Industry News

Singapore’s industrial sector is experiencing a significant uptick in trading activity in 2025, driven by global economic shifts and technological advancements. As manufacturers and supply chain managers diversify across geographies, the integration of artificial intelligence (AI) and automation is enhancing productivity, marking a transformative phase for industrial value chains.

The industrial sector now accounts for over one-third of the 100 most traded stocks with daily trading turnover surging more than 50% compared to 2024. Notably, ST Engineering has emerged as the strongest performing stock on the Straits Times Index (STI) this year, ranking third in net institutional inflows. The company’s revenue growth is bolstered by a diverse global customer base and investments in advanced technologies such as AI, robotics, and quantum computing.

Among the top industrial stocks, OKP Holdings and GRC have seen their average daily trading turnover increase by 750% and 986% respectively, compared to last year. This surge highlights the growing investor interest in industrial stocks amidst the evolving economic landscape.

Geoff Howie, in his weekly highlight for SGX Securities, emphasised the potential of these developments to usher in a dynamic phase for industrial value chains. With AI and automation at the forefront, Singapore’s industrial sector is poised for continued growth and innovation.

As the sector adapts to these changes, the implications for investors and the broader economy are significant, suggesting a promising outlook for Singapore’s industrial stocks in the near future.
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BHP has announced the launch of its first Industry AI Hub in Singapore, aiming to accelerate digital transformation and AI adoption within the mining and resources sector. The hub, established this month, will focus on integrating AI technologies to improve safety and productivity across BHP’s operations.

The initiative is supported by Enterprise Singapore and in partnership with AI Singapore (AISG). BHP selected Singapore for its vibrant innovation ecosystem and strong digital infrastructure, aligning with the company’s goals to scale technologies that deliver operational value. The hub will facilitate collaboration between BHP teams and local AI partners, addressing enterprise-wide challenges through data-driven decisions and automation.

Johan van Jaarsveld, BHP’s Chief Technical Officer, expressed enthusiasm about the partnership, stating, “We see tremendous opportunity to work with AI Singapore and other global leaders to help deliver solutions to complex, enterprise-wide challenges.”

The collaboration builds on BHP’s existing AI applications, such as enhancing procurement processes and financial forecasts. Notably, AI-powered plant control at BHP’s Escondida copper mine in Chile has saved 3 billion litres of water and 118 GWh of energy since FY22.

Rag Udd, BHP’s Chief Commercial Officer, highlighted Singapore’s leadership in AI industry partnerships, noting, “Singapore has the talent and ecosystems to support industry-wide solutions in AI adoption.”

The hub is expected to create opportunities for further projects and partnerships, contributing to the development of Singapore’s AI talent ecosystem. Laurence Liew, AI Innovation Director at AISG, remarked, “Our partnership with BHP exemplifies our mission to accelerate AI adoption in the mining and resources sector through real-world AI implementations.”
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A recent study by SS&C Blue Prism reveals that one in three Singaporean organisations intends to implement agentic AI within the next year. However, the research highlights a significant hurdle: half of these organisations lack the robust data management systems required to fully leverage this advanced technology. The absence of such systems could expose companies to increased risks related to intellectual property, data sovereignty, and cybersecurity.

The survey, which included 1,650 global CEOs, CTOs, and senior IT leaders, with 150 participants from Singapore, underscores the potential of AI to revolutionise business processes. Sunny Saha, SVP and General Manager of SS&C Blue Prism Asia Pacific, emphasised the need for highly organised data to maximise AI’s capabilities. “Without these systems in place, you will not get the most out of the technology,” Saha noted, warning of potential risks like accidental data disclosures.

The combination of automation, AI, and orchestration is seen as crucial for transforming raw organisational data into AI-ready formats. This process involves digitising and cleaning data from various silos, ensuring seamless AI implementation. Saha also stressed the importance of maintaining security and compliance, especially given the dynamic regulatory landscape in Asia.

As Singaporean enterprises look to AI for innovation, the need for a robust data infrastructure becomes increasingly critical. The findings suggest that whilst the potential for AI to enhance operations is vast, organisations must prioritise data management to avoid compromising control over their data and operations.
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Boustead Singapore Limited, listed on the SGX Mainboard, has announced a 48% increase in net profit for the financial year ending 31 March 2025. The rise to S$95.0m was primarily driven by a one-off gain from transferring its fund management business to UIB in exchange for shares. However, the Group’s revenue fell by 31% to S$527.1m, largely due to reduced income from its Real Estate Solutions and Energy Engineering divisions.

The Group’s engineering order backlog has improved, standing at approximately S$349m, compared to S$247m in the previous year. This includes S$126m from the Energy Engineering Division and S$223m from the Real Estate Solutions Division. Boustead’s Chairman and CEO, Wong Fong Fui, highlighted the Group’s resilience amidst global economic challenges, stating, “Despite another challenging year and the injection of greater global economic and geopolitical headwinds, our Group remained steadfast together, delivering a commendable set of financial results for FY2025.”

The Board has proposed a final ordinary dividend of 4.0 cents per share and a special dividend of 2.0 cents per share, subject to shareholder approval. This brings the total dividend for FY2025 to 7.5 cents per share, up from 5.5 cents in FY2024. Looking ahead, Boustead remains cautiously optimistic about delivering satisfactory results in FY2026, focusing on strengthening its balance sheet and exploring new opportunities.

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Singapore is set to celebrate its 60th year of independence with an expanded National Day Parade (NDP) on 9 August 2025. The festivities will extend beyond the traditional Padang location to include Marina Bay and the city skyline, with additional events planned across the island on 10 August. This year’s theme, “Majulah Singapura,” aims to honour the nation’s journey and inspire future generations, according to Colonel Chong Shi Hao, Chairman of the NDP 2025 Executive Committee.

The celebrations will feature a range of activities designed to engage Singaporeans. A key highlight is the “Jump of Unity,” where the Red Lions will descend at the Padang alongside naval divers at Marina Bay. The Show segment will combine mass performances, building light projections, and fireworks, creating an immersive experience for attendees. A new floating stage at the Bay will host performers, enhancing the spectacle.

The Parade and Ceremony will include the largest number of contingents to date, with traditional elements such as the State Flag Flypast and Presidential Gun Salute. The Republic of Singapore Air Force will perform a special aerial tribute, and the Mobile Column will return to the Padang, showcasing military and maritime assets.

To ensure widespread participation, interactive booths and carnival games will be available at the Bay on 9 August. Five partner-led sites will offer unique experiences, whilst heartland celebrations on 10 August will feature live performances and fireworks. The Mobile Column will also visit these areas, bringing the festivities closer to more Singaporeans.

NDP 2025 will continue to promote community engagement through the CelebrateAsOneSG campaign, encouraging volunteerism and inclusivity. More details on these activities will be shared on social media platforms in the coming weeks. For further information, visit the official NDP website or follow their social media channels.
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MY EG Services Berhad (MYEG), Malaysia’s leading e-government and digital services provider, has signed a Memorandum of Understanding (MoU) with Singapore Trade Data Exchange Services Pte Ltd (SGTraDex) to enhance digital trade connectivity between Malaysia and Singapore. The agreement, signed at the ASEAN-GCC-China CEO Roundtable, aims to facilitate seamless digital cross-border trade, setting a new standard for digital trade connectivity in the ASEAN region.

The partnership will see MYEG’s Zetrix and SGTraDex explore technical integration to create a secure and interoperable channel for trade-related data exchange. This initiative is expected to transition trade flows from paper-based to digital, using verifiable electronic records. Dato Fadzli Shah, Co-Founder of Zetrix, stated, “By aligning Malaysia’s and Singapore’s trusted digital infrastructure, we’re creating the building blocks for a digitally unified ASEAN.”

SGTraDex, a public-private digital utility founded by Singapore’s Infocomm Media Development Authority, plays a crucial role in digitising logistics and trade finance. Chairman Tan Chin Hwee emphasised the importance of the collaboration, saying, “Our collaboration with MYEG reflects SGTraDex’s commitment to fostering open and trusted digital trade.”

The MoU outlines several areas of collaboration, including platform-to-platform connectivity, joint product development for trade document verification, and technical integration using blockchain. The partnership supports the ASEAN Digital Economy Framework Agreement and aims to facilitate mutual recognition of digital IDs and electronic trade documents across borders.

This strategic partnership is poised to reinforce ASEAN’s vision as a digitally interconnected economic bloc, potentially expanding integration efforts to include China and the Gulf Cooperation Council countries.
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Maybank has reported a 4% year-on-year increase in net profit for the first quarter of FY25, reaching RM2.59b. This growth was supported by a 1.8% rise in net operating income to RM7.71b, despite challenging economic conditions. The Group’s profit before tax also saw a 4.4% increase, totalling RM3.59b.

The bank’s net interest margin remained stable at 2.04%, bolstered by a 2.3% increase in net fund-based income to RM4.95b. This was achieved through a 3.2% year-on-year growth in loans across all key markets. Non-interest income, contributing 35.8% of total income, stood at RM2.76b, aided by improved performance in wealth management.

Overhead costs rose slightly to RM3.74b due to inflationary pressures, but pre-provisioning operating profit increased by 1.3% to RM3.97b. The Group’s asset quality remained robust, with net impairment provisions improving by 21.7% to RM426.4m, and the gross impaired loans ratio improving by 5 basis points to 1.27%.

Maybank’s President and Group CEO, Dato’ Khairussaleh Ramli, highlighted the Group’s resilience amidst global economic uncertainties, stating, “The global economic outlook remains uncertain. Nevertheless, we expect continued growth in the markets that we operate.”

Looking ahead, Maybank is focused on its M25+ strategy, which includes strengthening core operations, accelerating digital transformation, and embedding sustainability. The Group has already surpassed its sustainable finance target, achieving RM10.29b in the first quarter alone, and is on track to meet its long-term goals of carbon neutrality by 2030 and net zero by 2050.

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Pacific Carriers Limited (PCL) and the Singapore Maritime Foundation (SMF) have renewed their commitment to nurturing young talent in the maritime industry by signing a Memorandum of Understanding (MOU). This agreement, effective from 2025 to 2027, will see PCL sponsoring up to three MaritimeONE scholarships and at least three internships annually. These initiatives aim to provide youths with immersive learning experiences in the dynamic maritime sector.

The scholarships and internships will be managed and marketed by SMF, with both organisations jointly selecting candidates. This collaboration is part of a broader effort to support SMF’s talent development programmes, including the MaritimeONE Case Competition, Campus Connect, and Company Connect.

Tan Beng Tee, Executive Director of SMF, highlighted the significance of the partnership, stating, “The signing of the MOU between Pacific Carriers Limited and Singapore Maritime Foundation marks a collective commitment in our shared goal to build a talent pipeline for the industry.” She noted PCL’s consistent support, including a S$1 million contribution to the MaritimeONE Bursary Fund in 2023 and sponsorship of the MaritimeONE Case Summit in 2024.

Chubasco Antonio Monteiro, Deputy CEO and Fleet Director of PCL, emphasised the strategic importance of talent development, saying, “This MOU affirms our continued commitment to building a dynamic maritime workforce, one that is future-ready.” He praised the impact of the MaritimeONE scholars, noting their growth and contributions to the sector.

This renewed partnership underscores the ongoing efforts to ensure a robust and skilled workforce for Singapore’s evolving maritime industry.
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Singapore’s inflation rates are expected to remain stable throughout 2025, according to RHB Bank’s latest Global Economics and Market Strategy Report.

The report, attributed to Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, forecasts headline inflation at 1.6% year-on-year (YoY) and core inflation at 1.1% YoY for the year.

April’s Consumer Price Index (CPI) held steady at 0.9% YoY, aligning with Bloomberg’s consensus and RHB’s expectations of 0.94% YoY. Year-to-date, headline and core inflation have averaged 1.0% YoY and 0.6% YoY, respectively.

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Singapore’s industrial production (IP) experienced a notable rebound in April, rising by 5.3% month-on-month, seasonally adjusted, following two months of decline. This resurgence is attributed to front-loading in production and exports, according to UOB Global Economics and Markets Research. The year-on-year growth for April stood at 5.9%, surpassing Bloomberg’s consensus estimate of 2.5%, though it fell short of UOB’s own forecast of 10.1%.

The electronics sector played a significant role in this recovery, with a 9.7% month-on-month increase and a 15.2% rise year-on-year. This growth was largely driven by semiconductors and consumer electronics. Additionally, the transport engineering sector saw a 9.1% monthly increase, bolstered by maintenance, repair, and overhaul activities in the aerospace segment.

However, the pharmaceutical sector faced a decline, with a 42.1% drop month-on-month and a 1.6% decrease year-on-year. This was attributed to the generally price-inelastic nature of pharmaceutical demand and ongoing trade discussions with the US regarding potential tariffs.

Looking ahead, UOB anticipates that growth momentum in the second quarter of 2025 may continue to show resilience due to a temporary truce in US-China trade tensions. However, potential payback effects from front-loading could lead to a downturn in trade and manufacturing activity later in the year. Consequently, UOB has adjusted its 2025 growth forecast to 1.7% and lowered its 2026 projection to 1.4%.
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