Industry News

Singapore’s industrial sector demonstrated resilience in Q2 2025, with the economy expanding by 4.3% year-on-year and 1.4% quarter-on-quarter, according to the Ministry of Trade and Industry. The manufacturing sector, a key driver, grew by 5.5% year-on-year, despite ongoing global trade tensions and economic uncertainties.

The Singapore Economic Development Board reported a 3.9% year-on-year increase in manufacturing output in May 2025, with all clusters except general manufacturing showing growth. Transport engineering and precision engineering led with double-digit growths of 25.6% and 10.3%, respectively. However, the general business outlook turned negative, dropping 22 percentage points to a negative 6% due to global trade tensions.

The industrial property market also showed strength, with transaction activity increasing significantly. The total sales value rose by 185.5% quarter-on-quarter to $1.6b (S$2.2b), supported by key transactions such as the sale of a data centre at 9 Tai Seng Drive for $330.5m (S$455.2m). Leasing activity increased by 11.7% quarter-on-quarter, with 3,360 rental transactions valued at $22m (S$30.2m).

Calvin Yeo, Head of Occupier Strategy and Solutions at Knight Frank Singapore, noted, “Singapore’s stability and brand as a strategic business hub is expected to continue as a bulwark for firms looking for a safe harbour to set up or expand.”

Looking ahead, Singapore’s industrial sector is expected to remain stable, although global manufacturing challenges persist. Industrial prices are projected to see moderate gains of 3% to 5% for the year, driven by strong investor interest.

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RHB Singapore has announced its strategic priorities under the PROGRESS27 roadmap, a three-year plan designed to bolster its role as a key growth driver within the RHB Banking Group. The announcement was made during a media event in Singapore, where the leadership team, including CEO Goh Ken-Yi, outlined the Group’s ambitions to enhance its regional footprint through Singapore.

RHB Singapore has demonstrated significant growth, with total income rising by 18.6% to $184.5 million (SGD252.6 million) in 2024, and gross loans increasing by 14.7% to $6.54 billion (SGD8.95 billion). Profit Before Tax nearly doubled, reaching $72.1 million (SGD98.7 million), whilst the sustainable financing portfolio expanded by 40% to $710.5 million (SGD972 million). “RHB Singapore plays a pivotal role in driving the Group’s regional ambitions,” said Goh Ken-Yi.

The bank has also focused on enhancing customer engagement, completing a digital-first transformation of its branch network and maintaining its top Net Promoter Score ranking among Singaporean banks. It has received eight industry awards in 2025, including “Mid-sized International Retail Bank of the Year.”

RHB’s Group International Business, established in April 2025, is a core pillar for regional growth, with RHB Singapore contributing approximately 80% of its total income. Danny Quah, Managing Director of Group International Business, highlighted the importance of aligning strategies with local market dynamics to seize regional opportunities.

PROGRESS27 aims to achieve a Return on Equity of 12% by 2027, reduce the Cost-to-Income Ratio to below 44.8%, and maintain a Gross Impaired Loan ratio not exceeding 1.3%. The strategy focuses on service excellence, high profitability, and responsible growth, driven by eight transformational programmes.
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Singapore’s real estate investment trusts (S-REITs) are expected to experience growth in distributions from the financial year 2025, driven by lower refinancing costs and stable fundamentals. According to a recent analysis, the sector reached an inflection point in the second quarter of 2025, with lower short-term interest rates benefiting S-REITs, particularly those with a higher proportion of floating-rate debt. This includes names like CDL Hospitality Trusts, Frasers Centrepoint Trust, and Keppel REIT.

The report highlights that Singapore’s economy remains resilient despite global uncertainties, with a strong Singapore dollar and ample liquidity contributing to heightened demand for yield. As Treasury bill rates fall to 1.8%, investors are increasingly looking towards higher-yielding alternatives such as S-REITs and Singapore banks, which currently offer average yields exceeding 6%. This shift could result in significant capital inflows, potentially reaching SGD100bn.

Singapore banks are also expected to maintain stable earnings and high dividend yields, with yields of up to 6.5% forecasted for FY25. The banks have commenced share buybacks, which are anticipated to deliver growth for shareholders. Despite the recent dip in benchmark rates, the banks’ share prices are expected to remain supported due to benign asset quality and comparable dividend yields to S-REITs.

The report suggests that the ongoing decline in interest rates will continue to benefit S-REITs, potentially leading to revisions in previous guidance regarding higher interest rates. The sector remains attractively valued, with FY25-26 yields near 6.0% and spreads close to 4.0%. As the economic landscape evolves, both S-REITs and Singapore banks are positioned to capitalise on the changing market conditions.
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Parkway Shenton and Eu Yan Sang TCM Clinic have introduced an integrative co-management protocol for hypertension, blending Western medical diagnostics with Traditional Chinese Medicine (TCM) practices. This initiative, launched at their co-located clinic in Guoco Tower, aims to enhance patient outcomes through a comprehensive approach to chronic disease management.

The EYSxPSPL Integrative Clinical Care Protocol for Hypertension allows general practitioners and TCM physicians to collaboratively manage patients. By integrating Western diagnostic tools such as blood pressure monitoring with TCM’s diagnostic methods, the protocol addresses both symptoms and underlying causes like stress and metabolic imbalances. This approach not only aims to improve blood pressure control but also seeks to reduce medication dependency and enhance overall quality of life.

Tay Wee Kai, CEO of Parkway Shenton, highlighted the collaboration’s potential, stating, “This collaboration harnesses the strengths of both systems for the benefit of the patient.” The protocol also serves as a scalable model for managing other chronic conditions, including diabetes and cardiovascular disease.

Additionally, the partnership has launched an Integrative Health Screening service, combining Western and TCM insights. This service offers a non-fasting format, increasing accessibility and participation rates. Ng Seow Ling, Managing Director of Eu Yan Sang TCM Clinic, noted the seamless experience provided by co-locating services, which allows for a unified health report and a holistic assessment of well-being.

This integrative approach represents a significant step towards redefining preventive health in Singapore, offering patients medically rigorous and culturally resonant options.
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UMS Integration, a provider of high precision components for semiconductor equipment manufacturers, is poised for significant growth as it anticipates meeting its double-digit revenue growth target for the second quarter of 2025, according to a UOB Kay Hian report. The company has reported healthy orders from both new and existing customers, which are expected to drive earnings to an estimated $8 million (S$11 million), marking a 12% year-on-year increase. This growth comes as UMS resolves previous supply chain disruptions and benefits from its ability to complete manufacturing processes in-house.

The company’s dual listing on Bursa Malaysia, set to commence on 1 August 2025, has garnered strong investor interest, potentially narrowing the valuation gap with its Malaysian peers. Currently, UMS trades at a 25% discount compared to its Malaysian counterparts, with a forecasted price-to-earnings ratio of 18x for 2026, versus 25x for its peers. The dual listing is expected to enhance liquidity and attract institutional investors who are mandated to invest in Bursa-listed stocks.

UMS is also increasing its market engagement ahead of the dual listing by participating in roadshows, hosting plant visits, and engaging with media and social media influencers. The company maintains a “Buy” recommendation with a revised target price of $1.27 (S$1.73), reflecting a 31% increase based on improved earnings quality and the anticipated benefits of the dual listing.
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Nucleus Software has unveiled its latest AI-driven digital banking solutions at the 20th IDC Asian Financial Services Congress and Awards, held at the Sands Expo and Convention Centre in Singapore. The event, which took place on 18 July 2025, gathered over 120 chief information officers and senior technology leaders from across Southeast Asia, including Indonesia, Vietnam, Malaysia, Singapore, Thailand, and the Philippines. The congress focused on themes such as AI transformation, regional payment modernisation, and central bank digital currency readiness, aiming to foster a resilient and interoperable financial ecosystem in the region.

The congress featured a notable fireside chat titled “Changing the Engine Whilst the Bus Is Running: A Pragmatic Path to Transformation for Heritage BFSIs.” Chandima Cooray, Chief Information Officer of Hatton National Bank, and Aabhinna Suresh Khare, Chief Marketing Officer of Nucleus Software, discussed the challenges and strategies of transforming legacy financial institutions in real-time environments. Cooray emphasised the importance of balancing regulatory trust, operational continuity, and digital agility in the transformation process.

Nucleus Software’s presence at the congress underscores its mission to drive AI-enabled transformation for financial institutions across Southeast Asia. Through its integrated platforms—FinnOne Neo for lending, FinnAxia for transaction banking, and Nucleus Digital Services for cloud-ready innovation—the company supports initiatives such as credit inclusion for MSMEs in Indonesia and faster digital onboarding in Vietnam.

Khare highlighted AI’s transformative potential, stating, “AI is a mindset shift—reshaping how banks think, decide, and deliver.” He noted that AI enables banks to move from reactive to predictive operations, enhancing speed, personalisation, and risk management. As Southeast Asia embraces a digital-first financial future, Nucleus Software remains committed to empowering banks to lead with intelligence and agility.
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OceanX, a non-profit dedicated to ocean exploration, has bolstered its leadership team in Singapore by appointing Florence Tan as Director of Partnerships, APAC, and Lynette Long as Director of Public Programming under OceanX Education. These strategic hires aim to expand OceanX’s influence in Asia and strengthen its ability to forge impactful partnerships and deliver engaging public experiences.

Mark Dalio, founder and co-CEO of OceanX, stated, “Florence and Lynette each bring decades of experience, deep regional insight, and proven results in building relationships and delivering innovative programming. They are mission-aligned leaders who will help scale our presence and partnerships across Asia and beyond.”

Florence Tan, previously Deputy Director at Singapore Management University, has nearly two decades of experience in philanthropy and advancement. She has managed a philanthropic portfolio involving high-net-worth individuals, foundations, and government partners, consistently delivering multi-million-dollar results. Tan expressed her enthusiasm, saying, “OceanX’s ability to bridge science, education and media creates a powerful platform for regional collaboration. I’m proud to help grow its footprint in Asia.”

Lynette Long, with over 20 years of experience in creative project development and stakeholder engagement, has led global touring exhibitions such as Jurassic World: The Exhibition. She remarked, “There’s a huge opportunity to shift how people engage with ocean conservation. OceanX is well positioned to lead that movement.”

The appointments of Tan and Long are expected to guide OceanX’s strategic expansion in Asia, enhancing public engagement and cross-sector collaboration. Their expertise will be crucial as OceanX enters a new phase of global missions and regional partnerships.
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Singapore’s non-oil domestic exports (NODX) are set for a 2% growth in 2025, according to RHB’s latest economic research. This marks an upgrade from the previous forecast of 0% growth, highlighting the continued resilience in regional demand as a key factor supporting Singapore’s external sector. Despite the positive outlook, RHB maintains a cautious stance on the broader trade environment.

In June 2025, Singapore’s NODX surged by 13% year-on-year, a significant rebound from a 3.9% decline in May, and surpassed Bloomberg’s estimates of a 5% increase. This robust performance underscores the strength of regional demand, which remains a critical anchor for the country’s trade activities.

Barnabas Gan, RHB’s Group Chief Economist and Head of Market Research, noted the importance of these figures, stating, “The latest data reaffirms a key trend: Resilience in regional demand continues to be a critical anchor for Singapore’s external sector.”

The upgrade in NODX growth forecast is significant as it reflects the potential for sustained economic momentum in Singapore, driven by strong regional demand. However, the cautious outlook on the broader trade environment suggests that external uncertainties may still pose challenges.

Looking ahead, the upgraded forecast for NODX growth could have positive implications for Singapore’s economic performance in 2025, provided that regional demand remains robust and external conditions do not deteriorate significantly.
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PropNex Realty has announced a strategic partnership with BYD, a leader in electric vehicles, to promote sustainability within Singapore’s real estate and transportation sectors. The collaboration was formalised with a Memorandum of Understanding (MOU) signed on 15 July 2025 during PropNex’s 25th Anniversary Celebrations at Marina Bay Sands.

The partnership aims to encourage the adoption of electric vehicles among PropNex’s network of over 13,000 salespersons and employees. Special benefits will be offered for purchases of BYD or Denza vehicles, promoting eco-friendly transportation options. James Ng, Managing Director of BYD Singapore and Philippines, highlighted the collaboration’s potential to “empower more individuals to make eco-conscious choices.”

In addition to this green initiative, PropNex has partnered with the Singapore Institute of Advanced Medicine Holdings Ltd (SAM Holdings) to provide comprehensive, fully-sponsored health screenings for all 13,600 salespersons and nearly 200 full-time employees until 2026. This programme focuses on early disease detection and long-term health management, reinforcing PropNex’s commitment to employee well-being.

Executive Chairman of PropNex, Ismail Gafoor, emphasised the importance of these initiatives, stating, “We believe we can collectively drive meaningful change by championing the use of electric vehicles and adopting greener lifestyle choices.” The health screening initiative, he added, aims to empower salespersons and employees with access to critical health assessments.

These partnerships reflect PropNex’s broader vision of sustainability and welfare, as the company continues to lead in purposeful leadership and innovation.
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Morgan Stanley Research has unveiled a report highlighting how artificial intelligence (AI) is set to propel Singapore’s economic growth amidst challenges posed by an ageing population and labour constraints. The report, released ahead of Singapore’s 60th anniversary, predicts that AI will sustain a 3% GDP growth rate, keeping Singapore among the fastest-growing developed economies.

Singapore is recognised as one of the top AI markets globally, thanks to a robust ecosystem fostered by government initiatives. According to the report, over 70% of surveyed corporations have integrated AI into their operations, enhancing productivity, labour efficiency, product development, and supply chain management. This widespread adoption is crucial for maintaining the projected GDP growth.

The report identifies two categories of AI players in Singapore: Enablers and Adopters. Enablers like Singtel, Keppel, and SCI are pivotal in building the necessary infrastructure for AI, with Singtel expanding its data centre capacity and establishing AI factories across Southeast Asia. Meanwhile, Adopters such as Grab, Sea Ltd, Singapore Airlines (SIA), and ST Engineering (STE) are leveraging AI for innovation and productivity enhancements. Notably, Grab has launched an AI Centre of Excellence in Singapore to accelerate AI-driven solutions.

Morgan Stanley’s findings underscore the strategic importance of AI in Singapore’s economic landscape, suggesting that continued investment and innovation in AI could further solidify the country’s position as a global leader in technology and economic growth.
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