Industry News

Standard Chartered and Prudential Singapore have marked their 25-year bancassurance partnership by launching a year-long initiative to teach financial literacy to 500 children from lower-income families. This collaboration with the Ministry of Social and Family Development’s Social Service Office at Ang Mo Kio and Yishun aims to equip children with essential money management skills.

The programme kicked off with an event at The Little Arts Academy, Northpoint City, where 40 children aged 7 to 12 participated in activities designed to teach them about earning, saving, spending, and donating money. This initiative is part of the Cha-Ching curriculum, a financial literacy programme by Prudential’s Prudence Foundation. The children also applied their new skills during a grocery shopping exercise, accompanied by volunteers.

Patrick Lee, CEO of Singapore and ASEAN at Standard Chartered, emphasised the importance of creating a sustainable legacy for future generations. “As Singapore celebrates SG60, we are delighted to have this unique opportunity to equip our young ones with money-smart knowledge,” he stated. Chan San San, CEO of Prudential Singapore, highlighted the importance of financial literacy, likening it to essential skills such as reading and writing.

This initiative is part of a broader effort by Standard Chartered and Prudential to support financial stability and security. Their longstanding partnership has evolved to include various customer-focused initiatives, such as investment-linked insurance plans and enhanced customer service options.

As the collaboration progresses, it aims to foster financial independence and social mobility among participating families, reflecting a commitment to building a more inclusive community.

Seatrium Limited has been awarded a significant contract by Japan-based Penta-Ocean Construction to engineer, procure, and construct a 5,000-tonne fully-revolving heavy lift vessel for the Japanese offshore wind market. This vessel, the fifth and largest in Penta-Ocean’s fleet, will enable the company to handle larger wind turbine projects, marking a pivotal step in Japan’s renewable energy expansion.

Penta-Ocean Construction, a leading marine contractor in Japan, is keen to expand its offshore wind sector capabilities. The company already operates a range of dredgers and turbine installation vessels with lifting capacities of 800 tonnes and 1,600 tonnes. In Singapore, Penta-Ocean has been involved in major projects such as the Tuas Mega Port and ION Orchard.

Tetsunori Ohshimo, Senior Managing Executive Officer at Penta-Ocean, stated, “We are proud to confirm the contract with Seatrium for the development of an advanced heavy lift vessel featuring a 5,000-tonne fully revolving crane. This innovative vessel is essential for the installation of the increasingly heavy monopile foundations required for the next generation of larger wind turbines.”

William Gu, Executive Vice President of Seatrium Energy (International), expressed enthusiasm about the collaboration, noting, “This project is significant to us on various fronts, as it marks our maiden collaboration with Penta-Ocean and our foray into the Japanese offshore wind market.”

The development of this state-of-the-art vessel is expected to significantly contribute to Japan’s offshore wind capabilities, supporting the country’s sustainable energy goals.

Overall industrial rents in Singapore grew by 0.5% quarter-on-quarter (QoQ) in Q4 2024, but many industrialists remain cautious due to high interest rates and rising operating costs, leading to resistance against further rent hikes. The quarter marks the 17th consecutive quarter of increase.

According to Cushman & Wakefield’s analysis of JTC’s fourth quarter (Q4 2024) data, the industrial market in Singapore continues to demonstrate resilience, with rents and prices increasing, albeit at a slower pace.

For the entire year, rents rose by 3.5% year-on-year (yoy), a decrease from the 8.9% growth recorded in 2023. Multi-user factories experienced the strongest rental growth at 3.8% yoy, driven by newer and better-located stock. Warehouse rents increased by 3.5% yoy, supported by demand from third-party logistics (3PL) players amid tight supply. Single-user factory and business park rents rose by 3.2% and 1.9% yoy, respectively.

Vacancy rates remained stable at 11.0% in 2024, with all industrial segments witnessing healthy demand. Business parks saw improved demand, with a net positive demand of 0.4 million square feet in 2024, although vacancy rates rose to 22.1%, the highest since 2010. The warehouse segment experienced slightly higher vacancy rates at 8.5% due to net supply outpacing demand.

Looking ahead, Cushman & Wakefield anticipates steady rental growth of around 2% to 3% yoy for most industrial submarkets in 2025, aligned with GDP growth and inflation. However, suburban business parks are expected to see flat growth. Despite moderating rental growth, significant positive rental reversions are anticipated as leases come up for renewal.

Resale prices for Housing and Development Board (HDB) flats in Singapore continued their upward trend in the fourth quarter of 2024, albeit at a slightly slower pace.

According to the latest data, prices rose by 2.6%, a minor decrease from the 2.7% growth seen in the previous quarter. This marks the 19th consecutive quarter of price increases since Q1 2020.

The overall price growth for 2024 was 9.7%, surpassing the 4.9% rise in 2023 but falling short of the 10.4% and 12.7% increases in 2022 and 2021, respectively. The recent Build-To-Order (BTO) exercise, which launched over 8,500 flats in October, likely influenced the market, as many buyers, particularly first-time homeowners, were attracted to new Prime and Plus flats in desirable locations. This shift in demand contributed to the slower growth in resale prices.

Despite the slower pace, HDB resale prices are on track to achieve their longest growth streak in 2025. The cumulative price increase since 2020 stands at 50.3%, averaging 2.6% per quarter. However, this growth is modest compared to the 294.4% surge over 20 quarters from 1991 to 1996.

The price growth varied across different flat types, with 5-room and one-room flats experiencing faster increases of 2.7% and 7.6%, respectively. In contrast, the growth for 4-room, 3-room, 2-room, and executive flats slowed. Geographically, the Central Area saw the most significant rise at 25.6%, followed by Toa Payoh, Tampines, Bishan, and Bedok.

Resale volume dropped by 21.1% in Q4 2024, with 6,424 units sold, marking the lowest quarterly sales since Q2 2020. The year-end holiday season and the recent BTO launch likely contributed to this decline. However, demand for larger flats remained robust, with a yearly increase of 11.5% in transactions for 5-room and executive flats.

Rental applications also decreased by 5.6% in Q4 2024, as some demand shifted to the private market due to competitive rents. The number of flats reaching their five-year Minimum Occupation Period (MOP) has also declined, reducing available inventory for lease.

Looking ahead, HDB resale prices are expected to continue rising in 2025, albeit at a moderate rate of 4% to 6%, with sales projected between 25,000 and 27,000 units. The government’s plan to launch over 50,000 new flats between 2025 and 2027, along with efforts to reduce BTO waiting times, may further influence the resale market dynamics.

Grab’s on-demand services, including ride-hailing and delivery, have significantly bolstered Singapore’s economy, contributing S$5.2 billion (US$3.9 billion) in 2023, according to a report by Oxford Economics. This contribution represents approximately 0.8% of the nation’s Gross Domestic Product (GDP), highlighting the substantial economic impact of platform companies.

The report, conducted by the global economic consultancy, underscores the multiplier effect of Grab’s operations. James Lambert, Director of Economic Consulting for Asia at Oxford Economics, noted, “For every S$10 of GDP generated by Grab transactions, an additional S$6 of economic activity is created across the broader economy.” This demonstrates the pivotal role of platforms like Grab in advancing Singapore’s digital economy.

Key findings from the report include:
– Grab’s operations generated S$1.2 billion through activities such as hiring employees and purchasing equipment and services.
– Merchant-partners on Grab’s platform contributed S$0.9 billion, driven by sales on GrabFood and GrabMart.
– Driver and delivery-partners generated S$3.1 billion, reflecting the income earned through Grab’s services.

These contributions supported approximately 117,000 earning opportunities and translated to S$2.5 billion in household income. Sectors such as finance, insurance, professional services, real estate, and wholesale and retail benefitted most from these impacts.

Lambert further emphasised the supportive business environment in Singapore, stating, “The report’s findings demonstrate the benefits of Singapore’s conducive business environment and regulatory framework, which have enabled platform companies like Grab to thrive.” This success reflects both Grab’s super-app and the sophisticated nature of the Singaporean market.

KPMG in Singapore has unveiled a strategic guide titled “Advancing Digital Sustainable Talent for the Future,” designed to help local businesses enhance their digital workforce while embedding sustainability into their operations. The guide, developed in collaboration with the Infocomm Media Development Authority of Singapore (IMDA) and the Singapore Computer Society (SCS) Sustainable Tech Special Interest Group, was introduced at the SCS Sustainable Tech Forum 2025 by Dr Janil Puthucheary, Senior Minister of State, Ministry of Digital Development and Information.

The guide is aligned with national initiatives such as the Forward Singapore exercise and the Singapore Green Plan 2030, providing businesses with practical steps to upskill their existing digital talent, including AI specialists and software developers, with green competencies. It advocates for the adoption of “Green by Design” principles, which integrate eco-conscious practices from the outset of business operations.

Lyon Poh, Partner and Head of Corporate Transformation at KPMG in Singapore, emphasised the importance of embedding sustainability into core business strategies. “The green transition is a strategic inflection point for Singapore businesses. To succeed, companies must embed sustainability into their core strategies, not as an afterthought, but as a foundation for innovation and growth,” he stated.

The guide outlines four key focus areas: landscape analysis, “Green by Design” principles, a digital talent roadmap, and recommendations for businesses. These areas aim to help businesses align their talent development with sustainability strategies, optimise operations for energy efficiency, and foster a culture of green innovation.

By equipping businesses with the tools to integrate digital and green priorities, KPMG’s guide seeks to position Singapore as a leader in sustainable innovation, contributing to national and global sustainability goals.

The Singapore property market experienced a notable resurgence in the fourth quarter of 2024, driven by a surge in homebuyer activity following interest rate cuts by the US Federal Reserve. According to Knight Frank’s analysis of the Urban Redevelopment Authority’s (URA) flash estimates, private residential prices rose by 2.3% quarter-on-quarter, reversing the previous quarter’s decline. This uptick was attributed to pent-up demand and increased sales at new launches, with 3,420 new sales recorded in Q4 alone.

The overall private home sales for 2024 reached 21,950 units, marking a 15.3% increase from the previous year. Knight Frank anticipates this positive momentum to continue into 2025, projecting non-landed new sales volumes between 7,000 and 9,000 units. Prices are expected to grow by 3% to 5%, supported by healthy take-up rates at new launches.

In the Core Central Region (CCR), prices grew by 2.6% quarter-on-quarter, despite muted demand due to the 60% Additional Buyer’s Stamp Duty for foreigners. The landed market remained stable, with prices increasing slightly by 0.9% for the year. Knight Frank predicts a moderate price increase of around 3% in 2025 for landed homes.

The office sector saw a slight decline in rental indices, with a 0.9% drop in Q4 2024. Occupancy levels remained healthy at 89.4%, despite global uncertainties. Retail rents grew modestly by 0.6% quarter-on-quarter, with occupancy levels improving to 93.8%. Knight Frank expects prime retail rental growth to stabilise between 1% and 3% in 2025, despite challenges from a strong Singapore Dollar and inflationary pressures.

AIA Singapore and Raffles Hospital have signed a Memorandum of Understanding (MoU) to improve access to quality healthcare services in Singapore. The collaboration, announced on 23 January 2025, focuses on expanding specialist networks, co-creating healthcare solutions, and managing hospitalisation costs for AIA policyholders.

The partnership will see over 90 private specialist doctors from Raffles Hospital join AIA Quality Healthcare Partners, significantly increasing AIA’s network to nearly 700 medical specialists. This expansion offers Integrated Shield Plan policyholders one of the most comprehensive panels in Singapore.

Both parties will also work on innovative healthcare solutions aimed at enhancing care quality and patient outcomes. This includes sharing quality indicators and patient outcomes to support value-based healthcare. Additionally, the collaboration will ensure hospitalisation bills align with the Ministry of Health’s fee benchmarks, helping to control costs.

Irma Hadikusuma, Chief Marketing and Healthcare Officer of AIA Singapore, emphasised the importance of the partnership in meeting the healthcare needs of an ageing population. “Our priority remains to ensure that AIA policyholders continue to get prompt access to meet their medical and hospitalisation needs,” she stated.

Dr Kenneth Wu, Chief Operating Officer of Singapore Healthcare, Raffles Medical Group, expressed optimism about the collaboration, noting that it would enhance the hospital’s ability to meet evolving patient needs.

This initiative is part of AIA Singapore’s broader efforts to enhance healthcare support, including recent enhancements to corporate insurance policies and access to teleconsultations and mental wellness services.

RHB Bank has projected Singapore’s headline inflation to remain at 2.3% for the full year of 2025, according to its latest Global Economics and Market Strategy Report. The report, attributed to Barnabas Gan, Acting Group Chief Economist and Head of Market Research at RHB Bank, also forecasts core inflation to ease to 1.8% in the same period.

The report highlights that Singapore’s headline Consumer Price Index (CPI) stood at 1.6% year-on-year, consistent with the previous month and surpassing market expectations of 1.5%. Core inflation, which excludes the costs of accommodation and private road transport, eased to 1.8% year-on-year from 1.9% in November, marking the lowest level in three years.

RHB maintains its base case view that the Monetary Authority of Singapore (MAS) will keep its policy parameters unchanged in its upcoming meeting on 24 January 2025. This suggests a stable economic outlook amidst global uncertainties.

Barnabas Gan noted, “We keep Singapore’s full-year headline inflation at 2.3% and core inflation to ease at 1.8% in 2025.” This outlook reflects a cautious optimism in Singapore’s economic stability and inflation management.

The report’s findings are crucial for policymakers and investors as they navigate the economic landscape in 2025. With inflation rates stabilising, Singapore’s economic environment remains conducive for growth, provided external factors remain favourable.

Private home prices in Singapore saw their slowest growth in four years, according to the Urban Redevelopment Authority (URA). The overall price index for private residential properties increased by 2.3% from the third quarter (Q3) to the fourth quarter (Q4) of 2024, resulting in a full-year growth of 3.9%. This marks a significant decline from the 6.8% increase in 2023 and even higher rates in previous years.

The volume of private home sales, excluding executive condominiums (ECs), rose sharply by 38.4% from 5,372 units in Q3 to 7,433 units in Q4 2024. For the entire year, 21,950 private homes were sold, a 15.3% increase compared to 2023. This surge was largely driven by new project launches, with new home sales jumping by 194.8% in Q4 2024, reaching the highest quarterly sales since Q3 2021.

Conversely, the resale market faced challenges, with volumes dropping by 4.1% from Q3 to Q4 2024 due to heightened competition from new projects. Meanwhile, rental prices remained stable in the final quarter, with a slight increase for non-landed properties. Overall, rental prices dipped by 1.9% in 2024, reversing the 8.7% rise seen in 2023.

Looking ahead, rents are expected to recover in 2025, with a projected increase of 2% to 4%, driven by improving economic conditions and reduced housing supply. Christine Sun, Chief Researcher and Strategist at OrangeTee, anticipates private home prices to rise by 4% to 7% in 2025, spurred by more project launches and tighter home supply. Sales are projected to remain steady, with 18,000 to 22,000 units expected to be sold in 2025.