Regional News

Singapore’s economy experienced a modest expansion of 1.3% in the third quarter of 2025, according to advance estimates released by the Department of Statistics. This growth, measured on a quarter-on-quarter seasonally-adjusted basis, marks a slight deceleration from the 1.5% growth recorded in the second quarter of the year.

The latest figures highlight a continued, albeit slower, economic recovery as Singapore navigates global economic uncertainties. The marginal drop in growth rate suggests that whilst the economy is still on an upward trajectory, challenges remain in maintaining the momentum seen earlier in the year.

As Singapore continues to adapt to changing economic conditions, the focus will likely remain on sustaining growth whilst addressing potential headwinds.

Singapore’s GDP growth decelerated to 2.9% in the third quarter, down from 4.5% in Q2, as trade momentum waned, according to Market Analyst Zavier Wong from eToro. The economy expanded by 1.3% on a quarter-on-quarter basis. This slowdown reflects a broader global economic shift, with Singapore’s Prime Minister Lawrence Wong describing the world as “fractured, uncertain, and disrupted.”

The latest data highlights a stagnation in manufacturing, a softening in construction, and a decline in wholesale trade, attributed to the diminishing impact of export front-loading earlier in the year. As the US increases tariffs and China limits rare-earth exports, Singapore, which relies heavily on both nations, must navigate these changing trade dynamics. Despite these challenges, the services sector showed resilience, growing by 3.5%, indicating a shift towards services-driven growth.

Wong suggests that investors should interpret the GDP figures not as a mere slowdown but as a signal of a more volatile external economic cycle, marked by retaliation rather than recovery. Singapore’s future growth will depend on the robustness of its service sectors and institutional credibility. The Monetary Authority of Singapore (MAS) has opted to maintain its current policy stance, prioritising stability over tightening, given the moderated growth and contained inflation. Wong emphasises that Singapore’s best strategy in a divided world is to remain open whilst others build barriers.

Malaysia is set to host the Kuala Lumpur Sustainability Summit (KLSS) 2025 from 14 to 16 October at the Kuala Lumpur Convention Centre. Organised by the Ministry of Natural Resources and Environmental Sustainability and the Ministry of Economy, the event aims to advance climate change action and sustainable development across Southeast Asia. The summit, led by the Malaysian Green Technology and Climate Change Corporation, will bring together more than 400 participants from government, business, academia, and civil society.

With the theme “Inclusivity and Sustainability,” KLSS 2025 seeks to position Malaysia as a leader in promoting climate resilience and sustainable economic transformation. Acting Group CEO of the Malaysian Green Technology and Climate Change Corporation, Saiful Adib Abdul Munaff, emphasised the summit’s goal to transition from conceptual ideas to tangible implementation, stating, “We aim to transition from conceptual ideas to tangible implementation, from commitment to measurable outcomes.”

The summit will feature keynote addresses and dialogues with international figures, including Selwin Charles Hart, Special Adviser to the UN Secretary-General on Climate Action, and Robert Gass, UN Resident Coordinator for Malaysia, Singapore, and Brunei. Malaysian voices such as Datuk Seri Johari Abdul Ghani, Minister of Plantation and Commodities, and Izlyn Ramli, CEO of Maybank Foundation, will also be highlighted.

A notable segment of the summit is the MGTC x Bloomberg Series, which will present research insights and panel discussions on sustainable finance and energy transition. The event will conclude with the Kuala Lumpur Declaration on Climate Resilience, a commitment to accelerate climate adaptation and mitigation efforts. As ASEAN Chair in 2025, Malaysia aims to amplify Southeast Asian voices in global climate action.

ABC Impact, an impact investment firm backed by Temasek, has collaborated with DBS and UOB to introduce a sustainability-linked subscription loan facility worth $110m (S$142m). This innovative financial instrument transforms a conventional loan into one that is linked to measurable sustainability performance targets, aiming to channel funds towards projects with significant social and environmental outcomes.

The facility, designed for ABC Impact Fund II, which began in August 2023 and will close in March 2025, boasts assets under management exceeding $600m (S$712m). This is double the size of its inaugural fund, with backing from prominent investors such as Temasek, the Asian Development Bank, and Mapletree Investments.

Under the loan’s terms, portfolio companies must meet targets related to reducing greenhouse gas emissions and benefiting key sectors like agriculture, healthcare, and education. Sugandhi Matta, Chief Impact Officer at ABC Impact, highlighted the significance of this development, stating, “This sustainability-linked loan marks an important milestone in ABC Impact’s journey.”

Simon Ong from DBS noted the partnership’s role in unlocking capital for businesses that deliver both financial and social returns. Meanwhile, Edmund Leong of UOB emphasised the facility’s role in setting a new standard for financing that supports both commercial success and societal progress.

This collaboration sets a new benchmark in the financial sector, integrating sustainability considerations into conventional fund financing and reinforcing the commitment to addressing pressing challenges in Asia.

LingoAce, a leader in online education, has announced that its 120-hour Online Teaching English as a Foreign Language (TEFL) Certification Course has been accredited by the International TEFL Accreditation Council (ITEFLAC). This accreditation, awarded on 10 October 2025, underscores LingoAce’s dedication to high-quality teacher training and English learning experiences. ITEFLAC, based in London, is renowned for its stringent evaluation criteria, which LingoAce’s programme excelled in, particularly in teaching quality, learner support, and course structure.

The accreditation signifies more than just a seal of approval; it is a commitment to providing families and learners with globally standardised education. Hugh Yao, founder and CEO of LingoAce, stated, “Earning ITEFLAC accreditation is more than an endorsement of our English programme; it’s a promise to families and learners that every LingoAce teacher has been prepared to meet global standards.”

For educators, the programme offers a comprehensive 120-hour curriculum across 23 modules, blending theory with practical simulations. It is designed for flexibility, requiring only 20 study hours per week, and is entirely online. Graduates receive an internationally recognised certificate, enhancing their credentials and opening doors to global ESL teaching opportunities. Top graduates are invited to join LingoAce’s teaching team, benefiting from a diverse student base and long-term career growth.

Following its profitability in 2024, LingoAce continues to invest in curriculum innovation. With over 5,000 certified teachers and operations in more than 100 countries, LingoAce remains committed to fostering confident global citizens through education.

AJJ Medtech Holdings Limited and Hangzhou Huaxi Intelligent Technology Co., Ltd. have signed a Memorandum of Understanding (MOU) to jointly develop the world’s first multifunctional humanoid elderly care robot. This collaboration aims to address the growing demand for elderly care services, particularly in Singapore, where the population of seniors aged 65 and above is projected to reach 1.5 million by 2030.

The partnership will establish a joint venture in Singapore to develop and commercialise the robot, which will serve as a testbed for global expansion into markets such as Southeast Asia, Europe, and the United States. The robot will feature multi-language support, assisted living care, medical monitoring, and emotional interaction capabilities, making it suitable for various settings, including nursing homes and hospitals.

Huaxi Intelligent’s first-generation HT-XI humanoid robot has already secured over 1,000 pre-orders, indicating strong market interest. The collaboration aligns with Singapore’s healthcare strategy and global ageing trends, focusing on “Aging-in-Place” policies that promote community and home-based care solutions.

AJJ Medtech’s CEO, Zhao Xin, emphasised the potential for this collaboration to elevate the company’s technological and commercial standing in the Southeast Asian market. However, the project faces uncertainties, including regulatory approvals and market volatility, which may impact its timeline and success.

The companies plan to conduct clinical trials and pilot applications in Singapore’s nursing homes and medical institutions, with further announcements expected as the project progresses.

Standard Chartered is ramping up its training initiatives in generative artificial intelligence (Gen AI) and data for its employees in Singapore and globally. This move is part of the bank’s strategy to leverage technology for innovation and efficiency, ensuring it remains at the forefront of cross-border and affluent banking. The bank has committed over S$4.5m to these training programmes, which have already seen participation from more than 15% of its Singapore-based workforce.

The training includes a foundational AI literacy course, accredited by the Institute of Banking and Finance (IBF), and is part of a broader initiative called SkillsFuture@SC. This programme aims to empower employees to adapt to the evolving banking landscape. Patrick Lee, CEO of Singapore and ASEAN at Standard Chartered, emphasised the bank’s commitment to being a skills-based organisation, stating, “We aim to empower our people through continuous learning, enabling them to transform the work they do.”

In addition to the AI Learning Hub launched last November, the bank introduced its Gen AI tool, SC GPT, in March, enhancing operational efficiency and client engagement. A new Data Management Learning Marathon has also been launched to educate employees on data management and responsible AI.

Standard Chartered’s efforts have been recognised with the IBF Advance Award for Skills Development in Sustainable Finance. Furthermore, three senior leaders were named IBF Fellows for their contributions to the financial industry in Singapore. The bank’s ongoing investment in talent aims to bolster Singapore’s status as a leading financial hub.

In the latest Retail Report for Q3 2025, Knight Frank Singapore highlights the critical need for differentiation in the retail sector to survive in an increasingly competitive market. Ethan Hsu, Head of Retail at Knight Frank Singapore, emphasises that success depends on standing out from the mass of similar offerings.

The report reveals that the average gross rent for prime retail spaces saw a modest increase, with island-wide prime retail rent rising by 0.5% quarter-on-quarter to S$28.40 per square foot per month. This growth is attributed to the swift absorption of vacated units by well-capitalised occupiers, despite some retailers exiting the market due to challenging conditions.

Retail sales, excluding motor vehicles, reached S$7.2b in July and August 2025, surpassing the S$6.9b recorded in April and May. The retail sales index saw significant growth in recreational goods, furniture, and household equipment, partly due to government vouchers boosting discretionary spending.

Despite the rise of e-commerce, which stabilised at 12% to 15% of total retail sales post-pandemic, physical stores remain vital for luxury, lifestyle, and entertainment sectors. The report notes that international chains with deeper financial resources are entering the market, raising competition for local operators.

Cross-border shopping presents additional challenges, with Singaporeans spending over S$1b billion in Johor in the first eight months of 2025. This trend underscores the need for Singapore retailers to focus on unique offerings to retain shoppers.

Looking ahead, rental growth is expected to ease, with annual gains projected between 1% and 3%. Landlords are balancing leasing revenue with considerations like trade-mix and community character to support long-term viability.

Researchers from Nanyang Technological University, Singapore (NTU Singapore) and the Singapore-MIT Alliance for Research and Technology (SMART) have developed innovative antimicrobial compounds to combat bovine mastitis, a costly infection affecting the dairy industry. This breakthrough offers a sustainable alternative to antibiotics, addressing concerns over antibiotic resistance and milk contamination.

The novel compounds, known as oligoimidazolium carbon acids (OIMs), were tested in preliminary farm trials, demonstrating their effectiveness in preventing udder infections without adverse effects on milk quality. Professor Mary Chan from NTU Singapore highlighted the potential of these compounds, stating they “didn’t spoil the cows’ milk nor make it unsafe for consumption.”

The research, published in *Nature Communications*, has attracted interest from agricultural companies in Australia, Belgium, Malaysia, and New Zealand. These firms are keen to explore the commercial potential of OIMs as a safer, environmentally friendly alternative to traditional antiseptics like iodine and chlorhexidine, which can irritate udders and harm the environment.

Professor Paula Hammond from MIT noted the team’s plans to collaborate with industry partners for larger trials and commercialisation. The compounds’ ability to kill multi-drug-resistant bacteria in mice suggests further applications in the biomedical field, according to Professor Kevin Pethe of NTU.

The development of OIMs represents a significant step forward in addressing the challenges faced by the dairy industry, offering a promising solution to reduce the reliance on antibiotics and improve sustainability.

Bank Pembangunan Malaysia Berhad (BPMB) Group, alongside its subsidiaries SME Bank and EXIM Bank, has been tasked by the Malaysian Government to lead strategic initiatives exceeding RM9b under Budget 2026. These initiatives aim to bolster Malaysia’s economic transformation by focusing on impact-driven financing, export facilitation, and the development of the SME ecosystem, aligning with the Ekonomi MADANI vision.

The Government’s confidence in BPMB’s ability to deliver high-impact financing solutions is underscored by these initiatives, which coincide with the start of the Thirteenth Malaysia Plan (RMK13). The Group is committed to balancing fiscal consolidation with accelerated economic development, promoting innovation, and enhancing the well-being of the Rakyat.

Key programmes include the Semiconductor Financing Programme, with RM500m allocated to support Malaysia’s role in the global semiconductor value chain, and the MADANI Development Programme, which will channel RM3b into public infrastructure and national security. Additionally, RM1b is earmarked for the Urban Renewal and Tourism Programme to revitalise urban areas and tourism industries.

These new mandates will complement BPMB’s existing programmes, which focus on sectors such as renewable energy, sustainable development, and digital infrastructure. By aligning with national strategies like NIMP 2030 and the Energy Transition Roadmap, BPMB aims to support Malaysia’s transition towards a more innovative and sustainable future.