Industry News

Singtel, Singapore’s leading telecom provider, is projected to reach a stock price of S$5.04 within a year, according to a recent report by DBS. This forecast represents a 23% increase from its last traded price of S$4.11 on 21 August 2025. The anticipated growth is attributed to a renewed correlation between Singtel’s stock price and the market value of its associates, alongside sector consolidation in Singapore’s telecom industry.

The report highlights that Singtel’s core business, which contributes approximately 50% to its core earnings before interest and taxes (EBIT), is expected to benefit from sector consolidation in the next nine to 15 months. This consolidation is anticipated to renew growth in Singtel’s Singapore telco operations, which currently account for about 10% of the group’s profit.

DBS analyst Sachin Mittal notes that the correlation between Singtel’s share price and its associates’ market value has revived to 63% over the past year, suggesting a potential reduction in the holding company discount from 24% to below 10%. This revival is partly due to improved core EBIT and strategic divestments.

Singtel’s geographical diversification, with significant stakes in telecom associates across India, Indonesia, the Philippines, and Thailand, contributed over 64% of its group operating profit in FY25. The company is also expected to accelerate core EBIT growth through investments in data centres and GPU as a Service.

However, potential risks include a decline in the Australian dollar or increased competition in Australia, which could impact Optus, Singtel’s Australian subsidiary. Despite these challenges, Singtel’s earnings are projected to grow at a compound annual growth rate of 12% over FY25-27, supported by a 4.7% yield and buyback initiatives.
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SATS, a leading global aviation services and food solutions provider, has reported a 20% year-on-year increase in its core profit after tax and minority interests (PATMI) for the first quarter of the financial year 2026. This growth, amounting to $51.5m (S$70.5m), was primarily fuelled by robust air cargo volumes and enhanced yields, despite global trade uncertainties.

The company’s revenue rose by 9.9% year-on-year to $1.1b (S$1.5b), with significant contributions from its Gateway segment. Cargo handling and ground handling revenues increased by 12.2% and 9.2% respectively. SATS has successfully outpaced industry cargo volumes for seven consecutive quarters, gaining market share through new contracts and expanded services with existing clients.

SATS’ Food Solutions segment also saw a 5.6% rise in revenue, driven by increased aviation food volumes and higher non-aviation food average selling prices. The company is optimising its operations by shifting its Singapore kitchen model to an assembly-driven operation, which is expected to enhance efficiency and reduce capital expenditure.

Looking ahead, SATS anticipates continued growth in its core net profit for FY26 and FY27, with expectations of mid-single digit growth in cargo tonnage. The company is also focused on reducing its debt, targeting a $146.2m (S$200m) reduction in FY26, which is expected to lower financing costs and support further profit growth.

Despite potential risks from global economic instability and trade disruptions, SATS remains optimistic about its growth prospects, maintaining a “BUY” recommendation with a raised target price of $2.78 (S$3.80).
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Ascentium, a global business services platform based in Singapore, has announced a partnership with INSEAD, a leading graduate business school, to launch the Ascentium-INSEAD Leadership Development Programme. This initiative, aimed at developing Ascentium’s C-suite executives, will run from 25 to 29 August 2025 at INSEAD’s Asia Campus in Singapore. The programme is designed to build a resilient leadership pipeline by focusing on strategic growth and innovation in a rapidly changing world.

The curriculum, crafted in collaboration with INSEAD’s Global Private Equity Initiative, will cover themes such as strategic growth in a VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) environment, stakeholder expectations, and technological innovation. Participants will engage in workshops, simulations, and case studies to enhance their leadership skills.

Lennard Yong, Founding Management and Group CEO of Ascentium, stated, “As we navigate the complexities of the Fourth Industrial Revolution, marked by rapid technological change and macroeconomic uncertainty, our partnership with INSEAD is a strategic step to future-proof our leadership.” He emphasised the company’s commitment to investing in its leadership to achieve competitive excellence.

Professor Philipp Meyer-Doyle, Programme Director for Ascentium at INSEAD, praised Ascentium’s growth and dedication to human capital development. He noted, “Ascentium’s leaders have a clear vision and strategy to achieve it, as well as a proven track record in doing so.”

This programme marks the beginning of a multi-year partnership between Ascentium and INSEAD, reflecting a long-term commitment to professional development and a culture of excellence.
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Katrina Group Ltd. and Lotte GRS Co., Ltd. have officially signed Franchise and Development Agreements to introduce Korea’s popular hamburger chain, Lotteria, to Singapore. The first outlet is expected to open by February 2026, promising to add a new flavour to the local fast-food scene.

The signing ceremony, held at Lotte World Tower, saw key figures from both companies, including Lotte GRS executives Lee Kwon hyoung, Shin Yoo-yeol, and Cha Woo-chul, alongside Katrina Group’s Alan Goh and Krystal Goh. This partnership builds on a strategic collaboration announced in October 2024, aiming to establish multiple Lotteria outlets across Singapore.

Alan Goh, CEO of Katrina Group, expressed enthusiasm about the venture, stating, “We are proud to take this next step with Lotte GRS in bringing Lotteria to Singapore. The official signing of the Franchise and Development Agreements marks a major milestone in our journey to introduce a dynamic and globally respected brand to our market.”

Lotteria, founded in 1979, is renowned for its Korean-style burgers and innovative menu, operating over 1,300 outlets in South Korea and 320 internationally. Its entry into Singapore is anticipated to enhance the nation’s vibrant fast-food and Korean dining landscape.

Cha Woo Chul, CEO of Lotte GRS, highlighted the synergy between the two companies, noting Katrina Group’s strong track record in managing successful F&B brands in Singapore. The partnership is expected to leverage Katrina Group’s local expertise and Lotteria’s brand identity to drive growth.

Further details about Lotteria’s first Singapore outlet will be announced as the opening date approaches.
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OUE REIT Management Pte. Ltd., managing OUE Real Estate Investment Trust (OUE REIT), has announced the successful acquisition of its first green loan, a S$600m facility, alongside S$225m in revolving credit and a S$5m bank guarantee. This financing, secured through a joint venture with OUE Allianz Bayfront LLP, aims to refinance existing facilities due in 2026 and support general corporate purposes. The green loan, coordinated by DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited, follows OUE Bayfront’s upgrade to a BCA Green Mark Platinum certification.

The refinancing will lower the weighted average cost of debt to 4.1% per annum by 30 June 2025, down from 4.2%, and extend the average debt term from 2.7 to 2.9 years. Only 22.5% of OUE REIT’s total debt will be due in 2026 post-refinancing. CEO Han Khim Siew highlighted the strategic advantage, stating, “This timely refinancing allows OUE REIT to capitalise on our green credentials and the recent decline in the Singapore Overnight Rate Average to achieve significant interest cost savings.”

The transaction marks a significant step in OUE REIT’s sustainability journey, with green and sustainability-linked financing now comprising 86.1% of its total borrowings. Elaine Lam of OCBC emphasised the importance of this milestone, noting, “This milestone attests to OUE REIT’s commitment as a forward-looking REIT to continually set new benchmarks in sustainable building practices.”

This refinancing not only optimises borrowing costs but also aligns with OUE REIT’s broader sustainability goals, setting a precedent for future financial strategies.
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Frasers Centrepoint Asset Management Ltd., the manager of Frasers Centrepoint Trust (FCT), has announced the divestment of ten strata lots at Yishun 10, Singapore, to Lion (Singapore) Pte. Limited, a subsidiary of Frasers Property Limited. The sale, valued at S$34.5m, was finalised on 25 August 2025 and is based on independent valuations by Jones Lang LaSalle Property Consultants and Savills Valuation and Professional Services.

The divestment aligns with FCT’s strategy to optimise its portfolio and enhance returns for its unitholders. The net proceeds of approximately S$33.8m, after accounting for related expenses and tenant security deposits, will be used to repay debt, thereby reducing FCT’s leverage and strengthening its financial position. The properties, acquired in 2016, are part of a retail development next to Northpoint City and have a total gross floor area of 966 square metres.

The transaction is classified as an “interested person transaction” under Singapore Exchange rules due to the Purchaser’s relationship with the Sponsor, Frasers Property Limited. However, it does not require unitholder approval as it falls below the threshold necessitating such consent. The Audit, Risk and Compliance Committee of the Manager has confirmed that the terms of the divestment are in line with market standards and not prejudicial to minority unitholders.

This strategic move is part of FCT’s ongoing efforts to manage its property portfolio proactively, ensuring that assets are divested when it benefits unitholders, and proceeds are reinvested in line with investment criteria.
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UOB Kay Hian Research has initiated coverage on Dezign Format Group, an event management company, with a “buy” recommendation and a target price of $0.27 (S$0.37). This represents a 21.3% upside from its current share price of $0.22 (S$0.305). The company, known for its design, fabrication, and project management services, is expected to see core earnings growth of 20% in 2025 and 16% in 2026, driven by the rising demand in the meetings, incentives, conferences, and exhibitions (MICE) industry and the popularity of experiential events.

Dezign Format Group boasts a robust orderbook of $17.5m (S$24m) as of 31 December 2024, which is anticipated to support its earnings growth. The company has a strong track record, having worked with high-profile clients such as Burberry, Dior, and Singapore Airlines. It has completed notable projects including the Marina Bay Sands Lunar New Year 2024 and the IKEA Alexandra Store Interior Fit-Out.

The company is also expanding into the immersive location-based entertainment (LBE) segment, with new virtual reality projects planned across Southeast Asia. Dezign’s Malaysia production hub, expected to be operational by the end of 2025, is set to enhance delivery and cost efficiency.

With a high-margin, cash-generative business model, Dezign Format Group is well-positioned for future growth. The company’s net cash position is projected to reach $8.2m (S$11.2m) by August 2025, bolstered by $3.5m (S$4.8m) in net IPO proceeds. UOB Kay Hian highlights the company’s strong fundamentals, noting its superior net margin of 14.4% and a dividend yield of around 4% for 2026.
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The Singapore Department of Statistics has reported a 0.4% decrease in the Consumer Price Index (CPI) for July 2025 compared to the previous month. However, on a year-on-year basis, the CPI increased by 0.6%. This dual movement in the CPI reflects the ongoing economic adjustments within the country.

The monthly decline in the CPI suggests a temporary easing in consumer prices, which could be attributed to various factors such as changes in demand or supply chain adjustments. Conversely, the annual increase indicates a longer-term trend of rising prices, which may impact household budgets and purchasing power.

The CPI is a crucial indicator of inflation, measuring the average change over time in the prices paid by consumers for goods and services. Understanding these fluctuations is vital for policymakers and businesses as they navigate economic planning and strategy.

The Singapore Department of Statistics continues to provide detailed insights into these economic indicators through its SingStat Table Builder and the enhanced SingStat Mobile App. These tools offer users access to comprehensive data and improved features for better analysis and understanding of Singapore’s economic landscape.

For more detailed information, the full press release is available on the Singapore Department of Statistics website. As Singapore continues to monitor its economic indicators, these insights will play a significant role in shaping future economic policies and strategies.
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KSH Holdings Limited has announced that its wholly-owned subsidiary, Kim Seng Heng Engineering Construction (Pte) Ltd, has accepted a Letter of Acceptance for a new construction project. This development boosts the Group’s construction order book in Singapore to approximately S$315m. The order book is anticipated to contribute to the Group’s financial results up to the financial year ending 31 March 2027.

The Group is actively pursuing several tenders to further increase its order book. This strategic move is part of KSH Holdings’ ongoing efforts to strengthen its market position and financial performance in the construction sector.

Choo Chee Onn, Executive Chairman and Managing Director of KSH Holdings, confirmed the update, stating that the company is committed to expanding its project portfolio. The acceptance of the new project underscores the Group’s capability and ambition to secure significant contracts within the industry.

The announcement reflects KSH Holdings’ proactive approach to business growth and its focus on enhancing shareholder value through strategic project acquisitions. As the Group continues to bid for additional projects, it aims to further solidify its presence in the Singaporean construction market.
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Federal Express Corporation, a leading express transportation company, has made significant strides in its sustainability initiatives in Singapore and other countries in the Asia Pacific during Fiscal Year 2025. The company expanded its electric vehicle fleet and increased employee participation in community programmes, aligning with its goal to achieve carbon-neutral operations by 2040.

FedEx has bolstered its electric vehicle presence in key markets such as Japan, New Zealand, Singapore, and Thailand. Notably, it introduced its first fleet of electric cargo vans in Korea to enhance delivery operations in Seoul and Busan. This expansion is part of FedEx’s strategy to reduce emissions, as vehicles accounted for 25% of its carbon footprint in FY24.

The company is also integrating renewable energy into its facilities. The South Pacific Regional Hub in Singapore now sources over half of its electricity from solar power, showcasing FedEx’s commitment to clean energy.

Community engagement has seen a 20% increase in volunteer participation. FedEx employees have planted over 3,400 trees and contributed more than 1,000 hours to the FedEx Cares Purple Tote Campaign, impacting over 1,600 beneficiaries. The 2025 Library Programme has reached 40 schools in China, benefiting approximately 9,000 children and teachers.

FedEx continues to invest in future talent through the International Trade Challenge, which attracted 4,700 students this year. This initiative encourages young entrepreneurs to develop strategies for a circular economy.

FedEx’s 2025 Corporate Responsibility Report, detailing these achievements, is now available, reflecting the company’s ongoing commitment to sustainability and community empowerment.
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