Industry News

Singapore’s core inflation rate fell to 0.6% year-on-year in May, marking the lowest level since 2021, according to recent data. The headline inflation rate also decreased to 0.8% year-on-year, aligning with Bloomberg’s consensus estimates. This decline is attributed to slower food inflation and reduced private transport costs, as Certificate of Entitlement (COE) premiums decreased across most categories.

Private transport inflation eased for the third consecutive month, reaching 1.1% year-on-year in May. This was driven by smaller increases in car prices and a decline in COE premiums, with Category A and B premiums dropping by 0.5% and 2.4%, respectively. The moderation in COE prices is likely due to buyer fatigue, anticipation of a larger COE quota, and a temporary pause in demand ahead of new car launches.

Despite the current dip, COE premiums remain historically high, suggesting that private transport inflation may persist at current levels unless there is a sustained decline in COE premiums and a significant softening in demand. The Monetary Authority of Singapore (MAS) has maintained its 2025 Consumer Price Index (CPI) forecast at 1.5% year-on-year, acknowledging potential upside risks from escalating geopolitical tensions in the Middle East.

Whilst global crude oil prices and food commodity prices are expected to remain stable, the inflation outlook could be influenced by these external factors. Nonetheless, the overall inflationary pressures are anticipated to remain contained, with the year-to-date CPI standing at 0.9% year-on-year, near the midpoint of MAS’s forecast range of 0.5% to 1.5% year-on-year.
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Thai Beverage is strategically delaying its BeerCo initial public offering (IPO) until market conditions improve, as announced at its Annual Information Meeting on 20 June 2025. In the interim, the company is concentrating on bolstering its market position and maintaining margins, particularly in its beer and spirits segments.

The company is leveraging its stronghold in Thailand’s beer market, where its Chang brand has solidified its number one position despite a slowdown in sales growth. This is attributed to a decline in tourist arrivals, which fell by 8% year-on-year in April 2025. In Vietnam, subsidiary SABECO plans a 2% price increase to counter an upcoming excise tax hike, aiming to capture downtrading trends amid weak consumer sentiment.

In Myanmar, Thai Beverage has significantly expanded its market share from 1% in 2020 to 16% in 2024, driven by local production and brand building. The company’s beer revenues in Myanmar grew by 98% year-on-year in the first half of FY25, partially offsetting weaker contributions from Vietnam.

The spirits segment faces challenges with a 26% year-on-year decline in sales in April 2025, largely due to economic pressures and political conflicts in Thailand. Despite this, Thai Beverage has managed to procure raw materials at lower prices, although meaningful margin improvements are expected only from FY26.

Thai Beverage maintains an “Add” rating with a target price of $0.41 (S$0.56), supported by an 8% core earnings per share compound annual growth rate forecast over FY25-27 and a 5.7% dividend yield. The company remains focused on cost controls and volume growth as potential catalysts for future re-rating.
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Asia-Pacific economies are facing significant external pressures in Q3 2025, primarily due to uncertain US tariff policies and reduced imports from China, according to a report by S&P Global Ratings. Whilst domestic demand is expected to remain robust, the resilience of regional economies will differ, with export-dependent countries being more vulnerable.

The report, titled “Economic Outlook Asia-Pacific Q3 2025: Resilience May Vary,” highlights the impact of rising US tariffs on China, which are likely to affect the country’s exports, investment, and growth. Louis Kuijs, S&P Global Ratings Asia-Pacific Chief Economist, stated, “The rise in US tariffs on China—and uncertainty about them—will weigh on the country’s exports, investment and growth.”

Despite these challenges, domestic demand growth is anticipated to be more resilient than exports, as policymakers in the region have pledged to implement measures to boost it. However, these measures have been modest so far. S&P forecasts China’s GDP growth at 4.3% in 2025 and 4.0% in 2026, which, although below government targets, is considered solid given the external pressures.

The report notes that economies less reliant on goods exports, such as India and the Philippines, will benefit from resilient domestic demand, limiting economic slowdown. In contrast, export-dependent economies like Malaysia, Singapore, South Korea, Taiwan, and Vietnam are expected to experience a significant slowdown in 2025.

This analysis underscores the varied economic resilience across the Asia-Pacific region, influenced by external factors and domestic policy responses. The full report is available to RatingsDirect subscribers.
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The FTSE ST Small Cap Index saw five standout stocks in the first half of 2025, with BRC Asia and Frasers Centrepoint Trust among the top performers. The index, which tracks smaller capitalisation stocks in Singapore, highlighted these companies as key contributors to its performance up to 17 June.

BRC Asia, with a market capitalisation of S$423 million and an average daily turnover (ADT) of S$3.20 million, was one of the leading stocks. Frasers Centrepoint Trust also made a significant impact, showcasing the strength of the small-cap sector in Singapore’s stock market.

In parallel, the SPDR Gold Shares ETF experienced net inflows of S$309 million through 13 June, marking it as the highest among Singapore-listed ETFs. This ETF, cross-listed in Singapore and available in both USD and SGD, has gained popularity, particularly with young investors who favour dollar cost averaging—a strategy that involves regular, incremental investments over time.

The Straits Times Index (STI) generated a 6.5% total return for the year to 6 June 2025. Beyond the STI, 135 stocks with market capitalisations exceeding S$250 million averaged 7.9% total returns, with nearly 40 of these stocks achieving over S$1 million in ADT. Notably, 13 stocks from the S-REIT sector contributed significantly to this performance.

As the year progresses, the continued performance of these small-cap stocks and the SPDR Gold Shares ETF will be closely watched by investors, potentially influencing market dynamics and investment strategies in Singapore.
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Rex International Holding Limited has released an updated Qualified Person’s Report (QPR) for the Yumna Field, Block 50 Offshore Oman, revealing a significant increase in estimated reserves. The report, prepared by Exceed Torridon Ltd, indicates a 27% rise in base reserves (2P) from the previous estimate, now standing at 4.7 million stock tank barrels (MMstb) as of 31 December 2024.

The QPR, approved by Ian Mills, Managing Director of Exceed Torridon, and Stephen Hayhurst, a Qualified Person with over 36 years in the oil and gas industry, highlights the successful optimisation of the depletion plan as a key factor in the revised estimates. The report also notes the addition of new development wells, including Yumna-6, Yumna-7, and Yumna-8, which are expected to further enhance production capabilities.

The Yumna Field, initially discovered in December 2013, has seen continuous development and production since the first well, Yumna-1, was spudded in December 2019. The field has produced approximately 9 MMstb to date, with ongoing efforts to optimise production rates and expand the field’s capacity.

The updated reserves estimate underscores the potential for further development in the Yumna Field, with plans to commence drilling of Yumna-6 in the second half of 2025. This strategic expansion aims to tap into reserves in the northwest and northeast of the field, ensuring sustained production and growth for Rex International.
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Swee Heng Group is expanding its innovative bakery concept, ‘Toast & Roll’, with several new outlets set to open across Singapore throughout 2025. This expansion follows a strong customer response to the initial locations and aims to bring a modern grab-and-go bakery experience to more neighbourhoods.

Initially launched as a distinct offering from Swee Heng’s existing brands, such as Swee Heng 1989 Classic, ‘Toast & Roll’ has seen steady growth since its debut. Current outlets include Jurong Point, Oasis Terraces, Tampines MRT, Novena Square, and Bedok Mall. New locations are planned for The LINQ, Beauty World, Lentor Modern, West Mall, and Heartland Mall Kovan.

The expansion is driven by evolving consumer preferences for high-quality, lifestyle-oriented bakery products. ‘Toast & Roll’ offers a broadened menu featuring toasts, cake rolls, croissants, Danish pastries, tarts, and festive exclusives. A spokesperson from Swee Heng Group stated, “Toast & Roll is perfectly positioned to meet these expectations, especially with our Research and Development team constantly innovating and adapting to global influences.”

Beyond customer satisfaction, the expansion will create opportunities for employees through internal mobility, cross-training, and leadership development. It also supports long-term brand equity by enhancing visibility and improving the innovation pipeline.

In addition to the retail expansion, Swee Heng plans to launch a new loyalty app integrating rewards and payment functions across all its brands. This app aims to streamline the customer experience, encouraging greater engagement and reflecting Swee Heng’s efforts to strengthen its digital presence.

Despite challenges such as location scouting and recruitment, Swee Heng has leveraged its experience to ensure a smooth rollout of the new ‘Toast & Roll’ outlets. The brand’s continued growth reinforces its position as a leader in Singapore’s bakery industry.
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Rhenus Group, a leading global logistics provider, has announced the opening of a new air freight gateway at Singapore’s Changi Airport. This strategic move aims to bolster Rhenus’ presence in Southeast Asia by offering enhanced multimodal connectivity, including air, ocean, and cross-border lorry services. The facility is designed to meet the growing demands of customers with its comprehensive suite of services.

The new gateway, situated in one of the region’s key trade hubs, spans nearly 500 square metres of warehousing space, with plans for expansion based on demand. It offers a full door-to-door service, including in-house customs and a consolidation service for import and export handling. Key features include guaranteed capacity with schedule reliability, a Free Trade Zone warehouse, and additional services such as palletising and relabelling.

Serdar Onur, Head of Air Freight Southeast Asia and Oceania at Rhenus Air & Ocean, stated, “Our new Singapore gateway reinforces our long-term vision to grow our presence in Southeast Asia by offering a smarter, scalable platform that integrates seamlessly into our global air freight network.”

Dominique De Smet, Managing Director of Rhenus Singapore and Malaysia Air & Ocean, highlighted the gateway’s role in complementing Rhenus’ existing network in Malaysia, enhancing logistics solutions to support various industries.

Rhenus has also expanded its investment in Malaysia with a new barge service and a private jetty at Lukut, Negeri Sembilan, to improve cargo shipping reliability between Peninsular and East Malaysia. This expansion underscores Rhenus’ commitment to strengthening its logistics capabilities in the region.
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Investors across the Asia-Pacific region are intensifying their focus on nature-related investments, despite the ongoing politicisation of Environmental, Social, and Governance (ESG) factors. According to Pollination’s 2025 Nature Finance Focus report, 96% of surveyed investors acknowledge that ESG politicisation is influencing their strategies. However, this has not deterred their commitment to nature investments, with all respondents from Australia, Japan, and Singapore planning to increase their exposure.

The report highlights that motivations for nature investing vary across the region. In Singapore, environmental outcomes drive investments, whilst financial returns are the primary motivator for Australian and Japanese investors. “Nature is increasingly recognised for its central role in both risk and return,” said Zoe Whitton, Managing Director and Head of Strategy and Impact at Pollination. She emphasised the need to align financial models and policy incentives to mature this asset class.

Investor understanding of sectoral nature risks has also evolved, with significant increases in perceived risks across chemicals, materials, and manufacturing sectors. Singapore and Australia lead this shift, whilst Japan continues to focus on agriculture and energy production.

To scale nature exposure, Singaporean investors are investing in in-house expertise, whereas Australian investors prefer partnerships. Japan faces capability challenges, with 50% of investors citing a lack of expertise as a barrier.

Pollination’s report underscores the growing importance of nature in investment portfolios, despite political challenges, and suggests a strategic shift towards integrating nature into economic foundations.
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The Mobile Column is set to make a grand return at the National Day Parade (NDP) 2025, marking its first appearance at the Padang since 2019. This year’s event, themed “Our Strength, Our People, Our Future,” will commemorate 60 years of Singapore’s independence by showcasing the combined capabilities of the Singapore Armed Forces (SAF), Home Team, and Maritime and Port Authority of Singapore (MPA).

For the first time, the Mobile Column will integrate an aerial flypast over the Padang and a maritime display at Marina Bay, alongside the traditional drive-past along St Andrew’s Road. New assets making their debut include the Singapore Army’s Hunter Armoured Engineer Vehicle, the Republic of Singapore Navy’s Combatant Craft Underwater, and the Singapore Police Force’s Tactical Strike Vehicle. Over 170 assets and more than 800 participants will demonstrate the multi-domain operational capabilities of Singapore’s defence and security forces.

The Mobile Column will unfold across four thematic segments, highlighting the SAF’s capabilities, contributions to global security, and the coordinated defence efforts of the SAF and Home Team. Major Teo Wei Kok, Chairman of the NDP 2025 Mobile Column Committee, stated, “Beyond showcasing the platforms, this year’s Mobile Column will feature stories of men and women from the SAF and Home Team across generations.”

On 10 August 2025, participating assets will travel from the city centre to various Heartland Celebrations sites, allowing more Singaporeans to experience the Mobile Column up close. Further details on the routes and sites will be announced later. For more information, visit the NDP website or follow their social media channels.
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CBD Grade A office rents in Singapore have increased by 0.7% quarter-on-quarter to S$11.69 per square foot per month in the second quarter of 2025, according to JLL Research. This marks the fifth consecutive quarter of sub-1% growth. Meanwhile, the Decentralised office market experienced a 0.8% decline to S$7.61 per square foot per month, the first drop in four years, driven by recentralisation and quality-focused relocations.

The disparity between the two markets is attributed to businesses seeking higher-value offerings and enhanced service models, prompting a shift towards CBD locations. Andrew Tangye, Head of Office Leasing and Advisory for JLL Singapore, highlighted Audi Singapore’s move from Aperia to Capital Square as an example of this trend, aligning with their direct-to-consumer sales strategy.

Dr. Chua Yang Liang, Head of Research and Consultancy for JLL Southeast Asia, noted that the current rent gap of 30-35% between CBD and Decentralised offices is insufficient to deter relocations to the CBD. JLL anticipates a modest 2% growth in CBD rents for the full year, with potential acceleration in 2026 due to limited supply.

No major office completions are expected in the next 12 months, with new developments like Shaw Tower set for 2026. Landlords are focusing on occupancy and portfolio stabilisation, enhancing properties to attract premium tenants ahead of anticipated rental growth.
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