Regional News

The Jackson Hole Symposium has highlighted a potential shift in US monetary policy, with Federal Reserve Chair Jerome Powell indicating that interest rate cuts could be on the horizon. This comes as the US job market has shown significant signs of weakening over the past three months, with job creation falling short of expectations. Powell noted that whilst the unemployment rate remains low at 4.2%, underlying issues such as tighter immigration policies and a slowing labour force growth could lead to increased layoffs and rising unemployment.

Powell’s remarks suggest that the Federal Reserve may consider adjusting its policy stance at the upcoming Federal Open Market Committee meeting on 16-17 September. The current policy rate is considered restrictive, and a transition towards monetary easing could support the labour market. This potential policy shift is seen as a response to the marked slowdown in job creation and a temporary rise in inflation due to factors like new tariffs and supply chain adjustments.

The implications of this potential policy change are significant for Singapore’s Real Estate Investment Trusts (S-REITs). UOB Kay Hian Research maintains an “OVERWEIGHT” recommendation on S-REITs, anticipating a recovery in liquidity triggered by the expected rate cuts. The report recommends buying blue-chip S-REITs such as CapitaLand Ascendas REIT, Keppel DC REIT, and Lendlease REIT, which are poised to benefit from the anticipated easing of monetary policy.

As the Federal Reserve considers rate cuts, business sentiment is buoyed by easing trade tensions, with the US reaching trade agreements with the EU and Japan. These developments, coupled with Singapore’s stable fiscal environment, position S-REITs as attractive investment options amidst the evolving economic landscape.
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Maybank Singapore has reported a significant 17.9% year-on-year increase in its net fund based income, reaching S$382.19m. This growth is attributed to the expansion of its balance sheet and proactive management of funding costs. However, the bank’s non-interest income (NoII) saw a slight decline of 2.4% to S$286.81m, primarily due to a decrease in treasury income linked to lower foreign exchange-related earnings.

Despite the dip in NoII, Maybank Singapore experienced stronger wealth income, bolstered by bancassurance commissions and investment income. Additionally, the bank benefited from higher non-operating income, which included gains from government bond sales and improved loan-related fees.

The bank’s profit before tax (PBT) for the first half of the financial year 2025 was S$363.82m, marking a 5.8% decrease. This decline was influenced by increased overheads and a lower write-back in impairment allowance, which offset the growth in fund based income.

Maybank Singapore’s financial performance highlights the challenges and opportunities within the banking sector, as it navigates fluctuating income streams and operational costs. The bank’s ability to manage funding costs and leverage its balance sheet growth has been crucial in achieving its net fund based income rise. Looking ahead, the bank will need to address the factors impacting its PBT to sustain its financial health.
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UOB Kay Hian has raised its Straits Times Index (STI) target to 4,602, reflecting an 8% upside, following a resilient first half of 2025 where 75% of Singaporean companies met or exceeded earnings expectations. Despite challenges such as tariff uncertainties and a strong Singapore dollar, banks and real estate investment trusts (REITs) have led the way, delivering stable earnings and positive rental reversions.

The report highlights that banks, despite facing net interest margin compression, have maintained resilient earnings, with DBS and OCBC showing stable performance. The banks’ attractive dividend yields, particularly OCBC’s 5.9% for 2025, are noted as key factors supporting the STI. Additionally, the Monetary Authority of Singapore’s (MAS) allocation of $800m (S$1.1b) in new funds from the Equity Market Development Programme is expected to provide further market support.

Consumer companies like Sheng Siong and Food Empire have shown strong revenue growth, whilst DFI Retail has rewarded shareholders with a significant interim dividend following a robust performance. In the healthcare sector, Raffles Medical has reported revenue growth despite rising manpower costs.

The report also mentions that REITs experienced positive rental reversions, with Digital Core REIT achieving triple-digit increases. UOB Kay Hian has upgraded its ratings for City Developments and Venture, citing strong divestment momentum and improved capital management.

Overall, UOB Kay Hian’s analysis suggests that the STI’s current valuations are not overstretched, trading at a discount to long-term averages, and anticipates continued growth into the latter half of 2025 and beyond.
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Nanyang Biologics Pte Ltd (NYB), a biotech firm spun out from Nanyang Technological University, has announced a collaboration with Equinix and HPE to develop Vecura, an AI-driven platform for drug discovery. This partnership, formalised through a Memorandum of Understanding (MOU) at the AI4Life Summit in Singapore, aims to establish the world’s largest natural drug compound library within the next year.

The collaboration is a significant step in positioning Singapore as a hub for AI-driven biomedical innovation. NYB’s Chairman, Dr Roland Ong, highlighted the initiative’s goal to transform natural compounds into health solutions, leveraging research from the NYB–NTU Joint Laboratory. The Vecura platform, powered by HPE’s AI infrastructure and anchored by Equinix’s digital systems, promises to enhance drug discovery efficiency and reduce R&D costs by over 50%.

NYB’s Group Chief Technology Officer, Giang Nguyen, noted the expanding database of potential therapeutic compounds, emphasising the role of global leaders like Equinix and HPE in supporting this growth. The collaboration aims to drive breakthroughs in oncology, neuroscience, and metabolic health.

The AI4Life Summit, co-organised by the Workforce Advancement Federation, underscores the growing demand for AI-driven drug discovery platforms. The global market for these platforms is expected to grow significantly, with the Asia-Pacific region poised for rapid expansion. This initiative marks a pivotal moment in advancing healthcare solutions through strategic cross-industry collaboration.
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Singapore’s manufacturing sector is anticipated to experience a slowdown in the second half of 2025, according to RHB Bank’s latest Global Economics and Market Strategy Report. The report, authored by Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, forecasts a full-year growth of 2%, a decrease from the 4.8% year-on-year growth recorded in the first half of the year.

The report highlights several downside risks to the industrial production (IP) outlook for the latter half of the year. Despite the resilient performance of Singapore’s IP so far, with July’s figures showing a 7.1% year-on-year increase, surpassing both RHB’s in-house projection of 0.6% and Bloomberg’s consensus estimate of 0.9%, the momentum is expected to moderate.

Gan’s analysis suggests that whilst the year-to-date performance has been strong, the sector faces challenges that could dampen growth in the coming months. This anticipated slowdown is significant as it reflects broader economic trends and potential impacts on Singapore’s manufacturing sector.

The report serves as a cautionary note for stakeholders in the industry to prepare for potential fluctuations in production levels. As the year progresses, monitoring these developments will be crucial for businesses and policymakers alike.
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Fullerton Health, a prominent healthcare solutions provider in the Asia-Pacific region, has announced that Mitsubishi Corporation has acquired a strategic minority stake in the company. This partnership aims to enhance shareholder alignment and accelerate Fullerton Health’s vision for integrated, digitally enabled care and services across its nine markets, including Singapore, Indonesia, and the Philippines.

The investment is part of a series of minority investments, including one from Far East Drugs, and is expected to drive Fullerton Health’s expansion in existing markets whilst facilitating entry into new ones. The company plans to leverage its extensive network and digital capabilities to deliver regional and local solutions on a fully integrated platform. Ho Kuen Loon, Group CEO and Non-executive Director of Fullerton Health, stated, “With a shared commitment to impact and innovation, we are well-positioned to achieve our aim to positively impact 10 million lives in coming years.”

Fullerton Health, established in 2010, operates nearly 500 clinics and collaborates with over 18,000 providers across the region. The company offers a comprehensive range of services, from managed care and diagnostics to speciality and ancillary services, combining clinical excellence with tailored corporate healthcare programmes and digital innovation.

BofA Securities served as the sole financial adviser for this transaction. The collaboration with Mitsubishi Corporation underscores a mutual belief in the long-term value and industry leadership potential of Fullerton Health, setting the stage for sustainable growth and enhanced market leadership.
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In a recent survey by Skyscanner and Trust Bank, 40% of Singapore travellers have revealed that saving for leisure travel is more important than other financial goals. The Savvy Travel Survey, which gathered insights from 1,000 Singaporeans, also found that 74% plan to take the same or more trips in the next 12 months, highlighting travel as a key financial priority.

Despite this enthusiasm, 69% of respondents find budgeting for holidays challenging, and 72% worry about managing travel costs. Cyndi Hui, Skyscanner Travel Trends and Destination Expert, noted, “Singapore travellers aren’t putting their travel dreams on hold, despite economic uncertainties – they are getting smarter.” Strategies include booking flights early, flying during off-peak seasons, and opting for budget-friendly destinations.

Financial challenges persist, with 44% struggling to find affordable flights and accommodation, 40% finding it hard to stick to a budget, and 30% dealing with unexpected expenses. To address these issues, Skyscanner and Trust Bank offer tips for better budgeting. Aditya Gupta, Chief Product Officer of Trust Bank, suggests using dedicated savings pots and choosing local currency transactions abroad to avoid extra fees.

The survey underscores the importance of travel for Singaporeans, with Skyscanner and Trust Bank providing guidance to help travellers maximise their experiences whilst staying financially savvy.
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JTC has announced the launch of Plot A Tuas Bay Drive under the Industrial Government Land Sales (IGLS) programme for the second half of 2025. This site, featuring a 23-year lease, is part of the enhancements to the industrial land lease framework, which includes an additional three-year lease tenure. The tender for this site will close on 21 October 2025 at 11:00 am.

Plot A Tuas Bay Drive, with a site area of 0.63 hectares and a gross plot ratio of 1.4, is zoned for B2 industrial use. It is the second of five Confirmed List sites in the current IGLS programme. The initiative aims to support industrial growth by providing strategically located land for development.

Interested parties can purchase the Tenderer’s Packet for $185.30, inclusive of GST, through the JTC website. This packet contains essential information for potential bidders. The launch of this site is expected to attract interest from businesses looking to expand their operations in Singapore’s industrial sector.

The IGLS programme is a key component of Singapore’s strategy to optimise land use for industrial purposes, ensuring that businesses have access to the necessary resources to thrive. The enhancements to the lease framework are designed to offer greater flexibility and support for industrial development.
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Singapore is reinforcing its position as a global leader in intellectual property (IP) and innovation, as highlighted by Dr Tan See Leng, Minister-in-Charge of Energy and Science & Technology, during his speech at IP Week @ SG 2025. The event, themed “Ideas to Assets: Innovating in Times of Change,” underscored the importance of intangible assets, which now account for 90% of the market value of S&P 500 companies.

Dr Tan emphasised the critical role of emerging technologies, particularly Artificial Intelligence, in reshaping industries. He noted that Singapore’s commitment to a strong IP ecosystem is pivotal for businesses seeking certainty and protection for their ideas amidst complex trade and geopolitical landscapes.

The Intellectual Property Office of Singapore (IPOS) has been instrumental in fostering this environment. Singapore’s rise to 4th place in the 2024 Global Innovation Index, up from 8th in 2020, reflects the success of initiatives like the Singapore IP Strategy 2030 (SIPS 2030). This national blueprint aims to strengthen the IA/IP regime and create job opportunities for Singaporeans.

To further support businesses, IPOS launched GoBusiness IP Grow in September 2023, facilitating over 4,500 requests for IP advice. Additionally, IPOS is collaborating with the Franchising and Licensing Association of Singapore to provide practical IP guidance, enabling enterprises to scale internationally.

Dr Tan also highlighted the ASEAN Patent Examination Co-operation’s expansion, which will streamline patent applications across the region. As Singapore celebrates 30 years of key IP treaties, it continues to enhance its international networks, including new agreements with China, the UK, and Switzerland.

In conclusion, Singapore remains committed to transforming ideas into assets, ensuring that innovation drives future growth.
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Singapore’s Minister-in-Charge of Trade Relations, Grace Fu, addressed the 8th Africa Singapore Business Forum on 26 August 2025, highlighting the importance of strengthening trade and investment ties between Africa and Southeast Asia. The forum, attended by dignitaries including Ghana’s President John Dramani Mahama, focused on bridging capabilities between the regions amidst global economic challenges.

Fu emphasised the need for stronger institutional linkages, citing the African Continental Free Trade Area (AfCFTA) as a significant opportunity for collaboration. With a market of 1.4 billion people and a combined GDP of $3.4 trillion, the AfCFTA presents unprecedented opportunities for businesses. Similarly, the ASEAN Economic Community, with its 670 million people, has positioned itself as a hub for regional economic partnerships.

Singapore is actively pursuing trade agreements with African nations, including discussions with the East African Community for a potential Free Trade Agreement. Additionally, Singapore has established Bilateral Investment Treaties with Côte d’Ivoire and Nigeria, with negotiations underway with Ghana.

Commercial linkages between Singapore and Africa are also on the rise. Singapore’s trade with Africa has grown significantly, with merchandise and services trade increasing by 14% and 17% per annum, respectively, since 2020. Singapore-based companies like Valency International and Trident are investing in Africa’s agribusiness and digital sectors, creating jobs and enhancing financial inclusion.

Fu encouraged companies to explore new markets and leverage Singapore’s connectivity to access ASEAN and beyond. Initiatives like the Singapore Cooperation Programme and business missions are fostering people-to-people exchanges, further strengthening ties between the regions. As Africa continues its growth trajectory, Singapore aims to serve as a gateway for African companies seeking to expand eastward.
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