Industry News

United Overseas Bank (UOB) has successfully issued a RMB 5b three-year Panda bond at a coupon rate of 1.83%, marking its third entry into the Panda bond market since 2019. This issuance, which is the joint largest for a three-year tenor among foreign banks, highlights UOB’s ongoing commitment to the Chinese capital markets. The bond is set to be listed on the Singapore Exchange, pending regulatory approval.

The offering received robust demand, with a subscription ratio of 1.6 times, drawing interest from both onshore and offshore investors. Onshore investors accounted for 78% of the uptake, whilst offshore investors comprised 22%. The final coupon rate of 1.83% represents a spread of 22 basis points over the three-year China Development Bank benchmark bond yield, one of the lowest for an international issuer in the Panda bond market.

Koh Chin Chin, UOB’s Head of Group Treasury, Research and Customer Advocacy, expressed satisfaction with the issuance, stating, “We’re pleased to complete our CNY5b Panda bond issuance with strong investor support. As a repeat issuer, we appreciate the depth and resilience of the onshore RMB market.”

The bond issuance comes at a time when the US markets are largely closed due to geopolitical volatility, yet the onshore RMB market remains stable. The proceeds from the bond will be used to support UOB’s general banking business in Hong Kong and ASEAN, particularly for enterprises with ties to the PRC.

Singapore’s non-oil domestic exports (NODX) experienced a 6.7% year-on-year increase in January and February 2026, according to a report by UOB Global Economics and Markets Research. This growth, though moderated from the 12.7% expansion in the fourth quarter of 2025, was primarily propelled by strong demand in the electronics sector, which saw a 49.7% rise due to artificial intelligence (AI) advancements.

The report highlights that whilst electronics exports surged, non-electronics exports faced a decline of 4.9% year-on-year. Notably, exports to semiconductor hubs such as South Korea and Taiwan remained robust, with increases of 39.8% and 32.1% respectively. In contrast, exports to the US continued to struggle, contracting by 45.1% year-on-year, largely due to ongoing US tariffs on non-electronics goods.

The US tariffs, part of a broader Section 301 investigation, pose a continued risk to Singapore’s export landscape. The Trump administration’s recent imposition of a 10% tariff, with potential increases to 15%, further complicates the outlook for non-electronics exports to the US.

Additionally, geopolitical tensions in the Middle East have introduced uncertainties, particularly with rising energy prices and supply shortages in critical materials like naphtha and helium gas. These factors could impact downstream production and, consequently, Singapore’s export growth.

As Singapore navigates these challenges, the sustained demand for AI-related electronics offers a silver lining, potentially cushioning the impact of global economic uncertainties on its export sector.

Geo Energy Resources Limited has announced significant progress in its Integrated Infrastructure Project, achieving 80% completion. The project, under PT Marga Bara Jaya (MBJ), includes a 92km hauling road and jetty in South Sumatra, set to be operational by early Q3 2026. Lorry hauling trials will commence in April 2026, supported by agreements with PT Citra Andalan Mobilindo Cemerlang Shacman and China North Vehicle Corporation Limited (CCCC-Norinco).

The company has secured two binding term sheets with third-party customers for a total of 9 million tonnes per annum in haulage volume. This is expected to create a new toll-based revenue stream, potentially generating up to $300m in EBITDA annually at full capacity of 50 million tonnes per annum.

Geo Energy has set a coal production target of 115–125 million tonnes for 2026, pending final approvals from the Ministry of Energy and Mineral Resources. With current coal prices, this could result in $170–200m in EBITDA from coal sales alone.

Coal prices have surged due to geopolitical tensions, with the ICI4 coal price rising to $59.97 per tonne as of 13 March 2026, a 29.3% increase from Q4 2025. This price hike strengthens Geo Energy’s earnings outlook, as noted by Executive Chairman and CEO Charles Antonny Melati, who highlighted the company’s readiness for operations and long-term growth ambitions.

ComfortDelGro, in collaboration with the National Taxi Association (NTA) and the National Private Hire Vehicles Association (NPHVA), has announced measures to support drivers facing rising fuel costs. From 24 March to 31 May 2026, a temporary Driver Fee will be introduced for app bookings, charging $0.50 for fares below $15 and $0.80 for fares $15 and above. Additionally, a $0.01 increase to the distance time rate for all metred trips will be implemented.

The measures aim to provide financial relief to drivers during this period of uncertainty. Michael Huang, Head of Singapore Point-to-Point Mobility Business at ComfortDelGro, stated that the company is committed to ensuring operational stability for its partners. The fees collected will be directed entirely to the drivers.

The NTA and NPHVA have expressed support for these initiatives. Teo Siew Pan, Executive Secretary of the NTA, highlighted the stress caused by fuel price increases and welcomed the direct support for drivers. Raven Lee, Executive Secretary of the NPHVA, noted that the Driver Fee helps offset rising operating costs for private hire vehicle drivers.

ComfortDelGro has also been absorbing a portion of increased fuel costs at its pumps and introduced a taxi fuel credit incentive programme on 15 March 2026. These efforts are part of the company’s ongoing strategy to support drivers amidst volatile fuel prices. The situation will be closely monitored to ensure continued support for drivers.

International consultancy TBH has released a report titled “Powering Data Centres: Are Integrated Utility Precincts the Answer?”, proposing a shift from traditional standalone data centre models to integrated utility precincts. This change is deemed necessary as regional electricity demand from data centres is expected to quadruple to 10.7 GW by 2035, according to the report.

The report highlights that traditional models, where facilities independently secure power, cooling, and water, are becoming less viable in constrained environments like Singapore. TBH Director and Partner Meiske Sompie emphasised the importance of integrated utility precincts, stating, “In Singapore, every drop of water and every megawatt of power counts. Data centres can either compete for scarce resources or catalyse smarter infrastructure systems.”

The integrated model proposes co-planning renewable generation, battery storage, and water treatment at a precinct level, rather than duplicating infrastructure across individual sites. This approach aims to improve capital efficiency, optimise resource utilisation, and enable large-scale integration of renewable energy.

The report also points to Singapore and Malaysia as early indicators of these constraints. Singapore’s 2019 moratorium led to stricter performance thresholds, whilst Malaysia faces scrutiny over water consumption in Johor. Microsoft’s SG2 facility in Singapore, which uses rainwater harvesting, exemplifies this shift towards more sustainable practices.

TBH’s proposal not only benefits operators but also aligns with government and community planning objectives, supporting stronger Environmental and Social Governance (ESG) outcomes. The integrated approach could serve as a model for sustainable digital growth in Southeast Asia.

Researchers from KK Women’s and Children’s Hospital Maternal and Child Health Research Institute (KKH-MCHRI) are participating in a groundbreaking study aimed at establishing the first global system to track health before pregnancy. The study, published in The Lancet, introduces a set of indicators covering 12 areas to monitor the health of men and women of reproductive age worldwide.

The initiative comes amid increasing concerns over preconception health, with rising obesity and mental health challenges globally. Many women are entering pregnancy with conditions like obesity, diabetes, and mental illness, which can complicate childbirth. The study, involving over 5,000 participants across 13 countries, including Singapore, prioritised mental and physical health, supportive relationships, and financial stability as key factors before pregnancy.

In Singapore, the focus on physical and mental health is particularly relevant given the country’s declining fertility rates, which hit a low of 0.87 in 2025. Dr Ku Chee Wai from KKH-MCHRI noted that these findings align with global trends and support ongoing research efforts to create environments conducive to family planning.

The study, led by University College London and the University of Southampton, has distilled over 120 indicators to 40 core ones for a practical global surveillance system. The team plans to collaborate with international bodies, including the World Health Organisation, to integrate these indicators into existing health monitoring infrastructures. An international workshop in November 2026 will further refine these indicators, aiming for global consensus and implementation.

A.P. Moller – Maersk has inaugurated a 1.1 million square feet, fully automated global and regional distribution centre in Singapore, named World Gateway II. This development marks a significant expansion of Maersk’s logistics and e-commerce capabilities in the Asia Pacific region. The facility, supported by the Singapore Government, aims to meet the growing demand from companies using Singapore as a key distribution hub.

Strategically located near major transport infrastructure such as Tuas Port and Changi Airport, the centre is designed to facilitate efficient cargo distribution. It will handle products from various sectors, including lifestyle, Fast Moving Consumer Goods (FMCG), retail, wellness, and technology. The site is also close to Maersk’s existing World Gateway regional distribution centre, which spans 1.0 million square feet.

Vincent Clerc, CEO of Maersk, highlighted the importance of the new facility, stating, “The launch of World Gateway II reflects the importance of Singapore to our global network and the immense opportunities we see in Asia.”

The centre features advanced automation technologies, including a Multi-Shuttle System and Autonomous Mobile Robots (AMRs), which enhance order fulfilment speed and accuracy. Chang Kee Seng, Head of Maersk Contract Logistics Asia Pacific, noted, “Doubling our warehousing footprint in Singapore is a bold step forward and a strong vote of confidence in this market and our customers.”

With an investment exceeding S$200m, the facility is approximately 70% occupied and is expected to create around 500 jobs. Png Cheong Boon, Chairman of EDB, welcomed the investment, emphasising its role in strengthening Singapore’s logistics hub status.

Mencast Holdings Ltd. has announced the exercise of an option to purchase its leasehold property at 42B Penjuru Road, Singapore, by Grandwoods Trading (Singapore) Pte Ltd. The transaction, valued at S$21m, was confirmed on 16 March 2026, following the purchaser’s payment of S$915,600, which includes the balance deposit and GST.

The option, initially granted by Mencast Marine Pte. Ltd., a subsidiary of Mencast Holdings, was set to expire on 18 March 2026. With the exercise of this option, a binding contract has been established for the property’s sale. The vendor’s solicitors will hold the deposit as a stakeholder until the completion of the sale.

Mencast Holdings has committed to providing further updates as the transaction progresses. The company’s directors have assured the accuracy of the information provided, emphasising their responsibility for full disclosure.

Shareholders and potential investors are advised to remain cautious, as the completion of the sale is contingent upon fulfilling certain conditions. Mencast Holdings has urged stakeholders to consult with financial advisers if uncertain about their investment decisions.

SIA Engineering Company Limited (SIAEC) has announced the finalisation of agreements with Arport Aircraft Maintenance & Engineering (Fujian) to establish a Maintenance, Repair and Overhaul (MRO) joint venture in Fujian, China. This development follows a series of agreements dating back to September 2023, culminating in SIAEC Global, a wholly-owned subsidiary of SIAEC, acquiring a 30% stake in Arport AME for RMB129m.

The joint venture aims to leverage the strengths of both companies to enhance MRO services in the region. The transaction consideration was determined based on bid requirements, considering Arport AME’s net asset value and future prospects. As of 31 December 2024, Arport AME’s net tangible assets were RMB40.3m. Post-transaction, the pro-forma enlarged net tangible assets are expected to be RMB169.3m, with RMB50.8m attributable to SIAEC’s interest.

The transaction is contingent upon regulatory approvals and other conditions. SIAEC stated that the transaction would not significantly impact its net tangible assets per share or earnings per share for the financial year ending 31 March 2026. None of SIAEC’s directors or controlling shareholders have any direct or indirect interest in the transaction, aside from their shareholdings in the company.

SIAEC, a leading MRO service provider in the Asia-Pacific, serves over 80 international carriers and operates across nine countries. This joint venture with Arport AME is expected to strengthen its service offerings in the Chinese market.

Rental volumes for both condominiums and Housing Development Board (HDB) flats in Singapore experienced a notable decline in February 2026, according to the latest report by 99.co and SRX. The drop is largely attributed to the seasonal slowdown during the Chinese New Year period, which typically sees a pause in leasing transactions as households defer moving decisions.

In the condominium rental market, overall rental prices saw a slight decrease of 0.2% month-on-month. The Rest of Central Region (RCR) and Outside Central Region (OCR) experienced declines of 0.5% and 0.4%, respectively, whilst the Core Central Region (CCR) saw a 0.8% increase. Despite the monthly dip, year-on-year figures show a 2% increase in overall rental prices, indicating resilient demand.

Rental volumes for condos fell by 25.5% from January 2026, with an estimated 4,995 units rented in February. This represents a 1.3% decrease year-on-year and is 4.5% lower than the five-year average for February. The OCR accounted for 35.6% of the total rental volume, followed by the RCR at 33.8% and the CCR at 30.6%.

The HDB rental market also saw a decrease in activity, with rental volumes dropping by 20.1% month-on-month. Approximately 2,239 HDB flats were rented in February, down from 2,802 in January. Year-on-year, this marks a 5% decline, with volumes 9.7% below the five-year average. However, HDB rental prices increased by 0.3% month-on-month, with Mature towns seeing a 0.5% rise.

Luqman Hakim, Chief Data & Analytics Officer at 99.co, noted that whilst the February slowdown is seasonal, the slight year-on-year price growth suggests that underlying rental demand remains strong. This indicates that the market fundamentals are stable, despite the temporary dip in activity.