Industry News

The retail vacancy rate in Singapore increased to 6.8% in the first quarter of 2025, up from 6.2% in the previous quarter, according to Savills Research. This rise is attributed to new retail spaces, such as Punggol Coast Mall and the revamped The Cathay, taking time to be absorbed into the market. Net demand fell by 129,000 square feet as occupied space decreased across most areas after five consecutive quarters of positive net take-up.

Savills anticipates a steady pipeline supply of retail space this year, with around 597,000 square feet of Net Lettable Area (NLA) expected, slightly down from the 679,000 square feet completed in 2024. A significant increase in supply is projected for 2028, with major projects like the Marina Bay Sands expansion set to be completed. This will result in an average annual supply of 659,000 square feet NLA from 2025 to 2029, higher than the historical average of 445,000 square feet per year from 2020 to 2024.

Despite the overall demand softening, prime malls along Orchard Road have seen healthy lease renewal momentum, particularly from luxury retailers. Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, noted that whilst prime spaces are quickly occupied, the rate of closures could soon surpass new openings. He stated, “Orchard rents are likely to hit the upper end of our 1% to 2% growth forecast in 2025.”

The retail sector faces challenges from rising costs and a tight labour market, with the Urban Redevelopment Authority’s rental index showing a 0.5% quarter-on-quarter decline in the Central Region. However, the meetings, incentives, conventions, and exhibitions (MICE) segment is expected to drive growth, with plans to triple MICE receipts by 2040, potentially boosting retail spending in key precincts.

Edmund Sze-Wing Tse, the longstanding Independent Non-executive Chairman of AIA Group, has announced his retirement effective 30 September 2025. After over six decades with AIA, Tse will be succeeded by Sir Mark Tucker, who will assume the role on 1 October 2025, pending regulatory approval.

Tse, who has been instrumental in shaping AIA’s success, expressed his gratitude for the support of his colleagues and confidence in Tucker’s leadership. “Mark’s significant contributions to AIA during his tenure as the Group Chief Executive and President have been substantial and enduring,” Tse stated.

Sir Mark Tucker, who previously served as AIA’s Group Chief Executive Officer and President from 2010 to 2017, will also become Chairman of the Nomination Committee and a member of the Remuneration Committee. Tucker brings over 40 years of experience in the financial services industry, having worked across Asia, the US, the UK, and Africa. He will conclude his role as Non-executive Group Chairman of HSBC Holdings on 30 September 2025.

Lee Yuan Siong, AIA Group Chief Executive and President, praised Tse’s unparalleled contributions, noting his role in establishing a strong foundation for AIA. “Edmund’s vision and ambition have been instrumental in shaping AIA into the leading franchise it is today,” Lee remarked.

Sir Mark expressed his honour in taking on the role, stating, “I look forward to working with the Board, Yuan Siong, the Executive team, colleagues, agents, and partners across the region to build on the Group’s success.”
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Arina East Residences, a new development in Tanjong Rhu, sold 10 units during its launch weekend, according to Huttons Asia CEO Mark Yip. The launch coincided with a challenging market period due to tariff-related uncertainties and occurred during the June school holidays, which may have impacted sales figures.

The project marks the first residential development in Tanjong Rhu in 12 years. This limited supply has historically driven price appreciation in the area over the past 15 years. The development is conveniently located just a three-minute walk from Katong Park MRT station and offers a rare freehold tenure, adding to its appeal.

The Tanjong Rhu area is currently undergoing significant transformation and is set to become part of the 120km Southern Coastline, as announced during the August 2024 National Day Rally. Additionally, the Singapore Sports School will relocate to the Singapore Sports Hub, further enhancing the area’s attractiveness.

Yip expressed optimism about future sales, suggesting that the initial figures are likely to improve as the market stabilises and the area’s redevelopment progresses.
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Arina East Residences, a freehold development, successfully sold 10 out of its 107 units through a private placement on 7 June. The sales, which accounted for approximately 9% of the total units, achieved an average price of $3,008 per square foot (psf). The transactions included seven two-bedroom units, one three-bedroom unit, and two four-bedroom units, with prices ranging from $2,880 psf to $3,250 psf. Most buyers were Singaporeans, according to PropNex CEO Ismail Gafoor.

The development’s initial sales reflect a trend observed in smaller projects, which typically experience a more measured take-up rate compared to larger developments. As the private placement was not a full project launch and the preview occurred only a week prior, further sales are anticipated to progress gradually over the coming months.

Arina East Residences boasts a prime location within walking distance of Katong Park MRT station and is situated in the sought-after Tanjong Rhu area, known for its waterfront homes and proximity to the Kallang recreation hub. The development’s location near several schools, including Dunman High School and Chung Cheng High School, enhances its appeal to families. Additionally, its freehold status may attract buyers interested in legacy planning or hedging against inflation.

The average launch price of $3,008 psf is considered competitive when compared to nearby freehold projects in District 15. For instance, Meyer Blue sold units at an average of $3,150 psf, whilst The Continuum achieved $2,920 psf, based on data from URA Realis up to 27 May 2025. The development’s strategic location and competitive pricing position it as an attractive option for potential buyers.
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CapitaLand Investment Limited (CLI), a global real asset manager, has announced securing additional capital commitments for its CapitaLand Ascott Residence Asia Fund II (CLARA II). This move underscores strong investor interest in transforming underutilised assets into high-performing living spaces in key Asia Pacific cities. CLARA II, alongside its co-investors, has acquired a prime mixed-use asset in Tokyo for over JPY30 billion, marking its third asset acquisition and second in Japan.

The acquisition will increase CLI’s funds under management by approximately S$470 million. Kevin Goh, CEO of CLI Lodging, highlighted the company’s extensive lodging experience and market insights, stating that the new capital commitments reinforce CLI’s reputation in the serviced residence sector. “Investors value CLI’s expertise in the living sector, having pioneered the serviced residence concept in Asia Pacific,” Goh noted.

The Tokyo asset, located in the bustling Shinjuku district, will undergo refurbishment to convert its hotel and residential components into a serviced residence managed by Ascott. The property, to be rebranded as Citadines Shinjuku Tower Tokyo, will offer a mix of studio suites and flats, catering to both corporate and leisure travellers.

Mak Hoe Kit, Managing Director of Lodging Private Equity Funds at CLI, emphasised Japan’s robust real estate market and the strategic advantage of securing the asset at an attractive price. He also mentioned plans to expand CLI’s lodging fund strategy to Europe, where demand for modern living spaces is rising.

The Shinjuku property is set to launch in phases from the second half of 2026, benefiting from the Shinjuku Masterplan 2040, which aims to attract more business travellers.
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A recent study by forex broker experts at BrokerChooser has revealed that 55% of Singaporeans consider themselves financially illiterate, with 52% unaware of their monthly expenditure. This knowledge gap is costing households between $1,997 and $5,410 each year. The study highlights that individuals with low financial literacy fare worse financially than those with higher literacy, even at similar income levels.

BrokerChooser analysed search data to identify the financial terms that confuse Singaporeans the most. ‘Equity’ tops the list, with 2,170 monthly searches in Singapore and 247,100 globally. Adam Nasli, Head Analyst at BrokerChooser, explained, “Equity is often misunderstood due to its broad usage. It represents the value an owner retains after settling debts. In the stock market, it refers to shares in a company, offering partial ownership and profit sharing.”

‘ETF (Exchange Traded Fund)’ ranks second, with 1,800 monthly searches in Singapore. An ETF is a fund traded on a stock exchange, allowing investors to diversify their portfolios with low fees and tax efficiency. ‘GDP (Gross Domestic Product)’ is the third most confusing term, with 1,500 searches. It measures the total market value of goods and services produced within a country.

Nasli emphasised the importance of financial literacy, stating, “With AI enabling sophisticated scams, understanding financial terms is crucial to managing money wisely and avoiding costly mistakes.” The study underscores the need for improved financial education to help individuals make informed decisions and build sustainable wealth.
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Singapore’s retail sector is expected to maintain its resilience in the second quarter of 2025, according to the latest Global Economics and Market Strategy Report by RHB Bank. The report, authored by Barnabas Gan, Group Chief Economist and Head of Market Research, highlights that government support measures and international events are key factors driving this stability. However, potential global headwinds could pose challenges in the latter half of the year.

The report identifies three domestic factors contributing to the retail sector’s performance in Q2 2025. These include the distribution of Singapore’s Budget Assurance Package, a series of retail events scheduled during the quarter, and a robust online sales environment. In April, retail sales in Singapore saw a modest increase of 0.3% year-on-year, with a similar month-on-month rise. Excluding motor vehicles, the growth was slightly higher at 0.8% year-on-year, though this was a slight dip from March’s 0.9% increase.

Despite these positive indicators, the report warns of potential challenges in the second half of 2025. “We anticipate Singapore’s retail climate to remain resilient in Q2 2025, driven by government support measures and international events, but may weaken in H2 2025 amid potential global headwinds,” Gan stated.

As Singapore navigates these economic dynamics, the retail sector’s performance will be closely watched, particularly as external factors begin to exert more influence in the coming months.
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Welzo Inc, an innovation-driven company in the agri-horticultural sector, has announced the establishment of a wholly owned subsidiary, Welzo Singapore PTE LTD, as of 2 June 2025. This strategic move is designed to accelerate the company’s expansion into the Southeast Asian market, leveraging Singapore’s robust business environment and international connectivity as a regional hub.

The Singapore office will focus on several key areas to drive growth across Southeast Asia. These include the development and execution of marketing strategies tailored to the unique market characteristics and consumer trends of each country. Welzo plans to enhance brand recognition and expand sales channels by participating in trade shows and collaborating with local partners.

Additionally, the subsidiary will handle the import and export of agricultural products, feed ingredients, and pet supplies. By partnering with local businesses, Welzo aims to establish a responsive supply system that promotes high-quality Japanese products and imports raw materials suited to local needs. The office will also manage logistics, customs, and quality control to optimise the supply chain.

Welzo is committed to recruiting skilled local professionals to ensure culturally sensitive services and foster regional business operations. President and CEO Yoshifumi Kanao stated, “Singapore is not just a gateway to Southeast Asia—it’s a global hub where innovation and agriculture can converge.”

This new subsidiary is expected to play a pivotal role in Welzo’s future regional expansion and global business growth, reinforcing its commitment to sustainable and socially responsible practices.
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Singapore-based fintech startup Investbanq has emerged as one of the seven winners in the season seven finale of the global startup reality show, “Meet the Drapers.” The company showcased its next-generation AI-powered wealth operating system, designed for financial institutions, which impressed the judges with its potential to empower wealth managers and family offices with scalable, intelligent financial tools.

During the finale, Silicon Valley investor Tim Draper encouraged Investbanq to explore educational dimensions as part of its broader mission. Although Investbanq did not secure a definitive deal, CEO Oz Zhiyenkul noted that the experience served as a catalyst for the company. “Initially, I was disappointed we didn’t walk away with a definitive deal,” Zhiyenkul said. “But the production team shared that outcomes like ours are rare—and often signal something deeper could be in the works.”

Building on its international momentum, which includes sustained revenue growth and a recent award for Best WealthTech Solution from Global Private Banker, Investbanq is now developing an AI-driven financial education module. This initiative aims to support the next generation of investors, reinforcing the company’s mission of inclusion and accessibility in wealth management.

Investbanq, co-founded by Kazakhstani entrepreneurs Oz Zhiyenkul and Talgat Kantayev, aims to redefine wealth management with its inclusive, AI-native financial infrastructure. The platform offers a full-stack digital infrastructure for banks, asset managers, and family offices, integrating features like the Advisor CoPilot and LLM for enhanced client service. Headquartered in Singapore, with offices in Kazakhstan and the UAE, Investbanq holds regulatory approvals from MAS, AIFC, and DFSA.
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StraitsX has announced the integration of its Singapore Dollar-pegged stablecoin, XSGD, and US Dollar-pegged stablecoin, XUSD, onto the PlatON Network. This strategic move aims to enhance cross-border stablecoin clearing and settlement infrastructure, benefiting global merchants, financial institutions, and digital asset developers. Both stablecoins are fully backed by reserves held with regulated financial institutions, ensuring a 1:1 backing.

The integration allows users and enterprises to leverage PlatON’s high-performance infrastructure for stable and programmable value transfers. StraitsX has already facilitated over $10b in on-chain stablecoin transactions, and this collaboration with PlatON is set to extend its reach further. PlatON, driven by the LatticeX Foundation, is developing a compliant, stable, and open multilateral clearing network, aiming to transform stablecoins into comprehensive clearing and settlement infrastructure.

The partnership will also explore future enhancements, including programmable payouts and merchant settlements, with seamless compliance integrations with licenced partners like Allinpayintl. This collaboration equips XSGD and XUSD with robust infrastructure, enabling secure and compliant processing of stablecoin payments in financial hubs such as Singapore and Hong Kong.

Looking ahead, PlatON and StraitsX plan to expand their support for regional markets, promoting the adoption of programmable, compliant payment infrastructure across Southeast Asia and beyond. This initiative is part of PlatON’s broader vision to build an open, interoperable financial network that powers digital assets in real-world applications.
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