Regional News

CSE Global has announced a 9% increase in its earnings for the first half of 2025, reaching S$16 million, aligning with UOB Kay Hian’s expectations. The growth was primarily supported by a 3% rise in revenue to S$441m, driven by a 13% increase in communications revenue and strategic acquisitions. The company is shifting its focus towards larger-scale data centre and infrastructure projects, particularly in the US, as it moves away from lower-value municipal projects.

The company’s order book, however, saw a 17% decline to S$573.8m, attributed to a strategic pivot away from smaller projects. Despite this, the communications segment showed robust growth, with a 9% increase in order intake to S$160.5m, supported by strong demand in the Americas.

CSE Global’s gross profit rose by 4% to S$123m, maintaining stable margins at 27.9%. However, operating expenses increased by 6% due to higher personnel and equipment costs. The company declared a lower interim dividend of 1.14 Singapore cents per share, reflecting a 49% payout ratio as it focuses on reinvestment for sustainable growth.

UOB Kay Hian maintains a “Buy” recommendation for CSE Global, with an unchanged target price of S$0.85, citing the company’s strategic repositioning and potential in the high-growth data centre market as key factors for future profitability. The company’s strategic shift is expected to result in a healthier order mix and improved order win momentum.
“`

Singapore-listed Frencken Group, a global integrated technology solutions company, reported a 10% year-on-year increase in earnings for the first half of 2025, reaching $14.6m (S$20m). The company’s revenue grew by 16% compared to the previous year, bolstered by strong performances in the semiconductor and medical segments. Despite a decline in the analytical life sciences sector, Frencken anticipates stable revenue for the second half of 2025, with expectations of growth in industrial automation.

The company’s semiconductor segment saw a 38% year-on-year increase, attributed to steady growth from a key European customer and a rebound in Asian sales. However, the analytical life sciences and automotive segments experienced revenue declines of 4% and 14% respectively, due to lower demand and uncertain market conditions in Europe.

Frencken is optimistic about its long-term growth, focusing on sustainable expansion through strategic initiatives. The company is developing larger manufacturing facilities in the US and Singapore, with the latter’s construction having commenced on 12 August 2025. This expansion aims to enhance Frencken’s competitiveness and support the growth of its mechatronics operations.

UOB Kay Hian Research maintains a “Buy” recommendation for Frencken, with a target price of $1.52 (S$2.08), reflecting a 40.5% upside potential. The recommendation is based on Frencken’s ability to outperform peers through its local-for-local manufacturing capabilities and diversified geographical facilities. Looking ahead, the company remains confident in its growth prospects, driven by higher factory utilisation rates and improved cost management.
“`

Hong Leong Asia (HLA) has reported a 13% year-on-year increase in profit after tax and minority interest (PATMI) for the first half of 2025, reaching S$56m. This growth was primarily driven by a 30% surge in diesel engine sales from its subsidiary, China Yuchai, which capitalised on strong demand from data centres and the broader Chinese market. Despite a temporary dip in its building materials segment, HLA remains optimistic about a recovery in the latter half of the year.

The company’s revenue for H1 2025 rose by 26% to S$2.83b, with the powertrain solutions segment leading the charge. China Yuchai’s diesel engine shipments increased by nearly 30% year-on-year, contributing to a 56% rise in net profit for the segment. The building materials division, however, faced challenges due to lease expirations in Malaysia, impacting production and sales. Nevertheless, HLA anticipates improved performance in the second half of 2025, supported by ongoing construction projects in Singapore.

HLA’s financial health remains robust, with net cash growing to S$749m by the end of June 2025. The company also declared an interim dividend of S$0.02 per share, double the amount from the previous year. Analysts have upgraded earnings forecasts for 2025-2027 by up to 16%, reflecting confidence in HLA’s growth trajectory.

Looking ahead, HLA’s valuation appears attractive, with a target price of S$2.63, up from S$1.93. The company’s strong cash flow and potential for higher dividends further bolster its investment appeal.
“`

Artificial intelligence (AI) continues to evoke mixed feelings among Singapore’s workforce, with the latest ADP Research’s People at Work 2025 report highlighting significant uncertainty. Nearly one-fifth (19%) of workers in Singapore remain unsure about AI’s impact on their jobs in the coming year. Whilst 16% anticipate positive changes, 11% fear job replacement. The uncertainty is most pronounced among knowledge workers, such as academics and programmers, with 26% feeling unsure—nearly three times more than those in repetitive roles.

Yvonne Teo, Vice President of HR, APAC, ADP, emphasised the need for clear communication and upskilling. “AI is reshaping how Singapore’s workforce sees the future,” she said. “It is important for employers to clearly communicate AI strategies, invest in upskilling, and foster employees with the right mindsets.”

Globally, the report reveals a complex emotional landscape regarding AI. Whilst 17% of workers strongly agree that AI will positively influence their jobs, 33% agree, and only 10% strongly fear replacement. Interestingly, 27% of those optimistic about AI also harbour fears of job loss, indicating a duality of hope and concern.

The report also highlights regional differences, with the Middle East/Africa showing the highest optimism (27%) and Japan and Sweden the lowest (4% and 6%, respectively). Younger workers, aged 18-26, are more likely to express both optimism and concern about AI’s long-term effects compared to their older counterparts.

The People at Work 2025 report, based on data from nearly 38,000 workers across 34 markets, provides a detailed view of global workforce sentiments, offering insights for employers to navigate AI’s integration effectively.
“`

Parkway Life REIT, one of Asia’s largest healthcare real estate investment trusts, has reported a robust performance for the first half of 2025, driven by strategic acquisitions and geographical diversification. The trust completed the acquisition of 11 freehold nursing homes in France in December 2024, contributing 7.8% to the group’s net property income (NPI) in the first half of 2025. This expansion marks a significant milestone as Parkway Life REIT diversifies its income base beyond Japan.

The acquisition, valued at EUR 111.2m (S$159.9m), was part of a strategic move to enter the European market. The properties, operated by DomusVi under 12-year leases, offer a net property income yield of 6.5%. This strategic expansion has been complemented by the Inland Revenue Authority of Singapore’s approval for tax exemptions on foreign-sourced dividends and interest income from seven of the 11 French nursing homes, resulting in estimated annual tax savings of S$1.26m.

Parkway Life REIT’s core portfolio remains anchored in Singapore, with three hospital properties under long-term master leases. These assets, with a weighted average lease expiry (WALE) of 20.4 years, continue to provide stable and predictable performance. The trust is also exploring asset enhancement initiatives for Gleneagles Hospital, expected to be finalised by the first half of 2026.

The trust’s financial stability is further supported by a high interest coverage ratio of 9.1 times and a stable average cost of debt at 1.5% in the second quarter of 2025. With 97% of its interest rate exposure hedged, Parkway Life REIT maintains a resilient balance sheet, ensuring continued growth and stability.
“`

Singapore-based Global Esports Federation (GEF) has announced that Los Angeles will host the 2026 Global Esports World Finals, marking a significant partnership with the Los Angeles Times Media Group. Scheduled to open on 4 December 2026, the event will take place in a new state-of-the-art esports stadium in El Segundo, highlighting Los Angeles’ status as a global hub for sport and entertainment.

Selected through a competitive process involving cities worldwide, Los Angeles was chosen by the GEF Board, with the formal agreement signed at the Los Angeles Times headquarters. The announcement was attended by Los Angeles Mayor Karen Bass and El Segundo Mayor Chris Pimentel. Paul J. Foster, President and CEO of the GEF, emphasised Los Angeles’ symbolic role as a centre of sport and culture, stating, “As the United States prepares to celebrate 250 years since its founding, our global community from 180 Member Federations is excited to join in these historic celebrations.”

Dr. Patrick Soon-Shiong, Executive Chairman and CEO of the Los Angeles Times Media Group, expressed enthusiasm for the event, noting, “Esports adds to that momentum, bringing its global energy and uniting gaming, sport, and a new wave of entertainment.”

This announcement marks the beginning of a strategic collaboration, with plans for the new esports stadium at the Los Angeles Times’ El Segundo campus. The GEF, headquartered in Singapore, continues to champion the credibility and prestige of esports, uniting athletes and organisations worldwide.
“`

The Institute of Singapore Chartered Accountants (ISCA) celebrated the 10th anniversary of its charity initiative, ISCA Cares, at its Annual Dinner on 19 August. The event featured the launch of a commemorative book series titled “Making it Count,” unveiled by Indranee Rajah, Minister in the Prime Minister’s Office and Second Minister for Finance and National Development. The series highlights the life stories of eight Distinguished Lifetime Members who have significantly contributed to the accountancy profession, business community, and public service.

The dinner also recognised exemplary leaders in the accountancy field. Dr Ernest Kan, a former ISCA President, was awarded the Distinguished Lifetime Membership for his substantial contributions. “I am honoured to receive the ISCA Distinguished Lifetime Membership,” Dr Kan stated. “The profession has given me so much, and it has been a privilege to contribute to its reform agenda and developments.”

Max Loh, the outgoing Chairman of ISCA Cares, received the ISCA Special Appreciation Award for his dedication to the profession and community. “Purpose, Passion, Perseverance, and Positivity are what is required to continually uplift the accountancy profession,” Loh remarked. He officially handed over the Chairmanship to Professor Ang Hak Seng during the event.

ISCA, established in 1963, is Singapore’s national accountancy body with over 40,000 members globally. It plays a pivotal role in advancing the accountancy profession, offering the Singapore Chartered Accountant Qualification programme and conferring the Chartered Accountant of Singapore designation.
“`

The Institute of Singapore Chartered Accountants (ISCA) has unveiled a $2m Career Support Programme designed to assist job seekers and mid-career individuals in transitioning into the accountancy profession. Announced at ISCA’s Annual Dinner by Indranee Rajah, Minister in the Prime Minister’s Office, the initiative responds to the increasing demand for accountancy professionals as Singapore shifts towards a digital and sustainable economy.

Developed in collaboration with the Employment and Employability Institute (e2i) and Workforce Singapore (WSG), the programme offers a range of support including professional affiliation, recognition, and learning opportunities. Eligible jobseekers will benefit from ISCA membership fee waivers and access to structured pathways for professional designations. Additionally, the programme provides complimentary networking events and e-learning through ISCAccountify, alongside a “Skills First, Pay Later” scheme.

A key feature of the programme is the AI-enabled ISCA Talent Marketplace, which connects job seekers with employers and offers personalised skills gap analyses. Since its soft launch in July, the platform has hosted over 100 job postings from 28 employers and facilitated the creation of more than 150 job profiles by job seekers.

Dilys Boey, Chief Executive of WSG, highlighted the programme’s potential to enhance employment outcomes and make accountancy more accessible. “The synergy between WSG’s career advisory services and ISCA’s AI-enabled Talent Marketplace creates more opportunities for Singaporeans to join the sector at any career stage,” she said.

The initiative also prepares professionals for the impact of AI on jobs, with ISCA committing $2m to its “AI for Accountancy Industry” initiative. ISCA President Teo Ser Luck emphasised the importance of adapting to technological changes, stating, “AI will fundamentally reshape the accountancy sector and fuel demand for accountants with new skills.”

The programme aims to support individuals in finding their footing in the evolving job market, ensuring they remain relevant and equipped for future challenges.
“`

Otto Place, a new executive condominium (EC) project, successfully sold 165 units during its second balloting, according to Huttons Asia CEO Mark Yip. The development has become a popular choice for second-time buyers, particularly due to the lack of new EC projects in the West until Senja Close EC launches in 2027. Buyers are aware that the upcoming Senja Close EC will likely have a higher land and selling price, making Otto Place an attractive option.

The demand for larger units, especially those with a study, was notably high, with all four-bedroom units sold out. This trend is driven by second-time buyers who typically have larger families and require more space. Yip noted that if the income ceiling for EC buyers is raised, it could lead to increased competition for the Senja Close EC, particularly amongst these second-time buyers.

Interest rates are currently trending downwards, which has influenced buyer behaviour. Approximately 85% of purchasers opted for the deferred payment scheme, a significant increase from the estimated 75% during the initial launch in July 2025. This shift indicates a growing confidence in the market and the appeal of flexible payment options.
“`

Fenchurch Law, a leading international law firm for insurance policyholders and brokers, has bolstered its presence in the Asia-Pacific region by appointing two new partners at its Singapore office. Julian Teoh, a seasoned expert in insurance and reinsurance law, joins the firm, whilst Toby Nabarro, a founding member of the Singapore office, has been promoted from Director to Partner.

Julian Teoh brings over two decades of experience in handling property, construction, and business interruption claims across the region. His previous roles include being a partner at an insurer-facing international law firm and a secondment at Australia’s largest general insurer. His expertise is recognised in several legal directories, such as the Gracechurch Asia-Pacific Insurance Law Report.

Toby Nabarro, who joined Fenchurch Law in 2020, specialises in construction, engineering, and marine insurance coverage disputes. His promotion reflects the firm’s commitment to expanding its client-driven operations in the Asia-Pacific region. “Julian is set to be an instrumental member of our Singapore operation,” Nabarro stated, highlighting the strategic importance of Teoh’s appointment.

Since its inception in 2024, Fenchurch Law’s Singapore hub has been pivotal in supporting high-value, complex insurance disputes. The new appointments underscore the firm’s dedication to serving its broker partners and policyholders in the region. Julian Teoh expressed enthusiasm about joining the team, noting the firm’s excellent reputation and his eagerness to contribute to levelling the playing field for policyholders in insurance disputes.
“`