Industry News

Aster has announced its acquisition of a strategic interest in Changi Airport Fuel Hydrant Installation Pte. Ltd. (CAFHI), marking its entry into the aviation fuels market. This move will enable Aster to supply aviation fuel directly to international airlines at Singapore Changi Airport, pending necessary approvals and conditions.

The acquisition is a significant expansion of Aster’s mobility and energy platform, integrating its refining and storage operations with its growing capabilities in both conventional and sustainable aviation fuels (SAF). Aster is collaborating with Aether Fuels to develop a next-generation SAF facility at Pulau Bukom and is also exploring a commercial-scale ethanol-to-jet SAF facility on Jurong Island with Keppel’s Infrastructure Division.

Andre Khor, Deputy CEO of Aster, stated, “The CAFHI strategic interest acquisition represents an important step in Aster’s expansion into aviation fuels. Combined with our refining and storage operations and growing capabilities in sustainable aviation fuel, it strengthens our position to support the evolving energy needs of aviation in Singapore and the region.”

CAFHI plays a crucial role in providing storage and distribution facilities for aviation fuel at Changi Airport, one of the world’s leading aviation hubs. Its shareholders include major international energy companies, underscoring its importance in the regional aviation fuel ecosystem.

This strategic investment positions Aster to broaden its participation across the aviation fuels value chain, supporting the future evolution of aviation fuels and mobility in Singapore and the region. The transaction is subject to the requisite approvals and customary closing conditions.

Singapore’s services sector experienced a significant increase in business receipts, rising by 25.5% in the second quarter of 2026 compared to the same period last year. This growth excludes the Accommodation, Finance & Insurance, and Real Estate Developers industries. Notably, the Wholesale Trade and Transportation & Storage industries were the primary drivers of this surge.

The Wholesale Trade industry saw a remarkable 27.8% increase in sales, largely due to the demand for electronic components and petroleum products. Meanwhile, the Transportation & Storage industry recorded a 26.5% rise in turnover, bolstered by high sea freight rates and increased activity in water transport.

On a quarter-on-quarter basis, the services sector’s business receipts grew by 16.9%, with Wholesale Trade alone reporting an 18.6% increase. However, not all industries shared in this growth. The Recreation & Personal Services sector experienced a 2.5% decline year-on-year, primarily due to reduced revenue from arts, sports, and recreational activities.

The Education sector also faced challenges, with a 13.4% decrease in receipts from the previous quarter, attributed to lower tuition fee collections by universities.

Overall, the services sector’s business receipts were estimated at $1,583b, with $263b excluding Wholesale Trade. This data provides valuable insights into the short-term performance of Singapore’s services industries, guiding business and policy decisions. As the sector continues to evolve, these trends highlight the dynamic nature of Singapore’s economy and its resilience in the face of changing market conditions.

Singapore has introduced the world’s first standard for liquid cooling in data centres, specifically designed for tropical climates, to address the increasing energy demands of artificial intelligence (AI) workloads. The Singapore Standard SS 726:2026, developed by the Infocomm Media Development Authority (IMDA) and Enterprise Singapore (EnterpriseSG) through the Singapore Standards Council (SSC), aims to improve energy efficiency in data centres by over 30% compared to traditional air cooling methods.

Liquid cooling, which uses fluids to transfer heat from hardware chips, is becoming essential as AI adoption grows, leading to more compute-intensive workloads. However, tropical conditions such as high temperatures and humidity pose challenges like equipment corrosion. SS 726 addresses these issues by building on existing international standards and recommending best practices for water efficiency.

The standard was developed through collaboration between industry, academia, and technical experts, translating the challenges of Singapore’s environment into practical guidelines. It provides data centre operators with technical advice on designing, deploying, and operating liquid cooling systems safely and efficiently.

Aileen Chia, Deputy Chief Executive at IMDA, emphasised the importance of sustainable growth for data centres, stating, “Liquid cooling is increasingly important to support the higher power densities required for AI and other advanced computing workloads whilst improving cooling efficiency.”

Choy Sauw Kook, Director-General Quality & Excellence at EnterpriseSG, added that SS 726 offers a “trusted benchmark” for liquid cooling systems, positioning Singapore as a leader in sustainable data centre infrastructure in tropical markets.

The launch of SS 726 highlights Singapore’s commitment to supporting AI growth whilst addressing environmental challenges, ensuring the sustainable development of its digital infrastructure.

Thomson Medical Group Limited has announced a 6.4% increase in revenue for the financial year ending 30 June 2026, reaching S$420.1m. The Group’s adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 9.9% to S$82.5m, whilst net loss after tax decreased by 40.8% to S$27.8m, compared to S$47m the previous year.

The revenue boost was attributed to higher revenue intensity and improved pricing in Singapore, contributions from the Oncology Centre in Malaysia, and increased patient volumes in Vietnam. However, the Vietnamese Dong’s unfavourable exchange rate partially offset Vietnam’s gains. Malaysia’s performance was notably strong, driven by the expansion of oncology and specialist services.

Group CEO Melvin Heng stated, “We entered FY2026 focused on translating the investments we have made into stronger operating performance. The full-year results show that we are making progress, with revenue growing across the Group and adjusted EBITDA improving faster than the top line.”

The Group’s EBITDA increased by 23.2% to S$67.3m and operating cash flows rose 17.4% to S$71m. The Group also benefited from reduced financing costs, with net finance costs falling 15.4% to S$47.4m due to lower interest rates.

Looking ahead, Thomson Medical aims to enhance execution and operating leverage across its regional portfolio, focusing on expanding specialist services in Singapore, Malaysia, and Vietnam. The Group plans to maintain a disciplined investment approach to achieve sustainable long-term earnings.

Small and medium-sized enterprises (SMEs) are keen to adopt artificial intelligence (AI) but face hurdles in moving beyond pilot projects, a recent poll by UOB has revealed. Conducted during a SkillsFuture Queen Bee Masterclass, part of the UOB SME Elevate Programme, the poll surveyed 100 attendees, including business owners and industry leaders, highlighting the challenges and priorities of SMEs in Singapore.

The poll found that whilst 55% of respondents are exploring or piloting AI solutions, only 6% have successfully integrated AI into their operations. Rising operating costs were identified as the top business challenge by 30% of respondents, with improving profitability (29%) and increasing sales (28%) following closely. Adrien Desbaillets, CEO and co-founder of SaladStop, noted, “Margins have compressed to a point where expansion is genuinely difficult for most operators.”

UOB is addressing these challenges through initiatives like the UOB SME Elevate Programme and UOB BizSmart, which aim to enhance productivity and streamline operations. These programmes offer digital tools, such as zero transaction fees for PayNow collections, and grant support for F&B companies. Additionally, UOB FinLab provides upskilling opportunities in AI, digitalisation, and sustainability.

Paul Kan, Country Head of SME Banking at UOB, emphasised the importance of building capabilities for the next phase of SME transformation. “We help SMEs build capabilities, access digital solutions, and secure the support they need to transform with confidence,” he stated.

The findings underscore the need for practical support to help SMEs move beyond experimentation and achieve tangible business outcomes, as they continue to focus on improving profitability and managing costs in a competitive environment.

Singapore’s manufacturing sector experienced a slowdown in July, but the artificial intelligence (AI) industry is showing sustained growth, according to a recent report by Maybank IBG Research. The report highlights that whilst traditional manufacturing is cooling, the AI sector is poised for continued expansion, driven by increasing demand and technological advancements.

The report, authored by Hak Bin Chua, indicates that the manufacturing slowdown is part of a broader trend influenced by global economic uncertainties and supply chain disruptions. However, the AI sector’s resilience is attributed to its critical role in various industries, including finance, healthcare, and logistics, which continue to invest in AI technologies to enhance efficiency and innovation.

Chua notes that the AI boom is “still in its early stages,” suggesting significant potential for growth as more companies integrate AI solutions into their operations. This trend is expected to offset some of the declines seen in traditional manufacturing sectors.

The findings underscore the importance of diversifying Singapore’s economic focus towards high-growth areas like AI, which could provide a buffer against fluctuations in traditional manufacturing. As AI technologies become more embedded in business processes, Singapore is well-positioned to capitalise on this trend, potentially leading to increased job creation and economic resilience.

Looking ahead, the report suggests that continued investment in AI research and development will be crucial for sustaining growth and maintaining Singapore’s competitive edge in the global market.

The Singapore International Commercial Court has dismissed all challenges by The Tata Power Company Limited against arbitration awards totalling $490.32m in favour of Kleros Capital Partners Limited. This decision mandates Tata Power to pay Kleros a sum now exceeding $640m, including interest and legal costs.

Kleros initiated arbitration proceedings in November 2020 at the Singapore International Arbitration Centre, with a tribunal led by Professor Lawrence Boo. The tribunal found Tata Power guilty of breaching agreements by misusing confidential information and misleading Kleros to benefit from the Krutogorovo project. On 1 July 2025, the tribunal awarded Kleros $490.32m plus interest at 5.33% per annum from 30 November 2020.

The court’s ruling confirms the final and binding nature of the arbitration awards, making them globally enforceable. Kleros is also entitled to legal costs of $6.05m (S$8.29m) and further arbitration costs of approximately $2.19m (S$3m).

This decision underscores the authority of international arbitration and the Singapore court’s role in upholding such awards. Kleros, an investment firm specialising in resource and infrastructure opportunities, stands to benefit significantly from this ruling. The case highlights the importance of adhering to contractual obligations and the potential repercussions of breaches in international agreements.

Manulife Singapore has unveiled two new USD-denominated whole life insurance products, Signature Life Elite (USD) and Signature Life Prestige (USD), aimed at addressing the evolving wealth priorities of high-net-worth individuals (HNWIs) in Singapore. These products are designed to offer a balance of protection, long-term wealth growth, and flexibility in wealth transfer, responding to the increasing demand for integrated wealth planning.

The launch comes in response to findings from “The New Fluidity” study by Manulife and FT Longitude, which revealed that 64% of HNWIs in Singapore prioritise adaptable wealth management over mere accumulation. Despite this, only 53% have insurance for longevity and healthcare protection. Manulife’s new offerings aim to fill this gap by integrating investments, retirement, insurance, and wealth transfer into a cohesive plan.

Key features of the Signature Life Elite and Signature Life Prestige include guaranteed death and terminal illness protection from the outset, the potential for long-term wealth accumulation through non-guaranteed bonuses, and the ability to withdraw up to 50% of the Surrender Bonus from Policy Year 16. This flexibility allows policyholders to respond to changing needs without surrendering their coverage.

These solutions are tailored to meet the needs of individuals seeking to maximise protection and legacy planning, as well as business owners requiring substantial coverage. As the financial landscape continues to evolve, Manulife’s new products offer HNWIs a robust framework for securing and growing their wealth.

The Singapore University of Social Sciences (SUSS) has unveiled the GOOD Incubator, a new platform designed to nurture entrepreneurs developing solutions for pressing social issues. Announced at the Geronpreneurship Innovation Festival 2026, the initiative was introduced to over 400 attendees, including policymakers and community partners, with the aim of fostering innovation and entrepreneurship to address the needs of a super-aged society.

The GOOD Incubator is structured around four pillars: GOODBiz, GOODBridge, GOODTech, and GOODCause, each targeting different aspects of social innovation. GOODBiz focuses on social enterprises creating sustainable solutions, whilst GOODBridge helps ventures expand into new markets. GOODTech supports technology startups, and GOODCause will later assist non-profits in enhancing their impact.

Supported by the Ministry of Education through its Innovation & Enterprise Office Decentralised Funding, the incubator aligns with Singapore’s Research, Innovation and Enterprise 2030 Plan. This plan, led by the National Research Foundation, aims to strengthen the nation’s research ecosystem and address priorities such as healthy longevity.

Professor Tan Tai Yong, President of SUSS, emphasised the incubator’s mission: “Many incubators help founders build businesses. Through the GOOD Incubator, we want to help founders build solutions that matter.”

The festival also hosted the second edition of Pitch for Good, recognising ventures like Agewhale from Hong Kong and Singapore’s Aaira for their innovative solutions. Winners will receive mentorship and opportunities to further develop their projects with SUSS.

The GOOD Incubator represents a significant step in supporting ventures that aim to improve quality of life and address the challenges of an ageing population in Singapore.

Singapore has been identified as the world’s most mature market for travel protection, with 86% of its travellers covered by insurance, according to the Holiday Barometer 2026 report by Redion and Ipsos. This high level of coverage reflects a strong awareness of travel risks and a culture where protection is integral to travel planning.

The report, which surveyed 26,000 respondents across 26 countries, highlights that Singapore’s frequent and high-spending travellers are driving demand for comprehensive multi-risk policies and seamless digital support. Virginie Babinet, CEO of Travel Insurance & Assistance at Redion Group, noted that whilst the desire to travel remains robust, security considerations are increasingly influencing destination choices.

Hassen Bennour, CEO of Redion Asia Pacific, emphasised that Singaporeans are not only seeking coverage but also broader multi-risk protection and embedded assistance. “For insurers and industry partners, the opportunity lies in pairing digital speed with trusted human guidance,” he said.

Digital adoption is reshaping travel planning in Singapore, with nearly half of Singaporeans using artificial intelligence (AI) for holiday planning. However, whilst AI offers convenience, human oversight remains crucial, with many travellers preferring to review decisions before finalising bookings.

As Singaporeans continue to travel frequently, with over 90% taking at least one leisure trip annually, the demand for reassurance and support throughout their journeys is growing. This trend presents opportunities for insurers and travel providers to enhance their offerings, ensuring peace of mind for travellers amid evolving global risks.