Industry News

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.

We Are Art Collectors (WAAC) has unveiled Singapore’s inaugural fractional art ownership platform, allowing individuals to invest in local art starting at S$1,000 per lot. Founded by Low Sok Leng, the platform aims to democratise art investment by enabling multiple investors to own shares in high-value artworks by Singaporean artists.

WAAC’s innovative model divides the value of an artwork into smaller, tradable lots, making art investment more accessible. The initial launch features works by second-generation Singapore artists, including oil paintings by Low Hai Hong and Koeh Sia Yong. These artworks are curated for authenticity and potential value appreciation, ensuring quality for investors.

Art is increasingly seen as a viable alternative investment in Singapore. A 2023 survey revealed that 58% of respondents preferred art as their “investment of passion,” surpassing watches and wine. Globally, art purchases by millennials and Gen Z clients surged by 147% last year, according to the Knight Frank Luxury Investment Index.

Low Sok Leng, WAAC’s CEO, highlighted the appeal of fractional art ownership to young investors: “Each lot is priced affordably, and the artworks are curated by experts. This makes art investment much more accessible.” She also noted that experienced collectors could diversify their portfolios by investing in multiple artworks.

Doug Peris, Partner at Founders Bridge, praised the platform’s approach: “WAAC isn’t just an investment vehicle – it’s a way for art enthusiasts to access a market once limited to high-net-worth collectors.”

The artworks are available for viewing at High Street Centre, with six pieces offered for fractional ownership. Interested investors must become WAAC members, paying a one-time fee of S$1,000, and can trade their shares within the platform, providing flexibility and liquidity.

Changi Airport in Singapore reported handling 67.7 million passengers in 2024, marking a 14.8% increase from the previous year and reaching 99.1% of its pre-COVID-19 passenger levels from 2019. Aircraft movements rose by 11.5% to 366,000, while airfreight throughput increased by 14.6% to 1.99 million tonnes. December 2024 was the busiest month, with 6.4 million passengers, and 21 December saw a peak of 226,000 passengers.

North Asia emerged as the fastest-growing region, with a 40% increase in passenger traffic compared to 2023. China was the largest source market, with traffic surpassing pre-pandemic levels by 6%. Hong Kong and Japan also saw significant growth, exceeding 20% year-on-year. The top five passenger markets were China, Indonesia, Malaysia, Australia, and Thailand.

Changi Airport’s CEO, Mr Yam Kum Weng, highlighted the addition of 11 new city links and eight new passenger airlines, enhancing the airport’s connectivity. “We are deeply grateful for the close partnership with our airline partners,” he stated. The airport also welcomed two new freighter airlines, expanding cargo connections.

Looking forward, Changi Airport anticipates further growth in passenger traffic and plans to invest in infrastructure to meet rising demand. As of January 2025, the airport operates over 7,400 weekly flights, connecting Singapore to 163 cities across 49 countries.

Tokio Marine Life Insurance Singapore Ltd (TMLS) has announced significant changes to its senior leadership team, appointing Alistair Chamberlain as Chief Executive Officer, Jun Tokura as Chief Distribution Officer in addition to his role as Deputy CEO, and Kapil Jain as Chief Risk Officer. These strategic appointments are part of TMLS’s plan to drive growth and resilience in the Singapore market.

Alistair Chamberlain brings a wealth of experience to his new role, having previously held senior positions such as Managing Director and CFO of Global Wealth & Insurance at HSBC PLC, and CFO at AIA Singapore. His expertise in actuarial, finance, and marketing is expected to guide TMLS through its next phase of growth, focusing on customer experience and operational excellence.

Jun Tokura, who has a long-standing career with Tokio Marine Group, will now also serve as Chief Distribution Officer. He will lead the development and execution of TMLS’s distribution and marketing strategies, aiming to strengthen the company’s distribution network and enhance client-centric approaches. “His ability to drive strategic initiatives and deliver impactful results makes him the ideal leader to oversee our distribution strategy,” said Chamberlain.

Kapil Jain’s appointment as Chief Risk Officer underscores TMLS’s commitment to a robust risk management framework. With extensive experience in risk management across Asian markets, Jain will play a crucial role in supporting the company’s sustainable growth. Chamberlain noted, “The addition of a Chief Risk Officer, along with the expanded role of our Deputy CEO, underscores our dedication to strengthening risk management framework, governance and client service excellence.”

These leadership changes are designed to position TMLS for continued success and innovation in the competitive insurance landscape.

Zurich Insurance Company (Singapore) Ltd. and ComfortDelGro Corporation Limited have announced a strategic partnership to introduce ‘Zurich Travel Comfort’, an exclusive travel insurance product available through ComfortDelGro’s ride-hailing app, CDG Zig. This collaboration aims to integrate Zurich’s insurance expertise with ComfortDelGro’s transport network, offering seamless protection for over 1 million monthly active users of the app.

The new insurance product provides coverage for travel disruptions, including vehicle breakdowns en route to Changi Airport, with reimbursements up to SGD1,000 for additional expenses. Customers purchasing policies of SGD15.00 and above will receive a SGD5.00 promo code for CDG Zig, valid until fully redeemed. Additional features include real-time flight delay lounge access and 24/7 global assistance.

The initiative is powered by the Zurich Edge platform, ensuring a smooth digital experience for users. Alexandra Cowley, Chief Underwriting Officer at Zurich Singapore, highlighted the partnership as a step forward in offering tailored insurance solutions, stating, “By integrating Zurich Travel Comfort into the CDG Zig app, we’re combining ComfortDelGro’s trusted transport network with Zurich’s deep insurance expertise.”

Tommy Tan, CEO of ComfortDelGro Taxi, expressed enthusiasm for the collaboration, noting its alignment with ComfortDelGro’s commitment to digital-first experiences. Kenny Lok, CEO of ComfortDelGro Insurance, added that the partnership exemplifies how technology is transforming traditional insurance models, making insurance an intuitive part of the customer’s journey.

This strategic collaboration not only enhances customer convenience but also represents a significant shift towards integrating insurance solutions within mobility platforms.

Etiqa Insurance Singapore, the insurance arm of Maybank, has launched Invest future, Singapore’s first Takaful offering in more than ten years. This new Shariah-compliant investment-linked plan (ILP) is designed to meet the growing demand for ethical financial solutions in the region. Maybank Singapore will serve as the exclusive distributor of this product, which aims to support sustainable wealth accumulation through Shariah-compliant investing.

The introduction of Invest future is a significant step in Maybank’s Islamic Wealth Management (IWM) strategy, which focuses on providing values-based financial solutions. Alvin Lee, Maybank Singapore’s Country CEO, highlighted the importance of such offerings, stating, “Values-based financial solutions such as Etiqa’s Takaful ILP are integral to our IWM offerings, aligning with Shariah principles.”

Raymond Ong, CEO of Etiqa Insurance Singapore, expressed enthusiasm for the launch, noting the increasing interest in ethical investing among Singaporeans. “Our Takaful ILP promotes Shariah values of mutual cooperation and purposeful investing,” Ong said. “We aim to provide ethically crafted solutions that all customers can trust.”

Invest future offers several benefits, including investment bonuses, access to Shariah-compliant funds, and comprehensive coverage options. It also allows policyholders to make legacy gifts or charitable endowments, known as wakaf, to loved ones or organisations.

This launch underscores Etiqa’s commitment to providing insurance solutions that align with customers’ ethical and social values, offering a transparent and community-focused approach to financial protection.

Frank Yap, a former engineering student at Nanyang Technological University (NTU), has turned the uniform industry on its head by founding Apparel Empire, a Singapore-based company that specialises in bespoke corporate apparel. Within a year of its inception, Yap achieved his first million in revenue, driven by a vision to make uniforms stylish and reflective of brand identity.

Yap’s journey began when he noticed the uninspiring nature of work uniforms during his university days. Determined to change this, he dropped out of NTU and invested his life savings of S$30,000 to establish his own factory in China. This strategic move allowed him to control every aspect of production, from design to manufacturing, offering clients unparalleled customisation options.

Apparel Empire has since completed over 25,000 projects, collaborating with multinational corporations (MNCs) such as Coca Cola, Crocs, Meta, and Skechers. Yap’s innovative approach has also seen his designs featured in Harvard University’s bookstore in the US. “If you can ask for it, we can make it,” Yap boldly claims, highlighting the company’s commitment to meeting unique client demands.

By eliminating middlemen and reducing minimum order quantities, Apparel Empire provides flexibility and precision in uniform design. The company sources fabrics globally, catering to specific aesthetic and safety requirements, such as using 3M reflective materials for construction uniforms.

Yap’s success story underscores the potential for creativity and innovation in traditional industries. As Apparel Empire continues to grow, it sets a new standard for corporate apparel, transforming uniforms into a tool for brand identity and team cohesion.

CSE Global, a systems integration and IT solutions provider, is set to expand its presence in the US market, according to a report by UOB Kay Hian. The brokerage firm has maintained its ‘buy’ rating for CSE Global, with a target price of S$0.59, highlighting the company’s strategic initiatives and healthy order backlog as key growth drivers.

UOB Kay Hian anticipates that CSE Global will recover a US$6 million payment from a customer, minimising the impact on its financial performance for 2024. Additionally, the company expects a post-tax gain of US$9 million from the sale of its US industrial property, which will be reinvested into a larger facility to support its electrification business. This move underscores management’s positive outlook for growth in the US market.

The report also notes that CSE Global’s order intake reached S$565 million in the first nine months of 2024, with an orderbook of S$634 million, indicating a strong pipeline for future projects. The company’s focus on electrification and decarbonisation, alongside potential opportunities in the oil and gas sector, positions it well for continued success.

CSE Global is expected to maintain its full-year dividend at 2.75 Singapore cents per share for 2024, offering an attractive dividend yield of approximately 6.5%, compared to the FSSTI’s average of around 4.0%. UOB Kay Hian’s report suggests that large infrastructure project wins and accretive acquisitions could further boost CSE Global’s share price.

In a significant ruling, the Singapore High Court has sided with Changi Airport Group (Singapore) Pte Ltd in its case against the Comptroller of Income Tax, reaffirming the principles of asset classification for tax purposes. The decision, delivered on 8 January 2025, clarifies the distinction between “plant” and “building” under Singapore tax law, allowing for a detailed analysis of assets based on their constituent parts.

The court’s decision is pivotal as it underscores the mutual exclusivity of “plant” and “building” classifications, which affects how capital allowances are claimed. This ruling provides clarity for businesses in determining the tax treatment of their assets, potentially impacting financial planning and reporting.

Edmund Leow, SC, a senior partner at Dentons Rodyk & Davidson LLP, commented on the ruling, stating, “This decision reinforces the need for a nuanced approach in asset classification, which can significantly influence a company’s tax liabilities.”

The case highlights the importance of understanding the intricate details of asset classification, which can have substantial financial implications for companies operating in Singapore. By allowing assets to be analysed based on their individual components, businesses can more accurately determine their tax obligations.

This ruling is expected to guide future cases involving capital allowance claims, providing a clearer framework for businesses to follow. As companies navigate the complexities of tax law, this decision offers a precedent for interpreting asset classifications, potentially influencing similar cases in the future.

In the second half of 2024, Singapore’s prime non-landed residential market experienced a significant downturn, according to Knight Frank’s latest report. Sales totalled S$573.7 million, marking a 27.1% decrease from the first half of the year. The annual sales value fell to S$1.4 billion, a 22.1% drop from 2023, setting a new record low since tracking began in 2009. The decline is attributed to the absence of foreign buyers, deterred by the Additional Buyer’s Stamp Duty (ABSD).

The report highlights a 3.5% year-on-year decrease in prime non-landed prices, from S$2,319 per square foot (psf) in H2 2023 to S$2,237 psf in H2 2024. Despite this, homeowners maintained high asking prices. The secondary market dominated sales due to a lack of new luxury housing launches. Notably, two sales from 32 Gilstead topped transactions, with unit prices between S$3,431 and S$3,505 psf.

The landed residential market showed more resilience. Although the URA Property Price Index for landed homes saw a slight decline, demand remained stable. A total of 331 landed homes were sold in H2 2024, with the overall sales value for the year reaching S$6.1 billion, an 18.6% increase from 2023. The Good Class Bungalow (GCB) segment saw a resurgence, with 14 sales in H2 2024 totalling S$618.5 million.

Looking ahead, Knight Frank anticipates that demand for prime homes will remain subdued unless restrictive measures are eased. However, landed properties are expected to see moderate price increases in 2025, driven by continued interest from affluent buyers.