Industry News

Singapore’s economy is projected to grow by 2.0% in 2025, according to RHB Bank’s latest Global Economics and Market Strategy Report. The report, authored by Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, suggests that there is an upside risk for growth to reach 3.0%, driven by improved global trade conditions and a resilient domestic economy.

The report outlines three key factors supporting the potential for increased growth: greater clarity on tariff rates among major global trading partners, an improved risk appetite, and strong year-to-date GDP growth in Singapore. Despite these positive indicators, RHB remains cautious in upgrading its forecast due to ongoing uncertainties in global trade policies, particularly between the US and key economies like China and India.

Singapore’s GDP for the second quarter of 2025 was reported at 4.4%, slightly surpassing the Ministry of Trade and Industry’s advanced estimate of 4.3% and RHB’s own projection of 4.2%. The first half of 2025 saw an average GDP growth of 4.3% year-on-year.

Gan emphasises the need for caution, citing potential challenges in the latter half of the year, including fading export front-loading and possible payback effects from the first half of 2025. The report also notes uncertainties in US trade policies, particularly sectoral tariffs on pharmaceuticals and semiconductors, as factors that could impact Singapore’s economic outlook.

Overall, whilst the report maintains a conservative stance on Singapore’s GDP growth, it acknowledges the potential for positive developments should global trade conditions continue to improve.
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Singapore’s economy showed resilience in the second quarter of 2025, with GDP growth revised to 4.4% year-on-year, according to UOB Global Economics and Markets Research. This adjustment is a slight increase from the advance estimate of 4.3%. The revision comes amid a mixed performance across sectors, with manufacturing seeing a downward revision to 5.2% year-on-year, whilst construction and services experienced upward adjustments.

The Ministry of Trade and Industry (MTI) has upgraded the GDP growth forecast for 2025 to a range of 1.5% to 2.5%, up from the previous 0.0% to 2.0%. However, the economic outlook remains uncertain, with risks leaning towards the downside. Trade-related services were notably strong, driven by export front-loading ahead of tariff deadlines, with wholesale trade rebounding by 2.8% quarter-on-quarter.

Despite the positive GDP figures, consumer-facing sectors such as retail trade and food and beverage services faced challenges, partly due to a slow recovery in tourist arrivals, which remained below pre-pandemic levels. Additionally, outbound travel by Singapore residents has surpassed 2019 levels, impacting domestic spending.

The robust GDP growth was largely supported by net exports, which grew at a faster pace than imports. Private and government consumption also contributed positively, although growth in gross fixed capital formation slowed.

Looking ahead, MTI remains cautiously optimistic about external demand, citing resilience in advanced and regional economies. However, potential risks include US tariff measures, geopolitical tensions, and financial market volatility. Domestically, manufacturing growth may weaken, and wholesale trade is expected to slow in the second half of 2025. UOB has slightly raised its GDP growth forecasts for 2025 and 2026, anticipating a short-lived technical recession in the latter half of the year.
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NTT DATA and The GEAR by Kajima have launched a pioneering smart-building initiative in Singapore, transforming Kajima’s regional headquarters and R&D hub into a cutting-edge smart ecosystem. This collaboration integrates over 10 technologies, utilising more than 8,700 data points to enhance operational efficiency, sustainability, and cybersecurity.

The initiative is part of Singapore’s broader push towards smart infrastructure, exemplified by the Punggol Digital District, which has helped the city-state secure the 5th position in the IMD Smart Cities Index 2024. NTT DATA’s role in this project includes providing network infrastructure and IoT platforms, which streamline data flows and automate operations, making The GEAR building a responsive and efficient smart environment.

The GEAR by Kajima has successfully integrated disparate systems to convert raw data into actionable insights, aligning with business key performance indicators (KPIs). This integration has resulted in enhanced operational efficiency, with over 2,000 sensors optimising inventory, procurement, and service delivery. Additionally, remote monitoring and personalised controls have improved occupant comfort and productivity, whilst energy management systems have driven cost savings.

The smart systems at The GEAR building support its BCA Green Mark Platinum Super Low Energy certification by optimising energy consumption and enabling data-driven sustainability practices. Furthermore, NTT DATA has embedded cybersecurity measures across all systems to protect the smart building ecosystem.

Png Kim-Meng, CEO of NTT DATA Singapore, stated, “This collaboration shows NTT DATA’s commitment to delivering infrastructure that drives innovation.” Luke Wu, Managing Director of The GEAR by Kajima, added, “Our partnership with NTT DATA has been instrumental in transforming The GEAR building into a living lab where smart systems, sustainability, and digital infrastructure converge.”

This initiative not only sets a benchmark for sustainable design but also provides a scalable model for future smart districts and urban environments in Singapore and beyond.
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HDB resale prices in Singapore have increased for the 21st consecutive quarter, according to OrangeTee’s Q2 2025 report. This marks the longest period of continuous price growth in history, with prices rising by 0.9% in Q2 2025, albeit at a slower pace than previous quarters. The report highlights a record number of million-dollar transactions, reaching 415 units, a 19.3% increase from the previous quarter.

The number of resale flats sold for at least S$800,000 also rose for the second consecutive quarter, with 1,481 units sold in Q2 2025. This is up from 1,182 units in Q1 2025. The demand for premium flats remains strong, particularly in towns like Tampines and Toa Payoh.

Rental demand for HDB flats has also seen an uptick, with approved applications increasing by 4.2% to 10,066 units in Q2 2025. This trend is expected to continue, with rental prices projected to rise modestly by 1% to 2% for the entire year.

HDB is on track to launch nearly 30,000 new flats in 2025, with over 19,000 being build-to-order (BTO) flats. The July 2025 BTO exercise introduced 5,547 new flats across seven towns, contributing to the increased supply.

The report projects that HDB resale prices could rise by 4% to 5.5% in 2025, with an estimated 27,000 to 28,000 transactions expected by year-end. This sustained growth in the HDB market underscores the ongoing demand for public housing in Singapore.
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Antler, a global early-stage venture capital firm based in Singapore, has announced a $7.4 million investment in startups across Southeast Asia during the first half of 2025. Of this, $2.8 million is allocated to seven AI startups graduating from its AI Disrupt residency in Singapore, a four-week programme designed to accelerate AI companies already serving live customers.

The AI Disrupt residency provides each participant with $400,000 in funding and access to over $650,000 in AI-specific cloud computing, infrastructure, and tooling credits. This initiative underscores Antler’s commitment to supporting high-velocity AI ventures, reinforcing its position as the world’s most active AI investor, following 74 AI investments globally in 2024.

Winnie Khoo, Partner at Antler, highlighted the rapid pace of AI development, stating, “AI startups are moving 10x faster than just 2 years ago, and AI Disrupt is purpose-built for founders with market-validated products to move and scale much faster.”

The selected startups include Iris, Nugen, IndustrialMind.ai, Lambdai Space, Anamaya AI, AppSecAI, and 5.Y (GLUCOSE), each focusing on innovative AI solutions across various industries. Despite a challenging funding environment in Southeast Asia, marked by a 68% decline in seed funding, Antler remains confident in the potential of emerging technologies to drive regional growth.

Jussi Salovaara, Co-founder and Managing Partner Asia at Antler, remarked, “We are prepared to match their speed and provide flexible early capital that enables them to accelerate, but we are also more selective.” Applications for the next AI Disrupt residency, starting on 21 October 2025, are now open.
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Singapore-headquartered Temasek Financial (I) Limited, a subsidiary of Temasek Holdings, has announced the launch of two new US dollar-denominated bonds. The offering includes a 2-year fixed rate bond and a 2-year floating rate bond, both issued under Temasek’s $25 billion Guaranteed Global Medium Term Note Programme. These bonds are unconditionally guaranteed by Temasek, which holds a top-tier credit rating of “Aaa” from Moody’s and “AAA” from S&P Global Ratings.

The proceeds from these bonds will be utilised by Temasek and its investment holding companies to support their regular business operations. The bonds are set to be listed on the Singapore Exchange Securities Trading Limited, although the exchange has not endorsed the merits of the bonds or the issuing entities.

Citi, Bank of America, Morgan Stanley, and Societe Generale are acting as joint bookrunners for this transaction. The bonds are being offered to qualified institutional buyers in the US under Rule 144A and to non-US persons under Regulation S.

This strategic move by Temasek aims to bolster its financial flexibility and support ongoing investments. The issuance reflects Temasek’s robust financial standing and its commitment to maintaining a strong presence in global financial markets.
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Goh Cheng Liang, the visionary founder of Wuthelam Group and a respected philanthropist, passed away peacefully on 12 August at the age of 98, surrounded by his family. Known for transforming his Pigeon Brand paint business into a global conglomerate, Goh’s entrepreneurial journey began in 1949 and led to a significant partnership with Nippon Paint, where Wuthelam Group now holds a nearly 60% stake.

Goh’s philanthropic efforts were as notable as his business achievements. He established the Goh Foundation in 1995, with the late President Wee Kim Wee’s assistance, to support medical research and educational opportunities. His contributions include the establishment of the National Cancer Centre in Singapore and the Goh Cheng Liang Proton Therapy Centre, which provides advanced cancer treatment. The Foundation also supported children’s cancer research at institutions like KK Women’s and Children’s Hospital and National University Hospital.

Beyond Singapore, Goh extended his philanthropy to China, funding infrastructure projects in his ancestral village, Dawu Village, to improve living conditions. His son, Goh Hup Jin, described him as “a beacon of kindness and strength,” highlighting his father’s teachings of compassion and humility.

Goh is survived by his three children, eight grandchildren, and one great-grandchild. His legacy of business acumen and generosity continues to inspire those who knew him.
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Singaporeans are increasingly embracing AI technology, with a new Adobe survey revealing that 37% of the population now regularly uses AI assistants. The study, conducted in March 2025, highlights a shift towards agentic AI—systems capable of autonomous decision-making and task execution. This evolution is reshaping consumer habits in areas such as online shopping, travel planning, and personal finance.

The survey, which involved over 500 respondents, found that 78% of Singaporeans are turning to AI instead of traditional search methods. Furthermore, 54% plan to use AI for online shopping by 2025. Shashank Sharma, Senior Director of Digital Experience for Southeast Asia and Korea at Adobe, noted, “Singapore is at the forefront of the agentic AI revolution in Southeast Asia.”

Agentic AI is not only transforming consumer behaviour but also workplace practices. Six in 10 AI users have applied the technology at work, with nearly 30% using it daily. Adobe’s initiatives, such as the AI Assistant in Adobe Acrobat, aim to enhance productivity by enabling users to create custom agents for tasks like document analysis and research.

The report also indicates a strong interest in AI-driven experiences, with 91% of Singaporeans drawn to applications that complete tasks autonomously. Sharma emphasised the potential for businesses to leverage AI-powered touchpoints, stating, “This represents both an opportunity and an imperative to reimagine how they engage with customers.”

As AI continues to evolve, its integration into daily life is expected to deepen, offering new opportunities for both consumers and businesses in Singapore.
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Singapore’s retail market is experiencing a two-speed dynamic, according to Savills Singapore. In Q2 2025, islandwide retail vacancy rose by 0.3 percentage points to 7.1%, primarily due to weaker demand in the Central Region, where vacancy increased by 0.6 percentage points to 8.2%. This contrasts with the Suburban Area, where stable footfall and spending on essentials kept the vacancy rate steady at 5.2%.

Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, noted, “Margins for many retailers are falling or even turning negative, with weaker demand particularly evident in the Central Region. However, suburban malls with strong connectivity and large local catchments are proving more resilient.” He added that the limited supply pipeline over the next two years could support occupancy and rents, although the performance gap between prime and weaker malls is expected to widen.

Retail sales, excluding motor vehicles, weakened in May and June, with less than half of the categories showing year-on-year gains. Food and beverage sales ended the quarter with a 0.4% decline compared to the previous year. Despite this, Savills reported a slight uplift in rents, with Orchard Area malls seeing a 0.5% increase and suburban malls a 0.4% rise in Q2 2025.

Looking ahead, the supply of new retail space is set to moderate, with completions estimated at 570,000 square feet in 2025, down from 679,000 square feet in 2024. This reduction in supply is expected to continue until larger projects, such as the Marina Bay Sands expansion, are completed towards the end of the decade. Sulian Tan-Wijaya, Executive Director of Retail & Lifestyle at Savills Singapore, remarked that the limited supply in the city centre has kept occupancy rates healthy, despite soft retail sales.
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Singapore’s life insurance industry has achieved a record-high performance in the first half of 2025, with total weighted new business premiums reaching S$2.99 billion, marking a 7.7% increase compared to the same period last year. This growth was primarily driven by annual premium policies, which saw a significant 22% year-on-year rise, according to the Life Insurance Association, Singapore (LIA Singapore).

Investment-linked policies (ILPs) have been a major contributor to this growth, with premiums increasing by 31.3% year-on-year, from S$975 million in 1H 2024 to S$1.28 billion in 1H 2025. ILPs accounted for 43% of total new business in the first half of the year. LIA Singapore President Wong Sze Keed noted, “The continued growth in annual premium policies and ILPs demonstrates Singaporeans’ focus on long-term financial planning and security.”

Despite a decline in single premium policies by 21.3%, the overall industry performance remains robust. The total sum assured rose by 1.7% year-on-year to S$71.4 billion, although the number of policies decreased by 18.6%, suggesting a shift towards fewer but more comprehensive policies.

Integrated Shield Plans (IPs) continue to be a critical component of health insurance, with approximately 69,000 new IPs taken up in 1H 2025. The life insurance sector paid out S$6.35 billion in claims during this period, a 42.1% decrease from the previous year.

Looking ahead, Wong emphasised the industry’s commitment to enhancing financial literacy and simplifying claims processes to better serve Singaporeans. As the nation celebrates 60 years of independence, the focus remains on building a trusted and transparent life insurance landscape.
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