Industry News

Singapore’s core Consumer Price Index (CPI) experienced a notable rebound in December 2025, rising by 0.4% month-on-month, according to UOB Global Economics and Markets Research. This increase follows a slight decline of 0.1% in November and translates to a 1.2% year-on-year rise, aligning with Bloomberg’s consensus but slightly below UOB’s forecast of 1.3%.

The uptick in core CPI was largely attributed to holiday-related demand, with significant contributions from sectors such as clothing and footwear, other transport services, food, and recreation. Notably, airfares surged by 10.4% month-on-month, reflecting a stronger-than-seasonal increase. Land transport services also saw a rise, partly due to a 5% hike in bus and train fares effective from 27 December 2025.

Headline CPI increased by 0.3% month-on-month in December, driven by the same core components, whilst accommodation costs remained stable and private transport costs decreased. Despite the momentum, UOB notes that much of the increase is temporary, with limited signs of a broad-based price pickup.

UOB maintains its 2026 core and headline inflation forecasts at 1.5%, with potential upward risks due to a reduction in the Certificate of Entitlement (COE) supply and a 3% decline in household electricity tariffs for the first quarter of 2026. The Monetary Authority of Singapore (MAS) is expected to update its inflation forecasts in the upcoming Monetary Policy Statement on 29 January, with potential adjustments to the core and headline inflation forecast ranges.

Oracle has announced a collaboration with Digital Industry Singapore (DISG) to advance the Enterprise Compute Initiative (ECI), aiming to accelerate AI adoption across industries in Singapore. The initiative, supported by the Oracle AI Customer Excellence Centre, will help companies establish in-house AI teams or AI Centres of Excellence (CoEs).

Oracle is committing up to S$250,000 per company to empower 300 Singapore-based organisations through Oracle Universal Credits, training, certification, and discovery workshops. Additionally, Oracle will sponsor up to S$1.9m for enterprises requiring private cloud infrastructure, enabling access to Oracle Private Cloud Appliance and Oracle Exadata. This effort, combined with the Singapore Government’s support covering 70% of consultancy costs, aims to lower barriers and enable enterprises to adopt AI at scale.

Philbert Gomez, senior vice president and executive director of DISG, stated, “This collaboration will accelerate companies’ AI ambitions in Singapore, strengthening our position as a global AI hub.”

The initiative is designed to help organisations train teams, test innovations in secure cloud environments, and transform critical business operations. Oracle’s executive vice president, Garrett Ilg, highlighted the transformative power of AI, saying, “AI is transforming everything from how organisations operate to how people learn and innovate.”

Oriental Remedies, a leading Traditional Chinese Medicine clinic chain, is among the companies exploring partnerships with Oracle through the ECI. Beatrice Liu, CEO and Co-Founder of Oriental Remedies Group, expressed enthusiasm for the collaboration, aiming to enhance patient experience and automate processes.

This partnership underscores Singapore’s commitment to becoming a global AI hub, fostering innovation and competitiveness through technology.

Enterprise Singapore (EnterpriseSG) and Grab have entered into a three-year partnership to bolster the resilience of Singapore’s food and beverage (F&B) sector. This collaboration, formalised through a Memorandum of Understanding (MOU), aims to address challenges such as rising operating costs and manpower constraints by enhancing market visibility and equipping businesses with data insights.

The initiative will benefit over 12,000 F&B companies, offering them access to key data and industry insights to refine growth strategies. Additionally, more than 400 companies annually will participate in capability-building masterclasses and gain exposure through Grab’s Dine Out initiative. This programme will launch targeted campaigns in precincts like Jalan Besar, Holland Village, and Tanjong Pagar to drive consumer demand.

Jeannie Lim, Assistant Managing Director at EnterpriseSG, emphasised the importance of adapting to evolving consumer behaviours, stating, “Partnerships with key industry players like Grab help us provide our F&B businesses with meaningful data insights and the digital capabilities needed to stay ahead.”

Grab’s Managing Director, Alejandro Osorio, highlighted the cultural and economic significance of local F&B businesses, noting, “We are fuelling the revitalisation of local businesses and building the resilience required to safeguard livelihoods.”

The partnership will also offer free access to industry insight reports and practical workshops through GrabAcademy, focusing on consumer trends and digital marketing. These efforts aim to empower F&B businesses to thrive in an evolving landscape, ensuring their long-term sustainability and growth.

The Agency for Science, Technology and Research (A*STAR) and Halliburton have inaugurated the Next-Generation Energy Xccelerator Joint Lab (NEX Lab) in Singapore. This S$35m initiative seeks to accelerate the development and commercialisation of advanced well completion technologies for the energy sector.

NEX Lab will integrate design, prototyping, and validation activities to streamline the transition from early-stage innovation to field deployment. The project focuses on improving manufacturing processes, pioneering new materials, and exploring emerging energy systems. This collaboration aims to bolster Singapore’s position as a global hub for advanced manufacturing and energy solutions.

Shawn Stasiuk, senior vice president of Halliburton Completion and Production division, stated, “NEX Lab brings together Halliburton’s global expertise in well completions and A*STAR’s multidisciplinary research capabilities to advance cutting-edge technology that shapes the future of energy.”

Prof Lim Keng Hui, assistant chief executive of A*STAR’s Science and Engineering Research Council, highlighted the lab’s role in creating opportunities for scientific and engineering talent and developing local suppliers to strengthen high-value energy supply chains.

Halliburton, which has been operating in Singapore since 1973, has invested over S$2m in research and development through its collaboration with A*STAR since 2019. The company’s presence in Singapore includes a 500,000-square-foot Completion Technology and Manufacturing Centre, underscoring the city-state’s role as a trusted base for high-value manufacturing and applied research and development.

Nera Telecommunications Ltd has announced the acquisition of multiple contracts valued at over S$15m from two leading service providers in Southeast Asia. These agreements aim to bolster digital commerce solutions in rural areas, contributing to economic development in the region.

The first contract involves renewing a frame agreement, which includes delivering smart services training programmes and deploying personnel across nearly 100 sites. This contract also features a 12-month managed services component, providing operational support, maintenance, and network performance monitoring through a Network Operations Centre (NOC).

The second contract comprises variation orders for similar smart services initiatives, extending the deployment of training programmes and personnel to more than 100 sites. This agreement includes a managed services component lasting up to 60 months, covering NOC support, operations, maintenance, and network performance monitoring.

These contracts are expected to positively impact Nera Telecommunications’ financial performance for the current year. The company’s efforts to support enterprises in rural communities align with broader economic development goals in Southeast Asia.

Singapore’s property market demonstrated resilience in 2025, with the office, retail, and residential sectors each showing unique growth patterns despite global economic uncertainties. According to CBRE Research, office rents in the Central Region experienced a modest recovery in Q4 2025, reversing previous declines, with a 0.4% quarter-on-quarter increase. This was supported by firm occupier demand and a tightening supply pipeline, as noted by Tricia Song, CBRE Head of Research, Singapore and Southeast Asia.

The office sector saw a 2.9% rise in Core CBD (Grade A) rents for the year, driven by demand from insurance, asset management, and tech firms. The Marina Bay submarket’s vacancy rate fell to 4.2% by year-end, reflecting strong demand for prime office space. However, office prices in the Central Region softened, with a 2.1% decline over the year.

In retail, the sector benefited from a recovery in tourism and consumer sentiment, with retail rents in the Central Region increasing by 0.6% in Q4 2025. The full-year growth reached 1.9%, surpassing pre-COVID-19 levels. Despite challenges such as store closures, leasing activity remained robust, particularly in the F&B and lifestyle sectors.

The residential market saw private housing prices rise by 3.3% in 2025, the slowest growth since 2020. Landed properties led the increase, whilst non-landed prices varied across segments. The rental index for private residential properties declined by 0.5% in Q4 2025, yet overall rents were up 1.9% for the year.

Looking forward, the office market is expected to become more landlord-favourable in 2026, with limited new supply and steady demand. Retailers face challenges but are supported by tourism recovery and consumer spending. The residential sector anticipates strong buying sentiment amid low interest rates and new launches.

The extension of the temporary relaxation of the occupancy cap for rental of HDB flats and private residential properties until 31 December 2028 is expected to stabilise the rental market, according to Huttons Asia. This comes as rental demand surged in 2025, with 91,273 private homes and 39,054 HDB flats rented out, marking increases of 3.1% and 6.5% from 2024, respectively.

The rise in rental demand occurred despite a lower completion rate of homes. In 2025, only 4,544 private homes were completed, and approximately 8,000 HDB flats reached their minimum occupation period (MOP), both figures lower than the previous year. This shortfall contributed to a rise in rents, with private home rents increasing by an estimated 3% and HDB flat rents by 2%.

Looking ahead, the supply of private homes and HDB flats fulfilling their MOP is projected to increase in 2026 and 2027, peaking in 2028. However, post-2028, the supply is expected to decrease, potentially necessitating further policy extensions depending on rental market demand.

Huttons’ data, sourced from URA and HDB, underscores the importance of the occupancy cap extension in providing relief to tenants and maintaining market stability amidst fluctuating supply and demand dynamics.

Capitaland Ascendas REIT (CLAR) has announced the acquisition of a modern logistics facility in Ohio for S$945m, according to a recent DBS report. This strategic move is expected to enhance the distribution per unit (DPU) by approximately 1%, with further organic growth anticipated through a 3.5% built-in annual escalation. Despite a temporary breach in gearing levels, which could exceed 40%, improvements are expected with the year-end valuations for FY25. DBS maintains a “BUY” recommendation with an unchanged target price of S$320.

Meanwhile, City Developments Ltd (CDL) has shown significant market momentum, with shares up 12% year-to-date and nearly 30% over the past three months. The report suggests a tactical play on potential special dividends and valuation adjustments, noting that market concerns over CDL’s gearing are overstated, with stable gearing at 0.7x. Positive factors include lower interest rates, resolution of a boardroom dispute, and an ongoing strategic review. DBS reiterates a “BUY” rating for CDL, with a target price of S$1,180.

These developments underscore the strategic positioning of both companies in the current market landscape, with potential for growth and value realisation in the near term.

Rex International Holding Limited has announced significant progress in its subsidiary Lime Petroleum’s operations in Norway. Lime, alongside its partners, has been awarded a 25% interest in the North Sea licence PL1279 during the 2025 Awards in Predefined Areas round. This licence includes the Vette discovery, which is set to be developed with the Yme Inspirer.

The Norwegian Offshore Directorate revealed that 19 companies were granted ownership in 57 production licences on the Norwegian Continental Shelf, with 31 located in the North Sea. Lime’s involvement in these developments highlights its strategic positioning in the region.

In addition to the new licence, Lime has completed a three-well campaign on the Brage platform, which began on 8 July 2025. The campaign included an exploration well, an appraisal well, and a new production well. The Talisker production well has commenced operations, with promising results. The Talisker exploration well uncovered commercial oil discoveries in the Cook and Statfjord formations, with estimated recoverable resources between 16 and 33 million barrels of oil equivalent.

Furthermore, the PL740 Bestla drilling campaign, a tie-back to the Brage Field, has been completed in 129 days. The campaign achieved significant milestones, including the successful appraisal of the West Segment and the delivery of OKEA ASA’s first Multi-Lateral Technology well.

These developments underscore Lime Petroleum’s commitment to enhancing its portfolio and production capabilities in Norway, with future plans including the installation of Christmas trees in Q3 2026.

Cuppage Terrace, a renowned food and beverage (F&B) and lifestyle destination on Orchard Road, is up for sale for the first time in over two decades. CBRE, acting as the exclusive marketing agent, is inviting Expressions of Interest for this prime asset, which spans 28,986 sq ft and offers approximately 50,891 sq ft of total floor area. The sale closes on 12 February 2026.

Located in the heart of Singapore’s retail hub, Cuppage Terrace consists of 17 adjoining Peranakan conservation shophouses. The property is fully leased to a diverse mix of established F&B operators, featuring an expansive outdoor refreshment area of over 12,000 sq ft. Its prominent 85-metre road frontage along Cuppage Road enhances its visibility and appeal.

The asset’s strategic location, adjacent to The Centrepoint and near Somerset MRT Station, ensures high accessibility. Clemence Lee, Executive Director of Capital Markets at CBRE, highlighted the rarity of such a large, contiguous shophouse portfolio coming to market, noting strong interest from local and international investors.

Orchard Road remains a vibrant retail centre, with ongoing redevelopment projects promising to enhance its appeal further. The Urban Redevelopment Authority’s efforts to reinvent the area aim to maintain its relevance amidst a dynamic retail landscape.

Following a 2025 valuation of S$250m, CBRE is now seeking Expressions of Interest for this prime asset. Foreigners are eligible to purchase, with no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the transaction.