Industry News

The Singapore Exchange (SGX) reported that despite an overall institutional net outflow of S$140m for July up to 13 July, the Industrials sector experienced a significant net institutional inflow of S$170m. This inflow was primarily driven by transportation, logistics, and engineering-related businesses, with Singapore Airlines and SATS leading the charge.

Singapore Airlines recorded a net institutional inflow of S$146m, equivalent to 215% of its average daily trading turnover (ADT), whilst SATS saw S$39m, equating to 186% of its ADT. These figures highlight the concentrated nature of the inflows within the Industrials sector, rather than a broad-based trend.

In the first half of 2026, the Technology sector had the highest net institutional inflow at S$580m. However, by 13 July, it experienced a net outflow of S$91m, partially reversing earlier gains. The Industrials sector followed with S$457m in net inflows during the same period, underscoring its resilience amidst broader market trends.

The inflows into Industrials were not only significant in absolute terms but also when adjusted for liquidity, representing 54% of the sector’s ADT. This was the highest liquidity-adjusted reading across all sectors, indicating robust institutional interest relative to daily trading activity.

The data suggests that institutional investors are selectively targeting sectors with strong growth prospects, particularly those linked to aviation, logistics, and engineering. This trend aligns with ongoing developments such as the expansion of Changi Airport and related infrastructure investments, reinforcing Singapore’s position as a regional transport and logistics hub.

Xiaohongshu Business has partnered with the Malaysia-China Chamber of Commerce (MCCC) to host the Xiaohongshu Malaysia Chinese Business Growth Summit. The event, which will take place across three Malaysian cities, aims to delve into the Chinese outbound tourism market and explore new marketing opportunities within Malaysia.

The summit is set to be a significant platform for businesses to understand and tap into the growing Chinese tourist market. With the increasing number of Chinese tourists visiting Malaysia, the summit will provide insights into effective marketing strategies and potential business collaborations. The event will also highlight the importance of adapting to the preferences and expectations of Chinese tourists to enhance their travel experience in Malaysia.

A spokesperson from Xiaohongshu Business stated, “We are excited to collaborate with MCCC to bring this summit to Malaysia. It is a unique opportunity for businesses to gain valuable insights into the Chinese market and explore new avenues for growth.”

The summit will feature a series of discussions and workshops led by industry experts, focusing on the latest trends and strategies in tourism and marketing. Participants will have the chance to network with key stakeholders and explore potential partnerships.

As Malaysia continues to be a popular destination for Chinese tourists, the summit is expected to play a crucial role in shaping the future of tourism and marketing strategies in the region. The event underscores the growing importance of understanding and catering to the needs of Chinese travellers, which could lead to increased economic benefits for Malaysia.

RHB Bank has maintained its 2026 full-year GDP growth forecast for Singapore at 4%, citing resilient economic activity despite ongoing external headwinds. The bank’s Group Chief Economist and Head of Market Research, Barnabas Gan, highlighted that robust exports and industrial production, driven by sustained demand for artificial intelligence (AI) technologies, are key factors supporting this outlook.

Singapore’s GDP expanded by 5.7% year-on-year in the second quarter of 2026, a slowdown from the 6.3% growth recorded in the first quarter. This figure, however, exceeded Bloomberg’s consensus estimate of 5.5% but fell short of RHB’s in-house projection of 6%. The report anticipates that the Monetary Authority of Singapore (MAS) will keep its policy parameters unchanged in the upcoming review before 31 July, as well as for the remainder of the year.

Gan’s analysis underscores the resilience of Singapore’s economy amidst global uncertainties. The sustained demand for AI-driven products has bolstered the country’s industrial production and export sectors, providing a buffer against external economic pressures.

Looking ahead, RHB’s steady GDP forecast reflects cautious optimism about Singapore’s economic trajectory. The bank’s insights suggest that whilst challenges persist, the underlying strength of key sectors could continue to support economic stability in the coming months.

Singapore’s economy expanded by 5.7% year-on-year in the second quarter of 2026, according to advance estimates released by the Ministry of Trade and Industry. This marks a slowdown from the 6.3% growth recorded in the first quarter. On a quarter-on-quarter basis, the economy grew by 1.1%, following a 1.3% increase in the previous quarter.

The manufacturing sector led the growth with a 12.2% year-on-year increase, up from 8.0% in the first quarter. This surge was primarily driven by strong demand for semiconductors and semiconductor manufacturing equipment, particularly in the electronics and precision engineering clusters. However, the chemicals and biomedical manufacturing clusters faced contractions due to feedstock disruptions linked to the Middle East conflict. The sector also saw a 5.3% quarter-on-quarter growth, rebounding from a 2.2% contraction previously.

In contrast, the construction sector’s growth slowed to 6.2% year-on-year, down from 12.9% in the first quarter, despite increased output in both public and private sectors. Quarter-on-quarter, the sector contracted by 2.1%, reversing the 7.4% growth seen earlier.

The services sectors showed mixed results. The wholesale and retail trade and transportation and storage sectors grew by 6.3% year-on-year, but contracted by 0.3% quarter-on-quarter. Meanwhile, the information and communications, finance and insurance, and professional services sectors expanded by 3.9% year-on-year and 1.7% quarter-on-quarter.

The preliminary GDP estimates, including detailed sectoral performance, will be further elaborated in the Economic Survey of Singapore in August 2026.

KPMG in Singapore and the National Library Board (NLB) have launched a new initiative, ‘Read to Lead: Building an AI-Ready Mind’, to promote reading as a key professional capability. This year-long programme, announced on 14 July, seeks to equip professionals, managers, executives, and technicians (PMETs) with the skills needed to discern accurate information in an era dominated by AI-generated content.

A recent poll conducted by KPMG and NLB revealed that only 40% of Singaporean PMETs feel confident in distinguishing accurate content from AI-generated misinformation. Despite the prevalence of AI in information dissemination, less than half of the respondents check the original source of statistics before forming opinions. This gap in critical evaluation skills prompted the launch of ‘Read to Lead’, which aims to embed focused reading into the workplace.

Melissa Tam, CEO of NLB, emphasised the importance of reading for critical thinking, stating, “By reading consistently and widely, we learn to ask better questions and become more discerning consumers of AI-generated outputs.” Lee Sze Yeng, Managing Partner at KPMG, added that professionals who read across disciplines will be better equipped to evaluate information, including AI-generated content.

The programme will benefit over 2,000 PMETs and business leaders through expert-led talks, interactive activities, and resources. It kicks off with ‘Knowledge Week’ from 14 to 16 July, featuring a digital library, quizzes, and panel discussions on critical reading and AI risks. Subsequent phases will include a practical toolkit for AI literacy and a ‘Journey Paper’ in 2027 to sustain the conversation on critical reading.

This initiative marks a significant step in preparing Singapore’s workforce for the challenges of the AI era, fostering a culture of informed and critical engagement with information.

Ransomware continues to pose a significant threat to small- and medium-sized businesses (SMBs) in Southeast Asia, according to the latest data from cybersecurity firm Kaspersky. In Q1 2026, 3.51% of SMBs in the region were targeted, an increase from 2.92% in the same period last year. Singapore saw a rise from 0.57% to 0.69%, highlighting the persistent risk these businesses face.

The report underscores that the true extent of ransomware threats is often understated. Ransomware attacks typically involve multiple stages, and only the final stage—deployment of the encryption Trojan—is recorded in detection metrics. This means earlier stages of attacks, such as initial access and reconnaissance, often go unreported.

Kaspersky’s Q1 2026 malware report also identified the most active ransomware groups. Clop ransomware led the rankings, responsible for 14.42% of victims on Dedicated Leak Sites (DLS). It was followed by Qilin at 12.34%, with The Gentlemen, a rapidly expanding group, taking third place.

Security expert Fedor Sinitsyn from Kaspersky warns that SMBs cannot afford to underestimate the complexity of ransomware threats. He emphasises the need for a layered cyber protection strategy, as modern ransomware actors often employ a “double extortion” approach, encrypting files and threatening to leak data if ransoms are not paid.

Adrian Hia, Managing Director for Asia Pacific at Kaspersky, highlights the increasing sophistication of ransomware attacks and the vulnerability of SMBs lacking dedicated cybersecurity resources. He stresses the importance of sustainable investment in cybersecurity to protect against these evolving threats.

HitPay, a payments platform for small and medium enterprises in Southeast Asia, has announced that its online stores are now automatically discoverable by AI shopping assistants like ChatGPT and Perplexity. This update, effective from 14 July 2026, comes at no additional cost to merchants, requiring no developer involvement or setup fees.

The move addresses a significant challenge for small businesses in the region, which have traditionally relied on social platforms and digital marketplaces for customer engagement. With AI-led commerce projected to reach $3–5t globally by 2030, according to McKinsey, the ability to be found by AI assistants is becoming crucial. Currently, 39% of Asia-Pacific consumers use AI for online shopping, with another 40% planning to do so, as per Bain’s data.

HitPay’s solution involves making each online store’s catalogue, product names, prices, and stock levels machine-readable and updated throughout the day. This ensures that AI assistants access current information, enhancing the likelihood of small businesses appearing in AI-generated shopping recommendations. Aditya Haripurkar, Co-Founder and CEO of HitPay, stated, “We built this so that a home baker in Singapore, a clothing store in Manila, or a boutique in Kuala Lumpur is as findable as any established brand.”

Whilst completing purchases directly through AI assistants remains an emerging standard, HitPay’s focus is on ensuring visibility for smaller sellers as consumer behaviour shifts. This initiative is part of HitPay’s broader service offering, which includes support for various payment methods across the region.

JLL has been appointed as the exclusive marketing agent for Weave Suites – Midtown, a unique 65-key serviced flat located in Singapore’s Kampong Glam district. The property, housed in 17 contiguous conservation shophouses, is being marketed at S$95m following a recent policy shift by the Urban Redevelopment Authority (URA) that opens heritage precincts to new hotel development.

The property offers significant expansion potential with URA-approved plans to convert existing spaces into 40 capsule pods or 17 additional guest suites. This flexibility provides a first-mover opportunity in one of Singapore’s most established cultural districts. The asset is offered without management agreements, allowing operational flexibility for investors.

The URA’s policy shift signals confidence in central cultural districts as prime hospitality hubs, positioning existing conservation properties with expansion plans as attractive opportunities. “Singapore’s hospitality sector continues to attract significant investment capital,” said Tan LingWei, Executive Vice President of JLL Hotels & Hospitality Group, highlighting the projected transaction volume for 2026 to surpass S$1b.

Singapore’s hospitality sector remains robust, with international visitor arrivals reaching 4.4 million in Q1 2026, a 2.9% year-on-year growth. This momentum supports sustained demand for accommodation, including serviced flats and heritage hospitality assets. Tan noted, “Singapore’s mid-market hospitality segment has become highly strategic for investors prioritising intrinsic asset quality and long-term capital preservation.”

The property is marketed on behalf of Hong Kong-based Weave Living, which operates over 400 keys across Singapore. The transaction will enable the operator to recycle capital across its Asia Pacific portfolio, managing over US$4b in assets.

QBE Asia has announced the appointment of Tay Siang Leng, currently the Chief Financial Officer (CFO) for QBE Asia, as the Interim Chief Executive Officer (CEO) for Wholesale Markets Asia. This change comes as Ronak Shah, the previous CEO, is on garden leave until the end of September. Tay, who joined QBE in 2019, played a crucial role in establishing the Wholesale cluster and will now oversee daily operations within the division.

The appointment is part of QBE Asia’s ongoing business transformation strategy, which emphasises digitalisation and artificial intelligence (AI) integration. The company aims to enhance its presence in wholesale markets and Protection and Indemnity (P&I) growth across the region. Tay will report directly to Rob Kosova, CEO of QBE Asia, during his interim tenure.

QBE Asia, a segment of the International Division of QBE Insurance Group Limited, is headquartered in Sydney and listed on the Australia Securities Exchange. The company continues to focus on strengthening its operations in Asia through strategic leadership appointments and technological advancements.

CBRE has announced the sale of four freehold strata commercial units at Clementi Arcade, located at 41 Sunset Way, Singapore. The sale will be conducted through an Expression of Interest exercise, closing on 13 August 2026 at 3pm. These units, nestled within the affluent Sunset Way residential area, are fully leased to a reputable childcare centre, providing immediate rental income for the buyer.

Clementi Arcade is a well-known neighbourhood destination, featuring tenants like Cold Storage and popular F&B outlets such as Baker & Cook. The area benefits from a strong patronage due to its proximity to educational institutions like Ngee Ann Polytechnic and the Singapore Institute of Management. Additionally, the Housing Board Development has earmarked approximately 15 hectares of nearby Maju Forest for new public housing, which is expected to enhance the precinct’s vibrancy.

The units, with a combined strata area of approximately 9,246 sq ft, offer potential for conversion to alternative uses, subject to approval. The site, occupying about 51,285 sq ft, has a Master Plan Plot Ratio of 1.4, indicating significant en bloc potential. The guide price for the asset is set at $22m, translating to approximately $2,379 per square foot.

Joshua Giam, Director of Capital Markets at CBRE, highlighted the rarity of such opportunities in Clementi Arcade, noting strong demand from family offices and high-net-worth individuals. The asset’s strategic location, opposite the planned Maju Forest development, is expected to increase its value. The site is well-connected, being an 8-minute drive from Clementi MRT Station and accessible via major expressways.