Industry News

Singapore’s life insurance industry achieved an impressive 11.3% growth in 2025, with total weighted new business premiums reaching S$6.53b, according to the Life Insurance Association, Singapore (LIA Singapore). This growth was bolstered by a 13.0% increase in the fourth quarter compared to the same period in 2024, driven by a rise in annual premium business.

Financial Adviser Representatives played a significant role, contributing 45.3% to the total sum assured, whilst Tied Representatives accounted for 28.8%. This reflects the industry’s ongoing efforts to close the protection gap, with a 3.1% year-on-year increase in total sum assured by the end of 2025.

Wong Sze Keed, President of LIA Singapore, highlighted the importance of life insurance as a financial security pillar amidst economic volatility. “It is heartening that Singaporeans recognise this,” she said, noting the increased uptake of essential protection coverage and long-term financial investments.

The demand for annual premium products remained strong, with a 5.5% increase in Q4 2025. Single premium policies also saw a 42.0% rise in weighted premiums during the same period, reflecting improved market confidence.

Individual Health Insurance premiums reached S$743.4m for the year, with Integrated Shield Plans and IP Riders accounting for 90% of these premiums. The industry also saw a 5.5% increase in claims payouts, totalling S$14.23b.

Looking ahead, Wong expressed a cautious outlook for 2026, emphasising the industry’s commitment to innovation and financial literacy to build a resilient future for Singapore.

Oiltek International Limited, a Singapore Exchange Mainboard-listed company, reported a 7.9% increase in net profit for the financial year ending 31 December 2025, reaching RM32m. This growth comes despite foreign exchange losses of RM8.2m, contrasting with the previous year’s RM2.6m gains. Excluding these losses, the company’s net profit would have surged by 48.7% to RM40.2m.

The company, known for its integrated process technology and renewable energy solutions, has proposed a final dividend of 0.7 Singapore cents per share. Combined with the interim dividend paid in September 2025, this brings the total declared dividend for the year to 1.2 Singapore cents per share, representing 52.5% of the group’s net profit.

Oiltek’s order book remains robust at RM312.8m, and its financial health is underscored by zero debt and cash reserves of RM99.7m, nearly matching its net assets. CEO Henry Yong Khai Weng highlighted the company’s resilience amid challenging global conditions, noting its successful transfer to the SGX Mainboard as a significant milestone. He stated, “With our resilient business model, strong engineering capabilities, proprietary patented technology, and continuous innovation, we are primed for our next phase of growth.”

Looking forward, Oiltek plans to explore joint ventures aligned with its strategic goals to ensure sustainable long-term value for shareholders. This strategic direction aims to leverage its strong foundation for future expansion and innovation.

As the Year of the Horse approaches, Singaporeans are bracing for higher expenses during the 2026 Lunar New Year celebrations, according to a survey by trading platform eToro. The survey, which polled 1,000 Singaporeans, found that 77% believe the costs of celebrating Lunar New Year are rising each year. Despite these concerns, one in four respondents plan to give more in ang bao, the traditional red packets, this year compared to 2025.

The survey highlights that whilst many are cautious about spending, the tradition of giving remains strong. Among those planning to distribute ang bao, 20% expect to give between $50 and $100 per packet, whilst 31% will give between $10 and $19. Zavier Wong, Market Analyst at eToro, noted, “The data shows that generosity around Lunar New Year is still very much intact, particularly when it comes to close family.”

Parents are notably more generous with their own children, with 47% planning to give between $50 and $100, and 27% intending to give more than $101. In contrast, gifts to nieces and nephews are more modest, with 27% giving between $10 and $19, and another 27% giving between $20 and $29.

The survey also reveals shifting attitudes towards traditional customs. Whilst 30% believe unmarried adults should stop receiving ang bao after 40, 69% do not consider it necessary to include the auspicious number ‘8’ in their packets. Wong added, “Rising awareness of costs does not mean generosity is disappearing. People are becoming more selective about where their money goes, prioritising close family and immediate relationships.”

Access Singapore has introduced a pilot apprenticeship programme, Access Apprenticeships, aimed at providing polytechnic graduates with alternative career pathways amidst a challenging job market. Supported by the Macquarie Group Foundation, the initiative will place 16 apprentices in sectors such as hospitality, community development, auditing, and energy, offering them competitive salaries and full-time benefits.

The programme was launched at *SCAPE Singapore, with Goh Hanyan, Senior Parliamentary Secretary for the Ministry of Culture, Community and Youth & Ministry of Sustainability and the Environment, attending the event. Clarence Ching, Founder and Executive Director of Access Singapore, emphasised the programme’s goal to shift focus from “jobs” to “careers” and from “qualifications” to “skills”, aiming to bridge the opportunity gap for diploma holders.

The initiative responds to findings from the Polytechnic Graduate Employment Survey, which revealed that 28.2% of polytechnic graduates took up part-time or temporary jobs upon graduation. Access Singapore’s survey of 400 recent graduates showed that 44% doubted their career advancement opportunities, highlighting the need for improved social mobility.

The apprenticeships, lasting 18 months, include two weeks of classroom training followed by on-the-job training. Participants will also receive professional certification from the Singapore University of Social Sciences, LinkedIn Premium subscriptions, and access to mental health support if needed. Applications are open until 8 March 2026.

Singapore’s financial institutions are at the forefront of artificial intelligence (AI) deployment and technological advancement, according to Finastra’s Financial Services State of the Nation 2026 survey. The study, which included responses from senior leaders across 11 global markets, highlights Singapore’s superior performance in AI readiness, cloud enablement, and technology capability.

The survey found that 64% of Singapore’s financial institutions are actively deploying AI in key business functions, moving beyond pilot projects to operational implementation. Additionally, 35% are in the process of piloting or researching AI, indicating a robust pipeline for innovation. This commitment to AI is further supported by a modernised technology landscape, with 71% of respondents rating their core technology infrastructure as superior to their peers.

Chris Walters, CEO of Finastra, commented, “Singapore institutions are showing what AI execution at scale really looks like. This is not about isolated pilots. It is about embedding AI into core operations, supported by modern infrastructure, strong data foundations, and disciplined governance.”

The survey also revealed that 83% of Singapore’s financial institutions plan to invest in customer experience and personalisation initiatives, such as real-time payments and 24/7 chatbots. Furthermore, 55% of these institutions host their operations in the cloud, with an additional 30% using hybrid environments, showcasing a strategic shift towards scalable and secure infrastructure.

Singapore’s readiness for technological and cultural change is evident, with 84% of organisations prepared for ongoing transformation. This positions Singapore’s financial sector to maintain its competitive edge in the evolving global landscape.

HSBC Bank (Singapore) Limited has announced the appointment of Suzy White, the HSBC Group Chief Operating Officer, to its Board, effective 30 January 2026. White, who became Group COO in October 2024, is expected to leverage her extensive experience in global businesses, risk, finance, operations, and transformation to bolster HSBC Singapore’s standing as a leading international bank for global wealth.

White’s appointment underscores HSBC’s commitment to Singapore, a key market for the Group. Singapore serves as an international wealth hub, a regional centre for treasury operations, and a global centre for innovation and sustainability. HSBC Singapore aims to strengthen its position in these areas with White’s expertise.

The bank anticipates that White’s strategic insights will enhance its operational capabilities and drive its growth in the competitive Singaporean market. Her role on the board is seen as pivotal in navigating the complexities of global finance and ensuring HSBC Singapore remains at the forefront of banking innovation and sustainability.

As Singapore continues to be a priority market for HSBC, the bank’s leadership looks forward to White’s contributions in steering its strategic initiatives and expanding its influence in the region. Her appointment is a significant step in reinforcing HSBC’s commitment to delivering exceptional financial services and solutions in Singapore.

CapitaLand Investment (CLI) has announced a 6% increase in its Operating PATMI for the financial year 2025, reaching S$539m, up from S$510m in 2024. This growth was attributed to higher contributions from its listed funds business, alongside reduced interest costs and operating expenses. The company also reported a 7% increase in Funds under Management (FUM), totalling S$125b by the end of 2025.

The company’s strategic focus on an asset-light, fee-led model has been pivotal in its growth, with total equity raised nearly doubling to S$6.5b. CLI’s investments in Wingate and SC Capital Partners have further strengthened its platform, enhancing its institutional reach and capabilities. Chairman Miguel Ko highlighted the company’s progress amid challenging economic conditions, emphasising the importance of strategic partnerships and disciplined capital allocation.

Looking ahead to 2026, CLI plans to continue its growth trajectory by sharpening its portfolio through accelerated divestments and redeployment. Group CEO Lee Chee Koon stated, “We will leverage our debt headroom to evaluate and pursue strategic options to deepen capabilities and expand growth pathways for CLI.”

CLI’s commitment to sustainability was also evident, with the company securing S$5.7b in sustainable finance in 2025. It maintained its MSCI “AAA” rating and was included in the FTSE4Good Index for the 12th consecutive year. As the company advances its AI capabilities and sustainability initiatives, it aims to enhance long-term returns for investors.

Singapore’s small and medium-sized enterprises (SMEs) are increasingly prioritising overseas expansion and technology adoption to navigate a volatile market landscape, according to the latest DBS Business Pulse Check Survey. Conducted between December 2025 and January 2026, the survey revealed that 82% of the 730 companies polled are planning to internationalise in 2026, with the information and communications and manufacturing sectors leading the charge.

The primary motivations for this strategic shift include reaching new customer bases (49%) and building a stronger overseas brand presence (43%). SMEs emphasised the importance of connections with trusted local partners and access to market insights for successful market entry.

Technology, particularly artificial intelligence (AI), is also playing a crucial role in enhancing competitiveness. Whilst 67% of respondents are already utilising AI, only 12% have fully integrated it across their operations. The information and communications, electronics manufacturing, and professional services sectors are at the forefront of AI adoption, whereas the wholesale and trade sectors lag behind.

To further AI adoption, SMEs identified financial support, expert guidance, and partnerships with technology providers as essential. Additionally, sustainability readiness has improved, with 49% of businesses considering themselves prepared, up from one-third last year.

Despite challenges such as tariffs and trade restrictions affecting 36% of respondents, 57% expect improved business performance in 2026. Chen Ze Ling, Group Head of Corporate and SME Banking at DBS, noted: “The survey reflects the pragmatic approach many SMEs are taking to navigate an uncertain environment.”

The annual survey underscores the strategic initiatives SMEs are undertaking to build resilience and sustain long-term growth amidst a challenging economic backdrop.

The Singlife-SGFIN Sustainable Future Index 2026, launched by Singlife in collaboration with the Sustainable and Green Finance Institute (SGFIN) at the National University of Singapore, highlights a significant generational divide in sustainability awareness and action. Whilst Gen Z demonstrates the highest awareness of sustainability issues, older Singaporeans are more likely to adopt sustainable practices in their daily lives.

The index, based on a survey of 1,500 Singaporeans and Permanent Residents, evaluates sustainability-related actions across four pillars: responsible investing, climate change action, inclusive solutions, and societal culture. It reveals that although Gen Z is most aware of sustainability, older generations, particularly Baby Boomers, lead in practical actions such as using reusable bags and participating in waste recycling.

A key insight from the index is the role of personal responsibility in driving sustainable actions. Gen Z shows a strong sense of ownership in social sustainability and community engagement, yet cost remains a significant barrier for all generations. The willingness to make sustainable choices decreases when higher financial commitments are involved.

To address these challenges, Singlife and SGFIN have launched the SGFIN-Singlife Sustainable Finance Case Competition 2026, encouraging students to propose practical solutions based on the index findings. A comprehensive white paper, set to be released in Q2 2026, will offer further analysis and recommendations for policymakers, businesses, and individuals aiming to foster sustainable choices.

Retail rents in Singapore’s prime central areas increased by 1.7% year-on-year in the fourth quarter of 2025, according to a report by Savills Research. The average monthly rent in the Orchard Area reached S$23.60 per square foot, reflecting strong tenant demand for high-visibility locations that attract footfall and enhance brand positioning.

In contrast, suburban retail rents saw a more modest rise of 1% year-on-year, reaching S$14.90 per square foot. This growth was supported by stable occupancy levels and a consistent demand for convenience and lifestyle-oriented retail formats. Overall, retail leasing activity remained steady, with a net absorption of 366,000 square feet recorded across the market in Q4 2025.

Despite a challenging first half of the year, the second half saw stronger leasing momentum. However, the total net absorption for 2025 was 301,000 square feet, significantly below the four-year post-recovery average of 1 million square feet. Consequently, islandwide retail vacancy remained stable at 6.3% in Q4 2025.

Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, noted, “Whilst consumer spending remains cautious and operating costs are rising, demand has stayed resilient for prime retail assets that continue to deliver footfall and brand visibility.”

Looking forward, Savills projects that approximately 504,000 square feet of new retail space will be completed in 2026, slightly above the five-year historical average. This limited supply is expected to keep pressure on occupancy and rental levels minimal, particularly for prime assets. Retail rents in both Orchard Road and suburban malls are anticipated to increase by 1% to 2% in 2026.