Industry News

Singapore’s core inflation rate eased to 0.6% year-on-year in May, down from 0.7% in April, as reported by Nomura’s Asia ex-Japan Daily Research Summary. This decline aligns with expectations and is attributed to falling raw food price inflation. Despite this easing, core-core inflation remained stable, indicating underlying inflationary pressures are unchanged.

Nomura analysts Euben Paracuelles and Charnon Boonnuch maintain their 2025 core inflation forecast at 0.7%, reflecting anticipated easing in labour market conditions. However, they caution that sustained surges in oil prices could present upside risks to this forecast. The Monetary Authority of Singapore (MAS) has kept its 2025 forecast range unchanged at 0.5-1.5%, though it has highlighted increased uncertainty in the economic outlook.

Headline inflation also saw a slight decrease, dropping to 0.8% from 0.9% in April. This was in line with consensus expectations but slightly below Nomura’s forecast of 0.9%. The decline in headline inflation was primarily due to a reduction in private road transport inflation, which fell to 1.1% from 1.3%, despite an increase in certificate of entitlement (COE) premiums.

The report underscores the complexity of inflation dynamics in Singapore, with various factors such as raw food prices and transport costs influencing the overall inflationary environment. As the year progresses, the interplay between these elements and external factors like oil prices will be crucial in shaping the inflation outlook.
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Singapore-based digital travel platform Agoda has unveiled a curated list of Asia’s best-kept waterfall secrets, inviting travellers to explore nine hidden gems across the continent. From the secluded Thi Lo Su in Thailand to the enchanting Sendang Gile in Indonesia, these destinations promise unforgettable experiences for those seeking to escape the ordinary.

Asia’s diverse landscapes offer a plethora of hidden waterfalls, each providing a unique blend of natural beauty and adventure. Agoda’s list includes destinations like Shiraito Falls in Japan, nestled near Mt Fuji, and the dramatic cascades of Seoraksan National Park in South Korea. These sites are perfect for those looking to connect with nature and uncover lesser-known treasures.

Andrew Smith, Senior Vice President at Agoda, highlighted the allure of these destinations: “Asia’s hidden waterfalls showcase the continent’s incredible diversity and untapped beauty, offering travellers a chance to discover the extraordinary.”

Agoda’s extensive offerings make it easy for travellers to plan their waterfall adventures, with over 5 million holiday properties, 130,000 flight routes, and 300,000 activities available. The Agoda mobile app provides the best deals, ensuring a seamless booking experience.

For those eager to explore these natural wonders, Agoda’s guide serves as an invitation to venture off the beaten path and experience the serene beauty of Asia’s waterfalls. With Agoda, the journey to these tranquil escapes is just a booking away.
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Huttons Asia has provided insights into the Government Land Sales (GLS) sites at Dorset Road, Telok Blangah Road, and Upper Thomson Road (Parcel A), highlighting factors that may affect developer bids. The doubling of tariffs on steel and aluminium exports to the US could lead to lower steel prices in Singapore, whilst potential interest rate hikes and tightened liquidity might impact developers’ margins. Additionally, the draft Master Plan 2025 could reveal transformative plans, boosting interest in certain areas.

The Dorset Road site, located on the city fringe and near Farrer Park MRT station, is expected to attract around three bidders, with top bids ranging from $950 to $1,050 per square foot per plot ratio (psf ppr). The area has a strong demand for larger projects, as evidenced by the successful launch of Piccadilly Grand.

Telok Blangah Road’s GLS site marks the first launch in the Greater Southern Waterfront, a significant transformation project for Singapore. With excellent transport links and proximity to key business districts, it is anticipated to draw similar interest to the Bayshore Road GLS site, with top bids between $1,200 and $1,300 psf ppr.

Upper Thomson Road (Parcel A), situated above Springleaf MRT station, is expected to see competitive bids due to its strategic location and commercial amenities. The site may attract up to three bidders, with top bids ranging from $900 to $950 psf ppr, considering the upcoming Springleaf Residence and other projects in the area.

These GLS sites offer strategic opportunities for developers, influenced by market conditions and future urban planning developments.
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Citi has announced the appointment of Nathan Swami as the new Head of Markets for Singapore, succeeding Smith Smithangura, who is retiring after more than 30 years in the banking industry. Swami, who will continue his role as Head of FX Trading for Asia-Pacific (APAC), brings over 17 years of experience with Citi in Singapore to his new position.

Singapore is a significant hub for Citi’s Markets business, which operates trading floors in 77 countries. The bank’s Markets division reported revenues of $6 billion for the first quarter of 2025, marking a 12% increase from the previous year. Swami’s appointment is seen as a strategic move to leverage his extensive experience and leadership skills to further strengthen Citi’s presence in the region.

Swami has held various leadership roles within Citi, including Head of FX Options Trading and CEO of CIBSL. Before joining Citi, he worked as an FX Options Trader at Lehman Brothers in London. His deep understanding of the market and proven track record make him well-suited to lead Citi’s Singapore operations.

Sue Lee and Tibor Pandi, in a joint statement, expressed confidence in Swami’s ability to deliver top-tier solutions to clients and drive business growth. They also extended their gratitude to Smithangura for his invaluable contributions to Citi over the years.

Swami’s appointment is effective immediately, pending regulatory approvals, and he is expected to continue fostering collaboration across Citi’s products and sales teams.
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Morgan Stanley Research has unveiled a report highlighting Singapore’s potential for significant wealth creation as it approaches its 60th anniversary of independence. The report outlines how Singapore’s established position as a global hub for data, energy, finance, and transport, combined with its rapid adoption of emerging technologies, positions it for economic growth. The bank forecasts a 3% compound annual growth rate in GDP over the next five years, the highest among developed economies.

The report emphasises that wealth creation is crucial for addressing the challenges posed by Singapore’s ageing population. Morgan Stanley predicts that household net assets could nearly double to reach $4 trillion by 2030, signalling substantial wealth creation. The report also anticipates improved productivity driving a rise in return on equity (RoE) from 12% to 14%, with price-to-book (P/B) multiples increasing from 1.7x to 2.3x, potentially doubling the stock market capitalisation by 2030.

Singapore’s strategic focus on governance, macroeconomic stability, and international cooperation positions it well in a complex geopolitical landscape. The report notes that Singapore’s large-cap companies have adeptly adapted to global trends, whilst its burgeoning tech start-up ecosystem is nurturing unicorns ready for public listing. An unprecedented government initiative to revitalise the stock market, involving substantial capital inflows, could see index values double within five years.

In conclusion, Morgan Stanley’s report underscores Singapore’s readiness to leverage its institutional strengths and technological advancements to drive wealth creation, promising significant gains for investors and bolstering the nation’s economic standing on the global stage.
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Kyndryl has announced the opening of its ASEAN AI Innovation Lab in Singapore, aiming to bolster AI capabilities across Southeast Asia. This initiative will see the employment of approximately 50 local AI specialists, including data scientists and engineers, to assist organisations in understanding and implementing responsible AI technologies. The Lab will also offer co-creation experiences through Kyndryl Vital, enabling businesses to tackle complex challenges using design-led thinking.

The Lab’s launch is part of Kyndryl’s broader strategy to establish regional AI hubs, following similar investments in the United Kingdom and France. Andrew Lim, Managing Director of Kyndryl ASEAN and Korea, highlighted the company’s commitment to scaling trustworthy AI solutions in partnership with Digital Industry Singapore (DISG) and Google Cloud. “Our experience in designing and delivering complex systems at scale gives us an advantage in implementing end-to-end AI solutions,” Lim stated.

In collaboration with Google Cloud, the Lab will provide access to advanced AI tools such as Vertex AI and BigQuery, facilitating AI solution development and business growth. Mark Micallef, Managing Director of Southeast Asia at Google Cloud, noted the importance of responsible AI deployment, saying, “Enterprises across Southeast Asia are moving quickly to harness generative AI and agentic AI, and they need trusted partners to do it responsibly and at scale.”

The Lab will also support Singapore’s ambition to become a global AI leader by fostering an AI ecosystem and providing expertise across the region. Philbert Gomez, Senior Vice President at DISG, remarked, “By bringing together industry, academia, and government, this Lab will serve as a catalyst for innovation, workforce skilling, and the development of scalable AI infrastructure in Singapore and the broader ASEAN region.”
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An unauthorised individual was injured on 15 June 2025 within a restricted area designated as a Singapore Armed Forces (SAF) live-firing ground in the Central Catchment Nature Reserve. At the time, a live-firing exercise was underway at the Nee Soon 500m Range, located approximately 2.3 km from the incident site. The SAF has confirmed that all safety protocols and training directives were strictly followed during the exercise.

The Nee Soon 500m Range, designed to international safety standards, is certified for weapons such as general-purpose machine guns and sniper rifles. The range includes a safety buffer beyond the stop butt to account for scenarios like ammunition ricochet. This buffer was established through trials and simulations, ensuring areas outside the restricted zone, including public parks and trails, remain safe for public use.

Despite clear signage warning against entry into the restricted area, the cyclist involved is currently under investigation for wilful trespass. The SAF emphasises the importance of public cooperation in avoiding restricted zones to prevent similar incidents. Trespassing in these areas is a violation under the Military Manoeuvres Act.

The SAF, in collaboration with NParks, continues to uphold a robust safety framework for live-firing activities. The Nee Soon 500m Range has resumed operations, with the next live-firing scheduled for 26 June 2025.
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Singapore’s core inflation rate fell to 0.6% year-on-year in May, marking the lowest level since 2021, according to recent data. The headline inflation rate also decreased to 0.8% year-on-year, aligning with Bloomberg’s consensus estimates. This decline is attributed to slower food inflation and reduced private transport costs, as Certificate of Entitlement (COE) premiums decreased across most categories.

Private transport inflation eased for the third consecutive month, reaching 1.1% year-on-year in May. This was driven by smaller increases in car prices and a decline in COE premiums, with Category A and B premiums dropping by 0.5% and 2.4%, respectively. The moderation in COE prices is likely due to buyer fatigue, anticipation of a larger COE quota, and a temporary pause in demand ahead of new car launches.

Despite the current dip, COE premiums remain historically high, suggesting that private transport inflation may persist at current levels unless there is a sustained decline in COE premiums and a significant softening in demand. The Monetary Authority of Singapore (MAS) has maintained its 2025 Consumer Price Index (CPI) forecast at 1.5% year-on-year, acknowledging potential upside risks from escalating geopolitical tensions in the Middle East.

Whilst global crude oil prices and food commodity prices are expected to remain stable, the inflation outlook could be influenced by these external factors. Nonetheless, the overall inflationary pressures are anticipated to remain contained, with the year-to-date CPI standing at 0.9% year-on-year, near the midpoint of MAS’s forecast range of 0.5% to 1.5% year-on-year.
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Thai Beverage is strategically delaying its BeerCo initial public offering (IPO) until market conditions improve, as announced at its Annual Information Meeting on 20 June 2025. In the interim, the company is concentrating on bolstering its market position and maintaining margins, particularly in its beer and spirits segments.

The company is leveraging its stronghold in Thailand’s beer market, where its Chang brand has solidified its number one position despite a slowdown in sales growth. This is attributed to a decline in tourist arrivals, which fell by 8% year-on-year in April 2025. In Vietnam, subsidiary SABECO plans a 2% price increase to counter an upcoming excise tax hike, aiming to capture downtrading trends amid weak consumer sentiment.

In Myanmar, Thai Beverage has significantly expanded its market share from 1% in 2020 to 16% in 2024, driven by local production and brand building. The company’s beer revenues in Myanmar grew by 98% year-on-year in the first half of FY25, partially offsetting weaker contributions from Vietnam.

The spirits segment faces challenges with a 26% year-on-year decline in sales in April 2025, largely due to economic pressures and political conflicts in Thailand. Despite this, Thai Beverage has managed to procure raw materials at lower prices, although meaningful margin improvements are expected only from FY26.

Thai Beverage maintains an “Add” rating with a target price of $0.41 (S$0.56), supported by an 8% core earnings per share compound annual growth rate forecast over FY25-27 and a 5.7% dividend yield. The company remains focused on cost controls and volume growth as potential catalysts for future re-rating.
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Asia-Pacific economies are facing significant external pressures in Q3 2025, primarily due to uncertain US tariff policies and reduced imports from China, according to a report by S&P Global Ratings. Whilst domestic demand is expected to remain robust, the resilience of regional economies will differ, with export-dependent countries being more vulnerable.

The report, titled “Economic Outlook Asia-Pacific Q3 2025: Resilience May Vary,” highlights the impact of rising US tariffs on China, which are likely to affect the country’s exports, investment, and growth. Louis Kuijs, S&P Global Ratings Asia-Pacific Chief Economist, stated, “The rise in US tariffs on China—and uncertainty about them—will weigh on the country’s exports, investment and growth.”

Despite these challenges, domestic demand growth is anticipated to be more resilient than exports, as policymakers in the region have pledged to implement measures to boost it. However, these measures have been modest so far. S&P forecasts China’s GDP growth at 4.3% in 2025 and 4.0% in 2026, which, although below government targets, is considered solid given the external pressures.

The report notes that economies less reliant on goods exports, such as India and the Philippines, will benefit from resilient domestic demand, limiting economic slowdown. In contrast, export-dependent economies like Malaysia, Singapore, South Korea, Taiwan, and Vietnam are expected to experience a significant slowdown in 2025.

This analysis underscores the varied economic resilience across the Asia-Pacific region, influenced by external factors and domestic policy responses. The full report is available to RatingsDirect subscribers.
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