Industry News

Colliers has released its Industrial Q4 2024 report, revealing a slowdown in the growth of Singapore’s industrial rents and prices. The report highlights that whilst the JTC All Industrial rental index saw its 17th consecutive quarter of growth, the annual growth rate for 2024 was 3.5%, a decline from 8.9% in 2023. This moderation is attributed to industrial occupiers exercising cost caution due to high interest rates and escalating operating expenses.

The report indicates that overall rental growth was positive across all segments, driven by the multiple-user and warehouse sectors. However, occupancy rates declined in the multiple-user factory and business park segments. The price index also showed a slowdown, with a 2.1% annual growth for 2024, down from 5.1% in 2023.

Looking ahead, Colliers projects that both rental and price growth will continue to moderate in 2025, with expected growth between 0% to 2%. This is due to weaker demand and a significant increase in industrial space supply, which is anticipated to be more than 2.5 times that of 2024.

Nicolas Menville, Executive Director and Head of Singapore-based Industrial Clients at Colliers, noted, “New industrial developments, equipped with more modern specifications, could encourage more businesses to relocate from older, ageing manufacturing spaces to newer projects.”

Despite the challenges, there is optimism for the sector. The ongoing upturn in the chip cycle is expected to boost investment spending, particularly in the semiconductors, logistics, and advanced manufacturing sectors. This could lead to a gradual increase in leasing activities as market sentiments improve.

Jaden Tan, founder of Singapore-based Exotic Office Solutions, is advocating for the use of office automation to create more inclusive workplaces.

By implementing technology that handles repetitive tasks, Tan believes employees, including ex-offenders and the underprivileged, can focus on skill development and career growth, rather than being confined to menial roles.

Tan, who nearly faced incarceration himself, is passionate about providing opportunities for marginalised individuals.

His company, Exotic Office Solutions, has integrated automation-driven workflows in its operations and those of its clients, earning accolades such as ‘Emerging Brand 2023’ and ‘Best SME Workplace 2024’. This initiative aligns with national reintegration efforts like Singapore’s Yellow Ribbon Project, which supports ex-offenders.

Despite the potential of automation, Tan acknowledges that trust remains a barrier for companies considering hiring ex-offenders.

He suggests that technology can foster transparent environments, helping to build trust between employers and employees. Tan’s personal journey from near-convict to entrepreneur underscores his commitment to a more inclusive business landscape in Singapore.

Exotic Office Solutions, with nearly two decades in the office solutions market, provides bespoke IT solutions and office equipment. The company prides itself on sustainability and strong after-sales service, aiming to build long-term client relationships. Tan’s vision is to leverage technology to break down barriers and create equitable opportunities for all employees.

SEEDS Capital, the investment arm of Enterprise Singapore, has announced the appointment of 20 new partners to co-invest in Singapore-based deep tech startups.

This initiative, under the Startup SG Equity scheme, will see SEEDS Capital allocate $150m over the next three years, aiming to catalyse an additional $300m from private sector partners. The focus areas include Advanced Manufacturing, Pharmbio/Medtech, Agrifood Tech, Sustainability, Spacetech, and Quantumtech.

The addition of these partners expands SEEDS Capital’s network to 52 co-investors, enhancing the technical and commercial expertise available to startups. This collaboration is expected to help startups scale successfully by leveraging international networks and early-growth investment capabilities.

New global partners such as East Ventures from Indonesia, Global Brain from Japan, and HIVEN from South Korea will provide resources and networks to support startups in entering new markets. For example, Paspalis Capital’s presence in Australia’s Northern Territory has already benefited SEEDS’ Spacetech investees like Equatorial Space Systems.

Local investors, including Vickers Venture Partners and Monk’s Hill Ventures, will offer guidance on regulation and scaling within Singapore. “Despite the relative nascency of Singapore’s deep tech landscape, we are excited about our current pipeline,” said Arun Pai, Principal at Monk’s Hill Ventures, highlighting the potential in areas like advanced robotics and AI for healthcare.

Deep tech startups, which often require substantial capital for development, will benefit from the expertise of new partners such as Kurma Partners and Eurazeo. Cindy Khoo, Chairman of SEEDS Capital, expressed enthusiasm for the strong interest from the venture capital community, emphasising SEEDS’ commitment to nurturing deep tech startups.

To date, nearly S$3 billion has been invested in over 330 startups under the Startup SG Equity scheme. SEEDS Capital has also increased its co-investment cap for each deep tech startup from S$8 million to S$12 million, further supporting the sector’s growth.

The 2025 Singapore Real Estate Market Outlook report by CBRE reveals a complex landscape for the country’s property sector, with stabilising inflation and falling interest rates offering some relief.

However, challenges such as geopolitical tensions and a nationalistic economic agenda in the US contribute to a climate of uncertainty.

Moray Armstrong, CBRE Managing Director, noted the mixed signals as Singapore anticipates the URA Master Plan 2025, which will shape long-term land use and development strategies.

Despite these uncertainties, Tricia Song, CBRE Head of Research, emphasised the resilience of Singapore’s real estate market, citing stable demand and limited new supply across various sectors. The report suggests that the market’s stability continues to attract global investors.

In the Core CBD (Grade A) sector, rents are expected to grow by 2% in line with GDP projections, driven by limited supply and demand for quality spaces. However, economic slowdown and high fit-out costs may temper expansionary demand. The logistics sector anticipates a bumper supply in 2025, with nearly 5 million square feet of new space, although pre-commitments are expected to stabilise occupancy and rents.

Retail prime rents are projected to rise by 2% to 3%, supported by tourism recovery, while the residential sector may see a price increase of 3% to 6%. Improved buyer sentiment and lower mortgage rates could lead to more property launches.

CBRE’s survey indicates that investors remain optimistic about Singapore’s real estate, with investment volumes expected to grow by 10% year-on-year in 2025. The industrial and logistics sector remains the top investment choice, with residential assets gaining popularity.

Accuron Technologies, a global precision engineering and technology group owned by Temasek, has acquired a controlling interest in Trymax Semiconductor Equipment, a specialist in plasma-based and UV-based process equipment for semiconductor manufacturers. This strategic acquisition, announced on 4 February 2025, aims to expand Accuron’s semiconductor equipment offerings and bolster its presence in Europe.

The acquisition aligns with Accuron’s long-term strategy to enhance its portfolio in the semiconductor sector, particularly in the Etch & Clean process segment. The deal also opens avenues for collaboration with other companies within the Accuron group. Trymax’s founders, Leo Meijer and Ludo Vandenberk, will continue to manage the company post-acquisition.

“This acquisition is another important milestone for Accuron, enhancing our product offerings and geographical coverage in the semiconductor industry,” said Tan Kai Hoe, CEO and President of Accuron Technologies. The partnership is expected to leverage Accuron’s resources to further Trymax’s growth and global reach.

Pontex Investment Partners, a private equity firm, was a key investor in Trymax since March 2019, aiding its growth and technological advancements. Franck Marra, Partner at Pontex, expressed confidence in Trymax’s continued success under Accuron’s ownership.

With this acquisition, Accuron aims to support Trymax’s management in capitalising on growth opportunities, ensuring continuity and execution of expansion plans. The transaction signifies a new chapter for Trymax, promising enhanced capabilities and customer value in the semiconductor industry.

VAIO Corporation has announced its return to the Singapore market, partnering with Unified-1 Solutions as its official distributor. This strategic move aims to meet the rising demand for high-performance computing solutions in Southeast Asia. VAIO is introducing two new laptop models: the VAIO SX14-R for consumers and the VAIO Pro PK-R for business users, both featuring advanced technology and lightweight design.

The re-entry into Singapore underscores VAIO’s recognition of the country’s vibrant business ecosystem and technological focus. Founded in 1997 as a PC brand under Sony Corporation, VAIO became an independent entity in 2014. It has since maintained its reputation for innovative design and performance, with corporate laptops accounting for 90% of its sales.

The new VAIO laptops, weighing just 1.08kg, are crafted from carbon fibre and designed for mobile productivity. They include features such as AI-powered noise cancellation and extended battery life, enhancing user experience in various work environments. Masaki Yamano, President and CEO of VAIO Corporation, stated, “Our innovative features – such as AI noise-cancelling function and user-sensing capabilities – are designed to meet the needs of professionals and businesses prioritising seamless communication and efficiency.”

Consumers can purchase the VAIO SX14-R at Best Denki stores in VivoCity Mall, Ngee Ann City, and soon in Funan Mall. The VAIO Pro PK-R is available through authorised resellers. This launch marks a significant step in VAIO’s strategy to expand its presence in Southeast Asia, offering technology that supports dynamic lifestyles and work experiences.

ComfortDelGro Corporation is set to bid for an operation and maintenance contract for the Copenhagen metro system, according to a corrected report by UOB Kay Hian. The tender, expected to be called in June 2025, could significantly boost ComfortDelGro’s earnings if successful. The contract, which is anticipated to commence in September 2027, would mark ComfortDelGro’s third collaboration with French transport company RATP Dev.

The Copenhagen metro, currently operated by a joint venture of Italian companies, serves approximately 2 million passengers weekly across its four lines and 44 stations. The contract is valued at around €1.5 billion, with an estimated operating margin of 8%. ComfortDelGro’s potential stake in the venture is projected at 45%, which could result in an annual operating profit increase of €5 million to €6 million (S$7 million to S$8 million).

ComfortDelGro’s public transport segment is poised for growth, driven by increased rail ridership and ongoing UK bus contract renewals. The company’s taxi segment is also expected to see robust growth, bolstered by contributions from recent acquisitions, despite stiff competition from new ride-hailing services entering the market.

The company’s financial outlook remains strong, with a projected 2025 dividend yield of 5.9%. UOB Kay Hian maintains a “BUY” recommendation for ComfortDelGro, with a target share price of S$1.77, citing the company’s solid earnings growth and attractive entry point following a recent dip in share price.

The Health Sciences Authority (HSA) of Singapore has intensified its efforts to combat the sale and distribution of illegal health products, resulting in the seizure of over 970,000 units in 2024. Through coordinated operations with local and international agencies, HSA also removed 7,351 illegal product listings from e-commerce and social media platforms, disrupting the supply chain of these potentially harmful products.

Codeine cough syrup constituted 54% of the seized items, followed by sexual enhancement medicines, sedatives, and other prescription drugs. A significant operation in May 2024 led to the discovery of illegal cough syrup manufacturing in a Geylang condominium, where products were made in unsanitary conditions. This raid alone resulted in the confiscation of 165 litres of cough syrup and 57,000 units of assorted medicines, valued at $130,000.

In a bid to curb online sales, HSA collaborated with platforms like Shopee, Lazada, and Facebook, leading to the removal of listings for products such as dermal fillers, contact lenses, and weight loss supplements. HSA issued warnings to 2,868 online sellers during the year.

Prosecution efforts saw 30 individuals charged for illegal sales, including Rasel Md, who was sentenced to 31 weeks in prison for possessing and intending to sell illegal drugs. Peh Zhisheng Gabriel was fined $266,500 for importing and selling counterfeit cosmetics.

HSA’s vigilance also uncovered 14 illegal products containing banned substances, leading to severe health issues for some consumers. Notably, a man in his 50s was hospitalised after consuming Sausando Cellulite Pills, which contained the banned substance sibutramine.

The HSA continues to work with platform administrators to enhance surveillance systems and prevent the posting of illegal product listings, aiming to safeguard public health and safety.

Clime Capital, a Singapore-based fund manager dedicated to promoting low-carbon transitions, has announced its investment in Ampotech, a Singaporean energy management solutions provider. This strategic investment, facilitated through the Southeast Asia Clean Energy Fund II (SEACEF II), is set to bolster Ampotech’s expansion across Southeast Asia, with a particular focus on Vietnam, Indonesia, and the Philippines.

Ampotech specialises in AI-enabled Internet of Things (IoT) solutions that enhance energy efficiency for commercial and industrial clients. The company’s integrated devices and proprietary applications offer significant cost, performance, and cybersecurity benefits over traditional commercial products. This vertical integration allows for swift support and adaptation to evolving customer needs throughout a project’s lifecycle.

William Temple, CEO of Ampotech, expressed enthusiasm about the partnership, stating, “We are excited to partner with Clime Capital for our next phase of growth. Our ambition is to be Southeast Asia’s leading energy management company.” He highlighted Clime Capital’s expertise and market presence as key factors in unlocking new opportunities and accelerating growth.

Namrata Singh, Investments Principal at Clime Capital, echoed this sentiment, noting, “Clime Capital is excited to announce an investment in Ampotech, a pioneer in the energy management space in Southeast Asia.” She emphasised that Ampotech’s IoT solutions align with Clime Capital’s mission to advance the low-carbon transition in the region.

This investment marks a significant step in Clime Capital’s efforts to support sustainable energy solutions in Southeast Asia, potentially paving the way for further innovations in energy management.

Lendlease Global Commercial REIT (LREIT) has announced a 10.7% retail rental reversion for the first half of FY2025, reflecting the resilience of its retail portfolio. Despite this positive development, the REIT faced lower gross revenue and net property income (NPI), primarily due to the absence of supplementary rent from the Sky Complex lease restructure.

The REIT’s financial performance in 1H FY2025 saw gross revenue fall by 13.6% year-on-year to S$103.6 million, while NPI decreased by 19.8% to S$74.9 million. This decline was attributed to the upfront recognition of supplementary rent in December 2023. Additionally, higher finance costs, driven by a new EURIBOR interest rate hedge, impacted distributable income, which fell to S$43.5 million, translating to a distribution of 1.80 cents per unit.

Operationally, LREIT’s portfolio occupancy improved to 92.3% by the end of December 2024, with a long weighted average lease expiry (WALE) of 7.2 years by net lettable area. The retail portfolio maintained a high occupancy rate of 99.9%, while the office portfolio saw an increase in occupancy to 86.6%.

LREIT has also secured S$560 million in sustainability-linked loan facilities to refinance its maturing loans in 2025, with 70% of borrowings hedged to fixed rates. The REIT’s gearing ratio stood at 40.8%, with a weighted average debt maturity of 2.0 years.

Looking ahead, construction has commenced on a multifunctional event space adjacent to 313@somerset, expected to be completed in the second half of 2026. CEO Kelvin Chow expressed optimism, stating, “Our retail portfolio continues to demonstrate resilience with positive rental reversions.” The REIT aims to maintain leasing momentum and prudent capital management in the near term.