905 psf ppr.

Despite the positive sales momentum in Lentor, where six residential projects with nearly 3,000 units have launched, the tender attracted only two bids, falling short of expectations. Justin Quek, CEO of OrangeTee & Tie, commented on the situation, suggesting that developers might be redirecting their attention to other suburban areas like Lorong Chuan, Lakeside Drive, or Hougang Central, where housing supply has been limited.

The recent trend of muted participation in Lentor land tenders, with up to three bids each in the past four tenders, supports this potential shift. However, Quek remains optimistic about future sales, citing the successful launch of Lentor Central Residences, which sold 93% of its 477 units during the launch weekend. This indicates a continued interest in the area, suggesting that the upcoming project at Lentor Gardens could also see robust sales.
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Singapore’s economy may be significantly impacted by new tariffs imposed by the US, according to a preliminary assessment by UOB Global Economics and Markets Research. The US has applied a 10% reciprocal tariff rate on Singapore, which, whilst lower than rates for other Asian economies, could still lead to a slowdown due to Singapore’s high exposure to US demand.

The report highlights that Singapore’s domestic value-added in foreign final demand exceeds 60% of its nominal GDP, making it particularly vulnerable to external shocks. Despite having a bilateral Free Trade Agreement with the US, Singapore’s exports are still subject to the new tariffs. UOB’s risk metric suggests that Singapore could be more susceptible to economic slowdowns in major trading partners such as China, the EU, and Japan.

The Monetary Authority of Singapore (MAS) has responded by stating it is prepared to kerb excessive volatility in the Singapore dollar and ensure orderly market functioning. The S$NEER index has already seen a decline following the tariff announcements.

UOB’s growth outlook indicates that Singapore’s Q1 2025 growth may ease from the previous quarter’s 5% year-on-year increase, with trade-related sectors expected to moderate. The full-year GDP growth forecast of 2.5% may be revised downwards, potentially nearing the lower end of the Ministry of Trade and Industry’s forecast range of 1.0-3.0%.

Inflation forecasts have also been adjusted, with UOB downgrading its core inflation prediction for 2025 to 1.0% from 1.3%, citing deflationary risks from weakened global demand. The MAS is expected to consider further monetary policy easing in its upcoming April 2025 statement, potentially reducing the slope of the S$NEER policy band.
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The latest Government Land Sales (GLS) tender for the Lentor Gardens site in Singapore closed with only two bids, as developers showed limited interest in the location. This site is the seventh and final plot to be tendered in the Lentor area since 2021, with previous projects such as Lentor Modern and Lentor Hills Residences already launched. Despite the low number of bids, Leonard Tay, Head of Research at Knight Frank Singapore, noted that sales in the area have been robust, with over 70% of units sold in each of the six existing projects.

The top bid for the Lentor Gardens site was S$429 million, translating to a land rate of S$920 per square foot per plot ratio (psf ppr). This suggests that future selling prices could start from S$2,100 psf, potentially averaging above S$2,200 psf, similar to the recent launch of Lentor Central Residences. Tay highlighted that if the existing projects sell out before the new site is launched, it could benefit from spillover demand.

Located in Ang Mo Kio, the Lentor Gardens site offers attractive connectivity, being within walking distance of Lentor MRT station and close to amenities like Thomson Nature Park and Yio Chu Kang Stadium. It is also near CHIJ St Nicholas Girls School, appealing to families. The demand is expected to come from local homebuyers, including HDB upgraders and retirees from nearby estates, who may consider downsizing.
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The Urban Redevelopment Authority (URA) tender for the Lentor Gardens (2) residential site concluded with only two bids, reflecting developers’ cautious approach amidst ample supply in the area. Kingsford Group emerged as the top bidder, offering S$429.23 million, equating to S$920 per square foot per plot ratio (psf ppr). This bid was marginally higher than the second bid from a consortium of Hong Leong Holdings, Mitsui Fudosan Co., and China Construction (South Pacific) Development Co.

The Lentor Gardens (2) site, which can accommodate 500 units, is the last of seven plots in the Lentor estate, contributing to a total of 3,454 units. The subdued interest is attributed to the site’s distance from the upcoming Lentor MRT station and the absence of nearby popular schools like CHIJ St. Nicholas Girls’ School. Additionally, the presence of unsold inventory from previous Lentor projects likely deterred more aggressive bidding.

Tricia Song, Head of Research at CBRE Singapore and Southeast Asia, noted that the S$920 psf ppr bid is the lowest land rate among the Lentor sites, significantly below the S$1,204 psf ppr record set by Lentor Central in 2021. Despite this, the Lentor area has seen robust sales, with 94% of units from existing projects sold.

The future launch price for Lentor Gardens (2) is expected to be around S$2,100 to S$2,200 psf, slightly below the current average at Lentor Central Residences. This reflects the ongoing demand in the area despite the challenges posed by location and competition.
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DBS Chief Investment Office has released a detailed asset allocation strategy in response to the recent tariff measures announced by the Trump administration. The tariffs, which include a 10% universal levy on imports and targeted reciprocal tariffs up to 50%, are expected to significantly impact global economic growth and corporate earnings if tensions escalate further.

The report suggests that Trump’s tariffs may be ideologically driven, aiming to reset trade relationships and the global order. In light of these developments, DBS recommends several investment strategies across different asset classes.

For equities, DBS suggests favouring markets with potential for fiscal stimulus, such as China and Europe. China, with a central government leverage ratio of 25% of GDP, has room for government-led stimulus. In Europe, Germany’s recent approval of a EUR500bn infrastructure fund could drive growth. Additionally, companies capable of shifting production back to the US, particularly in high-entry-barrier sectors like semiconductors and aerospace, are recommended.

In the bond market, DBS advises sticking with high-quality credit in the A/BBB range and maintaining a duration barbell of 2-3 and 7-10 years. Long-duration Treasury Inflation-Protected Securities (TIPS) are also favoured due to their potential in a low-growth, high-inflation environment.

Gold remains a strong recommendation, with DBS reiterating an overweight position due to its safe-haven appeal amid volatility. The report highlights potential catalysts for gold, including growth risks, monetary easing, and increased physical demand.

For alternatives, DBS suggests global macro and relative value hedge funds, which can navigate elevated volatility and geopolitical risks effectively.

DBS’s strategies aim to help investors navigate the uncertainties posed by the current trade tensions, with a focus on resilience and adaptability in asset allocation.
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