Industry News

YY Group Holding Limited, a leader in on-demand workforce solutions and integrated facilities management, has secured a S$10.5m banking facility from United Overseas Bank (UOB). This facility, issued in collaboration with Enterprise Singapore, aims to bolster the company’s strategic growth initiatives and financing needs across its manpower outsourcing and facilities management businesses.

The facility will provide financing for Hong Ye Group Pte Ltd, YY Group’s facilities management subsidiary, and YY Circle (SG) Pte Ltd, its manpower outsourcing arm. Available on a drawdown basis, it offers a flexible financing option to meet YY Group’s working capital needs. The company anticipates an 8% reduction in annual finance costs, enhancing financial efficiency and supporting ongoing operational expansion.

Chief Executive Officer Mike Fu expressed gratitude towards UOB, Enterprise Singapore, and the Singaporean government, stating, “This partnership reflects their confidence in our business and marks a significant step forward in our growth journey.” He added that the facility would enable the company to accelerate key growth initiatives and optimise cash flow management.

YY Group has been expanding its global footprint, extending its on-demand staffing platform, YY Circle, to markets in Australia, Europe, and Southeast Asia. The company has also completed key acquisitions to enhance its facilities management capabilities and secured new enterprise-level contracts and hospitality partnerships, further solidifying its position as a trusted workforce provider.

Southeast Asia’s tech sector saw a stabilisation in funding at $5.2b in 2025, according to the Tracxn Geo Funding Trends Report. This marks a 7% increase from 2024 but remains 31% below 2023 levels. The report highlights a shift towards capital discipline, with late-stage investments dominating as investors prioritise scale and downside protection over early-stage risks.

Funding flows were heavily concentrated in late-stage rounds, which accounted for $3.9b, a significant rise from $1.3b in 2024. In contrast, seed-stage funding plummeted by 57% to $214m, and early-stage funding fell by 64% to $1.1b. This trend underscores a preference for mature companies with robust operating scales.

Enterprise Infrastructure, FinTech, and Enterprise Applications emerged as the top-performing sectors. Enterprise Infrastructure alone attracted $2.3b, a 70% increase from 2024. Meanwhile, FinTech and Enterprise Applications saw declines in funding compared to the previous year.

Singapore maintained its dominance, capturing 91% of the region’s total funding, highlighting its role as a hub for tech investments. The city-state’s governance stability and cross-border operability were key factors in attracting capital.

Despite a slowdown in unicorn creation, with only two new unicorns in 2025, the region saw an increase in IPOs, with 15 companies going public. Acquisition activity moderated, with 57 acquisitions recorded, led by NinjaOne’s $270m acquisition of Dropsuite.

The report indicates a strategic shift in investor behaviour, focusing on long-duration, enterprise-anchored assets, reflecting a post-2023 risk reset. As the SEA tech ecosystem evolves, the emphasis on scale and stability is expected to shape future funding dynamics.

Singapore’s Central Business District (CBD) office market concluded 2025 on a strong note, with Core CBD Premium and Grade A rents increasing by 0.8% quarter-on-quarter to S$11.82 per square foot, according to Colliers Singapore’s Q4 2025 Office Insights and Outlook report. The vacancy rate tightened to 4%, reflecting a robust demand amidst a limited supply pipeline, with no new Grade A completions expected until 2027.

The report highlights that average capital values rose to S$3,100 per square foot, whilst net yields declined to 3.6%. This trend is supported by a significant transaction involving a 33% stake in MBFC Tower 3, which was sold at S$3,268 per square foot. Bastiaan van Beijsterveldt, Managing Director of Colliers Singapore, noted, “Momentum in Singapore’s office market is set to persist, underpinned by tight CBD supply, resilient enquiry, solid economic fundamentals, and a more conducive interest-rate backdrop.”

The limited availability of high-quality office space is expected to favour landlords, with rental growth projected at 2–4% in 2026. Redevelopment activities under the CBD Incentive and Strategic Incentive schemes are anticipated to continue, creating displacement demand as older assets are modernised.

Catherine He, Head of Research at Colliers Singapore, stated, “Singapore’s pro-business policies and neutral geopolitical stance continue to underpin baseline demand, even as global uncertainties temper expansion plans.” The ongoing interest in core CBD assets is further evidenced by Hongkong Land’s announcement of a private real estate fund seeded with prime Singapore offices.

As the market remains tight, occupiers are advised to plan early to secure space, whilst landlords are encouraged to offer flexible leasing options to accommodate tenant growth.

CBRE has been appointed as the leasing agent for a cutting-edge ramp-up freezer and chiller warehouse at 8 Jalan Besut, Singapore. This facility, designed to meet the increasing demand for advanced cold chain infrastructure, is the only one in the market offering ramp-up access and dedicated loading bays, crucial for handling large volumes of temperature-sensitive goods. The warehouse, located strategically in western Singapore, is within minutes of major seaports and MRT stations, enhancing its logistical appeal.

The facility, which has been operational as a freezer space for the past year, is set to complete fully by H1 2026. It will feature a high-bay automatic storage and retrieval system on the upper levels, capable of storing up to 80 million kilogrammes of food. The available space on Level 3 spans approximately 8,201 square metres, with a ceiling height of ten metres and a storage height of 8.850 metres, accommodating between 7,000 to 10,000 pallet positions.

Equipped with sixteen loading bays for trailers and a robust power provision, the warehouse supports efficient cold chain operations. It includes temperature-controlled environments, with chiller spaces maintained between four and seven degrees Celsius and freezer areas operating as low as minus twenty-five to minus twenty-seven degrees Celsius.

Graeme Bolin, Head of Occupier and Leasing, Industrial and Logistics Services at CBRE, stated, “8 Jalan Besut delivers next-generation cold chain infrastructure with automation and strategic connectivity to Singapore’s major seaports. With ready-to-use cold-room spaces, it offers food logistics operators a future-ready solution for scale and efficiency.” This facility presents a unique opportunity for occupiers seeking high-specification freezer space with immediate operational readiness.

UOB Asset Management (UOBAM) is set to launch the UOBAM Ping An FTSE ASEAN Dividend Index ETF on 29 January 2026. This exchange-traded fund (ETF) will be the only dividend-focused ASEAN ETF listed on the Singapore Exchange and is part of the Singapore Exchange-Shenzhen Stock Exchange (SGX-SSE) ETF Product Link. The ETF tracks the FTSE ASEAN ex REITs Target Dividend Index, aiming for a 100% dividend yield increase compared to its underlying index.

The ETF will invest in leading companies across five key ASEAN markets—Singapore, Indonesia, Thailand, Malaysia, and the Philippines—providing exposure to the region’s growth potential. Notable constituents include Singapore’s DBS Group, OCBC, and UOB, as well as Malaysia’s Malayan Banking and Thailand’s PTT. The ETF aims to pay dividends of at least 6% per annum in 2026 and 2027, one of the highest among Singapore-listed ETFs.

Thio Boon Kiat, Group CEO of UOBAM, highlighted the importance of dividend strategies amidst declining interest rates, stating, “ASEAN is not only a source of strong dividend opportunities but also a region of enduring growth potential.”

The initial offering period for the ETF opened on 7 January 2026, with subscriptions available through various platforms, including UOB’s and OCBC’s ATMs and internet banking. Once listed, the ETF will be tradable in both SGD and USD. This initiative is part of a collaboration with FTSE Russell and Ping An Fund Management, aiming to offer investors a cost-efficient way to access ASEAN markets.

Marriott International and BBH Singapore have launched a new advertising campaign for Marriott Bonvoy, aiming to redefine perceptions of loyalty programmes. Titled “Loyalty’s Just That Easy,” the campaign seeks to demonstrate that Marriott Bonvoy is accessible to all travellers, not just frequent flyers or business elites. The initiative showcases how members can effortlessly earn and redeem points across more than 30 hotel brands, including through everyday activities like dining and spa visits.

The campaign’s centrepiece is a hero film directed by Emmy Award-winner Rhys Thomas, produced by Stink London. It follows a traveller’s journey, illustrating how even small moments of relaxation can accumulate points. The film is available in three versions, featuring protagonists from India, Japan, and Korea, and is complemented by shorter 30- and 15-second clips.

Xue Ying Mei, Vice President Marketing for Marriott International Asia Pacific excluding China, stated, “This campaign aims to correct these perceptions, showing how loyalty with Marriott Bonvoy is effortless.” Khairul Mondzi, Executive Creative Director at BBH Singapore, added, “We started with a simple question. What if loyalty didn’t feel like effort at all?”

Launched on 5 January, the campaign will run across the Asia Pacific region, including India, Japan, Korea, and Indonesia. It forms part of an integrated marketing strategy encompassing out-of-home, digital, and social media channels, with further activations planned throughout the first half of 2026.

Mercer has announced that average employee salaries in Singapore are projected to increase by 4% in 2026, maintaining a steady pace similar to the previous year. This forecast comes from Mercer’s Total Remuneration Survey 2026, which examines trends across nearly 1,157 companies in Singapore.

Nearly 98% of companies in Singapore plan to implement salary increases next year. The sectors benefiting most are those leveraging Singapore’s strategic strengths, such as Logistics, Shipping, Aerospace, High-Tech Manufacturing, and Consumer Goods, with salary hikes ranging from 4.9% to 5.5%. The high-tech sector, despite challenges in commoditised IT roles, is experiencing strong wage growth in specialised areas like cloud computing and cybersecurity due to skill shortages and digital transformation investments.

Eugene Chong, Head of Career Products at Mercer Singapore, highlighted the importance of considering broader economic factors when determining salary adjustments. “Merit increases must also reflect the broader cost-of-living dynamics, as rising living expenses directly impact employee financial well-being,” Chong stated.

Looking forward, most sectors anticipate moderate growth, with increases ranging from 3.2% to 4.5%. The focus remains on roles that enhance Singapore’s position as a strategic regional hub, with key positions in Risk Management and IT augmentation playing crucial roles in navigating economic challenges.

As companies approach talent and salary review cycles, Mercer advises considering segmented budgets for critical talent to bolster attraction and retention efforts.

Global technology consultancy Thoughtworks has revealed a significant shift in how enterprises utilise artificial intelligence (AI), moving from cost-cutting to driving growth and innovation. According to their recent survey of 7,000 IT decision-makers, C-suite leaders, and consumers across seven countries, 77% of business leaders have transitioned their AI strategies towards growth. Notably, nearly half anticipate more than a 15% revenue increase from AI within the next 10 years.

The study highlights that AI is increasingly seen as a top-line growth engine. Agentic AI, which refers to AI systems capable of autonomous decision-making, is now a top focus for 35% of organisations globally, with Singapore and India leading the charge.

In Singapore, the rapid adoption of AI is creating a unique environment of ‘AI FOMO’ (fear of missing out), with 66% of leaders feeling pressured to adopt AI quickly. However, this ambition is hindered by a significant skills shortage, cited by 21% of leaders as the primary barrier to scaling AI initiatives.

Rachel Laycock, chief technology officer at Thoughtworks, noted, “This marks a structural shift in how organisations plan for growth. Leaders are no longer asking how efficient they can become. They are asking how expansive they can be.”

Despite the business optimism, consumer scepticism remains, with 21% globally believing AI will not impact their lives in the next five years. However, 72% report that AI is already adding value to their work or personal lives.

The findings also challenge fears of AI-induced job loss, with 84% of business leaders stating that AI is augmenting talent rather than replacing it. India leads in AI-driven job creation, with 57.1% of organisations reporting a net increase in roles through human-AI collaboration.

As AI continues to reshape industries, the focus on growth and innovation is expected to drive further advancements and opportunities in the coming years.

Investment banking fees in Singapore reached an impressive US$864.6m in 2025, marking a 28.9% increase from the previous year, according to the latest report by the London Stock Exchange Group (LSEG). This surge represents the highest annual total since 2021, driven by significant growth in advisory and equity capital markets fees.

Advisory fees from completed mergers and acquisitions (M&A) transactions rose to US$265.1m, a 55.3% increase compared to 2024. Equity capital markets underwriting fees more than doubled to US$210.9m, reaching a four-year high. Debt capital markets fees also saw a notable rise of 55.9%, totalling US$155.2m, the highest since records began. However, syndicated lending fees experienced a decline of 24.1%, dropping to US$233.4m.

DBS Group Holdings emerged as the top fee earner in Singapore’s investment banking league table for 2025, securing US$72.9m and an 8.4% share of the total fee pool. The report also highlighted a decrease in M&A activity, with deals involving Singapore totalling US$70.4b, a 9.1% drop from the previous year. Despite this, the Energy & Power sector saw a doubling in value, capturing 17.4% of the market share.

Looking ahead, the investment banking sector in Singapore is poised for further growth, with continued interest in high-value sectors such as Energy & Power and Real Estate. The report underscores the dynamic nature of Singapore’s financial landscape and its resilience in the face of global economic challenges.

Global law firm Norton Rose Fulbright has bolstered its aviation practice with the appointment of Leo Fattorini as Head of Aircraft Finance for Asia and the Middle East, based in Singapore. Joining him are five other legal professionals, including counsel Chris Healy and senior associate Adam Smart, who will initially operate from Singapore and Hong Kong, enhancing the firm’s presence in the Asia-Pacific and Middle East markets.

Fattorini, previously leading Bird & Bird’s global aviation practice, brings extensive experience in aircraft finance and leasing, recognised by Chambers Global. His decade-long tenure in Singapore has fostered strong regional connections, particularly in India, where he has facilitated over 250 aircraft deliveries. His insights into airline operations and strategy, gained from a senior role at a major UK airline, are expected to further strengthen Norton Rose Fulbright’s global aviation services.

Duncan Batchelor, Global Head of Aviation at Norton Rose Fulbright, expressed enthusiasm about the new appointments, stating, “Leo’s vast experience—spanning private practice, in-house airline counsel, and international aircraft transactions—makes him the perfect fit for our firm.” Yu-En Ong, Head of Singapore, highlighted the significance of Fattorini’s arrival, noting his commercial acumen and leadership as valuable assets to clients.

Fattorini himself is eager to leverage Norton Rose Fulbright’s global platform, saying, “The firm’s international reach and collaborative culture make it an ideal environment to continue supporting clients across Asia-Pacific and the Middle East.”

Norton Rose Fulbright’s aviation team collaborates with airlines, banks, lessors, and regulatory bodies, offering comprehensive legal services, including financing, leasing, and restructuring. The firm’s strategic expansion aims to deliver market-leading aviation finance advice across key global hubs.