Industry News

The Singapore Business Federation (SBF) has revealed that two-thirds of Singaporean businesses are grappling with moderate to severe impacts from the ongoing Middle East conflict. The conflict has led to increased energy and logistics costs, affecting operations and demand. Small and medium-sized enterprises (SMEs) are particularly vulnerable, with one in three reporting significant disruptions, whilst half of larger firms experience moderate impacts.

The disparity in impact has resulted in a confidence gap, with only 36% of SMEs confident in managing ongoing volatility, compared to 78% of larger firms. Overall, 54% of businesses are concerned about their viability if current conditions persist beyond six months. Despite these challenges, businesses are adapting by raising prices and renegotiating contracts. SMEs focus on cash conservation, whilst larger firms employ sophisticated risk management strategies, such as fuel and foreign exchange hedging.

Businesses are calling for targeted assistance to cope with sustained cost pressures. The Corporate Income Tax (CIT) Rebate is seen as the most valuable immediate measure, followed by the Energy Efficiency Grant and support for government project cost increases. SBF CEO Kok Ping Soon highlighted the growing confidence gap, stating, “Whilst bigger companies are better able to manage rising costs, SMEs are feeling the strain more acutely.”

The findings were shared at a recent dialogue attended by over 150 business leaders, where discussions centred on strengthening supply chain resilience and managing tariff exposure amidst heightened uncertainty.

The Maritime and Port Authority of Singapore (MPA) has announced the selection of six partners to trial innovative in-water hull inspection and cleaning solutions in the Port of Singapore. This initiative, part of the Call for Proposals (CFP), aims to enhance shipping efficiency and reduce emissions. The selected partners—Alicia Bots, C-Leanship, Neptune Robotics, Oceanis Robotics, RINA, and SEAHI Robotics—will receive nearly S$3.7m in research and development co-funding from the Maritime Innovation and Technology (MINT) Fund.

The trials will address the issue of marine biofouling, which increases fuel consumption and emissions due to hydrodynamic drag. Singapore, being one of the world’s busiest ports, requires efficient hull cleaning solutions that do not disrupt operations. The trials will focus on developing solutions that can operate reliably in complex conditions, such as handling propellers and rudders, and meeting environmental requirements.

Current commercial solutions face challenges in automation and efficiency, particularly in busy port environments. The selected partners will leverage advancements in robotics and remote operations to overcome these limitations. The trials, set to begin in the second half of 2026, will last 18 months and aim to enable large-scale deployment of these technologies.

MPA will collaborate with industry partners to evaluate the outcomes, ensuring the solutions meet global standards and can be safely deployed. This initiative is part of Singapore’s broader efforts to support maritime decarbonisation and enhance its value proposition as a leading international maritime centre.

Singapore Airlines, Ascott, and DBS have emerged as leaders in sustainability among Singaporean brands, according to the Sustainability Perceptions Index 2026 by Brand Finance. The index, which evaluates global brands on their environmental, social, and governance (ESG) commitments, shows these companies translating sustainability pledges into tangible actions.

Singapore Airlines received high marks for its ESG initiatives, reaffirming its commitment to achieving net-zero emissions by 2050. The airline plans to use 5% Sustainable Aviation Fuel by 2030 and aims for over 70% of its fleet to consist of new-generation aircraft. It has also expanded partnerships for sustainable aviation fuel and enhanced its digital efficiency.

Ascott has been recognised for its environmental innovation, particularly through its Ascott CARES framework. The company has achieved significant reductions in energy and water consumption, supported by AI-powered optimisation. It has also expanded solar panel installations and introduced community engagement initiatives to bolster its inclusive hospitality approach.

DBS stood out for its governance and sustainable finance leadership. In 2025, the bank broadened its sustainable financing programmes, updated responsible banking frameworks, and introduced stricter procurement standards to reduce its environmental footprint.

Alex Haigh, Managing Director Asia Pacific at Brand Finance, noted, “Singaporean brands are standing out for their ability to translate commitments into tangible action. Those that can demonstrate real impact, not just intent, are the ones strengthening trust and brand value.”

Globally, Google surpassed Apple to top the Sustainability Perceptions Value, whilst Tesla’s green reputation continued to decline. The index is based on research with over 175,000 respondents across 41 countries, combining survey data with ESG performance ratings.

The Maritime and Port Authority of Singapore (MPA) and NUS Enterprise have launched the 10th edition of the PIER71 Smart Port Challenge (SPC) at Singapore Maritime Week 2026. This year’s challenge introduces expanded support to help maritime start-ups scale, secure funding, and deploy their solutions effectively.

The event, attended by over 200 international start-ups, investors, and industry partners, highlights Singapore’s role as a hub for maritime innovation. Since its inception in 2018, PIER71 has supported approximately 170 start-ups, collectively raising over S$150m in funding. Notably, Groundup.ai, an SPC alumnus, has successfully expanded across Asia and the Middle East, securing S$5.4m in Series A funding.

This year’s SPC introduces two new initiatives: Mentors-in-Residence Plus (MIR+) and Venture2Capital. MIR+ pairs start-ups with experienced maritime professionals and overseas accelerator partners to facilitate market entry and expansion. Venture2Capital enhances access to funding by connecting start-ups with investors and offering structured training for fundraising.

Additionally, MPA has launched an innovation track under the Maritime Cluster Fund – Business Development scheme to bolster maritime companies’ innovation capabilities in Singapore. This initiative aims to foster a vibrant and globally connected maritime ecosystem.

SPC 2026 will expand its global outreach, targeting key markets such as China, France, India, and the USA. Applications are now open, offering 20 innovation opportunities across four areas: Next-Generation Port, Smart Shipping, Maritime Green Technologies, and Digitalisation. Shortlisted start-ups will participate in a 10-week SPC Accelerate programme, culminating in a grand finale on 11 November 2026.

MPA Chief Executive Ang Wee Keong emphasised the importance of scaling start-ups to deliver real impact, whilst NUS Senior Vice President Tan Sian Wee highlighted the need for solutions to be deployed at scale. Applications for SPC 2026 are open until 15 June 2026.

Singapore’s industrial real estate market experienced significant rental growth across all segments in the first quarter of 2026, driven by tightening vacancies and a limited supply pipeline, as reported by Cushman & Wakefield. Prime logistics rents increased by 1.5% quarter-on-quarter, the most substantial rise since early 2024, whilst warehouse vacancy rates fell to 5.6%, marking a second consecutive quarter of decline.

The report highlights that all industrial property segments recorded positive rental growth in Q1 2026. Warehouse rents accelerated by 0.5% quarter-on-quarter, and suburban business park rents saw a 1.7% increase. Factory rents also rose, with ground floor rents up by 1.6% and upper floor rents by 1.5%. High-tech rents grew more modestly at 0.3%, led by modern high-specification developments.

Brenda Ong, Executive Director and Head of Logistics & Industrial Services at Cushman & Wakefield Singapore, noted, “Singapore’s industrial market is seeing genuine tightening across most segments. Vacancy is declining, occupiers remain active, and the pipeline is lean.”

The constrained supply pipeline is expected to sustain market tightness, with new supply across most industrial segments in 2026 projected to fall below the 10-year historical averages. The lack of new major prime logistics projects and a tapering business park pipeline further contribute to this trend.

Wong Xian Yang, Head of Research Singapore & Southeast Asia at Cushman & Wakefield, stated, “Supply across most segments will stay lean through the medium term, and occupiers with active space requirements would be well-advised to plan ahead rather than wait for conditions to ease.” The ongoing geopolitical uncertainty and the nascent influence of the Johor-Singapore Special Economic Zone may also impact future rental growth.

METT Singapore, UPGroup Asia, and The MasterPlan have announced a strategic partnership to enhance the luxury hotel’s event offerings. Signed on 17 April at METT Singapore during the METTUP 2026 networking event, the collaboration combines METT Singapore’s premium event spaces with UPGroup Asia’s advanced audio, visual, and lighting (AVL) production capabilities, alongside The MasterPlan’s expertise in high-value business events.

Under this agreement, UPGroup Asia becomes METT Singapore’s preferred AVL partner, providing comprehensive production solutions and activating its Venue Management Programme to elevate event operations. Adam Piperdy, Founder and Chief Experience Officer of UPGroup Asia, stated, “METT Singapore has the spaces and the character that corporate clients are increasingly looking for. Our role is to make sure the production side is seamless, so that the technical execution never gets in the way of the experience.”

The MasterPlan, known for its business-to-business event specialisation, will serve as the preferred B2B event agency and programme partner. This role involves supporting event organisers in designing and executing programmes at METT Singapore. Jasmine Ho, Founder and Managing Partner of The MasterPlan, emphasised the importance of venues that can deliver a complete event experience, highlighting the partnership’s potential to meet client expectations.

This collaboration positions METT Singapore as a key player in the Meetings, Incentives, Conferences, and Exhibitions (MICE) and premium events landscape, offering comprehensive solutions for high-impact events.

Cushman & Wakefield and CBRE have announced the sale of a freehold, 46-key hotel located at 56 Sims Avenue, Kallang. The property, which is income-generating under a master lease, is listed at a guide price of S$29.9m. This strategic sale comes as the Kallang precinct undergoes significant rejuvenation, enhancing its appeal to investors.

The four-storey hotel, featuring 46 guest rooms with ensuite bathrooms, occupies a site area of approximately 3,172 square feet and a gross floor area of 10,620 square feet. Its prominent location along Sims Avenue offers 12 metres of main road frontage, providing excellent visibility and branding opportunities. The asset is currently leased to an operator, ensuring immediate and stable rental income for the purchaser.

Sophia Lim, Director of Capital Markets at Cushman & Wakefield, highlighted the rarity of acquiring freehold hospitality assets with stable income in well-connected city-fringe locations. “56 Sims Avenue presents a compelling investment proposition, offering immediate income stability through an established master lease alongside long-term upside,” she stated.

The Kallang/Geylang area, where the property is situated, is benefiting from urban transformation, making it a vibrant and accessible district. Joshua Giam, Director of Capital Markets at CBRE, noted the area’s successful transformation into a holistic neighbourhood that balances heritage with modern lifestyle.

The hotel is priced at approximately S$650,000 per key, and interested parties are invited to contact the agents for further information. The Expression of Interest exercise will close on 20 May 2026.

DNV and the Singapore Institute of Technology (SIT) have signed a Research Collaboration Agreement (RCA) to advance remote and autonomous maritime capabilities in Singapore. This agreement builds on a Maritime and Port Authority of Singapore-funded Joint Industry Project focused on shore-based Remote Operations Centres for bunker vessels. The collaboration aims to strengthen Singapore’s maritime operations by developing necessary technical, operational, and training capabilities.

Under the RCA, DNV and SIT will work together to support SIT’s Future Ship and System Design Lab in enabling remote and autonomous vessel functions. The project will involve industry and research partners to ensure that selected vessel functions can be safely monitored or supported from shore. This initiative will also focus on enhancing knowledge transfer between academic, research, and industry communities in Singapore.

Dr. Shahrin Osman, Director of the Maritime Decarbonisation and Smart Shipping Centre of Excellence, stated, “In the RCA with SIT we’re putting together a combination of expertise in applied research, operations, and assurance that will be essential as Singapore seeks to deepen its capabilities in remote and autonomous vessel operations.”

Professor Susanna Leong, Deputy President (Academic) and Provost at SIT, added, “Through this agreement, SIT strengthens its role in advancing Singapore’s maritime capabilities through applied learning and research.”

The RCA will also explore curriculum development, simulation methodologies, and applied research and development activities to support the broader maritime community. This collaboration is expected to pave the way for more digitally enabled maritime operations in Singapore.

OUE Real Estate Investment Trust (OUE REIT) has reported a notable increase in revenue and net property income (NPI) for the first quarter of 2026, with figures rising by 6.7% and 8.4% year-on-year, respectively. The growth, amounting to S$70.5m in revenue and S$57.6m in NPI, is largely attributed to a robust performance in the hospitality sector and stable commercial operations.

The hospitality segment experienced a significant boost, with revenue and NPI climbing by 15.1% and 16.8% year-on-year, respectively. This was driven by proactive revenue management and an improved Meetings, Incentives, Conferences, and Exhibitions (MICE) pipeline, including events like the Singapore Airshow and Disney Cruise’s maiden voyage.

In a strategic move, OUE REIT made its first foray into the Australian market by acquiring a 19.9% interest in Sydney’s 180 George Street, also known as Salesforce Tower, for A$357.2m (approximately S$319.8m). This acquisition is expected to provide stable income, with the property boasting a near-full occupancy rate of 99.2%.

OUE Bayfront, another key asset, received planning approval to expand its office space by over 22,600 square feet, with a projected return on investment exceeding 11%. The Singapore office portfolio also recorded a positive rental reversion of 6.0% in the first quarter.

CEO Han Khim Siew highlighted the REIT’s strong start to the year, emphasising the successful capital redeployment and cost savings. Looking forward, OUE REIT aims to continue its growth trajectory by focusing on disciplined capital allocation and asset management.

ISDN Holdings Limited has announced that its subsidiary, AR Robotics and Automation Pte. Ltd., has formed a strategic partnership with Soradynamics and Trinity One LT Limited. This collaboration involves AR Robotics divesting 486,500 ordinary shares to the two companies, with ISDN retaining a 30% equity stake. The partnership aims to accelerate AR Robotics’ development in advanced robotics and AI solutions, targeting markets in Asia Pacific, Europe, and the United States.

AR Robotics, previously a wholly-owned subsidiary of ISDN, will benefit from S$1m in seed capital, manufacturing expertise, and an extensive Asia sales network. Soradynamics contributes proprietary drone technology and multi-camera video fusion capabilities, whilst Trinity provides financial backing and market development expertise. This partnership positions AR Robotics as a viable alternative to Chinese-made robotics amidst global supply chain realignments.

The collaboration is already showing promise, with an initial contract pipeline valued at approximately US$10m. AR Robotics’ technology is currently undergoing trials with notable agencies in Singapore. The company plans to leverage its modular robotics and AI platform for various industrial applications, including firefighting, inspection, delivery, and surveillance.

Teo Cher Koon, Managing Director and President of ISDN, stated, “AR Robotics reflects how ISDN builds value. We identify high-potential technology, bring our manufacturing depth and Asia network to bear, and partner with the right people to take it global.” The partnership is expected to strengthen ISDN’s position as a leading industrial automation platform across Asia.