Industry News

Australian-Singaporean company Osteopore Limited has partnered with Queensland Children’s Hospital (QCH) to initiate a clinical trial addressing temporal hollowing in children post-cranial vault remodelling surgery. The trial, led by Dr Yun Phua, aims to recruit five paediatric patients by the end of 2026, with follow-up lasting 12 months post-surgery.

The study will evaluate the feasibility of using a 3D-printed, patient-specific polycaprolactone-tricalcium phosphate (PCL-TCP) onlay scaffold, combined with bone marrow aspirate and platelet-rich fibrin (PRF), to restore the frontotemporal contour in affected children. Temporal hollowing, a common issue following cranial vault remodelling for craniosynostosis, affects up to 40% of patients.

Current treatments involve materials like hydroxyapatite and porous polyethylene, typically used when patients reach maturity. The PCL-TCP scaffold offers potential advantages, including support for bone growth and the possibility of implantation through a smaller incision.

Dr Phua highlighted the trial’s potential to enable earlier correction of temporal hollowing, stating, “With a scaffold that can remodel with cranial growth, this trial has the potential to enable earlier correction of temporal hollowing in the paediatric age group, instead of waiting until adulthood.”

The trial has received approval from the Human Research and Ethics Committee at Children’s Health Queensland and is supported by Maddox’s Helping Hand Foundation. Shelley Porter, Director of the Foundation, expressed optimism about the trial’s impact, noting, “We look forward to seeing the outcome of this trial, and the positive impact this treatment could have not only on the patient, but their family.”
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In a pioneering move, Sphere, an Australian eco-tech firm, has partnered with DCS Card Centre to allow Singaporean credit card users to convert their rewards into carbon offsets. Starting in early June, consumers can use up to 8% of their Visa Platinum Card spend to support environmental projects, such as reforestation, through a card-linked app.

Sphere CEO Shaun Lordan highlighted the significance of this innovation, stating, “For the first time, consumers can use rewards points to offset carbon emissions and aid biodiversity by investing in accredited environmental projects.” He emphasised the importance of individual action, noting that 70% of global emissions stem from consumer purchases.

This initiative is part of Sphere’s broader strategy, which includes partnerships with major banks in Asia, such as Sacombank and Techcombank in Vietnam, and Maybank and Public Bank in Malaysia. Sphere is also collaborating with Visa to extend its carbon insight and action technology to banks across 100 markets worldwide.

Lionel Lee, Senior Managing Director of Consumer Cards at DCS Card Centre, expressed pride in the partnership, stating, “We’re proud to partner with Sphere, offering our cardholders the power to make a positive environmental impact with every transaction.”

Sphere’s technology, developed in collaboration with Swinburne University of Technology, enables seamless integration of carbon action tech for financial institutions and merchants. This innovation underscores Sphere’s commitment to sustainability and its role in driving eco-friendly consumer behaviour.
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Moody’s Ratings has affirmed Maybank Singapore Limited’s (MSL) A1 long-term foreign and local currency deposit ratings, maintaining a stable outlook. The affirmation reflects the bank’s robust asset quality, stable funding, and liquidity, alongside moderate profitability. MSL’s A1 deposit ratings are bolstered by a high probability of support from the Singaporean government, given its significant market share and status as a domestic systemically important bank.

The bank’s problem loans ratio is expected to remain below 1% over the next 12 to 18 months, supported by its focus on low-risk housing and auto loans. MSL’s credit reserves, which exceed 133% of its problem loans as of 31 December 2024, provide a buffer against potential losses. However, the bank faces risks from its rapid loan growth, increased focus on small and medium-sized enterprise loans, and external economic factors such as US trade policies.

MSL’s return on tangible assets is projected to stay moderate at around 0.5% in the coming months. Its cost-to-income ratio remains higher than other Singaporean banks due to smaller economies of scale. The bank’s Common Equity Tier 1 ratio rose to 16.2% by the end of 2024, though it is expected to moderate as MSL optimises capital through loan growth and dividends.

An upgrade of MSL’s ratings is unlikely, given its alignment with its parent company, Malayan Banking Berhad. However, a downgrade could occur if Maybank’s support diminishes or if MSL’s asset quality deteriorates significantly.
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Singtel has announced expectations for high single-digit growth in its core earnings before interest and taxes (EBIT) for the financial year 2026, driven by $200m in cost savings. This growth is projected to continue into 2027, supported by a surge in data-centre contributions and a rebound in mobile revenue. The company has also increased its dividend per share forecast for 2026 and 2027 by 3% and 2%, respectively, due to a higher payout ratio and value realisation dividends. Consequently, Singtel has maintained a “BUY” recommendation with an increased target price of S$4.40.

The report highlights the strategic focus on enhancing profitability and shareholder returns. Singtel’s management is confident in achieving these targets through operational efficiencies and market recovery. The emphasis on data-centre growth aligns with global trends towards digital infrastructure, positioning Singtel favourably in the telecommunications sector.

In the broader industry context, Singapore Real Estate Investment Trusts (REITs) are also experiencing positive developments. The easing of interest cost risks and improved operational performance in the first quarter of 2025 have bolstered the sector. REIT managers are transitioning to cash-based management fees, which, despite reducing headline yields to 5.6% from 6.1%, remain attractive compared to other markets. Large-cap REITs like MPACT, MLT, and MINT, alongside “alpha-opportunities” in Elite and ESR REIT, offer sustainable yields between 7% and 10%.

These strategic shifts in both Singtel and the REIT sector underscore a broader trend towards sustainable growth and value realisation, promising robust returns for investors in the coming years.
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Cushman & Wakefield has launched a report detailing the implications of Singapore’s new Mandatory Energy Improvement (MEI) regime, set to commence in Q3 2025. This initiative, introduced by the Building and Construction Authority (BCA), targets buildings with high energy consumption, mandating audits and improvements to boost energy efficiency. The report estimates that 65 office buildings in Singapore could be affected, underscoring the regime’s potential impact on the real estate sector.

The MEI regime is part of Singapore’s broader strategy to achieve net-zero emissions by 2050. Wong Xian Yang, Head of Research for Singapore and Southeast Asia at Cushman & Wakefield, noted, “Whilst the immediate impact may be limited to the most energy-intensive buildings, the MEI regime signals a broader tightening of sustainability standards.” He emphasised the importance of early planning and data-driven decisions for building owners to mitigate risks and manage costs effectively.

The report serves as a comprehensive guide for property owners, offering insights into understanding the MEI regime, identifying energy efficiency gaps, and developing cost-effective strategies to optimise energy use. It also highlights the competitive advantages of aligning with Singapore’s evolving real estate market.

The launch event, held at Cushman & Wakefield Singapore’s office, featured key industry figures discussing the regime’s implications. As Singapore moves towards a low-carbon future, the MEI regime represents a significant step in tightening sustainability standards across the built environment.
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Grab has inaugurated its first Artificial Intelligence Centre of Excellence (AI COE) in Singapore, with backing from Digital Industry Singapore (DISG). The launch was attended by Singapore’s Deputy Prime Minister, Gan Kim Yong, alongside Grab’s top executives. The Centre, located in the new wing of GrabHQ@one-north, is set to drive AI innovations that enhance accessibility, productivity, and growth across Southeast Asia.

The AI COE will focus on developing solutions such as the Voice Assistant, which allows visually-impaired users to book rides using voice commands. This initiative, in collaboration with the Singapore Association of the Visually Handicapped, aims to make Grab’s services more inclusive. “SAVH is pleased to support Grab’s efforts in making technology more inclusive for the visually-impaired community,” said Lyn Loh from SAVH.

Additionally, the Centre will work on AI tools like the Driver AI Companion and Merchant AI Assistant to improve productivity for Grab’s partners. These tools offer real-time recommendations and insights, enhancing the user experience and supporting small business growth.

The Centre will also contribute to smart nation initiatives by developing Internet of Things (IoT) solutions for real-time hazard detection and urban planning. Grab’s collaboration with Singapore’s National Water Agency, PUB, exemplifies this effort by integrating IoT data for flood monitoring.

By 2025, the AI COE is expected to create 50 high-value roles in Product, Engineering, Data Science, and Analytics, further establishing Singapore as a hub for AI talent and innovation.
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Morgan Stanley Research has released its mid-year outlook for Singapore’s equity market, emphasising the city-state’s appeal as a safe haven amidst global market volatility. The report underscores Singapore’s defensive qualities, high dividend yields, and ongoing market reforms as key factors that limit downside risks whilst offering significant upside potential. The bank favours the Financial Services and Communication Services sectors, with a particular interest in small-cap opportunities.

Singapore’s equities have shown remarkable resilience, achieving a 13% total return in 2024, outperforming the MSCI All Country World Index’s 6% return. This performance is attributed to defensive investor allocations amidst global trade uncertainties. Morgan Stanley has raised its MSCI Singapore index target by 13% to 2,150, projecting a 17% total return over the next 12 months.

The report highlights Singapore’s strategic position to navigate geopolitical and trade uncertainties, which are expected to persist in a multipolar world. Despite easing global trade tensions, uncertainties surrounding US tariff rates and their inflationary impact remain significant market concerns.

Market reforms are a key driver of optimism, with the Monetary Authority of Singapore’s S$5b investment into actively managed funds expected to boost Singapore equities. Additional reform measures, potentially including a Value-Up programme, are anticipated later this year, which could further ignite investor interest.

Morgan Stanley’s Singapore Focus List includes Singapore Exchange, United Overseas Bank, Singapore Telecom, Sea Ltd, and CapitaLand Investment. The bank sees potential in the largest 20 non-REIT small-cap stocks, aligning with market reform priorities.

In summary, Singapore’s equity market is well-positioned to benefit from its safe haven status and ongoing reforms, offering attractive risk-reward opportunities amidst global uncertainties.
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RHB Bank’s latest Global Economics and Market Strategy Report, authored by Group Chief Economist Barnabas Gan, indicates that the Monetary Authority of Singapore’s (MAS) Singapore dollar nominal effective exchange rate (S$NEER) is nearing the top-bound of its policy band. The report, released on 22 May 2025, suggests that the S$NEER is testing the 2.0% upper limit above its mid-point, implying limited room for further appreciation.

The report highlights that RHB’s revised S$NEER model, which incorporates 14 statistically relevant currencies, maintains a high weekly correlation of 0.996 with a percentage deviation of +/- 0.08%. This suggests that the model is robust in tracking the S$NEER’s movements.

Gan anticipates that MAS will keep the S$NEER policy band unchanged throughout 2025, maintaining the current appreciation slope of +0.5% with a ±1.0% band width. However, he does not dismiss the possibility of MAS flattening the slope or widening the band width in future reviews if economic conditions deteriorate.

This analysis is crucial as it provides insights into Singapore’s monetary policy direction amidst global economic uncertainties. The potential adjustments by MAS could have significant implications for businesses and investors relying on currency stability.

RHB’s report underscores the importance of monitoring economic indicators closely, as any shift in MAS’s policy could impact Singapore’s economic landscape.
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Global Islamic finance assets are expected to surge to $7.5t by 2028, up from $5.5t in 2024, as detailed in a new report by Standard Chartered. This growth underscores the increasing global significance of Shariah-compliant finance, with Islamic banking alone accounting for over 70% of these assets.

The report, titled “Islamic Banking for Financial Institutions: Unlocking Growth Amidst Global Shifts,” highlights a 36% projected increase in assets, driven by strong fundamentals and a growing demand for ethical and inclusive finance. Khurram Hilal, CEO of Group Islamic Banking at Standard Chartered, remarked, “Islamic finance is entering a new era defined by scale, sustainability, and strategic integration.”

Key insights from the report include the expansion of the Sukuk market, which is anticipated to grow from $971b to $1.5t by 2028. The report also explores growth drivers such as regulatory developments and market expansion opportunities, whilst addressing challenges in regulation, liquidity, and risk management.

Standard Chartered, through its global Islamic banking franchise, Saadiq, offers Shariah-compliant solutions across 25 countries, catering to financial institutions, corporates, and retail clients. As the only international bank with such a franchise, it aims to foster innovation and sustainability in the Islamic finance sector.

Looking ahead, the report suggests that fostering innovation and strengthening market connectivity will unlock significant opportunities in the future of Islamic finance.
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Prudential plc has announced the appointment of Naveen Tahilyani as Regional CEO for India, Africa, the Philippines, Cambodia, Laos, and Myanmar, effective 29 July. This follows Solmaz Altin’s decision to return to Europe. Concurrently, Rajeev Mittal has been named CEO of Eastspring Investments, Prudential’s asset management arm, starting 1 July, succeeding Bill Maldonado, who is retiring to the UK.

Naveen Tahilyani, who will be based in India, joins Prudential’s Group Executive Committee and will report to CEO Anil Wadhwani. He brings extensive experience from his previous roles as Managing Director and CEO of Tata Digital and Tata AIA, and his 17-year tenure at McKinsey advising financial institutions across Asia.

Rajeev Mittal, based in Singapore, will also join the Group Executive Committee and report to Wadhwani. With over 30 years in asset management, Mittal previously led Fidelity International’s Asia operations and held senior roles at AIG and PineBridge Investments.

Anil Wadhwani expressed confidence in Tahilyani’s ability to drive growth in key markets, stating, “I am confident Naveen is the right leader in the right location to deliver the impact we need.” On Mittal’s appointment, Wadhwani noted, “Rajeev’s deep expertise in the Asian markets positions him exceptionally well to drive the continued growth and success of Eastspring.”

Bill Maldonado will remain an adviser until September, ensuring a smooth transition, and will continue as a Board member of ICICI Prudential Asset Management Company Limited.
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