Industry News

Singapore has been ranked as the second safest country in Southeast Asia (SEA) in terms of online safety, according to a 2024 report by global cybersecurity firm Kaspersky.

The Kaspersky Security Network (KSN) detected 5,104,831 web threats in Singapore in 2024, a decrease from 5,844,634 in 2023, marking a 24.7% reduction since 2021. This is the fourth consecutive year of decline in web threats detected by KSN.

The improvement in Singapore’s online safety is attributed to enhanced cybersecurity measures, government support, and increased user vigilance. However, the sophistication of cyber threats continues to pose challenges. Web threats, which include malware, phishing, and ransomware, remain prevalent, with Telegram scams seeing a 137.5% increase in 2024.

Cybercriminals are increasingly using Artificial Intelligence (AI) to enhance the complexity of their attacks, targeting both individuals and the public sector. In November 2024, over 100 government officials in Singapore received blackmail emails featuring deepfake images, highlighting the advanced nature of current cyber threats.

To combat these threats, Singapore is strengthening its cyber capabilities through initiatives like the Critical Infrastructure Defence Exercise (CIDeX) and the Digital Infrastructure Act. Yeo Siang Tiong, General Manager for Southeast Asia at Kaspersky, emphasised the need for continuous adaptation and innovation to maintain a secure digital environment.

Kaspersky recommends practising good cyber hygiene, verifying website authenticity, and using comprehensive security solutions to protect against web threats. For organisations, regular software updates, data backups, and employee education are crucial for bolstering cybersecurity defences.

UOB anticipates a fiscal deficit of $2.7bn, or 0.4% of GDP, for FY2025, as the government aims to address cost-of-living pressures whilst maintaining fiscal prudence.

Singapore’s Budget 2025, set to be presented on 18 February by Prime Minister and Finance Minister Lawrence Wong, is expected to adopt an expansionary stance. This budget, likely the last under the current government term, comes ahead of the General Elections and Singapore’s 60th independence anniversary.

The fiscal outlook for FY2024 is stronger than initially projected, with an estimated surplus of $5.0bn, or 0.7% of GDP, compared to the earlier budgeted $0.8bn. This improvement is attributed to higher-than-expected corporate and personal income tax collections, driven by robust economic growth and increased Goods and Services Tax (GST) receipts following a rate hike to 9% in January 2024.

Key themes for Budget 2025 are expected to include measures addressing cost-of-living and job security, strategies to boost fertility, and investments in areas such as artificial intelligence, finance, and green transition. These initiatives align with the Forward Singapore Report and recent national announcements.

Despite a projected slowdown in corporate income tax growth, the implementation of the Income Inclusion Rule and Domestic Top-up Tax under BEPS 2.0 is expected to provide some cushioning. Meanwhile, healthcare expenditure is anticipated to rise, driven by an ageing population and enhancements to the MediShield Life scheme.

As Singapore navigates geopolitical tensions and cybersecurity threats, defence spending is expected to stabilise. The budget’s expansionary approach aims to balance immediate economic needs with long-term fiscal sustainability.

The Financial Services Information Sharing and Analysis Centre (FS-ISAC) has released a comprehensive guide to help financial institutions manage the risks associated with Generative Artificial Intelligence (GenAI). As the financial sector in Singapore and globally embraces AI technologies, concerns about data security and regulatory compliance have emerged. FS-ISAC’s whitepaper, “More Opportunity, Less Risk: 8 Steps to Manage Financial Services Data with GenAI,” aims to address these challenges.

Michael Silverman, Chief Strategy & Innovation Officer at FS-ISAC, highlighted the dual nature of GenAI, stating, “GenAI presents enormous opportunities for financial firms to improve business operations, provide better customer service, and even enhance their cybersecurity posture. However, just like any new technological development, GenAI increases security risks when it’s not leveraged in a safe and compliant manner.”

The guidance, developed by FS-ISAC’s Artificial Intelligence Working Group, outlines eight foundational steps for effective data governance:
– **Consider Your Risks:** Identify and address risks, gaps, and opportunities through policies and technical controls.
– **Data Selection Criteria:** Implement cautious data selection with ongoing oversight and risk testing.
– **Create and Maintain a Data Lineage Inventory:** Ensure strong access controls and data classification.
– **Be Disciplined with Data Access and Authorisation:** Restrict access to GenAI training data and regularly review datasets.
– **Obsessively Protect Your Customers’ Data:** Use security techniques like encryption and data sanitisation.
– **Use Best Practices When Building Effective Test Plans:** Establish baselines and leverage cross-sector data sharing.
– **Keep Current on Model Vulnerabilities:** Maintain cybersecurity hygiene to mitigate threats.
– **Require Your Vendors’ Transparency on Your Data Storage:** Ensure vendor compliance with security standards.

As GenAI continues to evolve, FS-ISAC’s report provides financial institutions with the tools needed to navigate the complexities of AI-driven data governance securely. The full report is available for download on FS-ISAC’s website.

Small and medium enterprises (SMEs) in Singapore are increasingly turning to generative AI (Gen AI), employee upskilling, and international expansion to maintain competitiveness amidst economic uncertainties, according to a recent DBS survey.

Conducted earlier this year, the SME Pulse Check Survey highlights that 73% of SMEs intend to invest in Gen AI solutions, whilst 72% are focused on upskilling their workforce to adapt to these technologies. Additionally, 32% have already begun using Gen AI for marketing and communications.

The survey underscores the importance of government grants, affordable digital solutions, and practical advice in facilitating this technological transition. Furthermore, SMEs are keen on expanding overseas, with 70% planning to allocate resources towards regionalisation, particularly targeting ASEAN and other high-growth markets. Essential resources identified for successful internationalisation include market insights, trade law guidance, and access to reliable suppliers and distributors.

As new climate regulations take effect, the survey also examined SMEs’ readiness for sustainability. Whilst 36% have made progress, many are still in the early stages, facing challenges such as limited resources and complex regulations. Koh Kar Siong, Group

The Singapore auction market experienced a significant rise in listings during the fourth quarter of 2024, with a 47.7% increase to 127 listings, according to Knight Frank Singapore. Despite this surge, the success rate of auctions fell, with only two properties sold, translating to a mere 1.6% success rate for the quarter.

The increase in listings was largely driven by a 67.5% rise in mortgagee sales, reaching 67 listings, and a 36.6% increase in owner sales, totalling 56. However, the gross sales value for 2024 declined by 17.5% year-on-year to S$28.7 million, with only 15 properties sold compared to 24 in 2023. Sharon Lee, Head of Auction & Sales at Knight Frank Singapore, noted that the gap in price expectations between buyers and sellers often results in transactions being concluded privately after auctions.

Residential properties accounted for 36.2% of the listings in Q4, whilst industrial properties made up 24.4%. The quarter also saw a notable increase in retail shop and office listings. Despite the high number of listings, no mortgagee sales were concluded at auction, as creditors maintained market-level prices for distressed properties.

Looking ahead, the Ministry of Law reported 4,521 bankruptcy applications from January to November 2024, suggesting a potential rise in mortgagee sale listings in 2025. Knight Frank anticipates the auction success rate to remain around 5%, consistent with the average from 2015 to 2024.

DeepSeek, a technology firm, has firmly denied allegations that it obtained US export-controlled chips through intermediaries in Singapore. The company issued a press statement addressing these claims, which have surfaced amidst growing scrutiny over international technology transfers. DeepSeek emphasised its commitment to compliance with all relevant export control laws and regulations, stating that it has not engaged in any activities that would contravene these rules.

The allegations come at a time when global supply chains and technology transfers are under intense examination, particularly concerning sensitive technologies. DeepSeek’s statement aims to reassure stakeholders and regulatory bodies of its adherence to legal standards. The company highlighted its robust compliance framework, which it claims is designed to prevent any unauthorised access to controlled technologies.

In the press release, DeepSeek stated, “We categorically deny any involvement in the acquisition of US export-controlled chips through intermediaries in Singapore. Our operations are fully compliant with international export control regulations.” This assertion is part of the company’s broader effort to maintain transparency and trust with its partners and clients.

The situation underscores the complexities and challenges faced by technology companies operating in a globalised market, where regulatory compliance is paramount. As the investigation continues, DeepSeek has pledged full cooperation with any inquiries to ensure clarity and uphold its reputation in the industry.

Cushman & Wakefield has announced the collective sale of the Tan Boon Liat Building, a prominent industrial warehouse and showroom located at 315 Outram Road, Singapore. The property is being offered at a reserve price of £1.15 billion through a public tender. This 15-storey building, a remnant of Singapore’s industrial past, is positioned at a prime freehold site atop the Havelock MRT Station on the Thomson-East Coast Line.

The Urban Redevelopment Authority (URA) has recently advised a zoning change from “Business 1” to “Residential with Commercial at 1st storey,” increasing the plot ratio from 3.1 to 4.9. This change allows for a 50% uplift in the total allowable gross floor area. The site, including additional state land plots, offers a potential gross floor area of over 98,049.87 sq m, with provisions for commercial space and serviced flats.

Christina Sim, Senior Director of Capital Markets at Cushman & Wakefield, highlighted the site’s appeal, noting, “Demand for residential properties, especially those located at the city fringe, is expected to be strong, aided by favourable credit conditions.” She also pointed out the advantage of the site’s freehold tenure and its location on the Thomson-East Coast line.

The tender for the Tan Boon Liat Building will close on 18 March 2025 at 3.00pm. This sale presents a rare opportunity for developers to transform a significant city fringe location, reshaping the residential landscape of the surrounding neighbourhoods.

Fever, a global entertainment discovery platform, has officially launched the Fever Exhibition Hall on Scotts Road, Singapore. This new cultural hub, spanning over 1,300 square metres, is currently hosting The Art of Banksy: Without Limits, marking its first major event. Fever’s expansion into Singapore aims to democratise access to culture and entertainment, utilising technology and data-driven insights to offer unique experiences.

The Fever Exhibition Hall, located near Orchard Road, features soaring ceilings and open-plan spaces, ideal for installations and interactive experiences. Rachid Elameri, Regional General Manager of Fever APAC, stated, “This is such an exciting moment for Singapore as we introduce the Fever Exhibition Hall to Scotts Road. As the leading global live-entertainment discovery platform, our vision is to deliver a space where the city’s creative energy converges with cultural innovation.”

Since its soft launch in 2022, Fever has brought various events to Singapore, including Van Gogh: The Immersive Experience and Harry Potter: A Forbidden Forest Experience. The new venue promises to host a range of original and collaborative projects, with announcements expected in the coming months.

The Fever Exhibition Hall is set to become a vibrant cultural destination, enhancing Singapore’s arts scene and offering locals and tourists alike a dynamic space for cultural engagement. For more information on upcoming events, visit feverup.com/singapore.

Withers KhattarWong LLP has announced the appointment of Gary Beh as a corporate partner in its Singapore office. This strategic hire is part of the firm’s ongoing efforts to expand its comprehensive service offerings in the region. Gary, who previously worked at Linklaters and Allen & Gledhill, brings extensive experience in regional fundraising, mergers, acquisitions, and private equity transactions across sectors such as technology, financial services, energy, and infrastructure.

Gary’s addition is timely, as Southeast Asia’s mergers and acquisitions (M&A) landscape is witnessing robust activity, with a notable increase in cross-border transactions and a focus on high-value sectors like technology and infrastructure. Daniel Yong, joint managing partner of the Singapore office, highlighted that Gary’s expertise in handling complex cross-border deals will bolster the firm’s capacity to support clients in capitalising on these opportunities.

Jeremy Wakeham, CEO of Withers’ Business division, expressed enthusiasm about Gary’s arrival, stating, “We’re delighted to welcome Gary to our corporate team and to have him build on the M&A, funds and regulatory strengths of our Singapore practice.” Gary’s experience aligns well with the firm’s focus on closely held companies, private wealth, and investment funds.

Gary himself is eager to leverage Withers’ global platform, noting, “This is an exciting opportunity to join a dynamic global platform with a leading presence in the private capital space.” He looks forward to collaborating with partners worldwide to establish a market-leading corporate practice.

Withers KhattarWong LLP is the Singapore member of the international law firm Withersworldwide, which has a significant presence across 17 offices globally.

The vacancy rate for Grade A offices in Singapore’s Central Business District (CBD) surged to 8% in the fourth quarter of 2024, marking the highest level since early 2018, according to Savills Research. This increase, a 1.8 percentage point rise quarter-on-quarter, is largely attributed to the addition of the IOI Central Boulevard Towers to the office stock.

Despite the rise in vacancies, office rents continued to climb, with Grade AA offices experiencing the most significant increase. Rents for these offices rose by 1% quarter-on-quarter to S$10.73 per square foot, the fastest growth since mid-2019. Meanwhile, Grade AAA office rents increased by 0.7% to S$12.91 per square foot, the highest since early 2020.

The report highlighted that while the overall net demand for office space remained positive, it has moderated over the past three years, with 285,000 square feet absorbed in 2024 compared to 622,000 square feet in 2022. Submarkets such as Marina Bay saw the most substantial rise in vacancy rates, increasing by 7.6 percentage points to 12%.

Ashley Swan, Executive Director at Savills Singapore, noted, “Q4 saw an increase in leasing activity with IOI Central Boulevard leading the way in terms of transactions.” However, he cautioned that uncertainties from early 2024 persist, impacting net demand.

Looking ahead, Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, suggested that with limited new supply expected in 2025, CBD Grade A office rents may remain stable. He also pointed out that the impact of AI on office employment could become more apparent towards the end of 2025.