Industry News

Robeco announced the launch of two new high-conviction strategies, Emerging Market Bonds and Emerging Market Bonds Local Currency, aimed at institutional clients seeking superior risk-adjusted returns. These strategies unveiled on 3 February 2025, are designed to enhance Robeco’s emerging markets offering and expand its fixed income lineup.

The strategies will be managed by Robeco’s newly formed Emerging Market Debt (EMD) team, which was established last year. The team, boasting an average of over 15 years of experience in EMD, will leverage Robeco’s existing fixed income strengths and collaborate closely with its Quant and Sustainable Investing teams. This collaboration aims to capture emerging market opportunities by navigating macro-economic, political, and sustainability risks.

Diliana Deltcheva, Head of EMD at Robeco, stated, “We aim to deliver superior investment returns by deploying comprehensive analysis of all relevant information impacting emerging market debt investments. We’re not simply mirroring the benchmark: we’re leveraging our experience and frameworks to take selective, high-conviction positions when appropriate.”

The strategies employ a structured top-down and comprehensive bottom-up investment process, utilising a proprietary in-house framework for evaluating sovereign creditworthiness and relative value assessments, enriched with sustainability considerations

Shopee, supported by Enterprise Singapore, is set to launch the Shopee International Platform (SIP) on 7 February 2025, enabling Singapore sellers to expand their reach to consumers in Malaysia and Thailand.

This initiative, primarily benefiting micro, small, and medium-sized enterprises (MSMEs), allows sellers to manage their home shop while Shopee facilitates their overseas business growth.

The launch event will feature key figures such as Cindy Khoo, Managing Director of Enterprise Singapore, and Ian Ho, Vice President of Shopee. Chua Kel Jin, Director of Shopee Singapore, will present the platform’s benefits, highlighting its role in empowering local businesses to scale digitally.

E-commerce in Southeast Asia is thriving, with a 15% year-on-year growth in gross merchandise value, reaching over $360b in 2024. Singapore’s digital economy has significantly contributed to the nation’s GDP, adding $113b. The government, through Enterprise Singapore, is committed to supporting initiatives like SIP to help MSMEs adopt digital technologies for economic growth.

SIP offers Singapore sellers free cross-border logistics, customer service, and payment solutions, with Shopee managing end-to-end overseas operations. This includes first-to-last-mile fulfilment, easing the process for sellers to tap into new markets.

The upcoming exhibition, “The Journey Continues: Lee Wen’s Exploration of Identity,” will celebrate the legacy of the late Singaporean artist Lee Wen, renowned for his pioneering contributions to contemporary art and his provocative “Yellow Man” series.

The exhibition will be held at ION Art Gallery from 13 to 17 February 2025 and at iPreciation Gallery from 13 February to 1 March 2025, offering a curated selection of Lee’s impactful works that challenge viewers to reconsider identity, race, and societal norms.

Lee, born in 1957, was a multidisciplinary artist who played a significant role in shaping performance art in Asia. Known for his thought-provoking and satirical works, he left a successful banking career in 1988 to pursue art at LASALLE College of the Arts. His career spanned over 30 years, during which he participated in more than 85 exhibitions and performances worldwide, including prestigious art fairs like Art Basel Hong Kong and Art Miami.

The exhibitions will feature a variety of Lee’s works, from fine art photography prints to paintings and drawings, reflecting his exploration of personal and cultural identity. His performances and installations often questioned societal ideologies and value systems, combining Southeast Asian contexts with international contemporary art currents.

Wen’s legacy continues to inspire, with his works part of permanent collections at various institutions. The exhibitions at ION Art Gallery and iPreciation Gallery aim to provide insight into his artistic journey and enduring influence on contemporary art discussions.

Global payments provider Adyen has identified the most prevalent types of payment fraud in Singapore as of January 2025, revealing that phishing and refund fraud are among the leading threats. As Singaporeans become more aware of scams, fraudsters have adapted with increasingly sophisticated methods, making these types of fraud more common.

Adyen’s findings, part of their Retail Report 2024, indicate that 52% of Singaporean businesses have experienced an increase in fraud attempts over the past year. This has prompted a shift towards adopting technology solutions to secure digital transactions.

Ben Wong, General Manager of Southeast Asia and Hong Kong at Adyen, noted that businesses are increasingly seeking partnerships with tech providers offering chargeback liability guarantees.

Phishing, a tactic involving the acquisition of personal details to create synthetic identities, poses a significant risk to both consumers and businesses. This method combines legitimate and fabricated personal information, complicating detection and prevention efforts. Refund fraud, also known as policy abuse, is another growing concern, with both professional fraudsters and everyday consumers exploiting business policies for financial gain.

The report also highlights changing consumer behaviours, with 33% of Singaporeans feeling less safe shopping today compared to a decade ago. This sentiment is driving demand for stronger data protection and seamless, mobile-first payment experiences. As fraud attempts continue to rise, both consumers and businesses are urged to remain vigilant and adopt robust security measures to mitigate risks.

The Straits Times Index (STI) commenced the year with a robust 1.8% increase, closing January at 3,855.82, outperforming regional counterparts such as the FTSE ASEAN All-Share Index, which fell by 2.9%. This growth was primarily fuelled by the banking sector, with DBS Group Holdings, Oversea-Chinese Banking Corporation, and United Overseas Bank averaging returns of 3.2%. These banks, which now constitute 54% of the STI’s weight, are set to report their FY24 results between 10 and 26 February.

Singtel, Singapore’s leading telecommunications company, saw an 8.1% rise in January, continuing its asset optimisation and cost reduction strategy initiated in 2021. Seatrium, focusing on offshore renewables and cleaner marine solutions, also posted a significant 7.7% increase. Both companies recorded the highest net institutional inflows for the month, following UOB.

Despite these gains, institutions were net sellers of Singapore stocks in January, with a net outflow exceeding S$500 million. The on-market share buyback for primary-listed companies totalled S$111 million, led by OCBC, Sembcorp Industries, and others. Notably, DBS refrained from buybacks in January after significant repurchases in the previous months.

Among the 100 most traded stocks, Japfa led with a 30.9% gain, coinciding with a privatisation offer. LHT Holdings also saw a notable increase following a substantial share acquisition. The STI’s performance highlights the resilience of Singapore’s market amidst varying global economic conditions.

Singapore has been ranked as the second safest country in Southeast Asia (SEA) in terms of online safety, according to a 2024 report by global cybersecurity firm Kaspersky.

The Kaspersky Security Network (KSN) detected 5,104,831 web threats in Singapore in 2024, a decrease from 5,844,634 in 2023, marking a 24.7% reduction since 2021. This is the fourth consecutive year of decline in web threats detected by KSN.

The improvement in Singapore’s online safety is attributed to enhanced cybersecurity measures, government support, and increased user vigilance. However, the sophistication of cyber threats continues to pose challenges. Web threats, which include malware, phishing, and ransomware, remain prevalent, with Telegram scams seeing a 137.5% increase in 2024.

Cybercriminals are increasingly using Artificial Intelligence (AI) to enhance the complexity of their attacks, targeting both individuals and the public sector. In November 2024, over 100 government officials in Singapore received blackmail emails featuring deepfake images, highlighting the advanced nature of current cyber threats.

To combat these threats, Singapore is strengthening its cyber capabilities through initiatives like the Critical Infrastructure Defence Exercise (CIDeX) and the Digital Infrastructure Act. Yeo Siang Tiong, General Manager for Southeast Asia at Kaspersky, emphasised the need for continuous adaptation and innovation to maintain a secure digital environment.

Kaspersky recommends practising good cyber hygiene, verifying website authenticity, and using comprehensive security solutions to protect against web threats. For organisations, regular software updates, data backups, and employee education are crucial for bolstering cybersecurity defences.

UOB anticipates a fiscal deficit of $2.7bn, or 0.4% of GDP, for FY2025, as the government aims to address cost-of-living pressures whilst maintaining fiscal prudence.

Singapore’s Budget 2025, set to be presented on 18 February by Prime Minister and Finance Minister Lawrence Wong, is expected to adopt an expansionary stance. This budget, likely the last under the current government term, comes ahead of the General Elections and Singapore’s 60th independence anniversary.

The fiscal outlook for FY2024 is stronger than initially projected, with an estimated surplus of $5.0bn, or 0.7% of GDP, compared to the earlier budgeted $0.8bn. This improvement is attributed to higher-than-expected corporate and personal income tax collections, driven by robust economic growth and increased Goods and Services Tax (GST) receipts following a rate hike to 9% in January 2024.

Key themes for Budget 2025 are expected to include measures addressing cost-of-living and job security, strategies to boost fertility, and investments in areas such as artificial intelligence, finance, and green transition. These initiatives align with the Forward Singapore Report and recent national announcements.

Despite a projected slowdown in corporate income tax growth, the implementation of the Income Inclusion Rule and Domestic Top-up Tax under BEPS 2.0 is expected to provide some cushioning. Meanwhile, healthcare expenditure is anticipated to rise, driven by an ageing population and enhancements to the MediShield Life scheme.

As Singapore navigates geopolitical tensions and cybersecurity threats, defence spending is expected to stabilise. The budget’s expansionary approach aims to balance immediate economic needs with long-term fiscal sustainability.

The Financial Services Information Sharing and Analysis Centre (FS-ISAC) has released a comprehensive guide to help financial institutions manage the risks associated with Generative Artificial Intelligence (GenAI). As the financial sector in Singapore and globally embraces AI technologies, concerns about data security and regulatory compliance have emerged. FS-ISAC’s whitepaper, “More Opportunity, Less Risk: 8 Steps to Manage Financial Services Data with GenAI,” aims to address these challenges.

Michael Silverman, Chief Strategy & Innovation Officer at FS-ISAC, highlighted the dual nature of GenAI, stating, “GenAI presents enormous opportunities for financial firms to improve business operations, provide better customer service, and even enhance their cybersecurity posture. However, just like any new technological development, GenAI increases security risks when it’s not leveraged in a safe and compliant manner.”

The guidance, developed by FS-ISAC’s Artificial Intelligence Working Group, outlines eight foundational steps for effective data governance:
– **Consider Your Risks:** Identify and address risks, gaps, and opportunities through policies and technical controls.
– **Data Selection Criteria:** Implement cautious data selection with ongoing oversight and risk testing.
– **Create and Maintain a Data Lineage Inventory:** Ensure strong access controls and data classification.
– **Be Disciplined with Data Access and Authorisation:** Restrict access to GenAI training data and regularly review datasets.
– **Obsessively Protect Your Customers’ Data:** Use security techniques like encryption and data sanitisation.
– **Use Best Practices When Building Effective Test Plans:** Establish baselines and leverage cross-sector data sharing.
– **Keep Current on Model Vulnerabilities:** Maintain cybersecurity hygiene to mitigate threats.
– **Require Your Vendors’ Transparency on Your Data Storage:** Ensure vendor compliance with security standards.

As GenAI continues to evolve, FS-ISAC’s report provides financial institutions with the tools needed to navigate the complexities of AI-driven data governance securely. The full report is available for download on FS-ISAC’s website.

Small and medium enterprises (SMEs) in Singapore are increasingly turning to generative AI (Gen AI), employee upskilling, and international expansion to maintain competitiveness amidst economic uncertainties, according to a recent DBS survey.

Conducted earlier this year, the SME Pulse Check Survey highlights that 73% of SMEs intend to invest in Gen AI solutions, whilst 72% are focused on upskilling their workforce to adapt to these technologies. Additionally, 32% have already begun using Gen AI for marketing and communications.

The survey underscores the importance of government grants, affordable digital solutions, and practical advice in facilitating this technological transition. Furthermore, SMEs are keen on expanding overseas, with 70% planning to allocate resources towards regionalisation, particularly targeting ASEAN and other high-growth markets. Essential resources identified for successful internationalisation include market insights, trade law guidance, and access to reliable suppliers and distributors.

As new climate regulations take effect, the survey also examined SMEs’ readiness for sustainability. Whilst 36% have made progress, many are still in the early stages, facing challenges such as limited resources and complex regulations. Koh Kar Siong, Group

The Singapore auction market experienced a significant rise in listings during the fourth quarter of 2024, with a 47.7% increase to 127 listings, according to Knight Frank Singapore. Despite this surge, the success rate of auctions fell, with only two properties sold, translating to a mere 1.6% success rate for the quarter.

The increase in listings was largely driven by a 67.5% rise in mortgagee sales, reaching 67 listings, and a 36.6% increase in owner sales, totalling 56. However, the gross sales value for 2024 declined by 17.5% year-on-year to S$28.7 million, with only 15 properties sold compared to 24 in 2023. Sharon Lee, Head of Auction & Sales at Knight Frank Singapore, noted that the gap in price expectations between buyers and sellers often results in transactions being concluded privately after auctions.

Residential properties accounted for 36.2% of the listings in Q4, whilst industrial properties made up 24.4%. The quarter also saw a notable increase in retail shop and office listings. Despite the high number of listings, no mortgagee sales were concluded at auction, as creditors maintained market-level prices for distressed properties.

Looking ahead, the Ministry of Law reported 4,521 bankruptcy applications from January to November 2024, suggesting a potential rise in mortgagee sale listings in 2025. Knight Frank anticipates the auction success rate to remain around 5%, consistent with the average from 2015 to 2024.