Industry News

Singapore’s retail sector experienced a challenging year in 2024, with sales contracting for two consecutive months, according to a report by UOB Global Economics and Markets Research.

December saw a 1.5% month-on-month decline, following a 2.8% drop in November. The downturn is attributed to sluggish tourist arrivals, which reached only 81% of 2019 levels, and a shift in resident spending abroad due to a strong Singapore dollar.

Despite a modest 1.2% growth in retail sales for the entire year, this was largely driven by a 17.1% increase in motor vehicle sales. Excluding motor vehicles, retail sales actually fell by 0.7%. Categories such as food and beverages, medical goods, and toiletries saw slight increases, whilst eight out of 14 retail categories recorded declines.

Looking ahead, the opening of new attractions, including a local theme park expansion in February 2025 and Singapore’s fifth zoological park, Rainforest Wild Asia, in March 2025, is expected to bolster domestic tourism. Additionally, an expansionary Budget 2025, featuring measures like CDC vouchers and increased cash support under the Assurance Package, is anticipated to further support retail sales.

The report highlights the potential for these developments to aid in the recovery of tourist arrivals and, consequently, retail sales in 2025. As Singapore continues to navigate the post-pandemic landscape, these initiatives may provide the necessary boost to revitalise the retail sector.

The Coastal Sustainability Alliance (CSA), led by Kuok Maritime Group, has launched Singapore’s largest fully electric supply boat, marking a significant step in maritime decarbonisation.

The launch took place at PaxOcean Batam, Indonesia, alongside the keel laying of the first fully electric tug, underscoring CSA’s commitment to marine electrification and energy-efficient logistics.

The PXO-EXL-1 electric supply boat, dual-classed by Bureau Veritas and RINA, is a Tier 1 design selected by the Maritime and Port Authority of Singapore (MPA).

It is designed to operate in Singapore’s waters, aligning with the nation’s goal for all new harbour craft to be fully electric or compatible with net-zero fuels by 2030. Tan Thai Yong, Managing Director and CEO of PaxOcean Group and Chairperson of CSA, stated, “The launch of the PXO-EXL-1 e-supply boat is a testament to our commitment to decarbonising Singapore’s coastal logistics ecosystem.”

The PXO-EXL-1 boasts a high-performance, energy-efficient design, capable of cruising at 8 knots with zero emissions. It can carry a payload of 40 tonnes or 60 pallets, achieving 60% energy savings over conventional vessels. This efficiency promises significant cost and carbon emission reductions for the industry.

Additionally, the PXO-ACE-1 electric tug, supported by the MPA Maritime Innovation and Technology Fund, is set to redefine harbour operations with its zero-emission capabilities. The tug incorporates advanced propulsion and energy storage technologies and is future-ready for zero-carbon fuels.

The CSA plans to trial the electric supply boat in the latter half of 2025, with the electric tug’s construction expected to complete by the first quarter of 2026. These developments are pivotal steps towards a sustainable maritime future, coinciding with Singapore Maritime Week 2025.

The Dormitory Association of Singapore Limited (DASL) and Knight Frank Singapore have unveiled the first edition of the Worker Dormitories in Singapore report, marking a significant step in understanding the evolution of migrant workforce accommodation in the city-state.

The report, released on 5 February 2025, sheds light on the current landscape, challenges, and opportunities within this niche real estate sector.

The report reveals that Singapore’s dormitory market comprises 1,441 facilities with a total of 439,198 beds. Purpose-built dormitories (PBDs) account for 63.5% of this capacity, underscoring their importance in housing the migrant workforce.

The sector has maintained a near-full occupancy rate of 96.7% in the second half of 2024, driven by robust economic recovery and labour demand in key industries.

Rising rents have been a notable trend, with monthly rates ranging from $390 to $510 per bed, averaging $460. This marks a significant increase from pre-pandemic levels of $270. The report also highlights heightened investment activity, including the $63.5m sale of Homestay Lodge and Bain Capital’s impending $750m purchase of Avery Lodge.

Regulatory changes, such as the Foreign Employee Dormitories Act (FEDA) and the Ministry of Manpower’s new Dormitory Transition Scheme (DTS), continue to shape housing standards. As of June 2024, the number of work permit holders in the construction, marine shipyard, and process (CMP) industries rose by 24.5% since December 2018.

Johnathan Cheah, President of DASL, emphasised the importance of the report in promoting awareness and understanding of the sector’s performance and challenges. Leonard Tay, Head of Research at Knight Frank Singapore, noted the potential for high yields in the dormitory sector due to strong demand and limited supply.

Future editions of the report will continue to track market performance and regulatory developments, providing valuable insights for stakeholders in this critical asset class.

The World Gold Council (WGC) has reported a record-breaking year for global gold demand in 2024, with total demand reaching 4,974 tonnes. Singapore mirrored this global trend, with bar and coin demand rising by 22% to 6.5 tonnes, marking significant growth across ASEAN markets.

The global surge was primarily driven by robust central bank purchases and increased investment demand, resulting in the highest-ever total value of demand at $382b.

Central banks purchased over 1,000 tonnes of gold for the third consecutive year, with a notable increase in the fourth quarter.

Investment demand saw a 25% year-on-year increase, reaching a four-year high of 1,180 tonnes.

This was largely due to a resurgence in gold exchange-traded funds (ETFs), particularly in the latter half of the year.

Despite the high prices, which dampened jewellery demand by 11% globally, the technology sector experienced a 7% increase in gold demand, driven by advancements in artificial intelligence and electronics.

The total gold supply also saw a slight increase, reaching a new high of 4,794 tonnes due to growth in mine production and recycling.

Shaokai Fan, head of Asia-Pacific (ex-China) and Global Head of Central Banks at the WGC, highlighted the strategic role of gold as a safe-haven asset amidst geopolitical and economic uncertainties.

Looking ahead, the WGC anticipates continued strong demand from central banks and ETF investors in 2025, although jewellery demand may remain under pressure due to high prices and economic challenges.

Gene Solutions, a biotech company in Asia with proprietary research and CAP-accredited laboratories in Singapore and Vietnam, unveiled a groundbreaking blood test, SPOTMAS, designed to enhance early lung cancer detection through advanced artificial intelligence (AI) and genomics.

This innovative test, announced at the “Personalised Cancer Care in Asia: Advancing Genomics & AI” event in Singapore, aims to address the significant lung cancer burden in Asia, where 63% of new cases and 62% of deaths occur globally.

SPOTMAS leverages circulating tumour DNA (ctDNA) technology to detect cancer indicators in the blood, offering a non-invasive and affordable alternative to traditional low-dose CT scans. These scans, typically recommended for high-risk populations like heavy smokers, often miss over 50% of lung cancer cases in non-smokers, who account for a significant portion of diagnoses in Southeast Asia. The SPOTMAS Lung test has demonstrated remarkable effectiveness, achieving 90% sensitivity and 92% specificity.

Dr Nguyen Hoai Nghia, Founder of Gene Solutions, highlighted the transformative potential of this technology, stating, “By harnessing the power of ctDNA and AI, we aim to make blood-based cancer screening tests more accurate and more affordable.”

Gene Solutions plans to integrate SPOTMAS into clinical practice across Asia by early 2025, potentially increasing early detection rates and reducing mortality associated with late-stage diagnoses. The company collaborates with over 4,500 healthcare providers in Southeast Asia and has conducted extensive research to support its innovative cancer detection solutions. This initiative marks a significant step forward in making lung cancer screening more accessible and effective for underserved populations.

Singapore’s retail sector experienced a downturn in December 2024, with sales dropping by 2.9% compared to the same month in 2023, according to the latest data from the Singapore Department of Statistics.

When excluding motor vehicles, the decline was even more pronounced at 4.0%.

In contrast, the food and beverage services sector showed resilience, recording a 1.0% increase in sales over the same period.

DCS Innov has unveiled the iChange Debit Mastercard, a new financial product developed in collaboration with its first Cards-as-a-Service (CaaS) client, IBV Pte Ltd.

This innovative debit card, paired with a multi-currency wallet, allows users to hold and exchange over 40 major currencies on demand, marking a significant step in simplifying fintech enablement.

The iChange card is designed to provide seamless access to global payment infrastructure for fintechs, Web3 companies, and retailers. DCS Innov’s CaaS proposition, which includes licence sponsorship, API integration, and ongoing card operations support, enables clients like the Singapore-based IBV to focus on their core business without navigating complex payment ecosystems. “Our CaaS solution fast-tracked the development effort of such a typical product by more than 50%,” said Ceridwen Choo, CEO of DCS Innov.

The iChange Platinum Debit Mastercard offers features such as real-time rate comparisons, zero foreign exchange fees, and e-wallet integration, catering to global citizens and travellers. Suresh Parthasarathy, CEO of IBV, highlighted the collaboration’s success, stating, “Their expertise was instrumental in bringing our vision to market swiftly.”

DCS Innov aims to lead the embedded finance (EmFi) space, offering a pre-built mobile wallet and integrating regulatory compliance and operational scalability. This launch underscores DCS Innov’s commitment to transforming financial solutions for businesses and consumers, with ambitions to expand its footprint in the EmFi sector.

Lions Befrienders marked a memorable Chinese New Year on 4 February 2025, as over 400 seniors gathered at their Active Ageing Centre (AAC) in Tampines 434 for the annual Ren Ri Ang Bao collection.

The event, coinciding with the seventh day of the Lunar Calendar, saw a queue of eager seniors forming well before the 2 PM start time, keen to receive their birthday gifts, known as Ang Baos.

The celebration, now in its third year, was a testament to the spirit of renewal and community that Ren Ri symbolises. Volunteers and staff from Lions Befrienders began preparations early, packing 800 fresh oranges into 400 gift bags, each accompanied by Ang Baos prepared by generous donors.

The event drew a diverse crowd, with seniors arriving alongside caregivers, family, and friends, all eager to partake in the festivities.

A standout moment was the arrival of a group of seniors in vibrant cheongsams, adding a splash of colour and joy to the occasion. These active members of the Lions Befrienders community not only participate in centre activities but also contribute by supporting fellow seniors.

Originally set to conclude at 3 PM, the overwhelming response extended the event by an hour. Despite the heat and long wait, the atmosphere remained lively, filled with laughter and camaraderie.

The success of the event was attributed to the dedication of Lions Befrienders’ volunteers and the generosity of donors, who played a crucial role in bringing joy to the seniors.

As the day concluded, Lions Befrienders expressed gratitude to all involved, wishing everyone a prosperous and healthy year ahead.

HDB resale flat prices in Singapore saw a 1% increase in January 2025 compared to the previous month, according to the latest 99-SRX Media Flash Report.

This rise marks a continuation of the upward trend from December’s 0.2% growth. The report highlights a shift in bargaining power towards buyers, with prices stabilising near recent transaction levels as many areas have reached record highs.

The report, attributed to Luqman Hakim, Chief Data & Analytics Officer at 99.co, projects a more moderate price increase of 4% to 6% for 2025, compared to the 9% rise in 2024.

Despite this moderation, transactions of million-pound flats remain robust, with 119 such sales recorded in January alone, just one shy of the all-time high. Larger homes, such as lofts and maisonettes, continue to drive these high-value deals as buyers seek more spacious living options.

In January, 2,329 HDB resale flats were transacted, a 9.4% increase from December 2024. However, this figure represents an 11.4% decrease compared to January 2024.

The highest transacted price for the month was $1.6m for a 5-room flat at Lor 1A Toa Payoh, while the highest in Non-Mature Estates was $1.168m for an Executive flat at Toh Guan Rd.

The launch of more Build-To-Order flats this year is anticipated to alleviate some pressure on the resale market, potentially moderating price growth. However, global economic uncertainties, such as recent US tariffs, could pose challenges to market stability.

CapitaLand Integrated Commercial Trust (CICT) has announced a 6.4% year-on-year increase in distributable income, reaching S$385.7 million for the second half of 2024. This growth is attributed to the acquisition of a 50% stake in ION Orchard and improved performance of existing properties, despite the divestment of 21 Collyer Quay. The Trust’s distribution per unit (DPU) remained stable at 5.45 cents, with a total DPU of 10.88 cents for the full year 2024, marking a 1.2% increase from the previous year.

Gross revenue for CICT rose by 1.2% year-on-year to S$794.4 million in the second half of 2024, while net property income increased by 1.3% to S$571.1 million. The portfolio’s property value also saw a 6.2% uplift, reaching S$26.0 billion by the end of 2024, largely due to strategic acquisitions and enhanced performance in Singapore.

Ms Teo Swee Lian, Chair of CICT Management Limited, highlighted the Trust’s strategic moves, stating, “CICT’s positive performance in FY 2024 reflects its portfolio strength, bolstered by the timely acquisition of the iconic destination mall ION Orchard and the divestment of 21 Collyer Quay, despite market uncertainties.”

CEO Tony Tan emphasised the Trust’s proactive leasing efforts, which resulted in a high overall portfolio occupancy of 96.7% and positive rent reversions. “We will continue to prioritise leasing initiatives to retain tenants and attract new ones,” he said.

Looking ahead, CICT plans to focus on sustainable growth through active portfolio management and disciplined cost strategies, while exploring new growth opportunities. The Trust’s commitment to enhancing its market positioning in Singapore, Australia, and Germany through asset enhancement initiatives remains a priority.