Industry News

The establishment of an AI Park in one-north is expected to attract AI talent, potentially increasing rental demand for housing in the area, according to Huttons Asia. The upcoming Government Land Sales (GLS) tender in Dover Drive is anticipated to draw more interest from developers, reflecting the area’s growing appeal.

The initiative to enhance AI adoption amongst companies is likely to result in a rise in the number of firms and start-ups offering AI services. This could lead to increased demand for high-specification industrial spaces and business parks, potentially driving up rents in the future.

However, whilst the demand for data centres may grow, Singapore faces constraints in land and power availability. As a result, neighbouring regions such as Johor and Batam are expected to benefit from this demand.

Singapore’s 2026 budget, announced by Prime Minister Lawrence Wong on 12 February, introduces significant measures aimed at bolstering the nation’s banking, real estate, retail, and telecommunications sectors. The budget includes a 40% corporate tax rebate, capped at S$30,000 for the year of assessment 2026, which is expected to enhance the safe-haven appeal of Singapore banks, according to Rena Kwok, Bloomberg Intelligence Senior Credit Analyst. This move is anticipated to help local businesses manage cost pressures and boost competitiveness.

The budget also outlines a S$37b investment under the Research, Innovation and Enterprise plan, targeting growth in sectors such as aerospace, manufacturing, and biomedical sciences. Ken Foong, Bloomberg Intelligence Real Estate Analyst, notes that this investment will likely increase demand for industrial and office spaces, benefiting landlords like CapitaLand Ascendas and ESR-REIT.

In the banking sector, measures to support households and small businesses are expected to improve asset quality and stimulate loan demand, as highlighted by Sarah Jane Mahmud, Bloomberg Intelligence Senior South and Southeast Asia Banking Analyst. The budget’s S$1.5b allocation to revive equity markets could further enhance bank fee income.

Retail sales are set to receive a boost from budget handouts, including S$500 per Singaporean household and additional cash payments for eligible citizens. These initiatives are likely to increase turnover rents for retail mall landlords, according to Ken Foong.

Furthermore, Singapore’s focus on connectivity within its national AI mission is expected to create 5G monetisation opportunities for telcos like Singtel and StarHub. Chris Muckensturm, Bloomberg Intelligence Industry Analyst, notes that AI tax breaks and streamlined regulations will accelerate digitalisation efforts among SMEs, benefiting telcos’ high-margin ICT and managed-services revenues.

Tower Capital Asia has announced a strategic majority investment in V-Key, a leading provider of digital identity and mobile application protection and security solutions in the Asia-Pacific region. This investment underscores Tower Capital Asia’s confidence in V-Key’s technological leadership and product capabilities, particularly as secure digital experiences become increasingly vital in financial services and the broader digital economy.

V-Key’s platform, which supports over 300 applications across 15 countries, is designed to help banks, fintechs, and enterprises securely onboard users, authenticate access, and protect mobile applications and transactions. The platform’s software-based security architecture allows for efficient deployment and scalability, crucial for institutions expanding their digital services.

Danny Koh, founder and CEO of Tower Capital Asia, highlighted the importance of secure digital identity for financial institutions and digital platforms. “V-Key has built a robust platform that enables organisations to manage identity authentication and mobile app security at scale,” he said. Eddie Chau, co-founder and chairman of V-Key, expressed enthusiasm for the partnership, noting Tower Capital Asia’s long-term partnership mindset and regional network.

Joseph Gan, co-founder and CEO of V-Key, emphasised the focus on strengthening digital identity and mobile application security capabilities. The partnership aims to accelerate product innovation, strengthen V-Key’s regional presence, and deepen relationships with financial institutions and digital platforms.

Tower Capital Asia, established in 2016, manages over $900m in investments and commitments. The firm is committed to supporting V-Key’s growth and strategic initiatives, with a focus on long-term value creation in the digital security sector.

Singapore’s Budget 2026, announced today, focuses on fostering innovation and internationalisation amidst global uncertainties. The government has maintained corporate and personal tax rates, leveraging a robust fiscal position to sustain long-term stability. Deloitte Singapore experts highlighted the strategic emphasis on AI and digitalisation, with substantial tax incentives to encourage businesses to adopt AI-driven solutions and expand internationally.

The Double Tax Deduction for Internationalisation (DTDi) scheme has been enhanced, increasing the tax deduction cap from S$150,000 to S$400,000, allowing more qualifying activities to be eligible for automatic claims. This move aims to simplify processes for businesses and encourage overseas expansion. Larry Low from Deloitte Singapore noted, “The increased tax deduction cap should encourage more companies to expand overseas.”

Additionally, the Enterprise Innovation Scheme (EIS) now includes AI-related expenditures as qualifying activities, offering up to 400% tax deductions. This expansion is designed to lower the cost of AI adoption for both large enterprises and SMEs. Yvaine Gan of Deloitte Singapore stated, “AI adoption is no longer optional – it is a strategic necessity.”

The Budget also extends the Global Trader Programme for another five years, maintaining competitive tax incentive rates. However, Deloitte’s Lee Tiong Heng cautioned that more could be done to ensure Singapore remains attractive to global trading companies.

Overall, Budget 2026 positions Singapore as a forward-thinking hub, ready to tackle global challenges through innovation and strategic international partnerships.

MSIG Asia has announced a strategic partnership with Peak3 to advance its digital insurance platform, reinforcing its leadership in the digital insurance sector across Southeast Asia. The collaboration, revealed on 12 February, aims to enhance MSIG’s platform-enabled model by leveraging Peak3’s intelligent core system, Graphene, to boost ecosystem connectivity and support multi-country growth.

As the largest non-life regional insurer in Southeast Asia, MSIG is already a key player in embedded insurance for major platforms, addressing the protection gap for millions. This partnership with Peak3 will extend MSIG’s reach across Asia’s digital economies, enabling the delivery of flexible, needs-based insurance at scale through both direct-to-consumer channels and strategic partnerships.

Graphene, Peak3’s core system, is designed for rapid product configuration and operational efficiency, supporting high-volume operations and diverse distribution models. This technology allows MSIG to create symbiotic partnerships with platforms, accelerating time-to-market and delivering value through pre-connected distribution.

Clemens Philippi, CEO of MSIG Asia, stated, “This investment supports our MSIG Asia 2029 Growth Ambition, strengthening our foundation and expanding our reach across the region’s commercial ecosystems.” Adrian Hill, Chief Digital and Consumer Officer at MSIG Asia, added, “Together with Peak3, we unlock new scale and speed, empowering us to serve more partners and bring intelligent nano insurance to life.”

Bill Song, Group CEO of Peak3, expressed pride in the partnership, highlighting the shared goal of accelerating multi-country growth and delivering consistent, high-quality insurance experiences at scale. This collaboration sets a benchmark for next-generation insurance infrastructure, enabling partners to grow faster and customers to receive more meaningful protection across Asia’s digital ecosystems.

Lum Chang Creations (LCC) has reported a remarkable 104% increase in net profit for the first half of 2026, driven by a 31% rise in revenue to S$53.5m. The company’s gross profit margin also expanded significantly to 33%, up from 21% in the same period last year. This financial performance underscores LCC’s robust business model and strategic growth initiatives.

The company’s order book remains healthy at approximately S$132m as of 31 December 2025, providing strong revenue visibility for the next two years. In light of its financial strength, LCC’s board has declared an interim dividend of 2.5 Singapore cents per share for 1H2026, marking a 13.6% increase over the final dividend for FY2025.

In a significant development, LCC has been added to the MSCI Global Micro Cap Indexes—Singapore Index. This inclusion is expected to enhance the company’s visibility within the global investment community and validate its growth trajectory. Managing Director Lim Thiam Hooi expressed confidence in LCC’s prospects, citing a vibrant project pipeline and plans for strategic expansion into Malaysia.

“Our stellar performance in the first half of FY2026 demonstrates the strength of our specialised business model and our ability to deliver value even amidst a challenging operating environment,” Lim stated. With a strengthened balance sheet and a robust order book, LCC is well-positioned to pursue new growth avenues whilst continuing to deliver high-quality outcomes for its clients in Singapore.

The Central Provident Fund (CPF) Board has announced a new investment scheme set to launch in 2028, designed to provide CPF members with simplified, low-cost, and diversified commercial investment products. This initiative seeks to enhance the investment options available to CPF members, making it easier for them to grow their retirement savings.

The new scheme will streamline the investment process, reducing complexity and costs associated with traditional investment products. By offering a diversified range of options, the CPF Board aims to cater to the varied financial goals and risk appetites of its members. This move is part of a broader strategy to improve the financial well-being of Singaporeans by providing more accessible and effective investment opportunities.

As the 2028 launch approaches, the CPF Board will release further details on the specific products and features of the scheme. This development is expected to have significant implications for CPF members, offering them enhanced tools to manage their retirement savings more effectively.

Singapore enterprises are set to cautiously increase their technology budgets in 2026, according to Apptio’s latest Technology Investment Management Report. Despite this upward trend, nearly half of the respondents express significant uncertainty about the return on investment (ROI) of their tech expenditures, impacting decision-making for chief information officers (CIOs), chief financial officers (CFOs), and financial operations (FinOps) teams.

The report reveals that almost 50% of Singaporean companies anticipate slight increases in their IT and software budgets, reflecting a cautious approach rather than aggressive expansion. However, 49% of respondents highlight that doubts about the value of these investments significantly affect their confidence in making technology decisions.

A notable trend is the funding of artificial intelligence (AI) initiatives, with 67% of organisations planning to reallocate existing budgets rather than seeking new investments. Cybersecurity remains a critical area, with 60% of respondents identifying it as a cost-sensitive aspect of their technology infrastructure.

Additionally, the report highlights a strong reliance on cloud service provider tools among FinOps teams, with 81% of respondents using these native platforms for cloud cost management. This dependency underscores the importance of cloud cost visibility and control in the current tech landscape.

The findings suggest a shift from cost control to demonstrating value in technology decision-making, a theme that could shape future strategies for Singapore’s tech leaders.

Seoul and Tokyo are anticipated to spearhead global prime residential growth in 2026, with property values projected to increase by up to 7.9%, while Singapore’s prime residential values are forecasted to grow between 2% and 3.9%. This is according to Savills’ latest Prime Residential World Cities report. This growth is attributed to ongoing structural supply shortages that continue to drive pricing in select global cities.

Seoul is expected to lead with a forecasted rise in prime flat prices between 6% and 7.9%, following a significant 14.3% increase in 2025. Factors such as limited land availability and concentrated demand in core districts are contributing to this upward trend. Despite tighter regulations and restrictive financing conditions, pricing momentum remains strong.

Tokyo, having recorded a 30% capital value growth in 2025, is also poised for notable growth. The city’s residential development is constrained by competition for land, particularly from office developers, which continues to fuel demand and sustain pricing.

In Singapore, prime residential values growth marks a recovery from negative growth in 2025. Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, noted, “Singapore’s luxury residential market is slowly regaining momentum as more locals and permanent residents realise that value offerings are in the air after the price correction in 2025.”

Globally, prime residential markets showed resilience in 2025, with an average capital value growth of 1.8% across 30 cities, despite economic volatility and geopolitical tensions. However, China’s market faces challenges with prices expected to dip due to weak demand and demographic issues. Meanwhile, Hong Kong’s market shows signs of stabilisation, with anticipated growth of 2% to 3.9% in 2026.

The Monetary Authority of Singapore (MAS) has announced an expansion of its Equity Market Development Programme (EQDP), increasing its funding from S$5b to S$6.5b. This decision, revealed on 12 February 2026, aligns with the government’s Budget 2026 initiative to enhance the Financial Sector Development Fund.

Launched in February 2025, the EQDP aims to bolster Singapore’s local fund management industry and stimulate investor engagement in Singapore equities. To date, MAS has allocated S$3.95b across nine asset managers, reflecting strong interest and a steady influx of applications.

The expanded programme will enable more high-quality asset managers, particularly those focusing on Singapore equities, to receive funding. This move is expected to attract additional third-party investments, thereby strengthening the capital base for Singapore-listed companies with solid fundamentals. The next group of EQDP managers is anticipated to be appointed by mid-2026.

This expansion is a strategic effort to ensure a vibrant and well-functioning equities market in Singapore, supporting the growth of local companies and enhancing the overall financial ecosystem.