Industry News

ESR-REIT has announced a 4.5% year-on-year increase in its core Distribution per Unit (DPU) to 11.250 Singapore cents for the first half of 2026. This growth is attributed to higher core earnings and improved asset performance, despite a slight dip in gross revenue and net property income due to the divestment of non-core properties.

The real estate investment trust’s gross revenue and net property income decreased by 0.3% and 2.2% respectively, primarily due to the sale of 10 non-core properties. However, positive rental reversions and increased occupancy rates helped offset these declines. On a same-store basis, gross revenue and net property income grew by 2.3% and 0.7% respectively.

In a strategic move to enhance its portfolio, ESR-REIT plans to acquire six freehold logistics assets in Australia. This acquisition is expected to be 5.1% DPU accretive and is being made at a 1.6% discount to valuation. The acquisition aims to address the portfolio’s land lease decay issue and improve long-term income resilience.

Chief Executive Officer Adrian Chui stated, “The successful divestment of non-core assets unlocked value and facilitated the timely recycling of the sale proceeds into six freehold institutional-grade logistics properties in Australia.”

The trust’s gearing stands at 41.4%, with plans to reduce it to 39.9% following the redemption of S$125m of unsecured notes. This financial manoeuvre is expected to further strengthen ESR-REIT’s position for sustainable long-term earnings growth.

Singaporean employers are increasingly focusing on role redesign and skill development as salary increase budgets stabilise, according to WTW’s latest Salary Budget Planning report. The report highlights a shift from broad pay hikes to targeted workforce strategies, with actual salary increases in Singapore recorded at 3.9% in 2026, slightly below the 4.0% of 2025, and projected to return to 4.0% in 2027.

The report, which surveyed 759 organisations in Singapore, indicates that three-quarters of employers adjusted salary increases within a 2.5% to 5.0% range. This reflects a stable yet selective pay environment, where increases are directed towards priority roles and skills. More than half of the employers maintained steady pay budgets in 2026, with only 7% reporting higher budgets than initially planned.

Cost management, inflationary pressures, and talent competition are driving cautious salary planning. Employers are increasingly investing in roles that support digital transformation and operational execution. DN Prasad, Head of Work & Rewards at WTW Singapore, noted, “Employers are maintaining workforce stability whilst selectively investing in roles and capabilities.”

WTW’s Talent Intelligence analysis shows high demand for roles in customer service, technology, and data sectors. Positions such as Software Engineers, AI Engineers, and Data Scientists are among the top in demand, underscoring the importance of digital transformation across industries. As companies adapt to these changes, understanding evolving role requirements and skill needs becomes crucial for sustaining workforce resilience.

Singapore’s industrial rental market has marked its 23rd consecutive quarter of growth, according to JTC’s Q2 2026 statistics. The JTC All Industrial Rental Index increased by 0.5% quarter-on-quarter, up from a 0.4% rise in Q1 2026. This growth persists despite global uncertainties, such as the Middle East conflict, highlighting Singapore’s stability as a business hub.

The single-user factory segment saw the most significant rental increase, with a 0.7% rise, although this was a slowdown from the previous quarter’s 1.0% growth. Notable completions in this segment included Advanced Substrate Technologies’ AST Building and KLA-Tencor’s facility at 22A Ang Mo Kio Industrial Park 2, pushing occupancy rates to 89.3%.

Multi-user factories experienced a 0.6% rental increase, with Space 18 being the sole project completion. This segment’s occupancy rate rose to 90.5%. Meanwhile, warehouse rents grew by 0.5%, with the completion of 25 Senoko Loop, maintaining an occupancy rate of 89.4%.

Conversely, business park rents decreased by 0.1%, despite the addition of 27 International Business Park. Vacancy rates in this segment fell to 22.1%, with prime properties maintaining firm rents.

The JTC All-Industrial Price Index also rose by 0.6%, marking the ninth consecutive quarter of price increases. This trend is supported by favourable domestic interest rates, with the 3-month SORA at 1.15% as of 23 July 2026.

Looking ahead, CBRE notes that Singapore’s AI-related manufacturing sector may bolster demand, despite ongoing geopolitical challenges. The Johor-Singapore Special Economic Zone, set for Q4 2026 launch, is expected to enhance investor confidence and cross-border collaboration.

Singtel has emerged as the top mobile network provider in Singapore, according to Opensignal’s July 2026 Mobile Network Experience Report. The report, which analysed network performance from 1 April to 29 June 2026, evaluated M1, SIMBA, Singtel, and StarHub across 13 metrics, revealing Singtel’s superior performance in several key areas.

Singtel was awarded the Best Network title, excelling in Reliability and Consistent Quality, and sharing the Time on Network award. The company also expanded its lead over competitors in these categories. Notably, Singtel secured the 5G Availability award, surpassing StarHub by nearly 10 percentage points, and maintained its 5G Coverage award with a score of 9.5 out of 10, indicating the most extensive 5G coverage in populated areas.

Whilst Singtel dominated in reliability and 5G, StarHub was recognised for providing the fastest overall speeds, winning both the Download Speed and Upload Speed awards outright. This highlights the competitive landscape of Singapore’s mobile network providers, with each operator showcasing strengths in different areas.

Opensignal, known for its independent analysis of consumer connectivity experiences, gathers billions of measurements daily from over 100 million devices worldwide. This comprehensive data collection underpins the insights provided in their reports, offering a detailed view of network performance globally.

The Monetary Authority of Singapore (MAS) has made a strategic move to tighten its monetary policy in 2026, as outlined in RHB Bank’s latest Global Economics and Market Strategy Report. The report, attributed to Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, suggests that the MAS aims to increase the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) gradient to 1.50%, with a potential rise to 1.75% by the end of the year.

This decision is seen as a pre-emptive measure to manage inflation expectations amidst a widening output gap. The MAS has opted for a “very slight” increase in the rate of appreciation of the policy band, which RHB interprets as a mild 25 basis points steepening, bringing the gradient to +1.25%. Notably, there has been no alteration to the width of the policy band or its central level.

Gan’s analysis indicates that this move by the MAS is likely a token tightening decision, aimed at anchoring inflation expectations in a challenging economic environment. The report highlights the importance of this adjustment in light of emerging cost pressures anticipated in the second half of 2026.

As Singapore navigates these economic uncertainties, the MAS’s policy adjustments will be closely monitored for their impact on the nation’s economic stability and inflation control. The potential for further tightening by the end of the year underscores the dynamic nature of Singapore’s economic strategy in response to global and domestic challenges.

The Competition and Consumer Commission of Singapore (CCS) has revised its guidance note for airline alliance agreements, effective from 27 July 2026. The updated Passenger Airline Guidance Note 2026 (PAGN 2026) introduces a streamlined review process and expanded guidance on commitments and competition assessments, following feedback from a public consultation held earlier this year.

The key amendments in PAGN 2026 include a three-step review process for airline alliance notifications, designed to provide procedural certainty and facilitate earlier engagement with CCS. This process outlines specific milestones for commitment discussions and market testing, enhancing the efficiency of reviews. Additionally, the guidance note offers more comprehensive advice on commitments, including capacity commitments and growth mechanisms, to address competition concerns effectively.

PAGN 2026 also expands on CCS’s competition assessment framework, providing detailed guidance on market definition, counterfactual analysis, and the treatment of differentiated airline products such as Full Service Airlines and Low Cost Carriers. The note clarifies the assessment of Net Economic Benefit (NEB) claims, outlining evidential requirements and examples of efficiencies that may qualify for NEB exclusion under the Competition Act.

The revisions aim to enhance regulatory certainty and provide clearer guidance to industry participants. CCS plans to review the guidance periodically, incorporating insights from its cases and best practices from other jurisdictions.

AI is transforming the workplace across Asia, with a new e-guide from Robert Walters revealing that whilst 93% of professionals actively use AI, only 75% believe it will positively impact their careers. The guide, titled “The Jobs of Tomorrow: How AI is Reshaping Work Across Asia,” draws insights from nearly 5,000 professionals and companies across 10 Asian markets, including Singapore.

AI adoption is widespread, with 58% of Asian employers having implemented it in their operations. However, the perception of AI’s impact varies by region. In Vietnam and the Philippines, optimism is high, with 98% and 95% respectively viewing AI positively. In contrast, Singapore and Hong Kong show more scepticism, with only 67% and 66% of professionals, respectively, expecting positive career impacts.

In Singapore, 89% of professionals use AI, yet only 59% feel confident in maintaining relevant skills. Concerns about AI include job displacement, bias, and skills obsolescence. AI is primarily used for research, content creation, and data analysis in Singapore, enhancing efficiency rather than replacing human judgement.

Kirsty Poltock, Country Manager of Robert Walters Singapore, noted, “AI is reshaping how work is done, shifting routine tasks to automation whilst elevating human responsibility for judgement and decision-making.” She emphasised the need for companies to invest in reskilling, highlighting critical thinking, data analysis, and adaptability as essential skills in an AI-driven workplace.

The findings underscore the necessity for organisations to rethink job roles and career pathways as AI continues to influence the job market across Asia.

Osome, a leading AI company management platform, is bolstering its support for AI startups selecting Singapore as their regional hub. With over 50,000 tech founders and solopreneurs globally relying on its services, Osome is responding to Singapore’s growing appeal as a base for AI companies. Notably, OpenAI has invested $234m in Singapore’s AI ecosystem, whilst Cognition, Anthropic, and Tencent are expanding their presence in the region.

Singapore’s Budget 2026 has introduced initiatives like the National AI Impact Programme and the Kampong AI hub at one-north, alongside a 400% tax deduction on qualifying AI investments. These incentives are accessible to foreign companies incorporating a Private Limited Company, allowing 100% foreign ownership and startup tax rates as low as 10%.

Osome facilitates the incorporation process, enabling founders to establish a company in as little as seven days. It also manages back-office operations, including accounting and compliance. Recently, Osome launched its Model Context Protocol (MCP) server, transforming AI assistants into business command centres. This innovation allows founders to access company data securely through AI interfaces like Claude, ChatGPT, and Gemini.

Eugenio Ferrante, CEO of Osome, highlighted the efficiency gains, stating, “A three-person AI startup can operate globally from Singapore with a laptop. The biggest threat isn’t competition but administrative drag.” Osome’s platform has already benefited companies like UpNComers, Aesty, and Angelflow, significantly reducing their bookkeeping time.

Osome’s commitment to supporting AI startups in Singapore underscores the city-state’s strategic importance in the global AI landscape.

UOB Asset Management (UOBAM) has unveiled its third-quarter 2026 investment strategy, emphasising the global economy’s resilience despite ongoing challenges such as inflation, tariffs, geopolitical tensions, and energy market volatility. The strategy highlights robust corporate earnings and resilient labour markets, with continued investment in artificial intelligence (AI) infrastructure driving growth.

UOBAM’s analysis suggests that the US Federal Reserve is likely to maintain its current interest rate pause, given moderating inflation pressures, particularly in housing and wages. The firm has upgraded its outlook on Onshore China to overweight, citing strong earnings momentum and attractive valuations in Asia. Anthony Raza, Head of UOBAM Multi-Asset Strategy, noted, “The global economy has repeatedly withstood shocks without derailing growth.”

The strategy remains overweight on equities, favouring the US and Asia, and maintains a positive outlook on gold due to its role as a safe-haven asset. UOBAM continues to see opportunities in sectors linked to AI, semiconductors, energy infrastructure, and advanced manufacturing in China. The firm manages 63 unit trusts in Singapore and oversees $443b in client assets as of 30 June 2026.

UOBAM, a subsidiary of United Overseas Bank Limited, has been recognised for its digital innovation and sustainable investing, receiving numerous awards across Asia. The firm’s strategic alliances and presence in multiple Asian countries bolster its investment capabilities.

Singapore Changi Airport reported 17.2 million passenger movements in the second quarter of 2026, a slight decrease of 1.5% compared to the same period last year. Despite this, passenger traffic for the first half of 2026 showed a modest increase of 0.4% year-on-year. Aircraft movements also saw a slight decline, with 92,400 landings and take-offs, down 1.3% from the previous year.

Traffic to and from Europe and the Southwest Pacific rose by 8.7% and 3.0% respectively, as airlines increased capacity to optimise operations. However, Southeast Asian routes experienced a 5.0% decline due to higher operating costs from elevated jet fuel prices and supply constraints. Vietnam and China were standout performers, with passenger traffic increasing by 18.5% and 8.3% respectively.

Changi Airport’s top five passenger markets for the quarter were China, Indonesia, Australia, Malaysia, and India. The airport also handled 567,000 tonnes of airfreight, marking a 9.8% increase, driven by strong AI-related semiconductor and electronics shipments.

Lim Ching Kiat, Executive Vice President for Air Hub and Cargo Development at Changi Airport Group, stated, “We are encouraged by the sustained demand for travel, particularly to and from Europe and Northeast Asia.” He also noted ongoing discussions with airline partners to restore previously suspended services.

In Q2, Changi Airport expanded its network with new services. China Eastern began flights to Dalian, whilst Scoot launched routes to Belitung and Pontianak. New airlines, Shanghai Airlines and Oman Air, commenced services, further enhancing connectivity. Tianjin Air Cargo also joined as a new freighter operator, linking Singapore with Haikou.