Industry News

The FTSE ST Small Cap Index saw five standout stocks in the first half of 2025, with BRC Asia and Frasers Centrepoint Trust among the top performers. The index, which tracks smaller capitalisation stocks in Singapore, highlighted these companies as key contributors to its performance up to 17 June.

BRC Asia, with a market capitalisation of S$423 million and an average daily turnover (ADT) of S$3.20 million, was one of the leading stocks. Frasers Centrepoint Trust also made a significant impact, showcasing the strength of the small-cap sector in Singapore’s stock market.

In parallel, the SPDR Gold Shares ETF experienced net inflows of S$309 million through 13 June, marking it as the highest among Singapore-listed ETFs. This ETF, cross-listed in Singapore and available in both USD and SGD, has gained popularity, particularly with young investors who favour dollar cost averaging—a strategy that involves regular, incremental investments over time.

The Straits Times Index (STI) generated a 6.5% total return for the year to 6 June 2025. Beyond the STI, 135 stocks with market capitalisations exceeding S$250 million averaged 7.9% total returns, with nearly 40 of these stocks achieving over S$1 million in ADT. Notably, 13 stocks from the S-REIT sector contributed significantly to this performance.

As the year progresses, the continued performance of these small-cap stocks and the SPDR Gold Shares ETF will be closely watched by investors, potentially influencing market dynamics and investment strategies in Singapore.
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Rex International Holding Limited has released an updated Qualified Person’s Report (QPR) for the Yumna Field, Block 50 Offshore Oman, revealing a significant increase in estimated reserves. The report, prepared by Exceed Torridon Ltd, indicates a 27% rise in base reserves (2P) from the previous estimate, now standing at 4.7 million stock tank barrels (MMstb) as of 31 December 2024.

The QPR, approved by Ian Mills, Managing Director of Exceed Torridon, and Stephen Hayhurst, a Qualified Person with over 36 years in the oil and gas industry, highlights the successful optimisation of the depletion plan as a key factor in the revised estimates. The report also notes the addition of new development wells, including Yumna-6, Yumna-7, and Yumna-8, which are expected to further enhance production capabilities.

The Yumna Field, initially discovered in December 2013, has seen continuous development and production since the first well, Yumna-1, was spudded in December 2019. The field has produced approximately 9 MMstb to date, with ongoing efforts to optimise production rates and expand the field’s capacity.

The updated reserves estimate underscores the potential for further development in the Yumna Field, with plans to commence drilling of Yumna-6 in the second half of 2025. This strategic expansion aims to tap into reserves in the northwest and northeast of the field, ensuring sustained production and growth for Rex International.
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Swee Heng Group is expanding its innovative bakery concept, ‘Toast & Roll’, with several new outlets set to open across Singapore throughout 2025. This expansion follows a strong customer response to the initial locations and aims to bring a modern grab-and-go bakery experience to more neighbourhoods.

Initially launched as a distinct offering from Swee Heng’s existing brands, such as Swee Heng 1989 Classic, ‘Toast & Roll’ has seen steady growth since its debut. Current outlets include Jurong Point, Oasis Terraces, Tampines MRT, Novena Square, and Bedok Mall. New locations are planned for The LINQ, Beauty World, Lentor Modern, West Mall, and Heartland Mall Kovan.

The expansion is driven by evolving consumer preferences for high-quality, lifestyle-oriented bakery products. ‘Toast & Roll’ offers a broadened menu featuring toasts, cake rolls, croissants, Danish pastries, tarts, and festive exclusives. A spokesperson from Swee Heng Group stated, “Toast & Roll is perfectly positioned to meet these expectations, especially with our Research and Development team constantly innovating and adapting to global influences.”

Beyond customer satisfaction, the expansion will create opportunities for employees through internal mobility, cross-training, and leadership development. It also supports long-term brand equity by enhancing visibility and improving the innovation pipeline.

In addition to the retail expansion, Swee Heng plans to launch a new loyalty app integrating rewards and payment functions across all its brands. This app aims to streamline the customer experience, encouraging greater engagement and reflecting Swee Heng’s efforts to strengthen its digital presence.

Despite challenges such as location scouting and recruitment, Swee Heng has leveraged its experience to ensure a smooth rollout of the new ‘Toast & Roll’ outlets. The brand’s continued growth reinforces its position as a leader in Singapore’s bakery industry.
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Rhenus Group, a leading global logistics provider, has announced the opening of a new air freight gateway at Singapore’s Changi Airport. This strategic move aims to bolster Rhenus’ presence in Southeast Asia by offering enhanced multimodal connectivity, including air, ocean, and cross-border lorry services. The facility is designed to meet the growing demands of customers with its comprehensive suite of services.

The new gateway, situated in one of the region’s key trade hubs, spans nearly 500 square metres of warehousing space, with plans for expansion based on demand. It offers a full door-to-door service, including in-house customs and a consolidation service for import and export handling. Key features include guaranteed capacity with schedule reliability, a Free Trade Zone warehouse, and additional services such as palletising and relabelling.

Serdar Onur, Head of Air Freight Southeast Asia and Oceania at Rhenus Air & Ocean, stated, “Our new Singapore gateway reinforces our long-term vision to grow our presence in Southeast Asia by offering a smarter, scalable platform that integrates seamlessly into our global air freight network.”

Dominique De Smet, Managing Director of Rhenus Singapore and Malaysia Air & Ocean, highlighted the gateway’s role in complementing Rhenus’ existing network in Malaysia, enhancing logistics solutions to support various industries.

Rhenus has also expanded its investment in Malaysia with a new barge service and a private jetty at Lukut, Negeri Sembilan, to improve cargo shipping reliability between Peninsular and East Malaysia. This expansion underscores Rhenus’ commitment to strengthening its logistics capabilities in the region.
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Investors across the Asia-Pacific region are intensifying their focus on nature-related investments, despite the ongoing politicisation of Environmental, Social, and Governance (ESG) factors. According to Pollination’s 2025 Nature Finance Focus report, 96% of surveyed investors acknowledge that ESG politicisation is influencing their strategies. However, this has not deterred their commitment to nature investments, with all respondents from Australia, Japan, and Singapore planning to increase their exposure.

The report highlights that motivations for nature investing vary across the region. In Singapore, environmental outcomes drive investments, whilst financial returns are the primary motivator for Australian and Japanese investors. “Nature is increasingly recognised for its central role in both risk and return,” said Zoe Whitton, Managing Director and Head of Strategy and Impact at Pollination. She emphasised the need to align financial models and policy incentives to mature this asset class.

Investor understanding of sectoral nature risks has also evolved, with significant increases in perceived risks across chemicals, materials, and manufacturing sectors. Singapore and Australia lead this shift, whilst Japan continues to focus on agriculture and energy production.

To scale nature exposure, Singaporean investors are investing in in-house expertise, whereas Australian investors prefer partnerships. Japan faces capability challenges, with 50% of investors citing a lack of expertise as a barrier.

Pollination’s report underscores the growing importance of nature in investment portfolios, despite political challenges, and suggests a strategic shift towards integrating nature into economic foundations.
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The Mobile Column is set to make a grand return at the National Day Parade (NDP) 2025, marking its first appearance at the Padang since 2019. This year’s event, themed “Our Strength, Our People, Our Future,” will commemorate 60 years of Singapore’s independence by showcasing the combined capabilities of the Singapore Armed Forces (SAF), Home Team, and Maritime and Port Authority of Singapore (MPA).

For the first time, the Mobile Column will integrate an aerial flypast over the Padang and a maritime display at Marina Bay, alongside the traditional drive-past along St Andrew’s Road. New assets making their debut include the Singapore Army’s Hunter Armoured Engineer Vehicle, the Republic of Singapore Navy’s Combatant Craft Underwater, and the Singapore Police Force’s Tactical Strike Vehicle. Over 170 assets and more than 800 participants will demonstrate the multi-domain operational capabilities of Singapore’s defence and security forces.

The Mobile Column will unfold across four thematic segments, highlighting the SAF’s capabilities, contributions to global security, and the coordinated defence efforts of the SAF and Home Team. Major Teo Wei Kok, Chairman of the NDP 2025 Mobile Column Committee, stated, “Beyond showcasing the platforms, this year’s Mobile Column will feature stories of men and women from the SAF and Home Team across generations.”

On 10 August 2025, participating assets will travel from the city centre to various Heartland Celebrations sites, allowing more Singaporeans to experience the Mobile Column up close. Further details on the routes and sites will be announced later. For more information, visit the NDP website or follow their social media channels.
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CBD Grade A office rents in Singapore have increased by 0.7% quarter-on-quarter to S$11.69 per square foot per month in the second quarter of 2025, according to JLL Research. This marks the fifth consecutive quarter of sub-1% growth. Meanwhile, the Decentralised office market experienced a 0.8% decline to S$7.61 per square foot per month, the first drop in four years, driven by recentralisation and quality-focused relocations.

The disparity between the two markets is attributed to businesses seeking higher-value offerings and enhanced service models, prompting a shift towards CBD locations. Andrew Tangye, Head of Office Leasing and Advisory for JLL Singapore, highlighted Audi Singapore’s move from Aperia to Capital Square as an example of this trend, aligning with their direct-to-consumer sales strategy.

Dr. Chua Yang Liang, Head of Research and Consultancy for JLL Southeast Asia, noted that the current rent gap of 30-35% between CBD and Decentralised offices is insufficient to deter relocations to the CBD. JLL anticipates a modest 2% growth in CBD rents for the full year, with potential acceleration in 2026 due to limited supply.

No major office completions are expected in the next 12 months, with new developments like Shaw Tower set for 2026. Landlords are focusing on occupancy and portfolio stabilisation, enhancing properties to attract premium tenants ahead of anticipated rental growth.
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OCBC has clarified its position regarding a recent media report suggesting potential privatisation and delisting of Great Eastern Holdings (GEH) shares. The bank emphasised that it has no plans to convert its Class C Non-Voting shares into ordinary shares, a move that would jeopardise GEH’s free float status. This clarification comes ahead of a crucial vote on 8 July 2025, which could impact GEH shareholders’ decisions.

OCBC’s decision to hold onto the Class C Non-Voting shares was made at GEH’s request to help the company meet its Free Float requirement and resume trading. The bank stated that converting these shares would cause GEH to lose its free float again, which is not in their strategic interest.

The bank’s long-term goal remains the delisting of GEH, a process that began with a Voluntary General Offer (VGO) in 2024. OCBC currently holds a 93.72% economic interest in GEH, up from 88.44% before the VGO. Despite the upcoming vote, OCBC has reiterated that its exit offer is final, with no plans for another offer in the foreseeable future.

The exit offer, valued at $0.66b (S$0.9b), is contingent upon at least 75% of GEH shareholders approving the delisting resolution at an extraordinary general meeting. Should the resolution fail, OCBC will support GEH in restoring its free float through a 1-for-1 bonus issue of new shares.
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Stoneweg European Business Trust has announced a €50 million investment in the Stoneweg Icona data-centre fund, marking a significant step into Europe’s burgeoning hyperscale data centre market. The investment, made through the Stoneweg Europe Stapled Trust, provides early exposure to four data centre development sites across Ireland, Spain, Italy, and Denmark.

The projects, covering 225 hectares, have secured 1,116 MW of power, with the potential to expand to 1,679 MW. These assets are projected to achieve a Gross Development Value of €29.5 billion over 15 years, positioning the platform to become Europe’s largest data centre operator by power capacity. The phased development is expected to have minimal impact on SERT’s distribution, with significant cash distributions anticipated upon the fund’s redemption.

Simon Garing, CEO and Executive Director of the Manager, stated, “We are pleased to announce this landmark investment: SERT is well positioned alongside our Sponsor in a unique and high-quality development fund at the forefront of Europe’s rapidly expanding data centre market.”

Max-Hervé George, Chairman and Co-CEO of SWI Group, added, “Our IDC platform drives the development of data centres in Europe’s most strategic locations – powering the future of AI and cloud computing with flexible capital and deep local expertise.”

This strategic investment aligns with SERT’s 2020 strategy to diversify into high-growth infrastructure assets, complementing its existing data centre holdings in Denmark and Poland. The investment is expected to enhance SERT’s portfolio value and attract stronger investor interest, supporting premium valuation multiples in line with market trends.
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The recent escalation in the Israel-Iran conflict has led to a significant rise in Brent crude oil prices, now ranging between US$75-80 per barrel, according to UOB Global Economics and Markets Research. This increase could have substantial implications for Singapore’s core and headline inflation, with potential further escalation pushing prices above US$100 per barrel.

UOB’s analysis indicates that approximately 7.7% of Singapore’s Consumer Price Index (CPI) basket is directly affected by oil and gas prices, impacting sectors such as electricity, gas, and transport services. The research suggests that for every US$1 increase in Brent crude oil prices, year-on-year core inflation could rise by 5-6 basis points.

The report outlines three potential scenarios for Singapore’s inflation trajectory. The baseline scenario, which assumes a gradual de-escalation of tensions, predicts crude oil prices averaging US$80 per barrel in the second half of 2025, normalising to US$70 in the first half of 2026. Under this scenario, core inflation is expected to rise to 0.8% in 2025 and 1.6% in 2026.

In a further escalation scenario, where oil prices reach US$90 per barrel, core inflation could rise to 2.2% by the first quarter of 2026. An adverse scenario, with prices spiking to US$100 per barrel, could see core inflation surge to 2.6% in early 2026.

UOB notes that the Monetary Authority of Singapore (MAS) may maintain its core inflation forecast range at 0.5-1.5% for 2025, given the current economic outlook and potential inflationary pressures from rising oil prices.
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