Industry News

SIA Engineering Group has reported stable demand for its Maintenance, Repair and Overhaul (MRO) services in the first quarter of FY2026/27, with a 2.9% increase in flight volumes handled in Singapore compared to the previous year. This growth occurred despite flight cancellations due to the Middle East conflict. The company also celebrated the official opening of its Base Maintenance Malaysia facility in May 2026, with plans to expand its capacity further by the second half of the fiscal year.

The company has entered into a joint venture with Safran Aircraft Engines to establish a CFM LEAP engine MRO shop in Singapore, aiming to enhance its capabilities for LEAP-1A and LEAP-1B engines. This venture will see Safran holding a 51% stake, with SIA Engineering holding the remaining 49%. Additionally, SIA Engineering signed a Memorandum of Understanding with Air India Limited to explore potential MRO collaborations in India.

Financially, the group reported a revenue of $327.6m for the quarter, an 8.6% decrease year-on-year due to reduced material revenue. However, excluding materials, revenue rose by 4.2%. Operating profit improved to $13.2m, up by $8.1m from the previous year. Despite a reduction in profits from joint ventures, the group’s net profit after tax stood at $40.3m, slightly lower than the previous year.

Looking ahead, SIA Engineering remains optimistic about the Asia-Pacific MRO market, driven by increasing passenger traffic and fleet expansion. The company plans to continue expanding its regional footprint and enhancing its capabilities to support next-generation aircraft.

Synagie has unveiled Geene 2.0, a Trusted AI Commerce Intelligence Ecosystem, designed to help businesses transition from isolated AI applications to a cohesive, scalable platform. Launched with twelve founding partners, including BytePlus and SingData, the platform was introduced to over 200 business leaders and guests.

Geene 2.0 combines capabilities in data, artificial intelligence, media, commerce, and blockchain into a single software-as-a-service platform. It enables businesses to analyse markets, strategise, generate content, automate operations, and verify products within one ecosystem. The platform will be available commercially from early August 2026.

The unveiling event featured a fireside chat with industry leaders, including Desmond Tan, Senior Minister of State in the Prime Minister’s Office, who emphasised the importance of trust in AI deployment. The platform’s ASSET intelligence engine orchestrates AI-driven commerce through five layers: Analyse, Strategise, Storytelling, Execute, and Trust.

Pei Gy Wong, Chief Digital Officer of Synagie, stated, “The next generation of AI will be led by those who can build the greatest trust.” Geene 2.0 aims to provide businesses with a practical pathway to adopt AI confidently and at scale.

The platform has already been deployed commercially with AGONG Durian, demonstrating its capabilities in improving operational efficiency and consumer confidence. Synagie is also collaborating with the Singapore Industrial and Services Employees’ Union to enhance AI readiness among workers.

As AI adoption accelerates, Synagie positions Geene 2.0 as a foundation for responsible enterprise AI innovation, aiming to make Singapore a leader in this field.

Singapore’s core Consumer Price Index (CPI) rose by a modest 0.1% month-on-month in June, translating to a softer-than-expected 1.6% year-on-year increase, as reported by UOB Global Economics and Markets Research. This figure fell short of both Bloomberg’s consensus and UOB’s forecast of 1.7%. Despite the lower headline figure, inflationary pressures are broadening across key categories such as food and recreation, sport, and culture, partly due to holiday effects.

The moderation in core inflation was driven by a decline in the information and communications component, attributed to competitive pricing among telecommunications providers. However, UOB warns of upside risks to inflation forecasts due to rising energy prices amid Middle East tensions and potential increases in food prices from a Super El Niño event. The US National Oceanic and Atmospheric Administration predicts an 81% chance of a “very strong” El Niño developing later this year.

UOB maintains its 2026 headline and core inflation forecasts at 2.2% and 1.9%, respectively, but highlights the potential for these figures to rise. The Monetary Authority of Singapore (MAS) is expected to keep its current monetary policy stance unchanged, although there is a 40% probability of a policy adjustment in the near future to address imported inflation risks.

The report underscores the complexity of Singapore’s inflation landscape, with broader price pressures suggesting a lagged pass-through of earlier energy price shocks. As global conditions evolve, Singapore’s economic outlook remains closely tied to external factors, particularly energy and food prices.

Singapore’s industrial sector demonstrated robust growth in the second quarter of 2026, with the manufacturing sector expanding by 12.2% year-on-year, according to the latest JTC Industrial Statistics. This growth was largely fuelled by strong global demand for AI-related products, particularly computer chips, despite ongoing geopolitical tensions in the Middle East. The Purchasing Manager’s Index (PMI) for June 2026 stood at 51.3, indicating expansion, with the electronics PMI outperforming at 52.2.

The industrial price and rental indices both saw modest quarterly increases of 0.6% and 0.5%, respectively. However, industrial sales transactions decreased, with big-ticket deals over S$10m dropping from 39 in Q1 to 16 in Q2. Smaller transactions remained stable, suggesting continued demand from owner-occupiers seeking business continuity.

Tridiana Ong, Head of Occupier Strategy and Solutions at Knight Frank Singapore, noted that leasing demand is expected to remain strong as AI and automation adoption grows. “Well-connected, amenity-rich business park buildings such as Galaxis are backfilling spaces from larger former occupiers,” Ong said.

Investment in advanced manufacturing and AI infrastructure is anticipated to remain robust, with Singapore’s fixed asset investment commitments rising 40.9% year-on-year in Q1 2026. The electronics sector saw a significant surge in commitments, reaching S$2.2b. Knight Frank projects industrial property prices to grow between 3% and 5% for the year, driven by resilient demand and Singapore’s status as a strategic hub.

MSCI Inc. has entered into a licensing agreement with Singapore Exchange Limited (SGX) to launch futures and options contracts based on a suite of MSCI indexes. These contracts will cover global developed and emerging markets, enhancing the tools available for institutional investors to manage risk across multi-regional equity portfolios.

The agreement broadens MSCI’s collaboration with SGX to include flagship global and regional equity benchmarks, single-country developed and emerging market indexes, and EM Asia sector indexes. Henry Fernandez, Chairman and CEO of MSCI, emphasised the importance of this expansion, stating, “This agreement reflects our commitment to ensuring that MSCI’s most critical benchmarks are accessible to investors wherever they manage risk.”

SGX’s Chief Executive Officer, Loh Boon Chye, highlighted the exchange’s role in creating markets that cater to global investors’ needs. “As portfolios are increasingly managed across regions, themes and benchmark suites, our comprehensive MSCI suite gives investors a broader platform to manage global equity risk through one trusted venue,” he said.

The new futures and options contracts will be centrally cleared in the Asia-Pacific time zone, providing institutional investors with a reliable venue for managing multi-regional equity portfolios. This development marks a significant step in offering investors enhanced capabilities to navigate complex market environments with confidence.

The collaboration between MSCI and SGX underscores a shared commitment to providing robust infrastructure and market access, facilitating better risk management and investment decisions for global investors.

OUE Real Estate Investment Trust (OUE REIT) has reported a significant 28.6% year-on-year increase in its distribution per unit (DPU) for the first half of 2026, reaching 1.26 Singapore cents. This growth was primarily attributed to enhanced performance in the hospitality sector, strategic acquisition of the Salesforce Tower, and reduced finance costs due to effective capital management.

The financial results for the period from 1 January to 30 June 2026 revealed a 3.8% rise in revenue to S$136.1m and a 4.8% increase in net property income (NPI) to S$110.3m. The hospitality segment notably contributed to this growth with a 12.3% increase in NPI. Additionally, finance costs decreased by 16.6%, reflecting the benefits of proactive capital management.

The acquisition of a 19.9% interest in the Salesforce Tower in Sydney played a crucial role, contributing S$2.2m to the share of results from associates. Furthermore, the share of results from joint ventures, including OUE Bayfront, rose by 30.6% to S$8.2m.

The robust performance underscores OUE REIT’s strategic focus on capital recycling and asset management. The trust’s effective barbell strategy and active capital stewardship have anchored its strong DPU return, supported by a diversified portfolio with a significant presence in Singapore.

Looking ahead, OUE REIT’s management remains committed to sustaining momentum through strategic capital allocation and maintaining a resilient balance sheet. The distribution payment for the period is scheduled for 3 September 2026.

Metrocon Pte. Ltd. is set to become a listed entity on the Singapore Exchange (SGX) following shareholder approval of a reverse takeover valued at S$28m. The approval was granted during an extraordinary general meeting, marking a significant step for Metrocon as it aims to leverage the SGX platform for growth.

The reverse takeover involves the acquisition of Metrocon’s entire issued share capital by Hatten Land Limited, which is under judicial management. Upon completion, the company will be renamed Metrocon Holdings Limited, reflecting its focus on geotechnical foundation engineering. The transaction will be satisfied through the issuance of 107,705,689 shares to LBD Engineering Pte. Ltd. at S$0.26 per share.

Metrocon plans to use the proceeds from a Compliance Placement to support its growth initiatives, including upgrading its contractor status and expanding its workforce. The company aims to capitalise on Singapore’s robust construction sector, which is projected to see demand between S$47b and S$53b in 2026.

Alvin Lim, Founder and Non-Executive Non-Independent Chairman, expressed gratitude for the shareholder support, stating, “This is a significant step in Metrocon’s journey towards becoming an SGX-listed company.” CEO Tan Kean Seng added, “With the support of the capital markets following our listing, we will be able to accelerate our strategic plans.”

Metrocon’s strong financial performance in FY2025, with a 67.46% revenue increase to S$61.07m, underscores its readiness for this new chapter. The company is poised to seize opportunities in Singapore’s construction pipeline, supported by a healthy order book and experienced management.

FWD Singapore and Ascend Asia Financial Services Group have announced a long-term strategic partnership to enhance financial advisory distribution and improve access to quality financial advice in Singapore. This collaboration combines FWD’s customer-focused product capabilities and digital services with Ascend Asia’s governance framework and technology-enabled platform.

The partnership will provide customers across retail, mass affluent, and high-net-worth segments with access to FWD’s comprehensive suite of solutions, including life insurance and investment-linked products. Additionally, Ascend Asia Asset Management funds will now be available as sub-funds in FWD’s investment-linked product portfolio, offering a broader range of investment options.

Adrian Vincent, CEO of FWD Singapore, highlighted the significance of the open architecture financial advisory model, stating, “Our partnership with Ascend Asia reflects FWD’s commitment to raising the standard of financial planning.” Tomas Urbanec, CEO of Ascend Asia, added, “This partnership broadens access to customer-focused solutions and technology-enabled experiences for advisers on the Ascend Asia platform.”

The partnership was celebrated at the newly launched Ascend Asia Wealth Centre, marking the beginning of this collaborative effort to strengthen Singapore’s financial advisory ecosystem. This initiative is expected to support the industry’s shift towards greater transparency and technology-enabled advisory processes, meeting the evolving needs of Singapore’s super-aged society and global wealth hub status.

Price Forbes Singapore has announced the appointment of Craig McCoig-Lees as the new head of casualty Managing General Agent (MGA). McCoig-Lees, who brings over 30 years of industry experience, will report directly to Bruce Ford, Chief Commercial Officer of Reinsurance & Wholesale. His role will focus on expanding Price Forbes Re’s MGA proposition by providing third-party MGAs with access to capacity, underwriting expertise, and strategic growth solutions.

McCoig-Lees previously served as the head of casualty MGA at Howden Re and has held senior positions at Lockton International and JLT Re. Having been based in Singapore for the past 13 years, he is well-acquainted with the region’s market dynamics. Bruce Ford commented on the appointment, stating, “We have identified a real opportunity in the MGA space, with growth accelerating globally as new hubs emerge and regulation continues to evolve. Craig brings a track record of building businesses and is well placed to help us achieve our goal of being the go-to broker for MGA business in the region.”

Expressing his enthusiasm for the new role, McCoig-Lees said, “The ambition of Price Forbes in the MGA space is crystal clear and that is what drew me to the role. I’m looking forward to working with colleagues across the region, and the wider Ardonagh Group, to build out our presence and to help clients access the distribution and agility that MGAs can offer in today’s market.”

Price Forbes is the largest independent speciality broker in the London Market, managing over $7m in gross written premium. The company is part of The Ardonagh Group, a leading global insurance distribution platform.

The Civil Aviation Authority of Singapore (CAAS) has announced a significant S$4b investment to upgrade its air navigation services over the next 15 years. This initiative aims to address the rising demand for air travel and bolster Singapore’s status as a global air hub. The upgrade, dubbed the “man-machine-method” approach, will enhance the capabilities of air traffic control officers (ATCOs), develop cutting-edge systems, and optimise regional traffic flows.

CAAS plans to increase its ATCO workforce by 40%, from 500 to 700, by the mid-2030s. This expansion is crucial as Singapore prepares for the opening of Changi Airport Terminal 5. To attract more Singaporeans to the profession, CAAS is offering a S$20,000 sign-on bonus for new recruits starting 1 June 2026. Additionally, a new undergraduate degree with ATC specialisation and an ATC Management Associate Programme will be introduced to develop future leaders in air traffic control.

The investment will also see the development of advanced systems such as the NexGen ATM System, which will support up to one million aircraft movements annually. The Integrated Digital Tower System will enhance situational awareness and decision-making, whilst the Info-Centric ATM will improve traffic flow management.

Infrastructure upgrades include a new Singapore Air Traffic Control Centre, set for completion by 2028, and enhancements to the Changi Control Tower. These improvements will facilitate three-runway operations by the end of the decade, increasing Changi Airport’s flight handling capacity and ensuring safety and efficiency in regional air traffic.