Industry News

Singapore’s core inflation rate slightly decreased by 0.1% month-on-month in June, maintaining a year-on-year rate of 0.6%, according to UOB Global Economics and Markets Research. This figure was below both Bloomberg’s consensus and UOB’s own forecast. The subdued inflation is attributed to declines in sectors such as recreation, sport and culture, and information and communication, with food inflation also easing.

The Monetary Authority of Singapore (MAS) is anticipated to consider further easing measures, as inflation risks remain high due to external uncertainties. The recent spike in global crude oil prices, driven by geopolitical tensions, is seen as temporary, with prices normalising following de-escalation. Despite this, MAS may maintain its cautious stance, potentially deferring policy easing to October 2025.

UOB has adjusted its average core inflation forecast for 2025 to 0.6%, down from 0.8%, and for 2026 to 1.1%, down from 1.3%. The report suggests that MAS could adopt a “wait-and-see” approach, with further easing likely a matter of timing rather than necessity. MAS Managing Director Chia Der Jiun noted that the impact of tariffs and uncertainties has yet to significantly affect the economy, allowing room for adjustments if growth risks intensify.

The upcoming MAS Monetary Policy Statement, expected on 30 July, will provide further insights into the central bank’s approach amid these economic conditions.
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Singapore’s core inflation rate remained unchanged at 0.6% year-on-year in June, according to a report by Nomura Global Economics. This figure, consistent with May’s data, was below the anticipated 0.7%, primarily due to a modest increase in healthcare price inflation. The Monetary Authority of Singapore (MAS) is expected to adjust its 2025 core inflation forecast range to 0.5-1.0% from the previous 0.5-1.5%.

Headline inflation also remained stable at 0.8% year-on-year, aligning with Nomura’s forecast but falling short of the consensus prediction of 0.9%. Accommodation inflation saw a slight decrease to 1.0%, whilst private transport inflation increased to 2.0%, driven by rising car prices.

The report highlights that the subdued core inflation was influenced by a smaller rise in healthcare prices and a moderation in food price inflation. The MAS noted that higher retail and other goods inflation was offset by lower inflation in other major core categories. The diffusion index indicated a sequential decline in 38.6% of the core basket in June.

Despite global crude oil prices easing, the MAS expressed concerns over elevated uncertainties in the inflation outlook due to external risks. However, it maintained that food price increases should remain contained. The MAS’s Managing Director, Chia Der Jiun, recently stated that inflation is likely to stay “subdued” in the second half of the year.

Nomura maintains its 2025 core inflation forecast at 0.7%, slightly below the consensus of 0.8%, and expects a gradual increase in H2 due to base effects. The MAS is anticipated to narrow its core inflation forecast range in its upcoming Monetary Policy Statement on 30 July.
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RHB Bank has announced a downward revision of Singapore’s inflation forecast for 2025, citing easing inflationary pressures. The bank now predicts the full-year headline inflation to be 1.2%, down from the previous forecast of 1.6%, and core inflation to be 0.9%, revised from 1.1%. This adjustment comes as the Monetary Authority of Singapore (MAS) is expected to widen the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) policy band from ±2.0% to ±3.0% in its upcoming meeting.

The announcement follows the latest data showing Singapore’s headline Consumer Price Index (CPI) remained steady at 0.8% year-on-year in June 2025, unchanged from May. This figure is slightly below RHB’s earlier projection of 1.0% and Bloomberg’s estimate of 0.9%. Similarly, the core CPI held steady at 0.6% year-on-year.

Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, highlighted the potential for a flattening of the policy slope due to ongoing global uncertainties in the second half of 2025. This move by RHB reflects a cautious approach amidst a complex economic landscape.

The revised forecast is significant as it indicates a shift in economic expectations for Singapore, potentially influencing monetary policy decisions and economic planning. As the MAS prepares for its meeting, the focus will be on how these adjustments will impact the broader economic environment in the region.
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Singapore Technologies Engineering Ltd (ST Engineering) has announced securing approximately $4.7b in new contracts during the second quarter of 2025. The contracts are distributed across its Commercial Aerospace, Defence & Public Security, and Urban Solutions & Satcom segments, each contributing $1.5b, $1.5b, and $1.7b respectively.

In the Commercial Aerospace sector, ST Engineering’s Maintenance, Repair & Overhaul (MRO) and Aerostructures & Systems (A&S) businesses secured significant deals. These include a Boeing 737NG component services agreement with a Southeast Asian airline and a five-year LEAP-1A engine MRO agreement with Air Cairo. The A&S business also received multiple Passenger-to-Freighter orders, notably a multi-aircraft Airbus A330P2F order from Confity Capital Partners.

The Defence & Public Security segment achieved new wins across its Digital Systems, Cyber, Land Systems, Marine, and Defence Aerospace businesses. Notably, the Digital Systems business was awarded contracts by the Ministry of Defence to supply Mine Countermeasure Unmanned Systems for the Republic of Singapore Navy. Additionally, the Digital Business secured contracts for AI, Cloud, and Cyber solutions, including advanced encryption products and cloud-based managed security services.

Urban Solutions & Satcom secured $1.7b in contracts, with the Urban Solutions business winning projects for Smart Mobility solutions, such as turnkey rail services for the Taichung MRT Blue Line. The Satcom business also secured ground infrastructure contracts in the US, Europe, and the Middle East, including a significant deal with solutions by stc in Saudi Arabia.

These contracts are not expected to materially impact ST Engineering’s financial metrics for the current year. The company continues to leverage technology and innovation to address global challenges, maintaining its position as a leading player in the aerospace, smart city, and defence sectors.
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KORIO, in collaboration with Zouk Group, has launched its second outlet in Singapore, located at Guoco Midtown II in Bugis. Officially opening on 11 July 2025, the new venue introduces a New York-inspired dine-in concept, featuring exclusive menu items such as a Brisket Sandwich with slow-cooked grass-fed beef and a reimagined BLT Sandwich with crispy bacon and jalapeño ranch.

Since its inception in Telok Ayer in 2020, KORIO has become a staple in Singapore’s sandwich scene, known for its bold flavours and quality ingredients. The new Bugis outlet continues this tradition, offering a warm and inviting space with sleek stainless-steel counters and a retro New York vibe. Co-founders Myron and Shaz Tan expressed their excitement, stating, “This new space is a true labour of love, reflecting how the brand has grown and evolved over the years.”

Andrew Li, CEO of Zouk Group, added, “We’re thrilled to open KORIO’s second outlet to all diners in Singapore. It’s a concept that truly resonates with diners who appreciate bold, comforting flavours.”

The menu at the new outlet includes both exclusive items and crowd favourites, such as the Grilled Cheese and Sausage & Egg sandwiches. Additionally, KORIO’s signature brioche doughnuts, perfected over 50 iterations, are available with a rotating selection of house-made glazes.

Located at 20 Tan Quee Lan Street, the outlet is open daily from 8am to 5pm, offering both dine-in and takeaway options. Situated next to The Plump Frenchman, Zouk Group’s first French restaurant, the new KORIO outlet enhances the dynamic food and beverage scene in Bugis.
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Frasers Property Singapore is set to transform its malls into vibrant hubs of activity from July to September, as it celebrates Singapore’s 60th birthday with a series of community-focused events. The festivities will include cultural showcases, interactive workshops, and exclusive promotions, aiming to connect communities across the island.

At Tiong Bahru Plaza, visitors can enjoy a Smurfs-themed display, complete with interactive elements for family fun. Meanwhile, The Centrepoint will host a colourful celebration from 1 to 31 August, featuring a large-format colouring mural and workshops in collaboration with STABILO and BUSY MAT. Shoppers can also view intricate artwork by local artist Wilfred Cheah, crafted from recycled materials.

Eastpoint Mall and White Sands will offer a range of promotions and performances from 8 August to 14 September. Shoppers spending S$50 ($___) at participating outlets can enter a lucky draw for prizes, including a staycation at Capri by Fraser, China Square. Additionally, exclusive 60-cent deals will be available at selected food and beverage outlets.

Northpoint City will celebrate its pineapple-growing heritage with the Ong Lye Rush campaign, offering shoppers the chance to win grand prizes such as an OSIM uLove 3 Well-being Chair. The Durian Fiesta at Eastpoint Mall offers a treat for durian lovers, whilst Hougang Mall will host the Teochew Festival, showcasing the rich heritage of Teochew culture.

These events reflect Frasers Property Singapore’s commitment to fostering community spirit and celebrating local culture. For more information on the full line-up of events, visit the Frasers Experience website.
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Armstrong Industrial Corporation, known as Armstrong Asia, has implemented Zebra Technologies’ solutions to enhance its warehouse and shopfloor operations in Malaysia and Thailand. The integration aims to improve data accuracy and operational efficiency by replacing manual processes with advanced technology.

Founded in Singapore, Armstrong Asia is a leading manufacturer of flexible material solutions, operating 16 factories across seven countries. The company has adopted Zebra’s ET40 enterprise tablets, MC33 mobile computers, ZT411 industrial printers, and Zebra OneCare support to upgrade its ERP system. This move is expected to optimise production tracking and warehouse operations, as highlighted by Eugene Ong, Executive Director of Armstrong Asia, who stated, “These solutions enable real-time data collection, improve asset visibility, and enhance connected frontline productivity.”

The project was executed in collaboration with RGtech Simat Co., Ltd in Thailand and Grand-Flo Spritvest Sdn Bhd and Phitomas Sdn Bhd in Malaysia, ensuring a seamless transition. Christanto Suryadarma, Sales Vice President at Zebra Technologies, expressed enthusiasm about the partnership, noting, “We are excited to support the team’s delivery of operational excellence and explore further innovations like machine vision for future development.”

The collaboration underscores Zebra Technologies’ commitment to providing solutions that enhance efficiency and accuracy in industrial environments, further solidifying Armstrong Asia’s position as a leader in the industry. The integration of these technologies is expected to significantly boost productivity and streamline operations across Armstrong’s facilities in the region.
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Giti Tyre has been recognised as a ‘3 Heart Company of Good’ at the 2025 Company of Good Conference, held on 17 July at the Fairmont Singapore. This accolade, awarded by the Singapore National Volunteer and Philanthropy Centre, acknowledges organisations that demonstrate a strong corporate purpose across five impact areas: people, society, governance, environment, and economy. Giti Tyre was one of 79 companies to receive this honour, highlighting its commitment to sustainability and social responsibility.

The Company of Good initiative encourages businesses to integrate corporate purpose into their operations, moving beyond traditional corporate giving. Giti Tyre’s recognition reflects its comprehensive approach to sustainability, which includes biodiversity projects, reforestation, and supporting underprivileged communities. The company also champions diversity, employing staff from over 20 nationalities and investing in workforce upskilling.

Chief Sustainability Officer, Pang Chong Hau, expressed pride in the recognition, stating, “We continue to look internally and externally, identifying areas of improvement and need that we can work on to address the needs of corporation, people, and planet.” Giti Tyre aims to achieve ISCC certification by 2026 and plans to reduce carbon consumption per tyre whilst increasing carbon sequestration through reforestation.

Founded in 1993 and headquartered in Singapore, Giti Tyre is a global leader in the tyre industry, with operations in over 130 countries. The company collaborates with the Singapore Road Safety Council to promote road safety and is committed to maintaining high-quality control standards across its manufacturing plants.
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AIMS APAC REIT has seen a boost in confidence as its sponsor increased its stake, according to a recent update. This move is seen as a positive indicator of the REIT’s long-term prospects, particularly in the industrial sectors of Singapore and Australia. The REIT is well-positioned to capitalise on strategic asset enhancements and robust operational execution, with a target price now set at S$1.52, up from S$.48, offering a 9% upside.

The REIT’s modest gearing allows for potential inorganic growth, whilst declining domestic benchmark rates and recent policy changes aimed at enhancing local market liquidity provide additional support. Analyst Vijay Natarajan highlighted these factors, noting that AIMS APAC REIT remains a top mid-cap pick.

The REIT’s focus on strategic asset enhancements and solid operational execution is expected to drive its growth. The sponsor’s increased stake is a testament to the confidence in the REIT’s ability to navigate and thrive in the evolving market landscape. With a forecasted yield of approximately 7% for the financial year ending March 2026, AIMS APAC REIT is poised to benefit from the growth in the industrial sectors of both Singapore and Australia.

In conclusion, the sponsor’s increased stake in AIMS APAC REIT underscores a strong belief in the REIT’s growth potential, supported by favourable market conditions and strategic initiatives. This development is likely to enhance investor confidence and drive future growth.
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Agentic AI is set to revolutionise industries, potentially generating $450 billion in economic value by 2028, according to a report by the Capgemini Research Institute. However, the report highlights a significant gap between ambition and readiness, with only 2% of organisations having fully scaled AI deployment. Trust in AI agents is declining, with confidence in fully autonomous AI agents dropping from 43% to 27% over the past year due to privacy and ethical concerns.

In Singapore, 15% of organisations are piloting AI agents, yet 51% lack a strategy for implementation. Operations and customer services are the primary areas where AI agents are expected to manage processes. Despite the potential, only 7% of Singaporean organisations fully trust AI agents, a figure that has decreased since 2024. Safety and transparency are the top concerns, with 64% and 62% of organisations respectively citing these as risks.

The report emphasises the importance of human-AI collaboration, with 90% of executives viewing human involvement in AI workflows as beneficial. Franck Greverie, Capgemini’s Chief Portfolio & Technology Officer, stated, “The economic potential of AI agents is significant but realising this value depends on more than just the technology, it requires a comprehensive and strategic transformation across people, processes, and systems.”

As organisations strive to harness AI’s potential, the focus remains on building trust and integrating ethical AI principles. With only 7% of Singaporean organisations having fully integrated these principles, the report suggests a need for strategic transformation to support effective human-AI collaboration.
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