Industry News

Withers KhattarWong LLP has announced the appointment of Gary Beh as a corporate partner in its Singapore office. This strategic hire is part of the firm’s ongoing efforts to expand its comprehensive service offerings in the region. Gary, who previously worked at Linklaters and Allen & Gledhill, brings extensive experience in regional fundraising, mergers, acquisitions, and private equity transactions across sectors such as technology, financial services, energy, and infrastructure.

Gary’s addition is timely, as Southeast Asia’s mergers and acquisitions (M&A) landscape is witnessing robust activity, with a notable increase in cross-border transactions and a focus on high-value sectors like technology and infrastructure. Daniel Yong, joint managing partner of the Singapore office, highlighted that Gary’s expertise in handling complex cross-border deals will bolster the firm’s capacity to support clients in capitalising on these opportunities.

Jeremy Wakeham, CEO of Withers’ Business division, expressed enthusiasm about Gary’s arrival, stating, “We’re delighted to welcome Gary to our corporate team and to have him build on the M&A, funds and regulatory strengths of our Singapore practice.” Gary’s experience aligns well with the firm’s focus on closely held companies, private wealth, and investment funds.

Gary himself is eager to leverage Withers’ global platform, noting, “This is an exciting opportunity to join a dynamic global platform with a leading presence in the private capital space.” He looks forward to collaborating with partners worldwide to establish a market-leading corporate practice.

Withers KhattarWong LLP is the Singapore member of the international law firm Withersworldwide, which has a significant presence across 17 offices globally.

The vacancy rate for Grade A offices in Singapore’s Central Business District (CBD) surged to 8% in the fourth quarter of 2024, marking the highest level since early 2018, according to Savills Research. This increase, a 1.8 percentage point rise quarter-on-quarter, is largely attributed to the addition of the IOI Central Boulevard Towers to the office stock.

Despite the rise in vacancies, office rents continued to climb, with Grade AA offices experiencing the most significant increase. Rents for these offices rose by 1% quarter-on-quarter to S$10.73 per square foot, the fastest growth since mid-2019. Meanwhile, Grade AAA office rents increased by 0.7% to S$12.91 per square foot, the highest since early 2020.

The report highlighted that while the overall net demand for office space remained positive, it has moderated over the past three years, with 285,000 square feet absorbed in 2024 compared to 622,000 square feet in 2022. Submarkets such as Marina Bay saw the most substantial rise in vacancy rates, increasing by 7.6 percentage points to 12%.

Ashley Swan, Executive Director at Savills Singapore, noted, “Q4 saw an increase in leasing activity with IOI Central Boulevard leading the way in terms of transactions.” However, he cautioned that uncertainties from early 2024 persist, impacting net demand.

Looking ahead, Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, suggested that with limited new supply expected in 2025, CBD Grade A office rents may remain stable. He also pointed out that the impact of AI on office employment could become more apparent towards the end of 2025.

The CCCS has granted conditional approval for the proposed expansion of the joint venture between Singapore Airlines and Deutsche Lufthansa AG, following the acceptance of commitments from both airlines. This decision comes after a thorough assessment of the potential competitive impact of the collaboration on the aviation market.

The joint venture aims to enhance cooperation between the two airlines, allowing them to coordinate on pricing, sales, and capacity on routes between Singapore and Europe. The CCCS’s approval is contingent upon the airlines fulfilling certain commitments designed to address competition concerns. These include maintaining a level of competition on overlapping routes and ensuring that consumers continue to benefit from competitive pricing and service options.

The CCCS’s decision underscores the importance of maintaining a competitive aviation market in Singapore, which is crucial for consumer choice and fair pricing. By accepting the commitments from Singapore Airlines and Lufthansa, the CCCS aims to strike a balance between fostering collaboration and protecting consumer interests.

This approval marks a significant step in the strategic partnership between Singapore Airlines and Lufthansa, potentially leading to enhanced connectivity and service offerings for passengers travelling between Singapore and Europe. The airlines are expected to implement the agreed commitments to ensure compliance with the CCCS’s conditions, thereby facilitating a competitive and consumer-friendly aviation market.

Singapore’s top 100 companies have made notable advancements in sustainability reporting, outperforming global averages in six of twelve key indicators, as revealed by KPMG’s 2024 Survey of Sustainability Reporting. This achievement places Singapore among only seven countries where all top 100 companies report on sustainability, compared to a global average of 79%.

The survey, which analysed the sustainability practices of 5,800 companies across 58 countries, highlighted significant progress in Singapore’s corporate sector. Notably, 76% of Singapore’s top companies now recognise climate change as a financial risk, a substantial increase from 49% in 2022, and well above the 2024 global average of 55%. Additionally, 55% of these companies have appointed board or leadership representatives responsible for sustainability governance, up from 35% in 2022.

Cherine Fok, Partner, ESG Consulting at KPMG in Singapore, commented, “This year’s data marks a pivotal moment for sustainability reporting in Singapore, showcasing significant progress in how companies address climate-related risks.”

Despite these achievements, areas for improvement remain. Only 37% of Singaporean companies seek assurance for their sustainability information, below the global average of 54%. Furthermore, the percentage of companies linking sustainability to executive remuneration has decreased from 67% in 2022 to 38% in 2024, although still above the global average of 30%.

Singapore’s continued progress in sustainability reporting is crucial, with opportunities to enhance integrated reporting, align with Sustainable Development Goals, and improve biodiversity and social risk disclosures. As Singapore navigates these challenges, leveraging innovation and collaboration will be key to maintaining its leadership in corporate sustainability.

KPMG in Singapore has released the second episode of its vodcast series, “Singapore Budget 2025 Insights,” focusing on the transformation required to modernise Singapore’s boardrooms. Featuring insights from Pauline Koh, Partner, Tax Governance and IGH & Manufacturing, Tax, and Tea Wei Li, Partner, Risk, Advisory, the episode discusses strategies to enhance corporate governance and agility in an evolving business landscape.

The vodcast highlights the need for strengthened governance to maintain competitiveness. As boardroom discussions increasingly encompass geopolitics, sustainability, and technologies like artificial intelligence, boards must adapt their strategies accordingly. Succession planning is also emphasised due to Singapore’s ageing board leadership and the necessity for innovation.

Government backing and regulatory changes are deemed crucial. Financial incentives could promote transparency and best-in-class governance practices, while programmes like the Directorship Accreditation Programme can empower directors to navigate environmental, social, and governance (ESG) complexities. These resources should be accessible not only to Singapore Exchange (SGX)-listed companies but also to family businesses, startups, and subsidiaries.

The vodcast also addresses the importance of integrating tax governance into board agendas. Companies often overlook tax governance, viewing it merely as a compliance requirement. Aligning with frameworks like the Tax Governance Framework (TGF) and Corporate Tax Risk Management (CTRM) ensures board-level oversight of tax strategies and proactive risk management.

Additionally, the introduction of board shadowing and apprenticeship programmes is suggested to integrate younger professionals into boardrooms, fostering knowledge transfer and equipping boards with expertise in emerging areas such as AI.

This episode of KPMG’s vodcast series underscores the need for comprehensive transformation in Singapore’s boardrooms to ensure they remain agile and competitive in a rapidly changing environment.

CapitaLand Ascott Trust (CLAS) has announced the acquisition of two freehold limited-service hotels in Japan for JPY21 billion (S$178.5 million). The properties, ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae, are strategically located in Tokyo and Kanazawa, respectively. The acquisition, priced at an 8.3% discount to independent valuation, is expected to yield a 4.3% net operating income in FY 2024, significantly higher than the 2% yield from four previously divested properties in Japan.

The acquisition was funded through JPY-denominated debt and proceeds from the divestment of four properties in Japan. This strategic move is part of CLAS’s portfolio reconstitution strategy aimed at enhancing portfolio quality and delivering stable returns to its Stapled Securityholders. Serena Teo, CEO of CapitaLand Ascott Trust Management Limited, stated, “By swiftly redeploying divestment proceeds into these higher-yielding assets, we have fully replaced the income from the four divested properties.”

Japan remains a key market for CLAS, with 18% of its total assets now located in the country. The properties are positioned to benefit from the strong international travel demand, with visitor numbers in Tokyo and Kanazawa surpassing pre-COVID levels by 23% and 12%, respectively. The hotels will operate under management contracts, allowing CLAS to capture income upside.

In the past year, CLAS has completed investments totalling approximately S$530 million, including the recent acquisitions. This aligns with their strategy to recycle capital into quality assets at higher yields, enhancing income distribution for stakeholders.

Elise Mertens emerged victorious at the inaugural Singapore Tennis Open, securing her ninth career WTA singles title. The event, held at the Kallang Tennis Hub, saw Mertens, the second seed, defeat Ann Li in straight sets, 6-1, 6-4, in a match lasting 82 minutes. This victory marks Mertens’ first singles title since Monastir 2023.

Mertens dominated the final, dropping only one set in the tournament prior to facing Li, who had not lost a set until the final. Mertens’ strong baseline play and strategic prowess were evident as she quickly took control of the match, winning the first set in just 26 minutes. Although Li attempted a comeback in the second set, Mertens maintained her composure to clinch the title.

In the doubles final, Desirae Krawczyk and Giuliana Olmos triumphed over Wang Xinyu and Zheng Saisai. The American-Mexican duo showcased their tactical net play and clutch serving, winning the first set 7-5 and dominating the second set 6-0. This victory marks their first title together in nearly five years.

The Singapore Tennis Open attracted nearly 22,000 fans over nine days, offering not only thrilling matches but also a vibrant Fan Village with meet-and-greet sessions and tennis clinics. The event is part of the 2025 Hologic WTA Tour and is set to return in 2026 and 2027, promising more exciting tennis action and fan engagement.

Reflecting on her win, Mertens expressed her delight, stating, “This was the first time the (Singapore Tennis Open) was organised and it was incredibly well-run. I hope to come back next year to defend my title and my points.” Krawczyk and Olmos also thanked the fans, saying, “It’s nice to have a full stadium with all the fans. It’s a great atmosphere for us and we really appreciate it.”

The tournament also featured the Singapore Tennis Invitational Cup, where Singapore claimed victory against Indonesia. The event, organised by the Singapore Tennis Association in partnership with Kallang Alive Sport Management, highlighted the region’s tennis talent and set the stage for future competitions.

SATS Ltd has announced the completion of its acquisition of the remaining 15% stake in SATS Food Solutions (Thailand) Co. Ltd from Bangkok Ranch Public Company Limited for approximately S$3.4m. This move, finalised on 31 January 2025, enhances SATS’ control over its operations in Thailand, a strategic hub for food production.

The acquisition is a significant step for SATS as it aims to streamline governance and decision-making within SATS Food Solutions Thailand (SFST). This comes at a crucial time as SFST is expanding its production capabilities to meet the rising demand in both aviation and non-aviation sectors. The company is currently constructing a new facility in Pathum Thani, which will increase its production capacity to 108,000 meals daily by the end of 2025.

SFST operates as SATS’ regional strategic food manufacturing hub, leveraging Thailand’s robust food ecosystem and infrastructure. This expansion aligns with SATS’ strategic partnership with Mitsui Co., Ltd, which will see Mitsui taking a 15% stake in SFST. This collaboration aims to combine SATS’ production capabilities with Mitsui’s distribution network to accelerate growth.

Stanley Goh, CEO of Food Solutions at SATS, stated, “This milestone with SFST gives us the agility to fully capitalise on our expanded operational scale and drive our partnership with Mitsui.”

The acquisition underscores SATS’ commitment to strengthening its position in Asia’s food services market, capitalising on Thailand’s culinary heritage and strategic location.

The Monetary Authority of Singapore (MAS) has slightly reduced the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) slope by an estimated 50 basis points, according to a report by Maybank IBG Research. This decision comes as core inflation shows signs of easing and growth momentum is expected to slow. December’s manufacturing output saw a robust increase of 10.6%, attributed to frontloading in anticipation of rising trade barriers.

The report suggests that another slope easing could occur in April or July, as the policy stance remains tight. Maybank IBG Research anticipates Singapore’s GDP growth for 2024 to exceed initial estimates, reaching 4.2%. Furthermore, the core inflation forecast for 2025 has been adjusted downwards to 1.4%.

Hak Bin Chua, an economist at Maybank, noted the significance of the manufacturing surge, stating, “Dec manufacturing output grew by a strong +10.6%, boosted by frontloading in anticipation of rising trade barriers.” This highlights the proactive measures taken by manufacturers to mitigate potential disruptions.

The easing of the S$NEER slope is a strategic move by MAS to balance inflationary pressures and economic growth. As Singapore navigates the complexities of global trade dynamics, these adjustments aim to sustain economic stability. Looking ahead, the potential for further policy easing underscores the need for continued vigilance in response to evolving economic conditions.

Kaplan Singapore has officially launched its new Odeon 333 City Campus, a state-of-the-art educational hub designed to deliver Murdoch University and Kaplan programmes. The inauguration on 17 January 2025 marks a significant milestone, coinciding with the 60th anniversary of diplomatic relations between Singapore and Australia and Murdoch University’s 50th anniversary.

The event was attended by notable figures, including His Excellency Allaster Cox, Australian High Commissioner to Singapore, and Ms Denise Phua, Mayor of Central Singapore District. The launch featured a symbolic LED ball lighting ceremony and a tour showcasing immersive virtual reality demonstrations and a live stream from Murdoch’s Perth campus.

Professor Andrew Deeks, Vice-Chancellor and President of Murdoch University, highlighted the university’s global growth and commitment to academic excellence. “As we embark on this new chapter, we reaffirm our commitment to international partnerships and look forward to building a brighter future in Singapore,” he stated.

The Odeon 333 City Campus spans three levels, offering facilities such as high-capacity computer labs, a wellness room, and a club room. The labs are equipped with advanced hardware to enhance learning outcomes, whilst the wellness room supports students’ mental and physical well-being. The club room provides a space for relaxation and social interaction.

Dr Susie Khoo, President of Kaplan Singapore, emphasised the campus’s role in supporting diverse pathways to success and sustainability. Located in a BCA Green Mark Platinum-certified building, the campus reflects Kaplan’s dedication to a sustainable future.

To celebrate the opening, Kaplan offers exclusive incentives for enrolment in selected Murdoch University programmes, including an education grant and a chance to win prizes.