Industry News

The Straits Times Index (STI) has achieved a new all-time high of 3,921.30, marking a 23.2% increase over the past 10 months from April 2024 to February 2025. This significant rise was bolstered by substantial net institutional inflows amounting to $489m, despite uneven gains among its constituents.

Key contributors to this surge included Singapore Telecommunications, United Overseas Bank, Singapore Exchange, Oversea-Chinese Banking Corporation, and Singapore Technologies Engineering, which saw the most net institutional inflow. Yangzijiang Shipbuilding led the STI with a remarkable 65% price gain, followed by Singapore Exchange and Hongkong Land with 53% and 45% gains, respectively.

The trio of banks—DBS, UOB, and OCBC—averaged 33% price gains, increasing their combined STI weightage from 50% to 54%. DBS Group Holdings reported a record net profit of S$11.4 billion for FY24, contributing to the STI’s new high. The bank plans to manage excess capital over the next three years, including a Capital Return dividend.

Hongkong Land’s strategic shift towards ultra-premium integrated commercial properties in key Asian cities also played a role in its strong performance. The company aims to double its underlying profit and dividends by 2035.

The STI’s total return over the 10-month period was 29.2%, reflecting its high dividend yield. The index’s current price-to-book ratio of 1.3x suggests a more conservative valuation compared to past peaks.

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First REIT Management Limited, the manager of First Real Estate Investment Trust (First REIT), has announced a distribution per unit (DPU) of 0.58 Singapore cents for the fourth quarter of 2024, maintaining the same level as the previous quarter. However, the full-year DPU for 2024 fell by 4.8% year-on-year (YoY) to 2.36 Singapore cents. This decline is attributed to the depreciation of the Indonesian Rupiah and Japanese Yen against the Singapore Dollar, which affected the Trust’s distributable income.

Victor Tan, Executive Director and CEO of First REIT Management, highlighted the Trust’s robust performance amidst economic uncertainties. “Our sustainable lease structures and 100% committed occupancy rates were the Trust’s key drivers during this year of economic uncertainties,” he stated. Despite the currency challenges, the Trust’s healthcare and healthcare-related portfolio demonstrated strong operational performance.

The Trust’s rental and other income from properties in Indonesia and Singapore increased by 4.7% YoY and 2.0% YoY respectively in local currency terms, whilst income from Japan remained stable. The appraised valuation of First REIT’s assets stood resilient at $1.12b, supported by the strengthening of the Singapore Dollar.

Looking ahead, First REIT maintains a healthy gearing ratio of 39.6%, with 56.9% of its debt on fixed rates or hedged. The Trust’s diversified portfolio and proactive capital management continue to underpin its financial stability, despite external currency pressures.

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HDB resale prices are on track to achieve their longest growth streak by the end of 2025, according to the latest market report from OrangeTee. Following a 2.6% increase in the fourth quarter of 2024, this marks the 19th consecutive quarterly rise since the first quarter of 2020. If current trends continue, prices are expected to rise by 4% to 6% this year, potentially reaching a record 23 consecutive quarters of growth.

The report highlights that whilst the growth streak is significant, the cumulative increase of approximately 58% is modest compared to the 294.4% surge seen from the fourth quarter of 1991 to the fourth quarter of 1996. This difference is attributed to recent cooling measures aimed at curbing rapid price increases.

In the last quarter, prices rose in 20 out of 26 towns, with the Central Area seeing the most substantial increase at 25.6%, followed by Toa Payoh at 12.1%. However, the resale volume is expected to dip slightly in 2025 due to a limited supply of flats reaching their Minimum Occupation Period (MOP) and increased interest in Build-To-Order (BTO) flats.

Christine Sun, Chief Researcher and Strategist at OrangeTee, noted that the number of flats reaching MOP is projected to fall to 6,974 units in 2025, the lowest in 11 years. This scarcity, coupled with efforts to reduce BTO waiting times, may divert demand from the resale market, potentially affecting sales volumes, which are expected to range between 25,000 and 27,000 units this year.

Overall, the HDB resale market remains robust, with sustained demand and price growth expected to continue, barring any new cooling measures or unforeseen economic challenges.

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Hogan Lovells, a global law firm, has announced the appointment of Charmian Aw as a partner in its Global Regulatory and Intellectual Property (IP) practice, based in Singapore. Aw, who will join the firm on 25 February from Squire Patton Boggs, brings a wealth of experience in data privacy, cybersecurity, and technology transactions across the Asia Pacific region.

This strategic hire marks the fifth recent addition to Hogan Lovells’ Singapore office, following the appointments of private equity and funds partners Siew Kam Boon, Timothy Goh, and Thomas Kim, as well as Rob Palmer in International Arbitration. The firm has also expanded its Hong Kong office with the addition of Michael Wong and Maria Sit, further strengthening its capabilities in private funds, complex disputes, and cross-border investigations.

Lloyd Parker, Regional Managing Partner for Asia Pacific, highlighted the significance of Aw’s expertise, stating, “Charmian’s expertise in data protection and cybersecurity within ASEAN significantly strengthens our regional offering.” Aw’s experience will be crucial as Hogan Lovells continues to meet growing client demand for coordinated advice amid heightened regulatory scrutiny.

Aw has worked with numerous global corporations on high-value technology transactions and regulatory compliance initiatives across more than 130 jurisdictions. Her appointment is expected to enhance Hogan Lovells’ capabilities in the fast-evolving area of data protection and cybersecurity. Janice Hogan, Practice Group Leader for the Global Regulatory and IP practice, noted, “Charmian’s exceptional experience will be instrumental in driving our growth in APAC.”

Aw expressed her enthusiasm about joining Hogan Lovells, stating, “The firm’s commitment to providing comprehensive advice across the region aligns perfectly with my approach to client service.”

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Demand for prime office space continues to grow worldwide, despite a 0.3% rise in rents and a 0.2% increase in fit-out costs in the final quarter of 2024, according to Savills’ latest report. Singapore and Tokyo ranked sixth and fifth, respectively, in the Prime Office Costs Index, with Singapore experiencing a 0.5% cost growth. The finance sector has overtaken technology as the leading industry for office space deals in the second half of 2024.

Savills’ report highlights a moderate upward trend in office costs, with a 1.9% increase over the year. In Asia Pacific, net effective costs declined by 1% in Q4 2024, with China seeing a 2.6% drop due to economic uncertainties. Conversely, Sydney and Melbourne experienced cost increases of 1.7% and 1.6%, respectively, driven by reduced landlord incentives and rental growth.

Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, noted, “The rise in Singapore’s office cost continued in 2024 as supply of Grade A offices was relatively tight and fit-out costs have been pressured by higher labour costs.”

Globally, Dubai and Los Angeles saw significant cost increases, with Dubai experiencing a 7% rise due to constrained supply and high demand. In North America, Los Angeles reported the highest leasing volumes since Q1 2020, reflecting strong demand.

Rick Schuham, CEO of Global Occupier Services at Savills, stated, “Ultra prime offices remain a key strategic asset for many businesses globally and almost all industries saw an increase in square footage transacted in H2 2024 compared to the first half of last year.”

Looking ahead, Savills anticipates continued growth in rent and leasing volumes in 2025, driven by demographic and behavioural trends as firms compete for talent.

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A recent survey by MDRi has revealed contrasting trends in the medical insurance landscapes of Hong Kong and Singapore. As Hong Kong experiences a growing interest in health insurance, Singapore is dealing with the challenges of rising medical costs and financial risk management.

The survey, which engaged 1,000 respondents across both regions, highlights that health is a top priority for residents in both markets. However, significant differences exist in insurance coverage. In Singapore, 90% of individuals have medical insurance, with 49% holding personal plans. In contrast, Hong Kong sees 81% coverage, with 19% of its population uninsured.

High-net-worth individuals (HNWIs) in Hong Kong are driving demand, with 48% planning to purchase new medical insurance in 2025. This contrasts with Singapore, where only 30% of HNWIs intend to acquire additional coverage due to already extensive insurance ownership.

The motivations for purchasing insurance differ between the two regions. Hong Kong residents are primarily driven by the need to address coverage gaps and rising medical expenses, whilst Singaporeans focus on mitigating financial risks. High costs remain a significant deterrent in both markets, affecting 62% of respondents in Hong Kong and 52% in Singapore.

Simon Tye, CEO of MDRi, emphasised the importance of these trends, stating, “Insurance firms must recognise the distinct landscapes of Hong Kong and Singapore.” The survey results suggest growth opportunities for insurers, particularly in Hong Kong, where many remain uninsured. Meanwhile, Singapore’s market could benefit from offering diverse coverage solutions to address rising medical expenses.

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DFI Retail Group has announced the appointment of Yoep Man as the new Chief Executive Officer for 7-Eleven across South China, Hong Kong, Macau, and Singapore.

Effective immediately, Yoep will spearhead the strategic direction and operations of the convenience retail business in these regions, focusing on innovation and growth to meet evolving customer demands. He will also join the Group’s Management Committee, contributing to the broader leadership of the organisation.

Yoep Man brings over two decades of experience in the retail industry, particularly in food and fast-moving consumer goods (FMCG) across the Asia Pacific. Prior to this role, he served as Managing Director of Food Singapore for DFI Retail Group, where he successfully led brands such as Giant, Cold Storage, CS Fresh, and Jasons Deli. Under his leadership, these brands achieved financial improvements and enhanced market positioning despite challenging conditions.

Scott Price, CEO of DFI Retail Group, expressed confidence in Yoep’s appointment, stating, “His appointment aligns perfectly with our customer-first approach, given his proven ability to enhance customer experiences and drive innovation.”

The appointment comes as 7-Eleven experiences robust growth, particularly in the ready-to-eat market, and continues to enhance customer experiences through digital advancements. Yoep Man commented, “I am excited to support 7-Eleven’s growth and ambitions in the markets we serve.”

DFI Retail Group, a leading Asian retailer, operates over 11,000 outlets and employs more than 200,000 people. The Group’s annual revenue in 2023 exceeded £26 billion, underscoring its significant presence in the region.

The tender process for the site at 22 Ubi Road 4 in Singapore has concluded without an award, as announced on 10 February 2025.

Despite receiving four bids, the highest offer failed to meet the reserve price, leading to the decision not to award the tender. The tender was initially launched on 21 November 2024 and closed on 22 January 2025.

The decision not to award the tender underscores the importance of meeting reserve prices in property transactions, ensuring that the value of the land is adequately reflected in the bids. This outcome highlights the competitive nature of the real estate market in Singapore, where strategic pricing plays a crucial role in the tendering process.

The site at 22 Ubi Road 4, located in a prominent industrial area, was anticipated to attract significant interest due to its strategic location. However, the inability of the bids to meet the reserve price indicates a potential reassessment of market valuations or bidder expectations.

This development may prompt future bidders to reassess their strategies and valuations when participating in tenders for similar sites. The authorities’ decision to withhold the award ensures that the site will remain available for future opportunities, potentially attracting more competitive bids that align with market expectations.

Singapore is expected to run a budget deficit of 0.8% of its Gross Domestic Product (GDP) in the financial year 2025, according to RHB Bank’s latest Global Economics and Market Strategy Report.

This marks a shift from an estimated surplus of 0.8% in FY2024. The report, attributed to Barnabas Gan, Acting Group Chief Economist and Head of Market Research at RHB Bank, outlines the anticipated focus areas for the upcoming budget.

The FY2025 budget is projected to concentrate on four main priorities: job security and cost of living, strengthening Singapore’s economic relevance and resilience, enhancing the social compact, and promoting a green and sustainable Singapore. These areas are seen as crucial for maintaining the nation’s economic stability and addressing pressing social and environmental issues.

RHB Bank predicts that Singapore’s economy will grow by 3.0% in 2025, a slight easing from the 4.0% growth expected in 2024. The bank also maintains its forecast for the Consumer Price Index (CPI) at 2.3% for the current year. These projections highlight a cautious yet optimistic outlook for Singapore’s economic performance amidst global uncertainties.

The focus on sustainability and economic resilience reflects Singapore’s ongoing commitment to adapt to changing global dynamics whilst ensuring the well-being of its citizens. As the budget details unfold, these priorities are expected to guide policy decisions and resource allocation in the coming year.

Standard Chartered has unveiled SC PrismFX, a comprehensive cross-currency transactional foreign exchange (FX) solutions suite, aimed at enhancing the FX payment services for its global clientele. The suite is designed for Financial Institutions, Non-Banking Financial Institutions, PayTech, and Corporate clients, including notable companies like bp and Ant International.

SC PrismFX consolidates Standard Chartered’s digital capabilities in Transaction Banking, Financial Markets, and Digital Platforms under a single brand. This integration allows the bank to offer robust FX services across more than 130 currencies in over 40 markets. Michael Spiegel, Global Head of Transaction Banking at Standard Chartered, highlighted the suite’s ability to provide clients with a “robust payment distribution network with direct clearing across multiple domestic schemes.”

For corporate clients such as bp, SC PrismFX ensures a consistent FX payments experience with competitive pricing and insights into emerging markets. PayTech clients like Ant International benefit from an extensive payments network and seamless integration with local payment schemes, enhancing customer experience.

The suite also offers Financial Institutions and Non-Banking Financial Institutions the convenience of a single provider with upfront FX rate visibility, enabling full control over margins and rates. Ankur Kanwar, Head of Transaction Banking & Cash Management, Singapore and ASEAN, described SC PrismFX as a “digital-first, future-ready solution” that enhances convenience and competitiveness for clients.

With SC PrismFX, Standard Chartered aims to leverage its foreign exchange expertise and extensive payment network to help clients navigate complex global and local market challenges effectively.