Industry News

Singapore’s financial institutions are at the forefront of artificial intelligence (AI) deployment and technological advancement, according to Finastra’s Financial Services State of the Nation 2026 survey. The study, which included responses from senior leaders across 11 global markets, highlights Singapore’s superior performance in AI readiness, cloud enablement, and technology capability.

The survey found that 64% of Singapore’s financial institutions are actively deploying AI in key business functions, moving beyond pilot projects to operational implementation. Additionally, 35% are in the process of piloting or researching AI, indicating a robust pipeline for innovation. This commitment to AI is further supported by a modernised technology landscape, with 71% of respondents rating their core technology infrastructure as superior to their peers.

Chris Walters, CEO of Finastra, commented, “Singapore institutions are showing what AI execution at scale really looks like. This is not about isolated pilots. It is about embedding AI into core operations, supported by modern infrastructure, strong data foundations, and disciplined governance.”

The survey also revealed that 83% of Singapore’s financial institutions plan to invest in customer experience and personalisation initiatives, such as real-time payments and 24/7 chatbots. Furthermore, 55% of these institutions host their operations in the cloud, with an additional 30% using hybrid environments, showcasing a strategic shift towards scalable and secure infrastructure.

Singapore’s readiness for technological and cultural change is evident, with 84% of organisations prepared for ongoing transformation. This positions Singapore’s financial sector to maintain its competitive edge in the evolving global landscape.

HSBC Bank (Singapore) Limited has announced the appointment of Suzy White, the HSBC Group Chief Operating Officer, to its Board, effective 30 January 2026. White, who became Group COO in October 2024, is expected to leverage her extensive experience in global businesses, risk, finance, operations, and transformation to bolster HSBC Singapore’s standing as a leading international bank for global wealth.

White’s appointment underscores HSBC’s commitment to Singapore, a key market for the Group. Singapore serves as an international wealth hub, a regional centre for treasury operations, and a global centre for innovation and sustainability. HSBC Singapore aims to strengthen its position in these areas with White’s expertise.

The bank anticipates that White’s strategic insights will enhance its operational capabilities and drive its growth in the competitive Singaporean market. Her role on the board is seen as pivotal in navigating the complexities of global finance and ensuring HSBC Singapore remains at the forefront of banking innovation and sustainability.

As Singapore continues to be a priority market for HSBC, the bank’s leadership looks forward to White’s contributions in steering its strategic initiatives and expanding its influence in the region. Her appointment is a significant step in reinforcing HSBC’s commitment to delivering exceptional financial services and solutions in Singapore.

CapitaLand Investment (CLI) has announced a 6% increase in its Operating PATMI for the financial year 2025, reaching S$539m, up from S$510m in 2024. This growth was attributed to higher contributions from its listed funds business, alongside reduced interest costs and operating expenses. The company also reported a 7% increase in Funds under Management (FUM), totalling S$125b by the end of 2025.

The company’s strategic focus on an asset-light, fee-led model has been pivotal in its growth, with total equity raised nearly doubling to S$6.5b. CLI’s investments in Wingate and SC Capital Partners have further strengthened its platform, enhancing its institutional reach and capabilities. Chairman Miguel Ko highlighted the company’s progress amid challenging economic conditions, emphasising the importance of strategic partnerships and disciplined capital allocation.

Looking ahead to 2026, CLI plans to continue its growth trajectory by sharpening its portfolio through accelerated divestments and redeployment. Group CEO Lee Chee Koon stated, “We will leverage our debt headroom to evaluate and pursue strategic options to deepen capabilities and expand growth pathways for CLI.”

CLI’s commitment to sustainability was also evident, with the company securing S$5.7b in sustainable finance in 2025. It maintained its MSCI “AAA” rating and was included in the FTSE4Good Index for the 12th consecutive year. As the company advances its AI capabilities and sustainability initiatives, it aims to enhance long-term returns for investors.

Singapore’s small and medium-sized enterprises (SMEs) are increasingly prioritising overseas expansion and technology adoption to navigate a volatile market landscape, according to the latest DBS Business Pulse Check Survey. Conducted between December 2025 and January 2026, the survey revealed that 82% of the 730 companies polled are planning to internationalise in 2026, with the information and communications and manufacturing sectors leading the charge.

The primary motivations for this strategic shift include reaching new customer bases (49%) and building a stronger overseas brand presence (43%). SMEs emphasised the importance of connections with trusted local partners and access to market insights for successful market entry.

Technology, particularly artificial intelligence (AI), is also playing a crucial role in enhancing competitiveness. Whilst 67% of respondents are already utilising AI, only 12% have fully integrated it across their operations. The information and communications, electronics manufacturing, and professional services sectors are at the forefront of AI adoption, whereas the wholesale and trade sectors lag behind.

To further AI adoption, SMEs identified financial support, expert guidance, and partnerships with technology providers as essential. Additionally, sustainability readiness has improved, with 49% of businesses considering themselves prepared, up from one-third last year.

Despite challenges such as tariffs and trade restrictions affecting 36% of respondents, 57% expect improved business performance in 2026. Chen Ze Ling, Group Head of Corporate and SME Banking at DBS, noted: “The survey reflects the pragmatic approach many SMEs are taking to navigate an uncertain environment.”

The annual survey underscores the strategic initiatives SMEs are undertaking to build resilience and sustain long-term growth amidst a challenging economic backdrop.

The Singlife-SGFIN Sustainable Future Index 2026, launched by Singlife in collaboration with the Sustainable and Green Finance Institute (SGFIN) at the National University of Singapore, highlights a significant generational divide in sustainability awareness and action. Whilst Gen Z demonstrates the highest awareness of sustainability issues, older Singaporeans are more likely to adopt sustainable practices in their daily lives.

The index, based on a survey of 1,500 Singaporeans and Permanent Residents, evaluates sustainability-related actions across four pillars: responsible investing, climate change action, inclusive solutions, and societal culture. It reveals that although Gen Z is most aware of sustainability, older generations, particularly Baby Boomers, lead in practical actions such as using reusable bags and participating in waste recycling.

A key insight from the index is the role of personal responsibility in driving sustainable actions. Gen Z shows a strong sense of ownership in social sustainability and community engagement, yet cost remains a significant barrier for all generations. The willingness to make sustainable choices decreases when higher financial commitments are involved.

To address these challenges, Singlife and SGFIN have launched the SGFIN-Singlife Sustainable Finance Case Competition 2026, encouraging students to propose practical solutions based on the index findings. A comprehensive white paper, set to be released in Q2 2026, will offer further analysis and recommendations for policymakers, businesses, and individuals aiming to foster sustainable choices.

Retail rents in Singapore’s prime central areas increased by 1.7% year-on-year in the fourth quarter of 2025, according to a report by Savills Research. The average monthly rent in the Orchard Area reached S$23.60 per square foot, reflecting strong tenant demand for high-visibility locations that attract footfall and enhance brand positioning.

In contrast, suburban retail rents saw a more modest rise of 1% year-on-year, reaching S$14.90 per square foot. This growth was supported by stable occupancy levels and a consistent demand for convenience and lifestyle-oriented retail formats. Overall, retail leasing activity remained steady, with a net absorption of 366,000 square feet recorded across the market in Q4 2025.

Despite a challenging first half of the year, the second half saw stronger leasing momentum. However, the total net absorption for 2025 was 301,000 square feet, significantly below the four-year post-recovery average of 1 million square feet. Consequently, islandwide retail vacancy remained stable at 6.3% in Q4 2025.

Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, noted, “Whilst consumer spending remains cautious and operating costs are rising, demand has stayed resilient for prime retail assets that continue to deliver footfall and brand visibility.”

Looking forward, Savills projects that approximately 504,000 square feet of new retail space will be completed in 2026, slightly above the five-year historical average. This limited supply is expected to keep pressure on occupancy and rental levels minimal, particularly for prime assets. Retail rents in both Orchard Road and suburban malls are anticipated to increase by 1% to 2% in 2026.

Centurion Asset Management Pte. Ltd., the manager of Centurion Accommodation REIT, has received provisional permission to expand its Westlite Ubi facility. The development will include a new 6-storey block and alterations to the existing 8-storey block, increasing the total capacity from 1,650 to 2,190 beds.

The expansion will require a land premium of approximately S$13.9m payable to JTC Corporation. The manager plans to finance this project through committed debt facilities. Construction is expected to begin by the second quarter of 2026 and is anticipated to take about 1.5 years to complete. During this period, the current 8-storey block will continue to operate and generate income.

This development is significant as it addresses the growing demand for accommodation in the area. The increase in capacity is expected to enhance the facility’s ability to serve more residents, thereby boosting its operational efficiency and revenue potential.

The expansion aligns with Centurion Accommodation REIT’s strategy to optimise its assets and meet the evolving needs of its clientele. As the project progresses, stakeholders will be keenly observing its impact on the local accommodation market and the REIT’s financial performance.

Mediacorp has partnered with Mastercard to introduce Singapore’s first end-to-end media measurement solution, leveraging anonymised transaction insights to enhance media effectiveness evaluation. This collaboration aims to provide brands with a clearer understanding of how media exposure translates into real-world consumer actions, thereby improving campaign planning and outcome measurement.

The partnership combines Mediacorp’s extensive omnichannel reach across television, radio, digital, social, and out-of-home platforms with Mastercard’s transaction and spending insights. This integration allows advertisers to gain deeper insights into audience behaviour, including store visits and purchase activities, creating a closed-loop measurement framework that directly links media delivery to business outcomes.

Advertisers can now track market share shifts and benchmark their performance against competitors, enabling more informed decision-making. The solution offers full-funnel accountability, assessing campaign performance across platforms and allowing brands to optimise media investments based on actual commercial impact rather than proxy metrics like impressions.

This initiative builds on Mediacorp’s ongoing investment in advanced measurement tools, following the introduction of its Ultimate Omnichannel Impact framework. This framework, based on the five Cs—Culture, Content, Connection, Context, and Conversion—aims to create a seamless journey from storytelling to sales.

Jacqui Lim, Mediacorp’s Chief Commercial Officer, stated, “This collaboration elevates how media effectiveness is measured in Singapore.” Tancho Fingarov, Mastercard’s Senior Vice President, added, “By integrating these capabilities, we’re giving marketers clearer visibility into what truly drives impact.”

The partnership is set to offer a smarter, outcome-led approach for brands to plan, measure, and grow media effectiveness in a dynamic omnichannel landscape.

Qatar Investment Authority (QIA) has partnered with Hongkong Land Holdings Limited to launch the Singapore Central Private Real Estate Fund (SCPREF), marking the largest commercial private investment fund in Singapore with S$8.2b in assets under management at its inception. The fund, advised by global law firm Linklaters, focuses on high-quality, income-producing commercial assets in Singapore’s Central Business District and Orchard Road District, aiming to reach a gross asset value of at least S$15b.

SCPREF is a perpetual open-end fund, initially comprising a portfolio with 2.6 million square feet of effective net lettable area. Asia Square Tower 1, a premium Grade A office tower previously wholly owned by QIA, is included in the fund’s initial portfolio. Alongside QIA, APG Asset Management is also a founding investor in the fund.

The advisory team from Linklaters was led by corporate partner Robert Elliot, with support from counsellor Grace Wong and a cross-practice, multi-jurisdictional team. Elliot expressed pride in supporting QIA and highlighted the transaction as evidence of Singapore’s status as a key gateway for global institutional capital. He noted, “The launch of SCPREF underscores Singapore’s position as a pre-eminent gateway for global institutional capital.”

The establishment of SCPREF not only strengthens Singapore’s position in the global real estate market but also demonstrates the collaborative efforts of international legal and financial teams to facilitate significant investment opportunities in the region.

Singapore’s CEOs are expressing strong confidence in the local economy, with 90% optimistic about the next 12 months, according to the EY-Parthenon CEO Outlook Survey. The survey, which included 40 Singaporean CEOs among 1,200 global participants, highlights a focus on artificial intelligence (AI) and mergers and acquisitions (M&A) as key strategies for growth in 2026.

The survey reveals that 65% of Singaporean CEOs expect AI to become a major growth engine within two years, with 35% believing it will fundamentally reshape operations. Purandar Rao, EY-Parthenon Asia East and Singapore Strategy and Transactions Leader, noted, “Leading CEOs thrive amid uncertainty by quickly adopting new technologies and driving strong collaboration to stay competitive.”

M&A remains a critical strategy, with all Singapore respondents planning transactions in the next year. Interest in joint ventures and strategic alliances is strong, with 80% of CEOs planning such initiatives. The top investment destinations include Singapore, Hong Kong, India, Malaysia, and the Philippines.

The survey also indicates a proactive approach to talent retention, with 80% of CEOs optimistic about attracting and retaining critical talent. Joongshik Wang, EY-Parthenon Asean Strategy and Execution Leader, emphasised the importance of investing in skills development to fully realise AI’s benefits.

As geopolitical scrutiny reshapes deal strategies, Singaporean CEOs are focusing on technology-driven M&A to navigate a volatile market. “2026 won’t bring certainty, and CEOs know it,” concluded Rao, highlighting the need for strategic capital allocation.