Industry News

CapitaLand Investment Limited (CLI), a prominent global real asset manager, has announced its acquisition of a freehold land parcel in Osaka, Japan, to develop its first data centre in the country. This project, requiring an investment exceeding US$700 million (S$944.3 million), will also secure 50 megawatts (MW) of power capacity. This marks a significant expansion of CLI’s data centre portfolio, which has grown by 23 centres since 2021.

The development aligns with CLI’s strategic focus on digitalisation and geographical diversification. Manohar Khiatani, Senior Executive Director of CLI, highlighted Japan’s status as a Tier 1 data centre market, expected to grow at a compound annual rate of 10% from US$23.8 billion in 2023 to US$38.7 billion in 2028. “Our acquisition is well-positioned to capture demand in Osaka’s established data centre cluster,” Khiatani stated.

Ms Michelle Lee, Managing Director of Private Funds (Data Centre) at CLI, noted the strong institutional interest in data centre investments, with 97% of investors planning to increase their investments. “Leveraging CLI’s global network, we have secured this off-market opportunity in Osaka,” she said.

The Osaka data centre will be AI-ready and designed with sustainability in mind, adhering to Leadership in Energy and Environmental Design (LEED) standards. It will incorporate advanced cooling technologies and energy-efficient practices to minimise environmental impact.

CLI’s expansion into Japan underscores its commitment to enhancing its data centre capabilities and tapping into the growing demand for digital infrastructure in Asia.

Ookla’s latest H2 2024 Connectivity Report highlights Singapore’s leading mobile and fixed network providers, with Singtel and MyRepublic emerging as top performers. Singtel achieved the fastest mobile download speed at 231.96 Mbps and an upload speed of 23.72 Mbps, also offering the best mobile gaming experience. Meanwhile, MyRepublic topped the fixed network category with a median download speed of 362.34 Mbps and an upload speed of 300.32 Mbps.

The report, based on data from Speedtest, underscores the competitive landscape of Singapore’s connectivity sector. Singtel’s dominance in mobile speeds reflects its robust infrastructure and commitment to enhancing user experience, particularly for gamers who require low latency and high-speed connections. “Singtel’s performance sets a benchmark in mobile connectivity,” the report suggests, highlighting the provider’s consistent delivery of high-speed services.

On the fixed network front, MyRepublic’s impressive speeds indicate its strong position in the market, catering to the growing demand for high-speed internet in homes and businesses. The report’s findings are crucial for consumers seeking reliable and fast internet services, as well as for businesses relying on stable connectivity for operations.

As Singapore continues to advance its digital infrastructure, these insights from Ookla’s report provide valuable benchmarks for both consumers and service providers. The ongoing competition among providers is expected to drive further innovations and improvements in connectivity services across the nation.

CenterSquare Investment Management has partnered with Temasek, the Singapore-based global investment company, to launch a $100 million commercial real estate debt co-investment vehicle. Once fully funded, the vehicle will have $200 million to invest in high-quality subordinate real estate loans, continuing the strategy of CenterSquare’s Debt Fund Series.

The initiative seeks to generate risk-adjusted, equity-like returns through mezzanine loans and debt-like preferred equity investments, primarily secured by viable, cash-flowing rental assets. Michael Boxer, Managing Director of CenterSquare’s Private Real Estate Debt vertical, highlighted the current higher-rate environment as an opportunity for disciplined investors to earn attractive returns. “We’re excited to expand our relationship with the highly respected Temasek investment team,” he stated.

The first tranche of capital will be invested alongside CenterSquare’s latest debt fund, focusing heavily on multifamily assets while maintaining flexibility to adapt to market changes. Richard Gorsky, another Managing Director at CenterSquare, noted the convergence of factors such as reconstituting borrower capital stacks and resetting valuations as underpinning this timely co-investment opportunity. “It is a pleasure working with like-minded, pragmatic capital partners,” Gorsky added.

Founded in 1987, CenterSquare manages over $14 billion in assets and has offices in major cities including New York, Los Angeles, London, and Singapore. This partnership with Temasek, which began in early 2022, marks a significant step in providing creative solutions for borrowers amidst changing market conditions.

The Singapore Airlines (SIA) Group has entered into a Memorandum of Understanding (MoU) with Aether Fuels to potentially source neat sustainable aviation fuel (SAF) from the climate technology firm. Aether Fuels plans to establish SAF production plants in the United States and South East Asia, with the SIA Group intending to procure neat SAF for five years once these plants commence commercial production, with an option for a five-year extension.

Aether Fuels will utilise waste carbon feedstock to produce SAF using its proprietary Aether Aurora technology, which promises reduced capital costs, increased production efficiency, and higher yields compared to existing methods. The SAF will be blended with conventional jet fuel and supplied to selected airports served by Singapore Airlines and its low-cost subsidiary, Scoot.

Chief Sustainability Officer of Singapore Airlines, Lee Wen Fen, stated, “This partnership marks another step in the SIA Group’s journey towards our long-term decarbonisation goal of net zero carbon emissions by 2050.”

Aether Fuels, incubated by Xora and backed by Temasek, aims to produce Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)-certified SAF, achieving a minimum 75% reduction in greenhouse gas emissions. Aether’s CEO Conor Madigan expressed pride in joining SIA’s SAF ecosystem, highlighting the collaboration’s role in advancing SAF market understanding and commercialisation.

The partnership underscores Singapore Airlines’ commitment to sustainability and innovation in aviation, aligning with global efforts to reduce the industry’s carbon footprint.

The Health Sciences Authority (HSA) of Singapore has ramped up its efforts to combat the sale and distribution of illegal health products, seizing 970,707 units and removing 7,351 listings from local e-commerce and social media platforms in 2024. This initiative, involving targeted operations and collaborations with local and international agencies, aims to protect the public from potentially harmful products.

Codeine cough syrup accounted for 54% of the illegal products seized, followed by sexual enhancement medicines at 19%, sedatives at 18%, and other prescription medicines at 9%. A significant operation in May 2024 saw HSA and the Singapore Police Force dismantle an illegal cough syrup manufacturing setup in Geylang, seizing products worth S$130,000.

HSA’s collaboration with online platforms like Amazon Singapore, Carousell, and Shopee led to the removal of listings, with 37% marketing aesthetic enhancement products. The authority issued warnings to 2,868 online sellers and prosecuted 30 individuals for illegal sales, including Rasel Md, who was sentenced to 31 weeks in prison, and Peh Zhisheng Gabriel, fined S$266,500 for selling counterfeit cosmetics.

Public alerts were issued for 14 illegal products containing banned substances like sibutramine and potent steroids. Notably, three consumers were hospitalised due to adverse effects from these products. HSA continues to urge consumers to consult healthcare professionals before using health products and remains vigilant in its enforcement actions.

Robeco announced the launch of two new high-conviction strategies, Emerging Market Bonds and Emerging Market Bonds Local Currency, aimed at institutional clients seeking superior risk-adjusted returns. These strategies unveiled on 3 February 2025, are designed to enhance Robeco’s emerging markets offering and expand its fixed income lineup.

The strategies will be managed by Robeco’s newly formed Emerging Market Debt (EMD) team, which was established last year. The team, boasting an average of over 15 years of experience in EMD, will leverage Robeco’s existing fixed income strengths and collaborate closely with its Quant and Sustainable Investing teams. This collaboration aims to capture emerging market opportunities by navigating macro-economic, political, and sustainability risks.

Diliana Deltcheva, Head of EMD at Robeco, stated, “We aim to deliver superior investment returns by deploying comprehensive analysis of all relevant information impacting emerging market debt investments. We’re not simply mirroring the benchmark: we’re leveraging our experience and frameworks to take selective, high-conviction positions when appropriate.”

The strategies employ a structured top-down and comprehensive bottom-up investment process, utilising a proprietary in-house framework for evaluating sovereign creditworthiness and relative value assessments, enriched with sustainability considerations

Shopee, supported by Enterprise Singapore, is set to launch the Shopee International Platform (SIP) on 7 February 2025, enabling Singapore sellers to expand their reach to consumers in Malaysia and Thailand.

This initiative, primarily benefiting micro, small, and medium-sized enterprises (MSMEs), allows sellers to manage their home shop while Shopee facilitates their overseas business growth.

The launch event will feature key figures such as Cindy Khoo, Managing Director of Enterprise Singapore, and Ian Ho, Vice President of Shopee. Chua Kel Jin, Director of Shopee Singapore, will present the platform’s benefits, highlighting its role in empowering local businesses to scale digitally.

E-commerce in Southeast Asia is thriving, with a 15% year-on-year growth in gross merchandise value, reaching over $360b in 2024. Singapore’s digital economy has significantly contributed to the nation’s GDP, adding $113b. The government, through Enterprise Singapore, is committed to supporting initiatives like SIP to help MSMEs adopt digital technologies for economic growth.

SIP offers Singapore sellers free cross-border logistics, customer service, and payment solutions, with Shopee managing end-to-end overseas operations. This includes first-to-last-mile fulfilment, easing the process for sellers to tap into new markets.

The upcoming exhibition, “The Journey Continues: Lee Wen’s Exploration of Identity,” will celebrate the legacy of the late Singaporean artist Lee Wen, renowned for his pioneering contributions to contemporary art and his provocative “Yellow Man” series.

The exhibition will be held at ION Art Gallery from 13 to 17 February 2025 and at iPreciation Gallery from 13 February to 1 March 2025, offering a curated selection of Lee’s impactful works that challenge viewers to reconsider identity, race, and societal norms.

Lee, born in 1957, was a multidisciplinary artist who played a significant role in shaping performance art in Asia. Known for his thought-provoking and satirical works, he left a successful banking career in 1988 to pursue art at LASALLE College of the Arts. His career spanned over 30 years, during which he participated in more than 85 exhibitions and performances worldwide, including prestigious art fairs like Art Basel Hong Kong and Art Miami.

The exhibitions will feature a variety of Lee’s works, from fine art photography prints to paintings and drawings, reflecting his exploration of personal and cultural identity. His performances and installations often questioned societal ideologies and value systems, combining Southeast Asian contexts with international contemporary art currents.

Wen’s legacy continues to inspire, with his works part of permanent collections at various institutions. The exhibitions at ION Art Gallery and iPreciation Gallery aim to provide insight into his artistic journey and enduring influence on contemporary art discussions.

Global payments provider Adyen has identified the most prevalent types of payment fraud in Singapore as of January 2025, revealing that phishing and refund fraud are among the leading threats. As Singaporeans become more aware of scams, fraudsters have adapted with increasingly sophisticated methods, making these types of fraud more common.

Adyen’s findings, part of their Retail Report 2024, indicate that 52% of Singaporean businesses have experienced an increase in fraud attempts over the past year. This has prompted a shift towards adopting technology solutions to secure digital transactions.

Ben Wong, General Manager of Southeast Asia and Hong Kong at Adyen, noted that businesses are increasingly seeking partnerships with tech providers offering chargeback liability guarantees.

Phishing, a tactic involving the acquisition of personal details to create synthetic identities, poses a significant risk to both consumers and businesses. This method combines legitimate and fabricated personal information, complicating detection and prevention efforts. Refund fraud, also known as policy abuse, is another growing concern, with both professional fraudsters and everyday consumers exploiting business policies for financial gain.

The report also highlights changing consumer behaviours, with 33% of Singaporeans feeling less safe shopping today compared to a decade ago. This sentiment is driving demand for stronger data protection and seamless, mobile-first payment experiences. As fraud attempts continue to rise, both consumers and businesses are urged to remain vigilant and adopt robust security measures to mitigate risks.

The Straits Times Index (STI) commenced the year with a robust 1.8% increase, closing January at 3,855.82, outperforming regional counterparts such as the FTSE ASEAN All-Share Index, which fell by 2.9%. This growth was primarily fuelled by the banking sector, with DBS Group Holdings, Oversea-Chinese Banking Corporation, and United Overseas Bank averaging returns of 3.2%. These banks, which now constitute 54% of the STI’s weight, are set to report their FY24 results between 10 and 26 February.

Singtel, Singapore’s leading telecommunications company, saw an 8.1% rise in January, continuing its asset optimisation and cost reduction strategy initiated in 2021. Seatrium, focusing on offshore renewables and cleaner marine solutions, also posted a significant 7.7% increase. Both companies recorded the highest net institutional inflows for the month, following UOB.

Despite these gains, institutions were net sellers of Singapore stocks in January, with a net outflow exceeding S$500 million. The on-market share buyback for primary-listed companies totalled S$111 million, led by OCBC, Sembcorp Industries, and others. Notably, DBS refrained from buybacks in January after significant repurchases in the previous months.

Among the 100 most traded stocks, Japfa led with a 30.9% gain, coinciding with a privatisation offer. LHT Holdings also saw a notable increase following a substantial share acquisition. The STI’s performance highlights the resilience of Singapore’s market amidst varying global economic conditions.