Industry News

Singapore’s banking sector is experiencing significant client attrition, with nearly 90% of banks reporting losses over the past year due to delays and inefficiencies in onboarding processes. This marks a 35% increase from 2023, according to a study by Fenergo, a leader in client lifecycle management. The report highlights that Singapore has the highest client loss rate globally, surpassing banks in the US, UK, and Japan.

The inefficiencies are largely attributed to poor data management and siloed workflows, with 91% of respondents citing these as key factors. Additionally, 79% pointed to inadequate customer experiences, and 47% blamed overly complex onboarding processes. These challenges arise as Singapore’s financial institutions strive to comply with the national anti-money laundering (AML) strategy, introduced after a major scandal in 2023.

Cengiz Kiamil, Managing Director at Fenergo, noted, “It’s no coincidence that the spike in banks losing clients because of burdensome KYC and onboarding closely follows one of the biggest money laundering scandals in Singapore’s history.” He emphasised the need for banks to enhance client due diligence to mitigate risks.

Despite the challenges, there is a growing interest in AI-driven solutions, with 38% of banks planning to deploy AI to boost operational efficiency and 30% aiming to improve data accuracy. Kiamil stated, “In today’s fast-evolving regulatory landscape and rising financial crime, it has never been more important for firms to strengthen their client onboarding and KYC procedures.”

Fenergo’s report, “KYC in 2024,” provides detailed insights into the time and cost implications for banks conducting KYC tasks, underscoring the urgency for digital transformation in Singapore’s banking industry.

Retail sales in Singapore experienced a decline of 2.9% in December 2024 compared to the same month in 2023, according to the latest figures released by the Singapore Department of Statistics. When excluding motor vehicles, the decrease was more pronounced at 4.0%. In contrast, the food and beverage services sector saw a slight increase of 1.0% over the same period.

The decline in retail sales highlights ongoing challenges within the sector, possibly influenced by changing consumer behaviours and economic conditions. The exclusion of motor vehicles from the data suggests that other retail categories may be underperforming, indicating a potential area of concern for businesses and policymakers alike.

Conversely, the modest growth in food and beverage services suggests resilience in this sector, possibly driven by increased dining out and consumer spending during the festive season. This growth, albeit small, may provide some optimism for businesses in the hospitality and dining industries.

UniFuels Holdings Limited, a global provider of marine fuel solutions based in Singapore, has announced its bronze sponsorship of the International Bunker Industry Association (IBIA) Annual Dinner 2025. The event is set to take place on 24 February at the Grosvenor House Hotel in Mayfair, London, and is renowned for bringing together key stakeholders and leaders from the maritime and marine fuel sectors.

The sponsorship aligns with UniFuels’ commitment to innovation, collaboration, and excellence within the marine fuels industry. Chief Operating Officer Stefanie Tay expressed the company’s honour in participating, stating, “This event aligns with our core principles of innovation, collaboration, and excellence in the marine fuels sector and provides a valuable platform to engage with our peers and discuss future progress in our industry.”

UniFuels’ involvement underscores its dedication to addressing critical industry challenges, including decarbonisation, sustainability, and operational efficiency. By supporting the IBIA Annual Dinner, the company reaffirms its commitment to fostering dialogue and collaboration that drive meaningful progress in the industry.

Founded in 2021, UniFuels has rapidly grown into a dynamic company with a presence across multiple locations, supporting shipping companies in optimising fuel procurement. The IBIA, representing stakeholders across the global bunker industry, includes members from over 70 countries, making the annual dinner a significant event for industry networking and collaboration.

The sponsorship highlights UniFuels’ strategic focus on engaging with industry peers to advance the marine fuel sector’s future.

International property consultancy Knight Frank Singapore has announced the sale of three adjacent ground-floor freehold strata shop units at Lucky Plaza, a prominent shopping destination on Orchard Road. The sale, conducted via Expression of Interest (EOI), offers potential investors a rare opportunity to acquire prime retail space in one of Singapore’s most sought-after locations.

The units, strategically located near the mall’s entrance and facing the main atrium, are currently leased to souvenir retailers. They measure approximately 495 sq ft, 495 sq ft, and 388 sq ft, and can be purchased individually or as a collective portfolio. Mary Sai, Executive Director of Capital Markets at Knight Frank Singapore, highlighted the scarcity of such properties, noting that “the supply of freehold strata retail properties along Orchard Road has remained limited since March 2022.”

Lucky Plaza is a mixed-use development frequented by both tourists and locals, surrounded by upscale condominiums, medical facilities, and other shopping destinations. It is directly linked to Orchard MRT station, enhancing its accessibility. The units are expected to attract significant interest, as they offer immediate rental income without incurring Additional Buyer’s Stamp Duty or Seller’s Stamp Duty.

The EOI exercise closes on 6 March 2025 at 3:00 PM. Recent market activity in the area underscores the investment potential, with similar properties fetching premium prices. The asking price for the available units ranges from S$16,000 psf to S$18,000 psf, reflecting their prime location and high demand.

AIA Singapore has unveiled its latest findings from the AIA Live Better Study, highlighting that over 4 in 5 Singapore residents are actively managing their finances in anticipation of a challenging economic year in 2025. The study, conducted in November 2024, reveals a generational divide in financial optimism and preparedness, with younger adults aged 18-29 feeling more financially secure than their 40-49-year-old counterparts.

The study indicates that only 47% of Singaporeans remain optimistic about the economy, with inflation and the cost of living being the primary concerns for 50% of the population. Despite these challenges, Singaporeans are focusing on financial resilience, with 54% prioritising long-term financial readiness. Key strategies include building emergency funds, planning for retirement, and diversifying investments.

Insurance plays a crucial role in financial security, with 48% of respondents recognising its importance. AIA Singapore’s Chief Marketing and Healthcare Officer, Irma Hadikusuma, noted, “Despite the expectation of challenging times, the people of Singapore are showing remarkable resilience and proactiveness.”

Healthcare costs also pose a significant concern, with 53% of residents finding them expensive. However, less than half feel financially prepared to manage these expenses, prompting calls for increased support from both government and private sectors.

The study highlights a stark contrast between age groups, with younger Singaporeans less worried about economic pressures and more focused on experiences. In contrast, those in their 40s are more concerned about financial stability, reflecting their life stage responsibilities. As Singapore celebrates its 60th birthday, the findings underscore the nation’s evolving financial priorities and resilience.

Singaporeans are among the world’s most active social media users, with 88.2% of the population engaging on platforms, according to the latest Digital 2025 report by Meltwater and We Are Social. The report highlights that Singaporeans aged 16 and above spend an average of 2 hours and 2 minutes daily on social media, using approximately 7.24 platforms each month.

The report also reveals concerns among Singaporeans regarding misinformation and data privacy. A significant 71.4% of adults express worries about distinguishing real from fake information online. Additionally, 36% of internet users are apprehensive about how companies handle their personal data, with 39% declining cookies on websites at least occasionally, surpassing the global average of 34.5%.

Reddit and Telegram have emerged as popular platforms in Singapore. Reddit users on Android devices open the app 116.9 times monthly, the highest globally, spending nearly four hours on it. Similarly, Telegram users open the app 237 times a month, ranking Singapore third worldwide, behind Russia and Finland.

Despite TikTok’s global popularity, Singaporean users spend slightly less time on the app, averaging 34 hours and 29 minutes per month, just below the global average of 34 hours and 56 minutes.

The findings underscore the significant role of social media in Singaporeans’ daily lives, reflecting broader global trends in digital engagement and privacy concerns. As social media continues to evolve, these insights highlight the need for ongoing attention to digital literacy and data protection.

CapitaLand Integrated Commercial Trust (CICT), Singapore’s largest real estate investment trust, has reported a robust performance for the fourth quarter of 2024, with occupancy rates improving across its segments.

The results for the second half and full year of 2024 were in line with expectations, showcasing strong positive rent reversions, which are expected to continue at a moderated pace into 2025. CICT’s sturdy balance sheet and comfortable gearing level provide it with the flexibility to pursue tactical acquisitions, further strengthening its position in the market.

Analyst Vijay Natarajan highlighted that CICT is trading at a 10% discount to its book value, making it an attractive investment option. The trust’s performance is buoyed by its strategic positioning and the overall economic growth of Singapore, making it one of the top picks in the sector.

Looking ahead, CICT’s ability to maintain high occupancy rates and leverage its strong financial position for potential acquisitions positions it well for continued growth. The trust’s strategic initiatives and market conditions suggest a promising outlook for investors seeking stable returns in the real estate sector.

Artyzen Singapore has been named the top hotel in Singapore according to the newly released Hotel Service Index: 2024 APAC Edition by Atiom, a technological behavioural change platform. The report, which aims to help hospitality professionals benchmark their service against industry standards, also ranked Mandarin Oriental and the Capitol Kempinski Hotel as second and third, respectively.

The Hotel Service Index is part of Atiom’s initiative to provide insights into service trends and customer preferences across the Asia-Pacific (APAC) region. The report analysed publicly available reviews from popular online travel platforms, covering 1,623 properties in countries including Singapore, China, and Japan. This comprehensive analysis allows hospitality leaders to assess their service levels and align operations with customer expectations.

Matthew Spriegel, CEO of Atiom, highlighted the importance of understanding evolving guest expectations, stating, “Guest expectations are evolving faster than ever, and staying ahead means understanding the nuances of what makes a truly exceptional experience.”

The report’s findings are particularly relevant as Singapore continues to be a leading business travel destination in the APAC region. According to GetGoing, Singapore ranks highest for business travel, while Expedia’s Travel Insights report shows a 35% year-on-year increase in search volume for the region.

Atiom plans to expand the Hotel Service Index to other regions, such as the Middle East, in future editions. This expansion aims to further support the hospitality industry in enhancing service excellence and fostering a culture of continuous growth and engagement.

Chocolate Finance has partnered with HeyMax to introduce Singapore’s first Visa debit card that rewards users with miles for everyday spending. From 11 February 2025, cardholders can earn 2 Max Miles for every $1 spent, which can be redeemed for flights, hotels, and other travel benefits.

The new debit card stands out by offering rewards on a wide range of spending categories, including dining, groceries, utilities, insurance, school fees, and donations—areas typically not rewarded by debit cards. Users can earn full rewards on the first $1,000 spent each month, with a reduced rate of 0.4 Max Miles per $1 for spending beyond this cap.

Max Miles, which never expire, can be redeemed at a fixed 1:8 ratio through HeyMax’s Fly Anywhere programme or converted 1:1 to 27 airline and hotel partners. Additionally, a limited-time bonus offer allows cardholders to earn up to 5 Max Miles per $1 spent on SMRT travel from 11 to 28 February 2025, or until 1 million Max Miles are awarded.

This innovative partnership aims to redefine rewards for debit card users in Singapore, ensuring that every dollar spent contributes towards travel goals. For instance, a Chocolate Finance Visa Debit Card user spending S$1,000 monthly on everyday expenses can accumulate 12,000 Max Miles in six months, enough for a short-haul flight to destinations like Bali or Bangkok.

Coopers Hill, a Singapore-based international consultancy specialising in landscape architecture, has announced its acquisition of Scape Design, a leading UK firm in hospitality and luxury lifestyle landscape architecture.

This strategic move establishes Coopers Hill’s first European office in London, following its Dubai opening in 2023, and marks the firm’s seventh international office.

With a legacy spanning 40 years, Coopers Hill has developed a robust portfolio of luxury hotels and resorts across various ecosystems. The merger with Scape Design, led by Founder and Managing Partner Allen Kerton, aims to create a formidable presence in the hospitality landscape design sector across Asia Pacific, Europe, the Middle East, and North Africa. “The merger with Scape represents a significant milestone enabling us to realise our ambition of delivering a truly global service offering for our clients,” said Kerton.

Philip Jaffa, who will serve as Partner and Design Director from London, expressed enthusiasm for the merger, stating, “This marks the beginning of an exciting new era for Coopers Hill. The merger provides an incredible opportunity to drive sustainable and evocative landscape architecture solutions for the hospitality industry’s future.”

Coopers Hill’s extensive portfolio includes collaborations with renowned brands such as Capella, W Hotels, and The Ritz-Carlton. The firm now comprises over 120 professionals with experience in more than 60 countries. Scape Design’s notable projects include the Ritz-Carlton Rabat in Morocco and COMO Laucala Island in Fiji.

This acquisition not only strengthens Coopers Hill’s global leadership but also enhances its ability to deliver innovative and sustainable landscape architecture solutions worldwide.