Industry News

Singapore’s economy is set to experience moderate growth in 2025, with RHB Bank forecasting a 3% increase in both gross domestic product (GDP) and industrial production (IP). This projection comes from the latest Global Economics and Market Strategy Report, attributed to Barnabas Gan, Acting Group Chief Economist and Head of Market Research at RHB Bank.

The report highlights an upgrade in Singapore’s fourth quarter (Q4) 2024 and full-year GDP growth estimates, surpassing the Ministry of Trade and Industry’s (MTI) advance estimates for Q4 2024. December’s industrial production figures showed a significant year-on-year increase of 10.6%, exceeding market expectations of 6.4% and RHB’s own estimate of 3.3%. This growth, however, marks a slight moderation from November’s revised 10.8% year-on-year rise.

Gan’s analysis suggests that the robust performance in December’s industrial production is a positive indicator of the country’s economic trajectory in 2025. The report underscores the resilience of Singapore’s manufacturing sector, which continues to drive economic growth despite global uncertainties.

Looking ahead, RHB Bank’s forecast reflects cautious optimism, balancing the potential for growth with the challenges posed by the global economic environment. The bank’s projections are closely watched by investors and policymakers, as they provide insights into Singapore’s economic health and future prospects.

Mapletree Investments has announced the acquisition of its first logistics property in the United Kingdom and a portfolio of 10 logistics assets in Spain, valued at approximately $444.46m (€315.1m). These acquisitions will serve as the foundational assets for Mapletree’s second European logistics-focused fund, marking a significant expansion of the company’s logistics footprint in Europe.

The UK acquisition, Derby DC1, is strategically located in Derby Commercial Park, offering excellent access to major roads and proximity to East Midlands Airport. This site plays a crucial role in the supply chain of its tenant, who recently renewed their long-term lease. Meanwhile, the Spanish portfolio is spread across key logistics hubs in Barcelona, Valencia, and Madrid, providing immediate access to city centres and supporting last-mile delivery operations.

Ralph van der Beek, CEO of Commercial and Logistics, Europe at Mapletree, stated, “Logistics remains a highly attractive sector that has consistently enjoyed strong demand from occupiers as well as investors. E-commerce continues to thrive and companies are making efforts to secure and expand their supply chains.”

Maybank Securities has released a comprehensive report detailing the progress and key developments of the Johor-Singapore Special Economic Zone (JS-SEZ). The report, compiled by the Maybank Securities team, provides insights into the economic indicators of the ASEAN-6 region, currency forecasts, and government bond yield predictions.

The report highlights significant advancements within the JS-SEZ, including flagship areas with dedicated sectoral focus, fiscal support for new investments, and updates on foreign talent passes. Notably, the Forest City Special Financial Zone is amongst the key initiatives discussed. The report also features an Economic “Report Card” on the JS-SEZ, providing a detailed assessment of its current status.

Chua Hak Bin, Regional Co-Head of Macro Research, presents the ASEAN-6 key macroeconomic indicators, whilst Saktiandi Supaat, Head of FX Research, offers forecasts on the USD against major and regional currencies. Winson Phoon, Head of Fixed Income Research, provides insights into government bond yield forecasts.

The report is crucial for stakeholders interested in the economic trajectory of the JS-SEZ, as it outlines potential growth areas and challenges. It serves as a valuable resource for investors and policymakers aiming to understand the economic landscape of the region.

As the JS-SEZ continues to develop, the insights provided by Maybank Securities will be instrumental in guiding future investments and policy decisions. The report underscores the importance of strategic economic planning in fostering regional growth and development.

DAS Universe Pte Ltd has announced a collaboration with the Singapore Golf Association (SGA), LG Electronics Singapore Pte Ltd, and Keppel Club to launch an immersive digital signage project. This initiative, set to debut in early 2025, marks the first installation of such technology at a golf club in Singapore, aiming to enhance the advertising experience with dynamic visuals.

The project involves the installation of an advanced LED Display Screen at the Golf Bag Drop-Off Point at Keppel Club, sponsored by SGA and Lexus. This digital signage will showcase immersive visuals and promotional content, transforming the venue into a modern advertising space. DAS Universe will oversee the project management and digital content production, whilst LG will supply the display technology.

Joshua Ho, General Manager of SGA, expressed enthusiasm for the project, stating it would enhance the experience for golfers and offer new engagement opportunities. Desmond Chua, General Manager of Keppel Club, highlighted the club’s commitment to modernisation whilst maintaining its premium reputation. Lee Kunho, Managing Director of LG Electronics Singapore, noted the display’s vibrant colours and dynamic content as a testament to LG’s innovation.

James Hong, Managing Director of DAS Universe, shared plans to expand the Immersive Digital Signage model to other golf courses and leisure locations across Singapore and Southeast Asia, following the anticipated success at Keppel Club. This project underscores DAS Universe’s dedication to delivering cutting-edge digital experiences.

ST Engineering has announced a significant five-year contract with Korean Air to provide maintenance, repair, and overhaul (MRO) services for the airline’s LEAP-1B engines, which power its Boeing 737 MAX fleet. This agreement marks a new partnership between the two companies, with ST Engineering delivering quick-turn services, including high pressure turbines and Performance Restoration Shop Visit (PRSV) services, from its facility in Singapore.

The contract highlights ST Engineering’s status as the first independent MRO provider in Asia to be designated a Premier MRO provider in CFM International’s LEAP open MRO ecosystem. Tay Eng Guan, Head of Engine Services at ST Engineering, stated, “This agreement underscores Korean Air’s confidence in our ability as a trusted partner who can deliver high-quality engine services and support their long-term growth plans.”

ST Engineering has been expanding its capabilities to meet the growing demand for LEAP engine maintenance. The company achieved testing capabilities for LEAP-1A and LEAP-1B engines at its Singapore facility in 2024 and is now enhancing its services to include LEAP PRSV. This expansion is crucial as airlines increasingly require comprehensive engine maintenance solutions.

Korean Air, one of the world’s top 20 airlines, operates a modern fleet of 162 aircraft and serves 116 cities globally. This collaboration with ST Engineering is expected to bolster the airline’s operational reliability and support its long-term growth strategy. As the aviation industry continues to recover and expand, such partnerships are vital for maintaining high standards of safety and efficiency.

The Monetary Authority of Singapore (MAS) has announced the extension of its Global-Asia Bond Grant Scheme (G-ABGS) and the introduction of a new Global-Asia Digital Bond Grant Scheme (G-ADBGS). The G-ABGS, which began in 2017, supports bonds issued in Singapore by first-time issuers with an Asian nexus. The new G-ADBGS aims to support the issuance of digital bonds, enhancing operational efficiency and reducing costs.

The funding period for both schemes spans five years, from 1 January 2025 to 31 December 2029. The G-ADBGS is designed to encourage the adoption of digital bonds in Singapore, a move seen as crucial for the development of the digital bond market and investor base. Notably, all issuers of digital bonds are eligible for the G-ADBGS, regardless of their previous bond issuance history in Singapore.

The G-ABGS has been extended for another five years, with adjustments to co-funding levels and per-issuance caps for eligible expenses. The co-funding for digital bond issuances under the G-ADBGS will cover up to two issuances per qualifying issuer.

Similar schemes have been introduced in other regions, such as the Hong Kong Monetary Authority’s Digital Bond Grant Scheme, highlighting a global trend towards supporting digital bond markets. The MAS’s initiatives are expected to foster growth in Singapore’s bond market, leveraging distributed ledger technology in capital market transactions.

These developments mark a significant step in Singapore’s efforts to remain at the forefront of financial innovation, particularly in the digital bond sector.

Singapore’s real estate market demonstrated resilience in 2024, with investment volumes growing by 32.5% compared to the previous year, according to Colliers’ latest report. The year saw a total investment of SGD 26.6 billion, bolstered by significant government land sales (GLS) and robust activity in the industrial and retail sectors.

The fourth quarter of 2024, however, experienced a 21.8% decline in investment volume quarter-on-quarter, totalling SGD 7.0 billion. This dip was attributed to several GLS tenders, which accounted for SGD 1.2 billion or 17.6% of the quarter’s investments. Despite this, the annual growth remained strong, reflecting sustained confidence in Singapore’s real estate assets.

Key sectors contributing to the year’s growth included industrial, residential, and retail, with industrial investments alone growing by 124.7% over 2023. “Looking ahead, 2025 offers the prospect of stability, clarity, and new deals as market conditions settle,” said Bastiaan van Beijsterveldt, Managing Director of Colliers Singapore.

For 2025, Colliers anticipates a further increase in investment sales, estimating growth between 10% and 20%, driven by increased capital flows to the region. However, high borrowing costs and a gradual decline in interest rates may temper the pace of recovery.

Catherine He, Head of Research at Colliers Singapore, noted that selective buying will dominate the market, with investors focusing on retail, industrial, and hospitality properties, alongside assets with redevelopment potential.

Singapore-based shipbuilder Strategic Marine has commissioned three groundbreaking offshore supply vessels, set to become the fastest globally, achieving speeds exceeding 53 knots. These vessels, powered by four 16-cylinder mtu Series 2000M72 engines from Rolls-Royce, will serve a national oil company in Africa, facilitating swift passenger transfers to offshore platforms.

The vessels are designed as Surface Effect Ships (SES), utilising air-cushion technology within a catamaran hull form, a first in the offshore oil and gas industry. This innovative design, combined with the mtu propulsion package, allows the vessels to travel at significantly higher speeds than traditional monohulls and catamarans, maintaining fuel efficiency and reducing emissions.

Chan Eng Yew, CEO of Strategic Marine, highlighted the achievement: “The 53-knot top speed during the sea trials demonstrates that we were successful in building and commercialising this technology for offshore crew transfer applications. mtu engines have made a significant contribution thanks to their unique power-to-weight ratio.”

Denise Kurtulus, Senior Vice President of Global Marine at Rolls-Royce Power Systems, expressed pride in the collaboration, stating, “The excellent power-to-weight ratio and long maintenance intervals of over 12,000 hours were crucial factors in the selection of our engines. These product benefits will help us achieve our strategic goal of increasing our share of the commercial marine market.”

The introduction of these vessels marks a significant advancement in offshore transportation, promising enhanced efficiency and reduced environmental impact. As the industry continues to evolve, such innovations are expected to set new standards for speed and sustainability in marine operations.

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.