Industry News

Singapore’s construction sector is forecasted to remain robust in 2026, driven by public sector demand and significant infrastructure projects, despite global geopolitical tensions and supply chain disruptions. This is according to the Singapore Construction Market Review and Outlook 2026, released by SJ Group’s Project and Cost Management unit.

The report highlights that Singapore’s built environment sector continues to demonstrate resilience and adaptability. Senior Executive Director for Project and Cost Management at SJ Group, Ho Kong Mo, noted, “Even as global uncertainties drive cost pressures, a steady pipeline of public sector projects and continued infrastructure investment will underpin demand.”

Total construction demand is projected to range between S$47b and S$53b this year, following a peak of S$50.5b in 2025. However, construction costs are expected to rise by 2 to 5% in 2026, with material prices already increasing by 5 to 15% due to Middle East tensions. Oil prices exceeding $100 per barrel and ongoing supply chain volatility are anticipated to further impact project costs and timelines.

Key developments such as Changi Airport Terminal 5, MRT expansions, and healthcare projects are set to support the sector. Civil engineering demand alone is expected to reach between S$11.6b and S$13.4b. Meanwhile, the commercial segment is projected to recover, with demand rising to between S$6.1b and S$6.7b, led by projects like the Marina Bay Sands expansion.

The report underscores the importance of technology adoption and productivity improvements to manage costs and support long-term growth. Despite challenges, the sector is expected to remain supported by sustained government investment and a steady project pipeline.

Singapore Post Limited (SingPost) and Fullerton Healthcare Group have signed a Memorandum of Understanding (MOU) to co-develop an integrated healthcare delivery ecosystem. This partnership seeks to address the growing need for a resilient medical supply chain as Singapore transitions into a super-aged society in 2026.

The collaboration will leverage SingPost’s extensive logistics infrastructure and Fullerton Health’s clinical expertise to create innovative solutions for healthcare logistics and last-mile medical delivery. Mark Chong, CEO of SingPost, stated, “We believe that our ability to deliver medicine to every household will support Fullerton Health’s ambition to extend its reach to customers islandwide.”

As Singapore’s healthcare needs evolve with an ageing population, Fullerton Health aims to enhance its patient-centric care approach. Ho Kuen Loon, CEO of Fullerton Health, emphasised the significance of partnering with SingPost, saying it is a “significant milestone” in strengthening the healthcare value chain and improving access to medical care across Singapore.

The partnership aligns with national health strategies prioritising community-anchored care, such as the Ageing in Place and Age Well Neighbourhoods initiatives. By combining their capabilities, SingPost and Fullerton Health aim to support these initiatives and facilitate efficient medication fulfilment within residential areas.

This collaboration marks a strategic shift for SingPost, diversifying its logistics portfolio to include healthcare alongside its established eCommerce operations. For Fullerton Health, it offers an opportunity to leverage existing infrastructure and expertise to deliver sustainable healthcare solutions in line with Singapore’s evolving needs.

TeleChoice International Limited has reported a robust start to the financial year 2026, with a 31% increase in revenue for the first quarter ending 31 March 2026. The Group’s revenue reached S$146.86m, up from S$111.8m in the same period last year. Profit before tax also saw a substantial rise, increasing by 78% to S$2.32m compared to S$1.3m in Q1 2025.

The Personal Communications Solutions Services (PCS) division was a major contributor, with revenue climbing 24% to S$101.13m and profit before tax surging 87% to S$2.09m. The division’s success was largely driven by its Malaysian operations, which benefited from a renewed fourth-party logistics contract with U Mobile Sdn Bhd. However, the Singapore operations faced challenges due to lower margins and increased marketing expenses.

The Info-Communications Technology Services (ICT) division reported a 79% revenue increase to S$27.09m, with a modest 20% rise in profit before tax. This growth was primarily attributed to the Digital Infrastructure business, which secured significant projects across various sectors, including a S$8m storage leasing arrangement with a financial institution.

Meanwhile, the Network Engineering Services (NES) division achieved a 22% revenue increase to S$18.64m, with profit before tax rising by 31%. The division’s Indonesian operations were pivotal, securing a S$24m order for coolant distribution units.

Looking ahead, TeleChoice anticipates stable business performance for FY2026, supported by ongoing demand in telecommunications and ICT sectors. The Group is also awaiting the outcome of a tender for a data centre project in Malaysia, which could further enhance its performance.

Marco Polo Marine Ltd has announced a proposed reverse takeover of Fuji Offset Plates Manufacturing Ltd, valuing its shipyard business at up to S$139m. This strategic move aims to unlock significant intrinsic value for shareholders by establishing an independent, separately listed platform for the shipyard operations.

The transaction will see Marco Polo Marine’s shipyard business gain direct access to capital markets, enhancing earnings visibility. Despite the changes, Marco Polo Marine will remain the controlling shareholder, allowing existing investors to continue benefiting from the shipyard’s long-term growth potential.

Under the agreement, Fuji Offset Plates Manufacturing Ltd, the purchaser, will acquire all issued share capital of Marco Polo Shipyard Pte Ltd and MP Marine Pte Ltd. These entities collectively own and operate the group’s shipyard operations, including PT Marcopolo Shipyard in Indonesia. Upon completion of the transaction, the purchaser will be renamed “MPSE Ltd.”

This development marks a significant step for Marco Polo Marine, as it seeks to capitalise on its shipyard business’s value and growth trajectory. The proposed transaction is expected to provide a robust platform for future expansion and investment opportunities in the maritime sector.

AEM Holdings Ltd, a global provider of semiconductor test and handling solutions, has announced a robust performance for the first quarter of 2026, with revenue surging by 35.8% year-on-year to S$116.9m. This growth is attributed to the ramp-up in production from its fabless AI and high-performance computing (HPC) customers, alongside rising demand from PC and foundry clients.

Profit before tax soared to S$17.8m, marking a substantial increase from the previous year, with the profit before tax margin expanding to 15.2%. The company’s Test Cell Solutions segment was a significant contributor, with revenue climbing 72% year-on-year to S$88.1m, driven by the deployment of AEM’s proprietary PiXLTM thermal technology.

The company has revised its full-year revenue guidance upwards by approximately 20%, now expecting between S$550m and S$600m. This adjustment reflects the continued momentum from its AI/HPC and PC/Foundry customers.

AEM’s strategic partnership with ASE Technology Holding, the largest outsourced semiconductor assembly and test services provider, is anticipated to further enhance its market position. This collaboration aims to advance next-generation AI/HPC test solutions, with initial deployments expected by late 2026.

CEO Samer Kabbani stated, “1Q2026 represents the start of a multi-year earnings upcycle for AEM, one grounded in structural industry change rather than cyclical recovery.” With the semiconductor market projected to exceed US$1.6t by 2030, AEM is poised to capitalise on the growing demand for AI and HPC technologies.

Xero, the global small business platform, has announced a live integration with Claude, an AI platform by Anthropic, enabling small businesses in Singapore and worldwide to access real-time financial insights. This integration allows users to bring their financial data into Claude conversations, facilitating better decision-making without the need to switch tools.

The integration offers several key benefits. Users can now reference financial insights such as cash position, overdue invoices, and profit tracking directly within Claude. This seamless access to financial data supports strategic decision-making by providing live data rather than static exports. Additionally, insights generated in Claude link back to Xero, allowing users to undertake follow-up actions like reviewing detailed reports or invoices.

Diya Jolly, Chief Product and Technology Officer at Xero, highlighted the significance of this development: “AI is rapidly becoming an integral part of our customers’ workspace, and to be effective, that workspace requires Xero’s trusted financial intelligence as its foundation.”

The integration builds on a multi-year partnership between Xero and Anthropic, announced in March. It underscores Xero’s commitment to responsible data use, ensuring that financial data shared between platforms is used solely for the user’s specific session and not for training AI models.

This advancement further extends the capabilities of Xero OS, providing a trusted financial system for the agentic era. It represents a significant step in Xero’s mission to empower small businesses with AI-driven financial intelligence.

Salesforce has announced the launch of its AI Innovation Hub in Singapore, set to open in June, as part of its ongoing US$1b investment in the region. This initiative is designed to support Singaporean enterprises, including Kaplan, StarHub, and INSEAD, in their transformation into Agentic Enterprises using Salesforce’s Agentforce 360 platform.

The AI Innovation Hub will serve as a collaborative space for customers and partners to co-innovate and deploy Agentforce solutions rapidly. Additionally, Salesforce is establishing Data & AI Centres of Excellence with partners like Accenture and PwC to further AI adoption across ASEAN.

Paul Carvouni, Senior Vice President & General Manager of Salesforce ASEAN, highlighted the momentum behind Agentforce 360, stating, “Our customers are actively transforming their businesses with AI and data to solve complex challenges in real-time.”

The impact of AI on Singapore’s economy is significant, with IDC research projecting a cumulative economic impact of S$78.4 billion by 2030. Salesforce’s platform aims to unify humans, agents, apps, and data, providing the infrastructure needed for businesses to achieve real work outcomes.

Organisations like Kaplan and Panasonic Asia Pacific are already experiencing the benefits of Agentforce 360, enhancing operational efficiency and customer support. As Salesforce continues to expand its AI initiatives, Singapore is poised to strengthen its position as a leading hub for enterprise AI.

Banyan Group Residences is set to present three new residential projects from Laguna Phuket at a sales exhibition in Singapore. The event, scheduled for 23 and 24 May at Fairmont Singapore, offers potential buyers a chance to explore these properties, with sales teams available for private consultations.

The exhibition follows a successful year for Banyan Group Residences, marked by record sales as investors increasingly view Phuket as a stable investment destination. Stuart Reading, Managing Director of Banyan Group Residences, expressed enthusiasm about returning to Singapore, highlighting the appeal of high-quality properties at Laguna Phuket as both holiday retreats and long-term investments.

The showcased projects include Bellaguna Lake Residences, Bellaguna Golf Residences, and Angsana Golf Residences Topaz. Bellaguna Lake Residences features contemporary designs inspired by luxury yachts, offering one to three-bedroom flats and penthouses with private pools. Bellaguna Golf Residences, set on historic tin-mining land, provides a tropical design with views of the Laguna Golf Phuket course. Angsana Golf Residences Topaz boasts Sino-Portuguese design elements, offering panoramic views of the golf course and Andaman Sea.

Phuket’s growing appeal as a lifestyle and investment hub is underscored by its international community and world-class amenities. Banyan Group plans to launch up to $1b in new luxury projects in the coming years, reflecting strong demand from international buyers. The exhibition at Fairmont Singapore is open from 11:00 am to 6:00 pm, with private appointments available.

Singapore has once again secured the top spot in the Chandler Good Government Index (CGGI) 2026, marking its fourth consecutive year as the global leader in governance. The city-state outperformed Norway, Denmark, Finland, and Sweden, showcasing its robust governance capabilities amidst rising global uncertainties and complex policy challenges.

The CGGI evaluates government performance using 35 indicators across seven pillars, including Leadership & Foresight, Robust Laws & Policies, and Strong Institutions. This year, the index expanded to include 13 additional countries, totalling 133. Singapore excelled in five of the seven pillars, notably Strong Institutions, which improved from 10th place in 2021 to first in 2026.

Whilst Singapore’s Financial Stewardship remains a strength, it briefly slipped to second place in 2024 and 2025 but reclaimed the top position this year. However, areas such as Robust Laws & Policies saw a slight decline, dropping from 7th to 8th place since 2021. Conversely, Global Influence & Reputation improved significantly, climbing from 32nd to 21st place.

Dinesh Naidu, Director (Knowledge) at Chandler Governance Group, remarked, “Singapore’s continued leadership reflects not only consistency, but a sustained ability to adapt and reinforce core institutions in an increasingly complex global environment.”

Globally, the 2026 CGGI highlighted broad-based improvements, with 61% of countries indexed in 2025 recording score gains. The Asia Pacific region emerged as the most improved, with 79% of countries, including China and Japan, showing progress. The full report is available on the Chandler Good Government Index website.

Geo Energy Resources Limited has announced stable earnings for the first quarter of 2026, maintaining a net profit of US$4m, comparable to the previous quarter’s US$4.3m. Despite a 42% drop in revenue to US$95.8m due to lower coal sales volumes, the company remains optimistic about future earnings, driven by rising coal prices and increased production from its TRA coal mine.

The company targets coal production of 11.5-12.5 million tonnes for 2026, with a significant boost expected in the second half following the completion of the MBJ Integrated Infrastructure. This development is set to enhance TRA’s production capacity and reduce logistical costs. Average ICI4 coal prices rose to US$52.38 per tonne in Q1 2026, with further increases anticipated.

Geo Energy has declared an interim dividend of 0.1 SG cent per share, reflecting a 34% payout ratio. The company’s market capitalisation surpassed S$1b in April, marking a 200% total shareholder return since June 2023.

Recent strategic moves include acquiring a 51% stake in Indonesian shipping businesses, securing logistics capacity, and entering a binding term sheet for a majority stake in a high-value coking coal mining concession. These initiatives aim to diversify Geo Energy’s portfolio and enhance its market position.

Executive Chairman and CEO Charles Antonny Melati stated, “With the ramping up of TRA coal production in 2H2026, the outlook is very positive.” The company is poised to capitalise on its integrated infrastructure and strategic acquisitions to unlock further value.