Industry News

The recent decision by US President Donald Trump to double tariffs on steel and aluminium imports from 25% to 50% is expected to have minimal direct impact on Singapore’s economy, according to a report by UOB Global Economics and Markets Research. The proclamation, effective from 4 June, excludes imports from the UK due to a separate trade agreement.

Singapore’s limited exposure to aluminium and steel exports means the direct effects of these tariffs are negligible. However, the report highlights potential indirect consequences through Singapore’s key export partners, which could experience reduced manufacturing activity. Countries such as South Korea, India, Taiwan, China, Japan, and Vietnam might see a downturn in manufacturing due to weaker external demand, which could, in turn, affect Singapore.

The report also warns of broader trade tensions, noting that the increased tariffs could exacerbate existing trade disputes. China has criticised the US for violating their trade truce, whilst the European Union has indicated it might accelerate retaliatory measures if the US continues with its tariff threats.

Jester Koh, an associate economist at UOB, emphasised the importance of monitoring these developments, as they could influence ongoing trade negotiations between the US and its partners. The situation underscores the interconnected nature of global trade and the potential ripple effects of policy changes in major economies.

In summary, whilst Singapore’s direct exposure to the increased tariffs is limited, the broader implications for regional trade dynamics remain a concern. The situation warrants close observation as it unfolds, particularly regarding its impact on Singapore’s export partners.
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The China-Singapore Chongqing Demonstration Initiative on Strategic Connectivity (CCI) marks its 10th anniversary, celebrating a decade of successful collaboration between Singapore and Chongqing. This initiative, launched to enhance connectivity and cooperation, has been pivotal in strengthening bilateral ties and fostering economic growth in both regions.

Over the past decade, the CCI has facilitated numerous projects across various sectors, including finance, aviation, logistics, and information technology. These projects have not only boosted economic activities but also enhanced the strategic connectivity between Singapore and Chongqing, serving as a model for international cooperation.

The initiative’s achievements include the development of the Chongqing Connectivity Initiative Financial Services, which has significantly improved cross-border financial services. Additionally, the CCI has played a crucial role in enhancing logistics and transportation links, thereby reducing costs and improving efficiency for businesses operating between the two regions.

As the CCI enters its second decade, both Singapore and Chongqing are committed to further deepening their partnership. Future plans include expanding the initiative’s scope to include new areas of collaboration, such as digital economy and green development, which are expected to drive sustainable growth and innovation.

The 10th anniversary of the CCI not only highlights the successes achieved so far but also sets the stage for continued cooperation and mutual benefits in the years to come.
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Nvidia-backed Nebius has announced the acquisition of $1b in convertible debt financing to expand its global AI infrastructure, with a particular focus on Asia. The funding, structured in two tranches of $500m each, is intended to accelerate Nebius’ efforts to meet the increasing demand for high-performance AI infrastructure worldwide.

This latest financial boost follows Nebius’ $700m equity financing in December 2024, which was supported by strategic investors including Nvidia. The new capital will enable Nebius to fast-track deployments and unlock significant revenue opportunities in 2026, moving closer to its goal of generating mid-single-digit billions in high-margin revenue.

Nebius is focusing on Asia, particularly Singapore, as a key growth area. The company plans to capitalise on the region’s growing demand for high-performance computing, aligning with Singapore’s Smart Nation goals and AI adoption across various sectors. Nebius is committed to making cutting-edge AI capabilities more accessible, investing in local partnerships, and developing the ecosystem.

As Nebius scales its data centre footprint, it aims to address the region’s diverse readiness levels, industry needs, and evolving data sovereignty and localisation requirements. This expansion underscores the investment community’s strong belief in Nebius’ vision and growth potential.
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UOB has released its Quarterly Global Outlook for Q3 2025, detailing significant economic challenges posed by rising US Treasury yields and a weakening US dollar. The report underscores the impact of US trade tariffs and fiscal policies on global markets, with investors increasingly wary of the US’s growing debt and financial instability. The Federal Reserve’s cautious stance amid these uncertainties has further complicated the economic landscape.

The report predicts a moderation in Singapore’s economic growth to 1.7% for 2025, with a weaker second half due to diminishing front-loading momentum and adverse base effects. This slowdown is expected to extend into 2026, with GDP growth forecast to decline to 1.4%. Core inflation is projected to average 0.7% for 2025, with potential downside risks from weaker external demand.

UOB anticipates the Monetary Authority of Singapore (MAS) will ease policy in July 2025 by flattening the Singapore dollar nominal effective exchange rate (S$NEER) slope to 0% per annum. This move aligns with expectations of the Federal Reserve resuming its easing cycle, which could narrow the US dollar’s interest rate differentials and exert further downward pressure on the currency.

In the foreign exchange market, UOB maintains a cautious outlook for Asian currencies, projecting a near-term rise in USD/Asia pairs before a reversal in late 2025. The report also forecasts a continued decline in the US dollar index (DXY), with the euro, pound, and Australian dollar expected to strengthen against the dollar by mid-2026.

UOB’s rates strategy includes predictions of three 25 basis point cuts by the Federal Reserve in the latter half of 2025, with US Treasury yields expected to remain high before gradually easing. The report also highlights a strong rally in gold prices, driven by a weaker US dollar and robust demand from China, whilst maintaining a cautious stance on Brent crude oil due to global trade uncertainties.

Overall, UOB’s outlook suggests significant economic challenges ahead, with implications for both global and Singaporean markets as they navigate the complexities of rising yields and a weakening US dollar.
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Consumer trust in digital platforms is rapidly declining due to the rise of AI-powered fraud, according to the 2025 Jumio Online Identity Study. The survey, which included over 8,000 adults from the US, UK, Singapore, and Mexico, highlights that 74% of Singaporeans now view AI-driven scams as a greater threat to personal security than traditional identity theft.

The study underscores the growing sophistication of AI scams, with fraudsters using generative AI to create deepfakes and synthetic identities. In Singapore, 84% of respondents expressed concern over fake digital IDs, whilst 83% were worried about video and voice deepfakes. This reflects a broader global trend, where 69% of consumers believe AI fraud is harder to detect than traditional scams.

Bala Kumar, Jumio’s chief product and technology officer, emphasised the urgency for businesses to enhance digital identity protection. “As generative AI continues to lower the barrier for sophisticated scams, Jumio’s findings highlight an urgent need for businesses to rethink digital identity protection — not only to reduce fraud, but also to preserve customer trust and digital engagement itself,” he stated.

The study also reveals a trust gap, with 43% of global consumers expecting Big Tech to take responsibility for combating AI fraud. Despite this, 93% of respondents trust themselves most to protect their data, indicating a desire for stronger personal control over digital security.

As AI fraud becomes more industrialised, consumers are willing to undergo more rigorous identity verification, particularly in high-risk sectors like banking and healthcare. Jumio CEO Robert Prigge noted the importance of consumer education and transparency in building trust, stating, “Our industry must develop the tools we need to stay ahead of the AI-fraud arms race.”
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Singapore’s industrial property market experienced stabilisation in leasing activity during the first quarter of 2025, according to Savills Singapore’s latest briefing. The total leasing volume saw a marginal year-on-year increase of 1.3%, reaching 2,902 tenancies. Despite this stability, rent trends across different property types showed mixed results.

The monthly rents for prime multiple-user factories, based on Savills’ basket of private industrial properties, rose by 0.4% quarter-on-quarter to $2.29 per square foot, recovering from a previous dip. In contrast, prime warehouse and logistics properties experienced a decline, with rents dropping by 2.5% to $1.69 per square foot.

Strata industrial sales activity remained subdued, with a 3.8% quarter-on-quarter decline, marking a five-year low of 351 transactions. However, leasehold property prices showed resilience, with 30- and 60-year leasehold properties increasing by 3.3% and 1.2% respectively. Freehold property prices, however, fell by 0.7% to $831 per square foot.

Business parks also saw varied rent changes. Prime business parks experienced a slower rent increase of 1.3% to $6.35 per square foot, whilst standard business parks saw a 1.7% rise to $4.11 per square foot. High-spec industrial spaces faced a slight decline, with rents slipping by 0.6% to $3.90 per square foot.

Looking ahead, Savills projects that multiple-user factory rents will continue to rise by up to 3.0% this year due to limited supply. However, rents for warehouse and business park spaces are expected to remain flat, as older developments may offset gains from newer facilities.
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CGS International Securities Singapore recently launched its Makan and Market Talk series, focusing on the resilience of Singapore Real Estate Investment Trusts (S-REITs) in the face of global economic volatility. The event, attended by clients, investors, and industry experts, provided a platform for discussing the current outlook for S-REITs, highlighting their potential as attractive income plays.

The panel, featuring experts such as Song Seng Wun, Economic Adviser at CGS SG, and Lock Mun Yee, Deputy Head of Research at CGS SG, delved into the macroeconomic challenges and opportunities facing S-REITs. Song noted that whilst a recession is unlikely, short-term slowdowns due to uneven US trade policies and geopolitical shifts remain a concern. He described Singapore as particularly sensitive to these global changes due to its high export-to-GDP ratio.

Lock highlighted that S-REITs are currently undervalued, with average yields of 6.1% and a price-to-book ratio below historical norms, making them appealing for investors seeking stability and income. She identified CapitaLand Ascendas REIT and Keppel DC REIT as preferred picks due to their strong balance sheets and strategic sector positioning.

The discussion also touched on the future of office spaces, with Calvin Yeo from Knight Frank Singapore noting that demand remains robust, particularly for green-certified and employee-centric buildings. Despite the rise of hybrid work, post-pandemic occupancy rates have stayed above 90%.

The event concluded with a consensus that S-REITs are well-positioned for recovery, supported by strong fundamentals and active asset management. The Makan and Market Talk series will continue to offer insights and analysis on pertinent market themes.
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FWD Insurance Singapore has launched its “Skip to the Good Part” campaign, aiming to enhance travel insurance for Singaporeans ahead of the peak travel season. Running from May to July 2025, the campaign introduces flexible solutions such as Cancel for Any Reason (CFAR) benefits, coverage for pre-existing conditions, and a streamlined digital claims process via the FWD app.

The campaign addresses key traveller concerns, offering a customer-first approach to insurance. Adrian Vincent, CEO of FWD Singapore, stated, “At FWD, we are committed to making insurance simpler, more accessible, and more relevant to the needs of today’s travellers.” The initiative aims to eliminate traditional friction points like complex claims and unclear policy exclusions.

Research by Klook Protect highlights a disconnect between traditional insurance offerings and modern traveller needs, with 21% of respondents seeking less conventional solutions. FWD’s campaign responds to this by providing flexible, transparent, and user-friendly options. Key features include CFAR coverage, allowing travellers to change plans due to personal emergencies or opportunities, and a Pre-existing Condition (Pre-X) rider for those with chronic medical conditions.

FWD’s digital-first approach has earned accolades, including Best Digital Insurer at the InsuranceAsia News Country Awards for Excellence in 2024. The campaign is supported by short videos illustrating real traveller scenarios, showcasing FWD’s commitment to meeting evolving expectations with practical solutions.

FWD’s travel insurance supports diverse needs, from families to digital-native travellers, with policies available online or via the FWD SG app. The campaign will be rolled out across multiple channels, reinforcing its message of assurance and accessibility.
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COSCO SHIPPING International (Singapore) Co., Ltd has received approval in principle from the Singapore Exchange Securities Trading Limited (SGX-ST) for a proposed renounceable, non-underwritten rights issue. This initiative involves the issuance of up to 2,239,244,954 new ordinary shares in the company’s capital, as announced on 4 June 2025.

The rights issue is a strategic move by COSCO SHIPPING International Singapore to bolster its capital base, providing existing shareholders the opportunity to purchase additional shares. The approval from SGX-ST marks a significant step forward in the company’s financial strategy, aiming to enhance shareholder value and support future growth initiatives.

The rights issue is structured to be renounceable, allowing shareholders the flexibility to trade their rights on the open market. This approach provides an opportunity for shareholders to either increase their stake in the company or realise value through the sale of their rights.

The announcement underscores COSCO SHIPPING International Singapore’s commitment to maintaining a robust financial position and its proactive approach to capital management. The company has not disclosed specific details regarding the pricing or timeline of the rights issue, which will be communicated in due course.

This development is expected to have a positive impact on the company’s financial health, providing it with the necessary resources to pursue strategic opportunities and enhance its competitive position in the shipping industry.
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Twilio’s latest State of Customer Engagement Report highlights a growing disconnect between Singaporean brands’ confidence in AI-powered customer engagement and consumer satisfaction. Despite 90% of local organisations rating their customer engagement as good, only 57% of Singapore consumers agree, marking a 33% gap, up from 20% last year.

The report, based on a survey of over 7,600 global consumers and 637 business leaders, shows that whilst AI adoption has increased, with 94% of businesses using it to analyse customer data, the benefits are not translating into customer satisfaction. Although businesses report higher customer spending and cost savings, only 33% of consumers feel that brands personalise their engagement effectively.

This disconnect has tangible consequences. More than a third of consumers may stop using a brand, and 70% will abandon purchases if interactions feel impersonal. Conversely, 94% are more likely to make purchases when engagements are personalised in real time.

Robert Woolfrey, Vice President, APJ, Communications, at Twilio, emphasised the need for brands to bridge this gap by delivering individualised experiences that feel human and relevant. “When brands take a more deliberate and transparent approach to using data, they will be better positioned to build deeper, more meaningful relationships with their customers,” he stated.

The report also underscores the importance of human interaction, with 75% of consumers valuing human-like AI interactions and 50% preferring to speak to a person if AI fails. Transparency is crucial, as 52% of consumers want to know when they are communicating with AI.

The future of customer engagement lies in individualisation, with brands needing to invest in transparent, data-driven strategies to earn trust and deepen relationships. The full report is available on Twilio’s website.
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