Regional News

Private equity investors in the Asia-Pacific region are exercising increased caution due to global trade concerns, interest rate uncertainties, and market volatility, according to KPMG’s latest insights. Despite these challenges, the region saw a robust $37.5 billion in private equity investments during the first quarter of 2025, indicating a strong start to the year even with a modest number of deals.

Andrew Thompson, Partner and Head of Asset Management and Private Equity at KPMG Asia Pacific, identified key trends influencing deals in the region. He noted that leaders are focusing on transactions that promote market consolidation, scalability, and technology adoption.

Stephen Bates, Partner and Head of Deal Advisory at KPMG in Singapore, elaborated on these trends in a video, emphasising the importance of strategic deals in the current landscape.

The report also explores the role of artificial intelligence (AI) in enhancing customer relationships. Guillaume Sachet, Partner in Corporate Transformation at KPMG in Singapore, highlighted the significance of the human factor in adopting new technologies, noting that AI is being used to improve operational efficiency and strengthen customer connections.

Additionally, KPMG’s study on AI trust revealed that whilst AI usage is widespread, less than half of users trust AI systems. The report delves into public expectations for AI regulation and governance.

In terms of employment trends, businesses in Singapore are increasingly prioritising talent with specialised skills to drive growth, despite facing challenges such as talent shortages and evolving employee expectations.

KPMG’s insights underscore the evolving dynamics in private equity, technology adoption, and employment, providing a comprehensive overview of the current business environment in the Asia-Pacific region.
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The rapid adoption of artificial intelligence (AI) and the growing demand for cloud services are driving a significant increase in data centre requirements across Asia Pacific, according to a new report by CBRE. Despite an anticipated doubling of data centre supply in the region over the next three years, a shortage of 15–25 gigawatts is expected by 2028 due to insufficient power supply and a lack of AI-ready facilities.

AI-focused data centres require more than double the power density per server rack compared to traditional centres, necessitating advanced infrastructure for cooling, floor loading, and network sensitivity. Many existing projects were designed before the AI era, leading to a projected shortage of suitable space.

Investment in data centres remains robust, with direct investment volumes reaching $4.7 billion in 2024, as reported by MSCI and CBRE Research. This trend is expected to continue into 2025, with operators and developers repurposing stabilised assets despite challenges such as inadequate power supply and construction delays.

Tom Fillmore, Executive Director of Data Centres, Capital Markets, Asia Pacific for CBRE, emphasised the importance of focusing on advanced data centre assets to capitalise on AI growth. He stated, “Prioritising mergers and acquisitions, as well as equity investments in operators with a strong development pipeline will be key to achieving scalability, especially for projects that are power-ready.”

Ada Choi, Head of Research, Asia Pacific for CBRE, added that developed markets like Japan, Australia, and Korea will see increased demand, with Singapore also drawing attention despite its supply constraints. The AI boom is expected to sustain strong demand for co-location and hyperscale data centres, attracting significant investor interest.
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Booking.com has unveiled a list of ten destinations worldwide that are making significant strides in sustainability, aiming to assist travellers in making more responsible choices in 2025.

This announcement comes as new research reveals a growing gap between the intentions and actions of Singapore-based travellers. Whilst 64% express a desire to travel more sustainably, 59% admit they are unsure how to find such options.

The findings highlight a demand for sustainable travel options, with 60% of Singaporeans believing there are insufficient choices available. In response, Booking.com is spotlighting destinations like Koh Yao Noi in Thailand, known for its renewable energy-powered accommodations, and Kyoto in Japan, which offers cultural experiences that support local communities.

Booking.com is also enhancing its platform by featuring third-party certified accommodations to help travellers make informed decisions. “We aim to make it easier for everyone to experience the world sustainably,” a spokesperson from Booking.com stated.

The initiative aligns with the upcoming World Environment Day on 5 June, underscoring the importance of sustainable travel. As more travellers seek authentic and culturally rich experiences, destinations like Seoul, South Korea, and Tabanan, Indonesia, offer unique opportunities to engage with local traditions and natural beauty.

This move by Booking.com not only addresses the current gap in sustainable travel options but also sets a precedent for future travel trends, encouraging more destinations to adopt eco-friendly practices.
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ComfortDelGro, a leading transport operator, is planning to bid for Melbourne’s metro system from 2027, a move that could significantly bolster its presence in Australia, RHB said.

This strategic expansion follows recent rail contract successes in Auckland, Paris, and Stockholm, highlighting the company’s focus on stable, regulated markets. The company has maintained a “buy” recommendation with a target price of S$1.75, reflecting a potential 24% upside and a yield of approximately 6%.

ComfortDelGro’s domestic operations have also seen a boost with Moove Media securing an exclusive advertising contract. However, RHB suggests that the immediate impact on earnings will be minimal. The company’s strategy is underpinned by expectations of mid-teens earnings growth and a dividend yield above the market average.

The expansion into Melbourne is part of ComfortDelGro’s broader strategy to leverage its expertise in public transport systems globally. “ComfortDelGro’s plan to bid for Melbourne’s metro system from 2027, if successful, is set to further strengthen its presence in Australia,” noted analyst Shekhar Jaiswal.

Looking ahead, ComfortDelGro’s growth prospects remain robust, driven by improvements in UK public transport margins and contributions from recent Australian bus tender wins. The company also anticipates positive developments in its China taxi business. As ComfortDelGro continues to expand its international footprint, its strategic moves in Australia and beyond are likely to play a crucial role in its future growth trajectory.
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Frasers Property Singapore is set to transform its shopping centres into a vibrant playground with the launch of the LINE FRIENDS: Summer Food Fiesta 2025. Running from 30 May to 31 July, the event promises a unique blend of food, fun, and fan-favourite characters across 11 participating shopping centres. Shoppers can enjoy Singapore’s first-ever LINE FRIENDS oversized food-themed props and bouncy playgrounds, featuring beloved characters like BROWN, CONY, SALLY, and CHOCO.

The fiesta’s highlight is the LINE FRIENDS Play Paradise, debuting at six shopping centres with attractions such as bouncy burgers, pizza slides, and bubble tea obstacle courses. These colourful, food-themed play zones offer perfect photo opportunities and are open to FRx members aged four and above. A 25-minute play session can be redeemed with a $50 spend in a single transaction, with bookings available online from 30 May.

Additionally, shoppers can purchase LINE FRIENDS Plush Cushions featuring BROWN and CONY for $19.90 with a $50 spend at participating FRx stores. The cushions are available for collection in two phases: BROWN from 9 to 29 June and CONY from 30 June to 31 July, whilst stocks last.

Citi Mastercard holders can enjoy extra perks, including a $15 FRx Gift Card and 150 bonus FRx Points with a minimum spend of $150 in up to three same-day transactions. Furthermore, FRx members can unlock exclusive foodie deals on the FRx App, with special eDeals available on 30 May, 16 June, and 1 July.

The Summer Food Fiesta 2025 offers a delightful experience for families and LINE FRIENDS enthusiasts, promising a season of fun and rewards at Frasers Property Singapore shopping centres.
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The Singapore Interior Design Awards (SIDA) 2025 is now accepting entries until 1 August 2025, as announced by the Society of Interior Designers Singapore (SIDS). This prestigious event, now in its ninth edition, seeks to honour outstanding projects and professionals in the interior design sector globally. This year, SIDA has introduced six new award categories specifically for Singaporean designers, aiming to highlight their unique contributions and reinforce Singapore’s status as a global design hub.

The new categories include Best Design Firm of the Year, Designer of the Year, Lifetime Achievement Award, Design Educator of the Year, Best Design of the Year, and Young Designer of the Year. These awards are designed to celebrate the creativity and innovation of local designers, providing them with a platform to gain international recognition.

Nithipong Subaneknan, Chairman of the Organising Committee for SIDA 2025, stated, “As we launch SIDA 2025, our mission is clearer than ever: to identify and celebrate interior design projects that truly define excellence, whether on our shores or across continents.” He emphasised the importance of inviting global talent to elevate the competition and inspire local designers with diverse perspectives.

The introduction of these new categories is expected to further cement Singapore’s role as a leader in design innovation, encouraging local designers to push the boundaries of creativity. As the call for entries opens, the global design community eagerly anticipates the innovative projects that will emerge from this year’s competition.
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Singapore-listed China Sunsine Chemical, a major producer of rubber chemicals, is holding its ground amidst pricing pressures due to declining feedstock costs. The company, which specialises in rubber accelerators, is benefiting from China’s resilient automotive market, with vehicle sales in the first quarter of 2025 up 11% year-on-year. Despite a reduction in average selling prices (ASPs) driven by lower aniline prices, Sunsine’s market leadership and production capacity provide it with a competitive edge.

The China Association of Automobile Manufacturers reported that new energy vehicle sales surged by 47% year-on-year, contributing to the overall demand for rubber accelerators, essential in tyre manufacturing. Sunsine’s strong market position is further bolstered by its significant production capacity of 117,000 tonnes annually, surpassing its closest competitors.

Whilst the ASPs for rubber accelerators have decreased by approximately 18% year-on-year, Sunsine’s flexible pricing strategy and cost efficiency have helped mitigate the impact. The company’s earnings for the first quarter of 2025 reached Rmb108 million, a 27% increase year-on-year, although revenue slightly missed expectations due to lower ASPs.

Sunsine’s financial health remains robust, with a net cash position and a dividend yield of 5.2%. The company continues to focus on maintaining a balance between sales and production to drive competitiveness. Despite revising its 2025-2027 revenue forecasts downward due to pricing pressures, Sunsine maintains a “buy” recommendation with a target price of S$0.63, reflecting confidence in its market strategy and financial stability.
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Nomura’s Asia ex-Japan Daily Research Summary, released on 30 May 2025, highlights mixed financial performances across several sectors.

IHH Healthcare’s first-quarter results fell short of expectations, with a 6% year-on-year revenue increase but a 33% decline in profit after tax and minority interest (PATMI) to MYR514m. The Singapore market faced challenges due to renovations at Mount Elizabeth hospital, impacting overall performance.

Meanwhile, Farm Fresh reported an 18% year-on-year rise in fourth-quarter earnings, attributed to accelerated revenue growth and a gross margin increase of 1.4 percentage points. The company’s revenue grew by 13% year-on-year, driven by strong sales in Malaysia and new product launches.

Li Auto’s first-quarter results showed a 20.5% gross profit margin, surpassing expectations, although non-GAAP earnings declined by 20% year-on-year. The company’s outlook remains uncertain, with its i Series battery electric vehicle models expected to play a crucial role in future performance.

CSPC’s first-quarter results were weaker than anticipated, with a 21.9% drop in revenue and an 8.4% decline in earnings. The company’s gross margin narrowed by 5.2 percentage points due to unfavourable product changes, although lower selling expenses partially offset this.

These findings underscore the diverse challenges and opportunities faced by companies in the region. As businesses navigate these complexities, Nomura’s insights provide valuable guidance for investors and stakeholders. Looking ahead, the performance of key sectors will be closely monitored, with potential implications for future economic trends in Asia.
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MLCommons, a global leader in AI benchmarking, has announced the expansion of its AILuminate benchmark to include new models, languages, and tools. This expansion is marked by a partnership with NASSCOM, India’s premier technology trade association, to introduce AILuminate’s AI reliability benchmarks to South Asia. The initiative also includes proof of concept testing for AILuminate’s Chinese-language capabilities and updated reliability grades for large language models (LLMs).

Peter Mattson, President of MLCommons, expressed enthusiasm about the collaboration with NASSCOM, stating, “We’re looking forward to working with NASSCOM to develop India-specific Hindi-language benchmarks and ensure companies in India and around the world can better measure the reliability and risk of their AI products.” Ankit Bose, Head of NASSCOM AI, highlighted the importance of rigorous global standards in aligning the growth of India’s technology sector with emerging best practices.

The partnership with NASSCOM builds on MLCommons’ global approach to AI benchmarking, similar to its collaboration with Singapore’s AI Verify Foundation.

This collaboration aims to address South Asia’s urgent need for standardised AI benchmarks, trusted by industry experts, policymakers, and researchers.

AILuminate’s updated reliability grades are based on LLM responses to 24,000 test prompts across 12 hazard categories, ensuring methodological rigour. Rebecca Weiss, Executive Director of MLCommons, noted that these grades will help companies understand and compare risks across new AI models. The AI Risk & Reliability Working Group is also evaluating reliability across advanced AI tools, with plans to announce further benchmarks later this year.
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KSH Holdings Limited, a prominent construction and property management group, has announced a return to operational profit in the second half of FY2025, ending 31 March 2025. Despite a 14.6% decline in annual revenue to S$182.8m, the group managed to significantly reduce its net loss to S$5.9m for the year, compared to the previous year. The company also reported a net profit of S$0.5m for the second half of the year.

The group attributes its improved performance to a positive gross profit margin from its core construction business, supported by an order book exceeding S$230m. Executive Chairman and Managing Director Choo Chee Onn highlighted the group’s focus on executing existing projects smoothly and benefiting from favourable industry prospects.

KSH’s property development ventures in Singapore, including projects like The Arcady at Boon Keng and One Sophia, have contributed over S$162m in unrecognised attributable revenue. The company maintains a strong financial position with cash reserves of approximately S$123.1m and a reduced gearing ratio of 0.22x.

Looking forward, KSH remains cautiously optimistic amid global uncertainties, including the US-China trade tensions. The group plans to navigate these challenges through disciplined cost management and strategic investments to enhance shareholder value.

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