Industry News

Singapore Airlines (SIA) is set to announce its Q1 FY26 financial results in late July or early August, with expectations of a core net profit ranging between S$400m and S$500m. This projection aligns closely with the previous year’s performance, despite the challenges posed by rising geopolitical tensions in the Middle East, which have led to increased jet fuel prices.

In May 2025, SIA reported a 3.1% year-on-year increase in passenger load and a 4.2% rise in cargo load, both surpassing pre-pandemic levels. The closure of Jetstar Asia, a competitor, presents an opportunity for SIA and its low-cost subsidiary, Scoot, to expand their market share at Changi Airport. This development is expected to support SIA’s medium-term growth outlook.

However, the recent conflict between Israel and Iran has caused a significant spike in Brent crude oil prices, raising concerns about future fuel costs. Despite these challenges, SIA maintains a “Hold” rating with a target share price of S$6.63, reflecting a cautious yet optimistic outlook.

The airline’s strategic moves, including absorbing Jetstar Asia’s market share and staff, are seen as positive steps towards maintaining its competitive edge. As SIA navigates these turbulent times, its focus remains on leveraging opportunities for growth whilst managing the risks associated with fluctuating fuel prices.
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Economists surveyed by the Monetary Authority of Singapore (MAS) have revised down the city-state’s economic growth forecast for 2025, citing global trade uncertainty and geopolitical tensions as significant headwinds. The latest MAS survey, released on Wednesday, indicates a median GDP growth projection of 1.7% for this year, a decrease from the previous forecast of 2.6% and a significant drop from the 4.4% growth recorded in 2024.

The survey also adjusted the 2026 growth forecast, now expecting a 1.7% increase instead of the previously anticipated 2.3%. Geopolitical tensions and rising trade frictions were identified as the primary risks to Singapore’s economic outlook, alongside concerns about an external slowdown and tighter financial conditions.

On a more positive note, easing trade tensions and a better-than-expected external outlook, particularly in China and the US, were highlighted as potential upside risks. Additionally, a sustained upturn in the tech cycle could bolster Singapore’s economic prospects.

However, the outlook for Singapore’s non-oil domestic exports remains bleak, with annual shipments expected to rise by only 1.0%, down from the 2.8% increase predicted in March. This follows an unexpected decline in exports in May, ending a three-month growth streak.

Inflation is projected to moderate, with the headline figure expected to ease to 0.9% from the earlier forecast of 1.7%, and core inflation cooling to 0.8% from 1.5%. Manufacturing is anticipated to contract by 0.3% this year, reversing the 2.9% expansion predicted in March, whilst private consumption is expected to grow by 3.1%, slightly down from the previous 3.5% forecast.

Over half of the survey respondents anticipate further easing by the central bank at its July policy review, primarily through adjustments to the Singapore dollar nominal effective exchange rate policy band. The MAS survey, reflecting the views of 20 respondents, does not represent the central bank’s own forecasts.
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Singapore-based fintech company Finmo has unveiled MO AI, a conversational co-pilot designed to streamline global treasury operations for finance teams. This innovative tool, embedded within Finmo’s intelligent treasury platform, promises to enhance cash management, forecasting, compliance, and reporting by leveraging natural language processing.

MO AI is engineered to handle complex multi-entity and multi-currency workflows, offering finance professionals the ability to retrieve account balances, initiate transactions, and generate reports with ease. According to Finmo’s CEO, David Hanna, “MO AI reflects the kind of meaningful innovation we aim for at Finmo—solving real-life treasury challenges with intelligent, usable tech.”

The system’s architecture combines real-time data integration with Finmo’s proprietary Model Context Protocol, enabling it to interpret finance-specific language and execute transactions securely. Raj Vimal Chopra, Finmo’s Chief Technology Officer, highlighted that MO AI was developed as a domain-specific AI system, integrating generative AI and advanced large language models to address the complexities of global treasury management.

Akhil Nigam, Chief Product Officer at Finmo, stated, “MO AI has been designed to think like a CFO function. It’s built to understand the urgency, structure, and decision logic behind every action.” The platform aims to transition finance teams from reactive to proactive execution, positioning them to lead strategically in a dynamic global economy.

Looking ahead, Finmo plans to enhance MO AI with predictive capabilities, complete workflow automation, and adaptive learning tailored to individual user roles, marking a significant step towards intelligent finance.
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Proteus Energy, a Singapore-based clean energy provider, has introduced the Proteus® Maritime Fuel Cell Solution, a modular hydrogen fuel cell system designed for maritime applications. Developed in collaboration with Symbio France, a leader in automotive fuel cell technology, the system aims to provide a sustainable energy solution for various vessel types, including harbour craft and offshore support vessels.

The Proteus® Maritime Fuel Cell Solution offers a 75 kW output per fuel cell stack, which can be combined for larger power needs. This innovation is particularly significant as it addresses the maritime industry’s urgent need for clean energy solutions. “The maritime industry needs viable clean energy solutions today,” said Lars Gruenitz, CEO of Proteus Energy. “This best-in-class system is the logical and most cost-effective choice to help operators make a quantum leap in their decarbonisation efforts.”

The system promises zero tailpipe emissions, low maintenance costs, and fast refuelling times, making it a compelling alternative to traditional marine diesel generators. Additionally, it complements electric propulsion, enhancing the range and efficiency of hybrid vessels.

Symbio’s fuel cell technology, which has already powered vehicles across Europe, is now adapted for marine conditions. The fuel cells are manufactured at Symbio’s gigafactory in Lyon, France, ensuring high production capacity and quality.

Proteus also offers high-pressure hydrogen storage tanks, developed with Forvia, to facilitate onboard hydrogen storage. The Proteus® Maritime Fuel Cell Solution is expected to be available for delivery from January 2026, with type approval anticipated by the end of this year.
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ULVAC Inc has announced its ongoing participation in the Lab-in-Fab project, a collaborative initiative aimed at advancing piezoelectric MicroElectroMechanical Systems (piezoMEMS) technology. This project, based at STMicroelectronics’ Ang Mo Kio campus in Singapore, has entered a new phase, with ULVAC contributing its expertise in deposition and etching technologies to aid in the commercialisation of piezoMEMS.

The Lab-in-Fab project is part of Singapore’s public-private semiconductor research and development ecosystem. It brings together universities, startups, small and medium-sized enterprises, and multinational corporations to foster technology commercialisation and talent development. Since its inception in 2020, ULVAC has worked alongside STMicroelectronics and the A*STAR Institute of Microelectronics to develop advanced lead zirconate titanate (PZT) thin film devices, significantly reducing lead content to lower environmental impact.

In the project’s new phase, ULVAC will continue its collaboration with STMicroelectronics and embark on new projects with A*STAR’s Institute of Materials Research and Engineering and the National University of Singapore. The focus will be on developing environmentally friendly lead-free materials and enabling compact, cost-effective sensors and actuators.

Harunori Iwai, Executive Officer and General Manager of the Advanced Electronics Equipment Division at ULVAC, stated, “We are proud to continue participating in this groundbreaking project and to contribute our expertise in manufacturing technology solutions for the piezoMEMS industry.”

ULVAC’s ongoing efforts in the Lab-in-Fab project are expected to drive next-generation manufacturing through innovation in equipment technology and global collaboration, supporting the miniaturisation and performance enhancement of wearable devices, medical monitors, and communication equipment.
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OCBC Bank has maintained its neutral stance with a target price of S$17.50, offering a 9% upside and an approximate 6% yield for the financial year 2025. In a recent update meeting, the bank’s management indicated that the overall tone remains consistent with the first quarter results, highlighting ongoing uncertainties around loan drawdowns and non-interest income. However, the bank has strategies in place to manage net interest margins (NIMs) effectively, whilst asset quality remains stable.

The bank’s capital return plan is a key focus, providing reassurance to investors during this period of uncertainty. The management’s commitment to maintaining this plan is seen as a stabilising factor for stakeholders. The update follows a previous report on 9 June 2025, which discussed the bank’s attempt to privatise Great Eastern, indicating ongoing strategic moves within the organisation.

The analyst from Singapore Research noted, “The tone was broadly similar as the 1Q25 results briefing – some uncertainties remain around loan drawdowns and non-II, but OCBC Bank has options to help manage NIMs ahead whilst asset quality appears to be holding up.”

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Singapore’s job market continues to demonstrate resilience despite a fifth consecutive month of declining job postings, according to the latest data from Indeed’s Hiring Lab. The report highlights a significant increase in demand for technical roles, particularly in civil engineering, which saw a 19% rise in job postings over the past three months. This surge is attributed to large-scale public infrastructure projects, such as Changi Airport Terminal 5.

Whilst the overall market cooled with a 0.9% month-on-month decline in May, job postings remain 40% above their February 2020 baseline. Other sectors experiencing growth include childcare, with a 13% increase, sports at 12%, and data analytics at 5.6%. However, healthcare-related roles such as pharmacy, veterinary, and physician/surgeon positions saw notable declines, with pharmacy postings dropping by 45%.

Senior Economist Callam Pickering commented, “The pace of job decline has moderated. With a low unemployment rate of 2.1%, employers are still grappling with skill shortages despite cooling hiring.”

The report also notes shifts in job market dynamics since last year. Management roles have increased slightly, whilst education roles have grown from 4.3% to 4.7% of total postings. Conversely, software development roles have decreased by 1.2 percentage points.

Despite these fluctuations, the demand across most sectors remains robust compared to pre-pandemic levels. However, geopolitical and economic uncertainties could impact future job creation, as businesses face challenges in planning ahead.
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In the first half of 2025, Food Empire, Yangzijiang Financial, Centurion Corporation, BRC Asia, and Wee Hur Holdings emerged as the top performers in the FTSE ST Small Cap Index. This index, comprising 42 constituents, achieved a 4.9% total return, outpacing the FTSE Asia Pacific Small Cap Index’s 2.7% return. The index also recorded a net institutional inflow of S$31 million, with significant contributions from Yangzijiang Financial Holding, Centurion Corporation, and Wee Hur Holdings.

Food Empire Holdings made headlines by debuting on the 2025 Fortune Southeast Asia 500 list, thanks to a 12% revenue growth in FY24, reaching $476 million (US$476 million). The company remains optimistic about sustaining growth, driven by brand investments and expansion in high-growth Asian markets. Its stock maintains an 18% return on equity (ROE), with its price-to-earnings ratio doubling to 14x in 2025.

Yangzijiang Financial Holding saw a surge in trading volumes, with its average daily turnover (ADT) rising to S$15.9 million from S$2.4 million in 2024. BRC Asia, maintaining a 21% ROE, reported a 9% increase in net profit for 1H25 compared to 1H24.

The FTSE ST Small Cap Index, with a market capitalisation of S$33 billion, will retain its 42 constituents following the quarterly rebalancing effective after 20 June. The index’s performance highlights the strength of Singapore’s small-cap stocks in a competitive regional landscape.
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DBS and the Australian Trade and Investment Commission (Austrade) have signed a Memorandum of Understanding (MOU) to facilitate Australian companies and investors’ expansion into Southeast Asia. Announced during the 10th anniversary of DBS Australia, this first-of-its-kind agreement between Austrade and a Singapore bank seeks to enhance investment links with Southeast Asia, including Singapore, Indonesia, Malaysia, and Vietnam.

The MOU aligns with Australia’s Southeast Asia Economic Strategy, which aims to increase two-way trade and investment by 2040. With Southeast Asia projected to become the world’s fourth-largest economy by 2040, the agreement offers a strategic framework for Australian businesses to tap into this burgeoning market.

Under the MOU, DBS and Austrade will provide essential resources such as market insights and regulatory guidance. They will also facilitate connections with regional partners and industry leaders. DBS plans to leverage its expertise to offer advisory services, including market entry strategies and financial planning. An investor roundtable is scheduled for Q3 2025 in Sydney to showcase regional investment opportunities.

Austrade CEO Paul Grimes highlighted the region’s expanding middle class and demand for digital and sustainable development as key opportunities for Australian businesses. DBS CEO Tan Su Shan noted the bank’s decade-long commitment to supporting Australian economic priorities and emphasised the potential of Australia-Southeast Asia connectivity.

DBS established its Australia branch in 2015 to support business growth and facilitate investment flows between Australia and Asia. The bank has played a significant role in supporting Australia’s energy transition and digital infrastructure growth, as well as outbound investments by Australian businesses.
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Seatrium Limited has announced a significant partnership with Solvang ASA, a Norwegian shipping company, to install and retrofit full-scale Carbon Capture and Storage (CCS) systems on Solvang’s fleet. The agreement was formalised during the Nor-Shipping 2025 event in Oslo, marking a pivotal step in both companies’ commitment to sustainable maritime solutions.

This collaboration builds on the successful delivery of the Clipper Eris in February 2025, the world’s first full-scale retrofit of a 7MW CCS system, which Seatrium executed with turnkey Engineering, Procurement, and Construction solutions. Solvang’s new series of Very Large Gas Carriers, specifically configured for CCS, will be the first candidates for this retrofit, with project commencement expected in late 2026.

Alvin Gan, Executive Vice President of Seatrium Repairs and Upgrades, expressed the company’s dedication to advancing sustainable maritime solutions, stating, “This partnership demonstrates our commitment to advance sustainable solutions in the maritime decarbonisation journey.” Tor Ask, Fleet Director of Solvang ASA, added, “Seatrium’s proven capabilities, demonstrated by the Clipper Eris retrofit, give us full confidence that this collaboration will bring tremendous value.”

Seatrium has a strong track record in providing green technologies for the maritime industry, having delivered over 584 sustainability-linked solutions since 2015. This partnership further strengthens the decade-long relationship between Seatrium and Solvang ASA, highlighting their shared vision for a lower-carbon future.
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