Industry News

Singapore’s technology sector is experiencing a surge in institutional inflows and valuation expansion, primarily driven by demand in semiconductor testing, equipment, and AI hardware. This trend has positioned these segments as the main drivers of the sector’s re-rating in 2026. Companies such as AEM, UMS, and Frencken have led the valuation expansion, with price-to-earnings (P/E) ratios moving sharply higher, averaging around 50x and a median of 32x.

In the AI hardware segment, InnoTek has seen a significant re-rating, with a current P/E of approximately 83x and a forward P/E of about 22x for the financial year 2026. This reflects expectations of revenue growth as AI-driven capacity and customer traction increase.

The semiconductor value chain in Singapore spans from chip design to final hardware, with the local sector primarily focused on equipment, testing, and hardware. Among the 49 stocks in the sector, a dozen companies are directly involved in semiconductor production and testing. These include AEM Holdings, Sunright, and Global Testing Corporation, among others.

Institutional flows in 2026 have totalled S$582.5m, with the semiconductor production segment absorbing the majority of net buying. AEM Holdings, UMS Integration, and Frencken Group have been the top beneficiaries, driven by AI-driven semiconductor demand.

The hardware and systems segment, which includes companies like Venture Corporation and PC Partner Group, also saw positive inflows. This reflects a rotation towards semiconductor execution and AI hardware exposure, highlighting the sector’s robust growth potential.

GetGo Carsharing, Singapore’s largest carsharing service, recently hosted an exclusive event to promote sustainable mobility by highlighting the financial burdens of car ownership. The event, held on 19 May, featured a symbolic car smash to draw attention to the high costs associated with owning a vehicle, including the S$100,000 Certificate of Entitlement (COE).

The event showcased a decommissioned vehicle marked with typical ownership expenses such as road tax, insurance, and depreciation. Participants were invited to smash the car, symbolising the breaking of financial constraints tied to car ownership. This dramatic demonstration served as the focal point of GetGo’s “Smash the $100k Burden. Reclaim Your Freedom to Drive.” campaign.

The campaign aims to encourage Singaporeans to consider carsharing as a viable and commitment-free alternative to owning a car. With COE prices soaring, GetGo’s initiative seeks to provide a more accessible and environmentally friendly option for those needing occasional access to a vehicle.

By offering a sustainable alternative, GetGo hopes to alleviate the financial pressures of car ownership whilst promoting a greener approach to mobility. The campaign also includes in-house social media content to further spread the message of sustainable transportation options.

A recent study by Airwallex and the Centre for Economics and Business Research (Cebr) has uncovered that inefficiencies in legacy Business-to-Business (B2B) cross-border payment systems are costing Singaporean businesses approximately US$7b each year. This ‘Global Growth Tariff’ highlights the hidden costs that businesses face due to outdated payment infrastructures.

The research attributes these costs to several factors. Payment failures, which require manual intervention, result in repair fees amounting to US$420m annually in Singapore. Additionally, foreign exchange spreads and correspondent banking fees globally erode about US$6.3b in business capital each year. Slow settlement cycles further immobilise US$220m in working capital in Singapore, impacting liquidity and operational efficiency.

Firdevs Abacioglu, Head of Data Science and AI at Airwallex, stated, “Legacy payment systems are quietly draining billions from businesses that can least afford it. Payment failures, high FX fees, and slow settlement cycles don’t just hurt the bottom line — they freeze the capital businesses need to move fast in an unpredictable world.”

The study emphasises the significant impact on Singapore, a major global trade and financial hub, where these inefficiencies translate into higher costs and reduced liquidity. Liam Daly, Senior Economist at Cebr, noted, “For a globally connected economy like Singapore, these frictions translate directly into higher costs, reduced liquidity and less efficient capital allocation.”

Airwallex plans to release further research in June, which will explore how the Global Growth Tariff varies by industry and business size, providing detailed insights into sectors such as SaaS, tourism, and e-commerce.

Singapore enterprises are grappling with significant data trust challenges as they strive to adopt artificial intelligence (AI) technologies, according to a new global study by Veeam Software. The research, unveiled at VeeamON London, highlights that whilst 85% of Singapore organisations are using or piloting AI agents, all report data challenges have hindered their AI progress. Only 25% of these organisations are confident in detecting AI systems operating outside approved parameters.

The study, which surveyed 600 senior executives globally, underscores the rapid pace of AI adoption outstripping the development of governance structures. In Singapore, 70% of executives feel competitive pressure to accelerate AI, with 25% describing this pressure as “intense,” the highest in the Asia-Pacific region.

A key concern for Singapore executives is ‘Shadow AI’, with 45% citing the use of their data for external AI training as a major risk. This is significantly higher than the global average of 31%. The study also notes that 50% of Singapore’s C-suite are worried about personal data misuse and cross-border data transfer restrictions affecting AI systems.

Anand Eswaran, CEO of Veeam, stated, “Most organisations don’t have an AI adoption problem; they have an AI trust problem.” He emphasised the need for secure, governed, and resilient data to ensure safe AI scaling.

The findings suggest that Singapore’s AI ambitions are closely tied to its data-trust posture, with regulatory frameworks focusing on data stewardship. As AI systems become more autonomous, the nature of failures is shifting, necessitating precise recovery strategies to manage potential risks effectively.

Carousell has launched an innovative Neighbourhood Leaderboard in Singapore, mapping the climate impact of secondhand transactions for World Environment Day on 5 June. This interactive platform visualises carbon savings across various item categories, encouraging community engagement in sustainable practices.

The platform, accessible at impact.carousell.com, aims to make carbon data transparent, showcasing how everyday actions contribute to environmental goals. “For too long, climate metrics have been delivered as abstract, top-down numbers,” said Marcus Tan, Co-founder of Carousell. “We want to use this visibility to spark local pride and encourage more users to actively participate in circular trade.”

Key features include a Neighbourhood Leaderboard, updated daily to track potential CO₂e avoided, a Carbon Calculator for estimating savings per transaction, and Impact by Category visualisations. The platform uses a lifecycle assessment methodology developed with Vaayu, a European climate-tech firm, to ensure accurate carbon avoidance metrics.

Carousell’s initiative bridges the gap between corporate sustainability reporting and consumer actions, turning abstract data into practical tools for community benchmarking. The broader Carousell Group has reportedly avoided approximately 262 million kilograms of CO₂e in a year, equivalent to the carbon footprint of over 507,000 passengers flying from Singapore to London.

This platform not only highlights local dynamics but also encourages individuals to contribute to a circular economy by listing unused items. By doing so, Carousell hopes to make secondhand the first choice for consumers in Greater Southeast Asia.

Neolix, a leader in L4 autonomous logistics, has announced a strategic partnership with Singapore-based QuikBot Technologies to develop an end-to-end autonomous delivery solution. This collaboration will integrate Neolix’s autonomous mobility capabilities with QuikBot’s Autonomous FinalMile Delivery Platform-as-a-Service to create a seamless delivery chain from public roads to individual doorsteps.

The partnership will support Neolix’s pilot deployment in Singapore, aligning with the Ministry of Transport’s initiatives to establish a comprehensive legislative framework for autonomous vehicles. This move is part of a broader effort to transition from testing phases to full commercial operations, with autonomous public shuttles already active in residential areas and public bus trials expanding in Marina Bay and one-north.

Singapore’s mature autonomous vehicle ecosystem provides an ideal launch market. The collaboration aims to standardise the interface between public roads and building interiors, facilitating rapid deployment in other markets such as the UAE, Japan, and South Korea. Neolix has already logged over 150 million autonomous kilometres across 300 cities globally, whilst QuikBot has extensive experience in last-mile delivery, having worked with companies like FedEx.

Will Zhao, Executive President of Neolix, stated, “We are bringing proven operating experience to a market with clear regulatory expectations.” Alan Ng, CEO of QuikBot, added, “For the first time, a delivery vehicle can navigate into a building and complete handoff to the right door without human intervention.”

This partnership marks a significant step towards realising the potential of autonomous delivery systems, promising to enhance urban logistics efficiency and resilience.

Thakral Corporation Ltd has reported a significant increase in its adjusted attributable profit for the first quarter of 2026, reaching S$3.3m. This marks a more than twofold rise compared to the same period last year, largely due to a 47% surge in revenue from its Lifestyle segment, which hit S$109m. The growth was primarily fuelled by strong performances in South Asia and Greater China, with increases of 52% and 55% respectively.

Despite the impressive profit figures, Thakral faced a S$31.5n unrealised fair value loss on its investments in GemLife and The Beauty Tech Group (TBTG), attributed to broader market weaknesses in March 2026. However, both investments have shown signs of recovery in the second quarter.

The Lifestyle segment’s success is attributed to Thakral’s exclusive distributorship with DJI in South Asia and the expansion of its beauty and fragrance brands in Greater China. The company plans to continue this momentum by opening 20 to 30 DJI stores across India and South Asia over the next few years.

Looking ahead, Thakral anticipates a 25% growth in its Lifestyle segment for the full year 2026. The company is also advancing its mixed-use healthcare-led development in Gurugram, India, following the acquisition of a majority stake in TIL Investments Private Limited. CEO Inderbethal Singh Thakral expressed confidence in the company’s strategic direction, emphasising the long-term potential of its investments.

The Singapore government has announced its land sales programme for the second half of 2026, maintaining a stable supply of private housing to meet ongoing demand. PropNex highlights a significant focus on the Rest of Central Region (RCR), with four of the nine Confirmed List sites located in this sub-market. Additionally, there is a strategic adjustment in the supply of executive condominium (EC) units, reflecting recent policy changes.

The Confirmed List for 2H 2026 will offer 4,745 private homes, including 735 EC units, marking a 3.7% increase from the first half of the year. This represents the highest half-yearly supply since 1H 2025. The programme includes eight residential sites and a White site in the Jurong Lake District, with several sites moved from the Reserve List to the Confirmed List.

Kelvin Fong, CEO of PropNex, commented, “The steady supply of private housing sites indicates the government’s commitment to balancing the residential property market amid strong demand.” He noted that the ample supply suggests confidence in the underlying housing demand.

Key sites in the programme include the Town Hall Link in Jurong Lake District, which will feature a mixed-use development with 1,200 homes, and the Marina Gardens Lane site, offering 390 units. The Orchard Boulevard site, expected to yield 110 units, is also anticipated to attract interest due to its prime location.

The EC supply for 2H 2026 is set at 735 units, slightly higher than the first half, but overall lower than 2025. This measured approach likely reflects a transitional phase as the government assesses market responses to new EC measures introduced in May 2026.

CapitaLand Ascendas REIT (CLAR) has announced the acquisition of a modern logistics property at 5 Tuas Avenue 5 in Singapore for S$133.9m. The purchase, made from Hup Hin Transport Co Pte Ltd, is expected to be distribution per unit (DPU)-accretive, enhancing CLAR’s income stream with a projected DPU accretion of 0.033 Singapore cents or 0.2%.

The property, completed in 2021, is a seven-storey ramp-up logistics facility with a gross floor area of 50,160 square metres. It features direct ramp access for large container lorries and boasts a 100% occupancy rate with a weighted average lease expiry of five years. The acquisition price represents a 1.5% discount to its independent market valuation of S$136 million as of 1 February 2026.

William Tay, CEO of CapitaLand Ascendas REIT Management Limited, highlighted the strategic significance of the acquisition, stating, “5 Tuas Avenue 5 will enhance our presence in western Singapore, benefiting from structural demand drivers, including the expansion of Tuas Mega Port.”

The acquisition is part of CLAR’s broader strategy to strengthen its logistics portfolio, which will now account for approximately 26.2% of its total portfolio value of S$18.7b. The total investment cost is estimated at S$136.5m, including acquisition fees and related expenses, to be financed through equity and debt.

The transaction is expected to be completed by the second half of 2026, further solidifying CLAR’s position in the logistics sector across Singapore, Australia, the US, and the UK/Europe.

The Assembly Place (TAP) and TS Home have announced a joint venture to transform the historic Phoenix Park in Singapore into the country’s largest community living destination. The development will feature over 700 co-living units integrated with wellness, food and beverage (F&B), and sports facilities, marking the most ambitious project in Singapore’s co-living sector to date.

Located at 300-320 Tanglin Road, Phoenix Park spans 610,487 square feet and includes colonial-era buildings. The site, a historic landmark since 2012, will be redeveloped into a vibrant community hub. TAP’s Executive Director and CEO, Eugene Lim, stated, “Phoenix Park is not just a real estate project — it is an opportunity to redefine what community living means in Singapore.”

The joint venture, TSTAPPRH Pte. Ltd., will oversee the site’s operational management. TAP holds a 39% stake in the venture, whilst TS Home holds the master tenancy awarded by the Singapore Land Authority. The project is TAP’s third collaboration with TS Home, following successful projects like Singapore’s first intergenerational co-living residence.

The redevelopment will include wellness facilities, sports amenities, and F&B outlets, aiming to create a fully integrated live-work-wellness ecosystem. TS Home’s Director and COO, Oh Boon Shi, emphasised the project’s commitment to delivering a vibrant community living destination.

With the addition of Phoenix Park, TAP strengthens its portfolio towards its target of 10,000 keys by 2030, addressing the growing demand for flexible and connected living solutions in Singapore.