Industry News

Savills Singapore has increased its 2026 investment sales forecast to a range of S$35b to S$40b, up from S$34b, citing strong market performance and continued capital inflow. In the first quarter of 2026, investment sales surged to S$11.48b, marking a 3.5% increase from the previous quarter and a 95.4% rise year-on-year. This represents the highest quarterly sales since 2013, driven by developers replenishing land banks and a revival of private capital.

The office and retail sectors are expected to remain resilient through 2026, supported by stable income profiles and improved investor sentiment in a low-interest-rate environment. Key transactions in Q1 included the sale of 78 Shenton Way for S$600m to S$630m and Bukit Panjang Plaza for S$428m, indicating renewed confidence in these assets.

The industrial sector also saw significant growth, with investment sales reaching S$2.94b, a 38.1% increase from the previous quarter. Notably, UI Boustead REIT launched its IPO with a portfolio of 23 assets valued at approximately S$1.36b.

Jeremy Lake, Managing Director of Investment Sales & Capital Markets at Savills Singapore, expressed optimism for continued strong investment activity, citing genuine market participants and low borrowing costs. Alan Cheong, Executive Director of Research and Consultancy, highlighted Singapore’s position as a stable market likely to attract increasing investment despite global uncertainties.

RHB Bank has announced it is maintaining its forecast for Singapore’s GDP growth at 3.0% for 2026, despite recognising potential downside risks that could see growth dip to 2.5%. The bank’s Group Chief Economist and Head of Market Research, Barnabas Gan, highlighted that ongoing geopolitical tensions could further impact growth, potentially reducing it to between 1.0% and 1.5% in a more adverse scenario.

The Monetary Authority of Singapore’s (MAS) recent decision to “slightly” steepen the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) slope was interpreted by RHB as an increase in the appreciation rate to 1.0%, up from 0.5%. This move is expected to remain unchanged in July, although further tightening could occur if tensions in the Middle East continue to elevate global energy prices.

Singapore’s GDP expanded by 4.6% year-on-year in the first quarter of 2026, a slowdown from the 5.7% growth seen in the fourth quarter of 2025. This performance fell short of Bloomberg’s consensus estimate of 5.8% and RHB’s own projection of 5.3%. Gan’s analysis underscores the challenges facing Singapore’s economy amidst global uncertainties.

The report suggests that whilst the current policy settings are likely to remain stable in the short term, the balance of risks could necessitate adjustments later in the year. This outlook reflects the complex interplay of domestic and international factors influencing Singapore’s economic trajectory.

Midea Building Technologies, a division of Midea Group, and Keppel Ltd.’s Infrastructure Division have announced a strategic partnership to develop AI-enabled, energy-efficient cooling solutions across Asia. The agreement, signed on 14 April 2026, was witnessed by Cindy Lim, CEO of Keppel’s Infrastructure Division, and Peter Guan, Vice President of Midea Group and President of Midea Building Technologies.

The collaboration aims to leverage Midea’s expertise in heating, ventilation, and air conditioning manufacturing alongside Keppel’s Cooling-as-a-Service (CaaS) and digital optimisation capabilities. Together, they plan to co-develop standardised, modular cooling systems that promise enhanced energy efficiency and adaptability across various projects in the region.

This partnership is significant as it addresses the growing demand for sustainable and efficient cooling solutions in Asia, a region experiencing rapid urbanisation and increasing energy consumption. By integrating AI technology, the systems are expected to optimise energy use, reduce operational costs, and contribute to environmental sustainability.

Peter Guan highlighted the potential impact of this collaboration, stating, “This partnership will enable us to deliver innovative cooling solutions that meet the evolving needs of our customers in Asia.” Cindy Lim added, “By combining our strengths, we aim to set new standards in energy-efficient cooling.”

As the partnership progresses, both companies anticipate expanding their reach and influence in the Asian market, potentially setting a precedent for future collaborations in the energy sector.

The Monetary Authority of Singapore (MAS) announced a pre-emptive tightening of its monetary policy in the April 2026 Monetary Policy Statement (MPS), released on 14 April. The central bank increased the slope of the Singapore dollar nominal effective exchange rate (S$NEER) policy band from an estimated 0.5% per annum to 1.0% per annum, a move aligned with Bloomberg consensus and UOB’s expectations. This adjustment aims to address potential imported inflation pressures.

MAS has revised its 2026 core and headline inflation forecasts to a range of 1.5% to 2.5%, up from the previous 1.0% to 2.0% forecast in January. The policy statement reflects a greater confidence in the inflation outlook compared to growth, noting that global energy prices are expected to remain elevated due to ongoing geopolitical tensions and supply chain disruptions.

The decision comes amidst a backdrop of significant uncertainty in the global economic environment, particularly concerning shipping flows through the Strait of Hormuz. MAS highlighted that energy supply shortfalls and higher input costs could impact energy-dependent industries such as petrochemicals and transport. Additionally, growth in Singapore’s major trading partners is anticipated to weaken, further affecting the local economy.

UOB has downgraded its full-year 2026 GDP growth forecast for Singapore to 2.5%, down from a previous estimate of 3.6%. The bank anticipates that MAS may further tighten monetary policy in the October 2026 MPS, potentially advancing the move to July.

The S$NEER index fell by approximately 15 basis points following the policy announcement, reflecting some profit-taking as more aggressive monetary policy actions did not materialise. MAS reiterated its readiness to curb excessive volatility in the S$NEER, underscoring the heightened uncertainty in the current economic landscape.

Singapore’s economy expanded by 4.6% year-on-year in the first quarter of 2026, according to advance estimates released by the Ministry of Trade and Industry. This marks a slowdown from the 5.7% growth recorded in the previous quarter. On a quarter-on-quarter basis, the economy contracted by 0.3%, reversing the 1.3% expansion seen in the last quarter of 2025.

The Ministry highlighted that the ongoing US-Israel-Iran conflict, which began in late February, could weigh on economic activity in the coming months. The conflict’s potential impact on global trade and supply chains may pose challenges for Singapore’s open economy.

Sectoral performance varied, with the manufacturing sector growing by 5.0% year-on-year, driven by expansions in electronics, transport engineering, and precision engineering. However, the sector contracted by 4.9% quarter-on-quarter. The construction sector saw a robust 9.0% year-on-year growth, supported by increased public and private sector construction activities.

In the services sector, wholesale and retail trade, along with transportation and storage, grew by 6.7% year-on-year. The information and communications, finance and insurance, and professional services sectors expanded by 3.9% year-on-year, although they contracted by 4.0% quarter-on-quarter.

The Ministry of Trade and Industry will release more comprehensive GDP data, including sectoral performance and other economic indicators, in the Economic Survey of Singapore in May 2026.

Aggregate Asset Management (AAM), a Singapore-based firm, is enhancing its flagship Aggregate Value Fund (AVF) by expanding the use of its proprietary AI-driven machine learning model, “Deep Deep”. This move comes as investors increasingly seek diversification and downside protection amidst volatile markets. The fund, which now invests in nearly 900 companies across 17 countries, has assets under management exceeding S$600m.

Originally launched in 2012 as a deep-value Asia fund, AVF has evolved into a globally diversified portfolio. The integration of AI into the fund’s strategy began in 2021, significantly improving its resilience. Since then, the fund’s maximum drawdown has decreased from 28.85% to 12.36% as of February 2026. Over the past five years, AVF has delivered annualised returns of 7.92% and 10.95% over the last three years.

AAM’s machine learning model evaluates over 150 indicators, including technical analysis and company fundamentals, to rank stocks with the strongest risk-return profiles. These rankings are reviewed weekly by human analysts. Eric Kong, Co-Founder and Executive Director, stated, “Humans can typically process only five to seven indicators at a time, whereas our machine learning model can evaluate more than 150 factors before a final human review.”

The fund’s ultra-diversification strategy, holding close to 900 companies, limits the impact of any single stock, enhancing resilience during market stress. Kevin Tok, Co-Founder and Executive Director, emphasised the importance of resilience, stating, “In a more volatile world, we believe resilience matters just as much as returns.”

As market volatility continues, driven by geopolitical tensions and economic concerns, AAM’s focus on diversification and downside protection positions AVF as a robust option for investors seeking steady returns.

Frasers Hospitality, a division of Frasers Property Limited, has announced a $140m asset enhancement initiative across key properties in Kuala Lumpur, London, Melbourne, and Singapore. This strategic move aims to sustain value, enhance income resilience, and bolster long-term portfolio performance through disciplined capital deployment.

The initiative includes the transformation of the Park International Hotel in London, which will reopen in February 2027 as Capri by Fraser, Kensington. The refurbishment will introduce a refreshed brand identity, focusing on curiosity and contemporary urban living, with flexible accommodation and communal spaces. The project will also enhance the building’s environmental performance and increase its inventory by nine keys.

In Melbourne, the Novotel on Collins will undergo a refurbishment to optimise space and align with Novotel’s global brand standards. This will add 72 keys, improving revenue potential and operational efficiency. The Westin Kuala Lumpur will see a phased refurbishment aimed at strengthening its premium segment through sustainability upgrades, targeting completion by July 2027.

In Singapore, Frasers House, a Luxury Collection Hotel, is undergoing a transformation to elevate its luxury segment whilst preserving its architectural heritage. Scheduled for completion by December 2027, the hotel will remain operational throughout the process.

These enhancements align with global hospitality trends, focusing on experiential environments and sustainability. Jason Leong, Head of Investment and Asset Management at Frasers Hospitality, stated, “Our asset enhancement strategy reflects disciplined capital stewardship and long-term conviction in gateway cities with strong underlying fundamentals.”

Singapore’s pioneering biotech firm, Mirxes, has teamed up with Oracle to deploy an AI-enabled clinical support system aimed at expediting cancer diagnostics. Announced at the Oracle AI World Tour in Singapore, the collaboration has resulted in an AI assistant designed to provide clinicians with rapid, accurate responses to complex medical enquiries, thereby improving patient outcomes.

Mirxes, recognised as Singapore’s first biotech unicorn in 2025, is leveraging Oracle’s AI Database and Cloud Infrastructure to meet the growing demand for its microRNA-based cancer detection solutions. The AI assistant, developed with the Oracle AI Customer Excellence Centre, is grounded in curated medical literature and product documentation, ensuring clinicians receive precise information swiftly. This innovation is set to streamline the delivery of clinical knowledge, allowing healthcare professionals to focus more on direct patient care.

Dr Zhou Lihan, co-founder and CEO of Mirxes, emphasised the importance of precision and speed in early cancer detection. “By providing clinicians with fast access to accurate, up-to-date information, we can reduce their burden and allow them to focus on patient care,” he stated.

The AI assistant uses advanced technologies like semantic search and retrieval-augmented generation to interpret clinician queries and deliver contextually relevant answers. This initiative not only enhances clinician efficiency but also supports Mirxes’ global expansion efforts, ensuring consistent knowledge delivery across regions.

Chin Ying Loong, Oracle’s senior vice president, highlighted the collaboration’s potential to scale trusted clinical knowledge delivery and improve patient outcomes. As Mirxes continues to innovate, this partnership marks a significant step in advancing cancer early detection solutions globally.

Transport Equipment has emerged as the most challenging industry for jobseekers in Singapore, according to a recent analysis by Briefcase PR. The industry recorded the lowest job vacancy rate of 1.2% in December 2025, highlighting a particularly competitive job market.

The analysis, which utilised data from the Singapore Ministry of Manpower, ranked various industries by their job vacancy rates. Lower vacancy rates indicate fewer available positions relative to the number of filled roles, making it harder for jobseekers to secure employment.

Following Transport Equipment, the Paper/Rubber/Plastic Products & Printing and Air Transport & Supporting Services industries both recorded a vacancy rate of 1.8%, placing them next on the list. Other industries with low vacancy rates included Petroleum, Chemical & Pharmaceutical Products and Security & Investigation, both at 1.9%, and Other Manufacturing Industries at 2.0%.

Several industries tied for the last spot in the ranking, each with a vacancy rate of 2.1%. These included Fabricated Metal Products, Machinery & Equipment; Electronic, Computer & Optical Products; Telecommunications, Broadcasting & Publishing; and Water Transport & Supporting Services. The average vacancy rate across all ranked industries was 1.9%.

A spokesperson from Briefcase PR noted, “The ranking suggests that some of Singapore’s most competitive job markets were concentrated in specialised industrial and transport-related sectors at the end of 2025, where vacancy rates were comparatively low.”

This analysis provides valuable insights for jobseekers navigating Singapore’s labour market, particularly those targeting specialised sectors.

Luxury home sales in Singapore’s Core Central Region (CCR) saw a notable increase in Q1 2026, according to a report by Realion (OrangeTee & ETC) Group. From January to March, 188 landed and non-landed homes were sold for at least S$5m each, surpassing the previous quarters and the three-year quarterly average of 137 units.

The report highlights that luxury new sales have risen for the fourth consecutive quarter, reaching 55 units, the highest since Q4 2023. River Modern led the transactions, followed by Skye at Holland, UPPERHOUSE at Orchard Boulevard, and Watten House. Despite a 4% dip in the total transaction value to S$1.7b, the market remains robust.

A significant jump was observed in transactions for flats priced above S$3,000 per square foot (psf), with 75 units sold in Q1 2026, marking the highest quarterly transactions since Q4 2023. The Marq on Paterson Hill recorded the highest psf price at S$5,937, with a total price of S$37m.

However, the market for Good Class Bungalows (GCBs) saw a decline, with only four transactions in Q1 2026 compared to nine in the previous quarter. Despite this, the transaction volume was higher than the same period last year.

The report suggests that Singapore’s reputation as a safe haven for wealth preservation continues to attract high-net-worth individuals, ensuring sustained demand for luxury properties amidst global uncertainties.