Industry News

Singapore’s non-oil domestic exports (NODX) saw a 24.2% year-on-year increase in July, according to UOB Global Economics and Markets Research. This growth, however, fell short of Bloomberg’s 26.5% forecast but exceeded UOB’s 22.8% estimate. The rise was primarily fuelled by a significant surge in electronics exports, which jumped 112% compared to the previous year, highlighting the impact of artificial intelligence (AI) on consumer devices.

Electronics exports experienced an 11.6% month-on-month increase, with personal computer exports soaring by 34.9% and telecommunications equipment by 17.8%. In contrast, integrated circuit exports declined by 9.9%. Non-electronics exports remained subdued, with only a 0.6% rise, despite gains in pharmaceuticals and petrochemicals.

The demand for electronics was particularly strong in markets embedded in the semiconductor value chain, such as the United States, Taiwan, and South Korea. Additionally, other markets like Thailand, India, Indonesia, and the EU27 showed increasing momentum, reflecting growing consumer demand and AI adoption among businesses.

AI-related exports are expected to continue driving growth in the second half of 2026. The July electronics Purchasing Managers’ Index (PMI) improved to 52.4, indicating resilient demand. However, the export outlook faces challenges from potential tariff enforcement, as highlighted in a recent White House report on transshipment activities.

The ongoing capital expenditure commitments by major technology firms are anticipated to support demand for AI-related hardware and peripherals through 2027, despite the looming tariff concerns.

Asia-Pacific commercial real estate investment reached US$53.5b in the second quarter of 2026, marking a 31.1% increase year-on-year, according to Knight Frank’s latest report. This growth, despite a 22.5% decline from the record first quarter, highlights a shift towards more disciplined capital deployment focusing on assets with strong income visibility and value-add opportunities.

Hotel investments led the sector growth, totalling US$5.4b in Q2, a 55.2% rise from the previous year. The surge is attributed to a recovering tourism sector and strategic investments in refurbishment and rebranding. Notable transactions included CapitaLand Investment’s US$243.1m acquisition of Voco Seoul Myeongdong and Wentworth Capital’s US$269.2m purchase of two Sydney hotels.

Cross-border investments also played a significant role, with US$12.5b invested in the region, accounting for 23.4% of the total volume. Japan attracted US$5b, maintaining its position as a core market despite interest rate hikes. Singapore followed with US$3b, driven by significant transactions like IOI Properties Group’s US$1.9b acquisition of Asia Square Tower 2.

Christine Li, Head of Research at Knight Frank, noted that whilst the Q2 results underscore the region’s investment recovery, future growth will likely focus on quality assets and large-scale execution opportunities. The outlook for the second half of 2026 remains positive, with transaction volumes exceeding both year-earlier levels and the five-year Q2 average, driven by pricing alignment and strategic value-add initiatives.

The Maritime and Port Authority of Singapore (MPA), in collaboration with industry partners, has unveiled several initiatives aimed at enhancing maritime safety. Announced during the 13th Singapore Safety@Sea Week, these measures focus on shared learning, strengthening operational capabilities, and preparing for the safe adoption of new technologies.

Senior Minister of State for Law and Transport, Murali Pillai, emphasised the importance of responsible technology use, early risk preparation, and maintaining a people-centric safety approach. He also highlighted the need for strong partnerships within the maritime community to foster a robust safety culture.

The Safety@Sea Week, running from 17 to 21 August, features 18 events, including the Safety@Sea Symposium and workshops on ammonia and methanol bunkering, as well as crew safety awareness. Approximately 1,500 participants are expected to attend.

A key initiative is the Singapore Near Miss Reporting System, launched by the National Maritime Safety at Sea Council and the Singapore Shipping Association. This system, modelled on the UK’s Confidential Human Factors Incident Reporting Programme (CHIRP), allows confidential reporting of near misses, with anonymised data shared to enhance safety practices.

Additionally, MPA has operationalised the Integrated Port Operations Command, Control and Communications (IPOC) system, developed with the Defence Science and Technology Agency and ST Engineering. IPOC integrates live data to improve situational awareness and decision-making in Singapore’s busy port waters.

A memorandum of understanding with Ocean Infinity was also announced to test autonomous and remote marine operations, aiming to safely introduce these technologies in Singapore’s port waters.

The week also recognised industry contributions, with MPA Chief Executive Ang Wee Keong presenting Safety@Sea Awards to nine companies for their 2025 search and rescue efforts.

Hong Lai Huat Group Limited has announced a return to profitability in the first half of the financial year 2026, achieving a net profit of S$1.1m. This marks a significant turnaround from the S$1.5m loss recorded in the same period last year. The company’s recovery is attributed to the complete divestment of its Cambodian agriculture division and a strategic shift towards generating steadier returns from existing operations.

The group’s revenue more than doubled year-on-year, driven by recurring rental income from investment properties and the sale of marble blocks. During this period, Hong Lai Huat returned S$2.8m to shareholders through share buy-backs, resulting in an increase in net asset value per share to 23.61 Singapore cents. The company maintains a healthy balance sheet with S$19.7m in cash and minimal gearing, whilst two land parcels remain at the design stage, awaiting favourable market conditions.

Dylan Ong Jia Jing, Executive Director and Chief Strategy Officer, stated, “The past few years have been demanding for our Cambodian operations, and our focus through that period has been on protecting the Group rather than pursuing growth for its own sake.” He emphasised the company’s cautious approach, saying, “We would rather move at a measured pace and preserve the Group’s financial position than force activity into an unreceptive market.”

Looking ahead, Hong Lai Huat plans to launch a new project when market conditions improve, continuing its strategy of cost control and rental income generation.

Medi Lifestyle has signed a non-binding term sheet to acquire a 60% stake in EM2AI, a Singapore-developed dental AI platform, from Q & M Dental Group. The acquisition, valued at approximately S$6.76m, will be completed through the issuance of 138 million new ordinary shares in Medi Lifestyle at S$0.049 each. This strategic move aims to integrate technology-enabled healthcare into Medi Lifestyle’s offerings, leveraging EM2AI’s live clinical deployment and potential for commercialisation across dental networks.

The proposed transaction includes profit targets of S$1m, S$1.5m, and S$2.5m for the financial years 2027, 2028, and 2029, respectively. Medi Lifestyle plans to conduct a fundraising exercise through private placement to support its business expansion and strategic growth initiatives.

According to Tan Lee Seng, Executive Director and CEO of Medi Lifestyle, “EM2AI gives Medi Lifestyle a clear entry point into technology-enabled healthcare. Its technology has progressed from research into a live dental network, where AI supports X-ray assessment and clinical workflows. We see an opportunity to combine EM2AI’s dental and engineering capabilities with Medi Lifestyle’s capital base, operating support, and regional ambitions.”

This acquisition marks a significant step for Medi Lifestyle as it seeks to enhance its technological capabilities and expand its footprint in the healthcare sector. The integration of EM2AI’s platform is expected to bolster Medi Lifestyle’s position in the market, offering innovative solutions to dental networks.

DayOne Data Centres Limited has launched Singapore’s first Biological Data Centre Prototype in partnership with Cortical Labs and the Yong Loo Lin School of Medicine at the National University of Singapore (NUS Medicine). This pioneering initiative aims to advance biological computing as a more adaptive and energy-efficient alternative to traditional silicon-based systems. The launch event featured a live demonstration of Cortical Labs’ CL1 biological computing system, showcasing its potential to scale AI capacity with reduced power consumption.

The prototype leverages living neurons grown from stem cells, integrated with silicon hardware, to process information. This innovative approach allows the system to perform computing tasks using significantly less energy than conventional digital computers. The collaboration draws on NUS Medicine’s neurobiology expertise, Cortical Labs’ technology, and DayOne’s digital infrastructure capabilities. Areas of exploration include neuro-inspired AI, biomedical modelling, drug discovery, and neurological disease research.

Jamie Khoo, CEO of DayOne, emphasised the project’s alignment with Singapore’s sustainability and AI ambitions, stating, “This prototype is a step toward demonstrating that scaling compute and reducing resource intensity are goals we can pursue together.” Hon Weng Chong, CEO of Cortical Labs, highlighted the potential for biological computing to supplement AI in areas such as drug discovery and cybersecurity.

The initiative supports Singapore’s Green Data Centre Roadmap, which aims to enhance energy efficiency as AI and cloud workloads expand. DayOne’s commitment to Singapore includes the development of its first local data centre, SG1, and a Global Operations Command Centre, both set to bolster the country’s position as a leader in sustainable computing.

Singapore’s branded residences market is poised for significant growth, with luxury brands expected to dominate 75% of the pipeline, as per Savills’ latest report. The market, which ranks 11th in the Asia Pacific region, is forecast to expand by 29% by 2032. This growth highlights Singapore’s unique position in the region, where only 48% of pipeline projects are luxury-focused.

The limited supply and exclusivity of branded residences in Singapore have been key factors in maintaining its ultra-prime market status. Globally recognised luxury brands such as St. Regis, Ritz-Carlton, and Aman are reinforcing this position. Despite the diversification seen in the broader Asia Pacific market, Singapore’s focus remains firmly on high-end developments.

Across Southeast Asia, the demand for resort-led developments is shaping the branded residences landscape. Vietnam is leading the charge with a projected 152% increase in projects by 2032, whilst Thailand continues to be a major player. Resort destinations like Phuket and Bali are attracting affluent buyers seeking second homes that offer lifestyle and investment opportunities.

Savills anticipates further growth in integrated hotel-and-residential developments, which provide shared amenities and lifestyle services. Louis Keighley, head of Savills Global Residential Development Consultancy, noted, “Asia Pacific remains a key growth engine for branded residences, but its next chapter will be defined by the breadth of its markets, not the scale of its leading ones.”

As the market evolves, Singapore’s scarcity of high-quality branded schemes and concentration of luxury brands ensure its continued appeal to discerning buyers.

Q & M Dental Group (Singapore) Limited has announced a significant financial performance for the first half of 2026, with a 27% increase in net profit after tax compared to the same period in 2025. The group’s revenue rose by 13% to $99.5m, whilst the profit after tax from its core dental business increased by 10% to $15m. The earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw a rise of 19%, reaching $19.2m.

The group attributed its robust performance to the expansion of its operations, including the addition of five new outlets in Singapore. This growth has enabled the core dental business to become self-sustaining. The company has also declared a first interim dividend of 0.40 cent per share, payable on 4 September 2026.

Dr Ng Chin Siau, Group CEO of Q & M Dental Group, highlighted the strategic agreements signed in Australia and Thailand as pivotal for extending the company’s platform across the Asia-Pacific region. “We are building a business for the next decade, not for the next six months,” he stated, emphasising the long-term vision of the group.

Looking ahead, Q & M Dental Group plans to focus on completing and integrating these international transactions whilst continuing its disciplined growth in Singapore, Malaysia, and the People’s Republic of China. The group’s strategic initiatives are set to bolster its position in the regional dental healthcare market.

Sasseur Asset Management Pte. Ltd. (SAMPL), the manager of Sasseur Real Estate Investment Trust (Sasseur REIT), has announced a 10.2% year-on-year increase in distribution per unit (DPU) for the first half of 2026, reaching 3.366 Singapore cents. This performance is attributed to a 7.4% rise in portfolio sales and reduced finance costs.

The Entrusted Management Agreement (EMA) rental income also saw a 6.8% year-on-year increase, contributing to the robust earnings growth. The weighted average cost of debt was reduced to a record low of 3.7%, further bolstering financial performance.

Despite challenges in China’s consumer environment, Sasseur REIT benefits from ongoing policy support for domestic consumption. Vito Xu, Chairman of SAMPL, stated, “As consumers increasingly seek quality products at compelling value, Sasseur REIT remains well-positioned to capture sustainable long-term growth.” He emphasised the importance of Sasseur Group’s support through its outlet operating platform, brand relationships, and disciplined capital allocation.

The company remains focused on enhancing competitive advantages through operational excellence, innovation, and customer-centric initiatives. With a resilient portfolio, prudent balance sheet, and experienced management team, Sasseur REIT is committed to delivering sustainable long-term value to its unitholders.

Olam Group Limited has reported a remarkable 488.7% increase in its Profit After Tax and Minority Interest (PATMI) for the first half of 2026, reaching $1.9b. This surge is largely attributed to a one-off gain of $1.75b from the disposal of a 44.58% stake in Olam Agri and a 100% interest in Mindsprint, alongside a fair value gain on the valuation of the put and call option for the remaining stake in Olam Agri.

The company’s revenue, however, saw an 18.3% decline to $12.5b, primarily due to reduced input prices in its food ingredients business, particularly cocoa and coffee, and lower volumes in Olam Global Holdings (OGH). Despite these challenges, Olam’s Executive Director and CEO of ofi, A. Shekhar, highlighted the resilience of their integrated business model, noting stable earnings and improved capital efficiency.

Olam’s net gearing has significantly decreased from 2.09 times to 0.93 times, thanks to de-leveraging efforts from divestment proceeds and reduced working capital-related debt. The Board has declared a total dividend of 7.0 pence per share, comprising an interim ordinary dividend of 1.0 pence and a special dividend of 6.0 pence.

Looking ahead, Olam Group remains focused on long-term growth and capital efficiency, with plans to continue its divestment programme. CFO Venkataraman Krishnan stated, “Our financial results today reflect a less complex, more focused and financially stronger business.”

The company anticipates ongoing market volatility due to geopolitical developments and macroeconomic conditions but remains committed to disciplined capital allocation and strategic asset evaluation to enhance returns and improve earnings resilience.