Industry News

Raffles Education Limited has announced the completion of its property disposal at 51 Merchant Road, generating net cash proceeds of S$121.3m. This strategic move, approved by shareholders earlier this month, is set to enhance the company’s balance sheet and support its expansion strategy across ASEAN markets, including Malaysia, Thailand, and Indonesia. The company also declared a tax-exempt special interim dividend of 0.4 Singapore cents per share, with the record date set for 9 March 2026.

The proceeds from the sale will primarily be used to repay the majority of the Group’s bank loans, significantly reducing interest expenses and strengthening its financial position. Additionally, S$12.25m of non-convertible bonds will be redeemed, further contributing to interest savings. The company aims to utilise the capital to accelerate growth initiatives in key ASEAN markets.

In Malaysia, Raffles Education plans to expand its Raffles American School and Raffles University in Iskandar, focusing on increasing enrolment and launching new programmes. In Thailand, the company will expand its Raffles American School in Bangkok to accommodate more students. Meanwhile, in Indonesia, a new premium K-12 school is set to open in Jakarta, targeting high-income households and expatriate communities.

Chew Hua Seng, Chairman and CEO of Raffles Education, stated, “The completion of the sale marks a key milestone in optimising our capital and providing the Group with the agility and means for expansion without reliance on external borrowings.” The company’s strategic focus remains on leveraging its established brand and operational expertise to drive growth across the region.

RHB Bank has announced that it is maintaining its full-year industrial production (IP) projection for Singapore at 4.0% for 2026. This decision is supported by a strong global and domestic economic environment, according to Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank. The projection aligns with the non-oil domestic exports (NODX) and gross domestic product (GDP) growth forecasts of 3.0%, with potential upside risks.

Singapore’s IP experienced a significant surge of 16.6% year-on-year in January, marking an increase from the revised 10.9% growth in December. This performance surpassed both Bloomberg’s forecast of 11.6% and RHB’s own projection of 9.5% year-on-year growth. The robust performance in January highlights the resilience of Singapore’s manufacturing sector amidst a challenging global landscape.

Despite the optimistic outlook, RHB remains cautious about external risks, particularly the uncertainties surrounding recent US tariff developments. These could potentially impact Singapore’s manufacturing and trade activities throughout the year. The report suggests that whilst the current economic indicators are favourable, vigilance is necessary to navigate the evolving global trade environment.

The report underscores the importance of monitoring external factors that could influence Singapore’s economic trajectory. As the year progresses, the interplay between global economic conditions and domestic performance will be crucial in determining the actual outcomes for Singapore’s manufacturing sector.

Soilbuild Construction Group Ltd. has announced a record net profit of S$63.6m for the financial year ending 31 December 2025, marking a 139.4% increase from the previous year. This achievement is attributed to robust growth in its Construction and Precast & Prefabrication divisions, which saw revenue increases of 49.2% and 54.4% respectively. The company’s order book now exceeds S$1.07b, ensuring strong revenue visibility moving forward.

The group’s gross profit doubled to S$93.2m, supported by a higher gross profit margin of 15.8%. Executive Director and CEO Lim Han Ren highlighted the company’s operational excellence and strategic focus as key drivers of this success. “FY2025 stands out as a landmark year, with our financial results highlighting nearly five decades of the Group’s progress and achievements,” he stated.

Soilbuild Construction’s balance sheet has strengthened significantly, with total assets reaching S$408.8m and cash reserves increasing to S$153.3m. The company generated S$157m in positive cash flow from operations, reflecting disciplined working capital management.

In recognition of its financial performance, the company has proposed a final dividend of 2.5 cents per share, raising the total dividend payout to 31.2% of net profit, a notable increase from the previous year’s 18.7%. Lim expressed the company’s commitment to delivering sustainable value, stating, “The FY2025’s dividend payout ratio of over 30% of net profits reflects our appreciation for our shareholders’ support.”

Looking ahead, Soilbuild Construction plans to continue its focus on safety, cost management, and innovation to drive long-term value for shareholders and stakeholders.

Singapore and Norway have officially implemented the European Free Trade Association (EFTA) Singapore Digital Economy Agreement, marking a significant step in enhancing digital trade between the two nations. This agreement, which came into force recently, is designed to facilitate seamless digital transactions and strengthen economic ties.

The agreement focuses on several key areas, including the removal of barriers to digital trade, the promotion of cross-border data flows, and the enhancement of consumer trust in digital transactions. By addressing these areas, the agreement aims to create a more conducive environment for businesses to operate digitally across borders.

Minister-in-charge of Trade Relations Grace Fu said, “The swift entry into force of the ESDEA underscores Singapore and the EFTA States’ strong commitment to fostering a secure and trusted environment for digital trade. This agreement will unlock new opportunities for companies on both sides and strengthen Singapore’s role as a leading hub for digital innovation and trade.”

The implementation of this agreement is expected to benefit various sectors, including e-commerce, financial services, and technology. It is anticipated that businesses in both Singapore and Norway will experience increased efficiency and reduced costs in digital transactions.

HSBC Singapore has announced the appointment of Ying Wang as Head of Distribution, International Wealth and Premier Banking, and Irene Zeng as Managing Director, Head of Business Development, China Corridor, Corporate and Institutional Banking. These strategic appointments aim to enhance HSBC’s China corridor proposition, supporting Chinese businesses and entrepreneurs as they expand into Singapore and the ASEAN region.

Singapore serves as a crucial hub for Chinese enterprises seeking regional and international opportunities. The new appointments underscore HSBC’s commitment to facilitating growth for Chinese businesses through integrated banking, trade, and wealth solutions. Wong Kee Joo, CEO of HSBC Singapore, highlighted Singapore’s role as a leading trade and business hub, stating, “Irene and Ying bring deep expertise in developing the China corridor, strengthening our ability to serve this fast-growing client segment and connect them to new engines of growth across the region.”

The appointments are part of HSBC’s broader strategy to leverage Singapore’s position as a springboard into Southeast Asia, providing a multi-corridor hub for global expansion. By reinforcing its leadership team, HSBC aims to better serve the needs of Chinese companies and their owners, helping them capture growth opportunities across ASEAN.

LMS Compliance has announced a significant 32.5% increase in revenue for the financial year 2025, reaching RM33.63m. The company’s net profit also saw a substantial rise, growing by 29.8% to RM6.76m. This growth is attributed to the company’s strategic shift from a traditional laboratory testing firm to a comprehensive Environmental, Social, and Governance (ESG) assurance platform.

The Executive Director and CEO of LMS Compliance, Louis Ooi, highlighted the company’s operational discipline and strategic expansion as key drivers of this robust performance. He stated, “This strong performance reinforces our strategic shift from a traditional laboratory testing company to a comprehensive ESG assurance platform, powered by regulation-led growth.”

In addition to its financial success, LMS Compliance has proposed a final cash dividend of 1.00 Singapore cent per share, increasing the total dividend payout to S$1.37m. This move underscores the company’s commitment to rewarding shareholders whilst reinvesting for sustainable growth.

The strategic acquisition of ACC and the establishment of MY CO2 Inspection have expanded LMS Compliance’s capabilities into the novel food sector and electric vehicle and goods inspection services. As global regulatory standards evolve, the company is well-positioned to capture emerging opportunities and accelerate scalable growth.

Looking ahead, LMS Compliance aims to continue delivering enduring value to its stakeholders, leveraging its strengthened position in the ESG assurance market.

Colliers has provided insights into the 2026/27 Land Sale Programme, highlighting a cautious forecast for land revenue at $18b, down from the previous year’s $21b estimate. This adjustment reflects the government’s alignment with current market conditions and expected tender responses. The programme includes inviting Expressions of Interest for developing post-secondary student hostels on three sites, with potential public tenders as early as next financial year.

Eric Tsang, Acting Head of Valuation & Advisory Services at Colliers, noted that the 2025/26 financial year saw land revenue of approximately $17.5b, about 83.3% of the original estimate. This was due to limited land sale sites and smaller site scales. The forecast for the coming year remains cautious, considering market conditions and the pace of land disposal.

Elliott Hau, Head of Financing Valuation, highlighted the release of 13 residential sites in collaboration with the MTR Corporation and Urban Renewal Authority. These include sites in Stanley, Sai Kung, and Tung Chung Area 106A, carried over from the previous programme, and new sites in Shek Mun, Ho Man Tin, and the Northern Metropolis. The distribution aligns with the government’s future development plans.

Alvin Leung, Senior Director, mentioned the potential tendering of luxury residential sites at Cape Road in Stanley and Clear Water Bay Road in Sai Kung. These sites, previously untendered due to subdued market sentiment, may be launched to capitalise on the recovery in the luxury property market.

The continued suspension of commercial land sales aligns with expectations, given the elevated Grade-A office vacancy rate of 17.5%. The market requires more time to absorb recent supply, despite improved sentiment and leasing activity.

The Business Receipts Index (BRI) for Singapore’s services industries, excluding wholesale trade, retail trade, accommodation, and food services, showed a 3.6% increase year-on-year in the fourth quarter of 2025. This growth was primarily driven by the recreation and personal services sector, which saw a 9.2% rise in revenue, largely due to the arts, entertainment, and recreation segments, including gaming.

The professional services industry also contributed significantly, with a 6.1% increase in turnover, boosted by advertising, market research, and research and development activities. In contrast, the transportation and storage sector experienced a 3.5% decline in receipts, mainly due to reduced performance in shipping and freight transport arrangement services.

Quarter-on-quarter, the BRI recorded a 3.3% rise in business receipts, although the education and health and social services sectors saw declines of 4.6% and 0.7%, respectively. The professional services industry showed a robust 9.1% growth, driven by head offices and management consultancies, whilst the real estate sector reported a 3.6% increase in earnings.

The BRI, compiled quarterly, provides insights into the short-term performance of the services industries, guiding business decisions and policy choices. The index is based on data from over 11,000 enterprises and reflects changes in business or operating revenue. As the services sector continues to evolve, the BRI remains a crucial tool for understanding industry trends and economic health.

CapitaLand Ascendas REIT (CLAR) has announced its strategic entry into Spain’s logistics sector with the acquisition of six prime logistics assets for approximately S$185.4m. This acquisition marks CLAR’s first foray into Spain, specifically targeting the major logistics hubs of Madrid and Barcelona. The transaction is expected to enhance CLAR’s distribution per unit (DPU) by 0.1% on a pro forma basis, with a first-year net property income yield of 6.3% pre-transaction costs.

The newly acquired portfolio includes two Grade A logistics properties in Madrid and four in Barcelona, all strategically located along key transport corridors. William Tay, CEO and Executive Director of CapitaLand Ascendas REIT Management Limited, stated, “Our first acquisition in Spain deepens CLAR’s presence in the UK/Europe and enhances the scale, quality, and geographic diversification of our logistics portfolio.”

The acquisition aligns with CLAR’s strategy of investing in modern, well-located assets in developed markets. The properties boast a total gross floor area of 98,825 square metres and are fully occupied by reputable multinational corporations. The acquisition increases CLAR’s logistics portfolio value to approximately S$4.7b, now accounting for 26% of its total portfolio value of S$18.5b.

Spain’s strategic location and robust infrastructure make it a vital gateway to Europe, enhancing CLAR’s logistics capabilities. The acquisition was financed through a combination of internal resources and existing debt facilities, with CLAR’s aggregate leverage expected to rise slightly to 39.1%.

HSBC has launched its fourth and largest wealth centre in Singapore, located on the 33rd floor of the Singapore Land Tower. This new centre marks the bank’s first sky lounge and dedicated Premier Elite space in the city, underscoring HSBC’s commitment to expanding its wealth management services in Singapore. The centre aims to cater to the growing affluent segment by offering enhanced advisory spaces and unique service experiences.

The wealth centre is part of HSBC’s multi-year transformation strategy, which includes a significant investment to expand its physical presence in Singapore. Ashmita Acharya, Head of International Wealth and Premier Banking, Singapore, stated, “Singapore is a priority market and wealth hub for HSBC, and our new Singapore Land Tower Wealth Centre reflects our ongoing commitment to deliver exceptional service and experiences for our clients here.”

The new facility is designed to integrate clients’ wealth and lifestyle aspirations, combining advisory, service, and hospitality expertise. This development is accompanied by enhancements to HSBC’s affluent offerings, such as the launch of the HSBC Premier Mastercard and upgrades to digital wealth platforms. Additionally, HSBC has formed targeted partnerships to provide international digital wealth capabilities and curated lifestyle experiences.

The opening of this wealth centre is a significant milestone in HSBC’s efforts to deepen its wealth footprint in Singapore. It reflects the bank’s strategy to deliver a comprehensive and elevated wealth journey for its clients, aligning with their aspirations and needs.