Industry News

DeepSeek, a technology firm, has firmly denied allegations that it obtained US export-controlled chips through intermediaries in Singapore. The company issued a press statement addressing these claims, which have surfaced amidst growing scrutiny over international technology transfers. DeepSeek emphasised its commitment to compliance with all relevant export control laws and regulations, stating that it has not engaged in any activities that would contravene these rules.

The allegations come at a time when global supply chains and technology transfers are under intense examination, particularly concerning sensitive technologies. DeepSeek’s statement aims to reassure stakeholders and regulatory bodies of its adherence to legal standards. The company highlighted its robust compliance framework, which it claims is designed to prevent any unauthorised access to controlled technologies.

In the press release, DeepSeek stated, “We categorically deny any involvement in the acquisition of US export-controlled chips through intermediaries in Singapore. Our operations are fully compliant with international export control regulations.” This assertion is part of the company’s broader effort to maintain transparency and trust with its partners and clients.

The situation underscores the complexities and challenges faced by technology companies operating in a globalised market, where regulatory compliance is paramount. As the investigation continues, DeepSeek has pledged full cooperation with any inquiries to ensure clarity and uphold its reputation in the industry.

Cushman & Wakefield has announced the collective sale of the Tan Boon Liat Building, a prominent industrial warehouse and showroom located at 315 Outram Road, Singapore. The property is being offered at a reserve price of £1.15 billion through a public tender. This 15-storey building, a remnant of Singapore’s industrial past, is positioned at a prime freehold site atop the Havelock MRT Station on the Thomson-East Coast Line.

The Urban Redevelopment Authority (URA) has recently advised a zoning change from “Business 1” to “Residential with Commercial at 1st storey,” increasing the plot ratio from 3.1 to 4.9. This change allows for a 50% uplift in the total allowable gross floor area. The site, including additional state land plots, offers a potential gross floor area of over 98,049.87 sq m, with provisions for commercial space and serviced flats.

Christina Sim, Senior Director of Capital Markets at Cushman & Wakefield, highlighted the site’s appeal, noting, “Demand for residential properties, especially those located at the city fringe, is expected to be strong, aided by favourable credit conditions.” She also pointed out the advantage of the site’s freehold tenure and its location on the Thomson-East Coast line.

The tender for the Tan Boon Liat Building will close on 18 March 2025 at 3.00pm. This sale presents a rare opportunity for developers to transform a significant city fringe location, reshaping the residential landscape of the surrounding neighbourhoods.

Fever, a global entertainment discovery platform, has officially launched the Fever Exhibition Hall on Scotts Road, Singapore. This new cultural hub, spanning over 1,300 square metres, is currently hosting The Art of Banksy: Without Limits, marking its first major event. Fever’s expansion into Singapore aims to democratise access to culture and entertainment, utilising technology and data-driven insights to offer unique experiences.

The Fever Exhibition Hall, located near Orchard Road, features soaring ceilings and open-plan spaces, ideal for installations and interactive experiences. Rachid Elameri, Regional General Manager of Fever APAC, stated, “This is such an exciting moment for Singapore as we introduce the Fever Exhibition Hall to Scotts Road. As the leading global live-entertainment discovery platform, our vision is to deliver a space where the city’s creative energy converges with cultural innovation.”

Since its soft launch in 2022, Fever has brought various events to Singapore, including Van Gogh: The Immersive Experience and Harry Potter: A Forbidden Forest Experience. The new venue promises to host a range of original and collaborative projects, with announcements expected in the coming months.

The Fever Exhibition Hall is set to become a vibrant cultural destination, enhancing Singapore’s arts scene and offering locals and tourists alike a dynamic space for cultural engagement. For more information on upcoming events, visit feverup.com/singapore.

Withers KhattarWong LLP has announced the appointment of Gary Beh as a corporate partner in its Singapore office. This strategic hire is part of the firm’s ongoing efforts to expand its comprehensive service offerings in the region. Gary, who previously worked at Linklaters and Allen & Gledhill, brings extensive experience in regional fundraising, mergers, acquisitions, and private equity transactions across sectors such as technology, financial services, energy, and infrastructure.

Gary’s addition is timely, as Southeast Asia’s mergers and acquisitions (M&A) landscape is witnessing robust activity, with a notable increase in cross-border transactions and a focus on high-value sectors like technology and infrastructure. Daniel Yong, joint managing partner of the Singapore office, highlighted that Gary’s expertise in handling complex cross-border deals will bolster the firm’s capacity to support clients in capitalising on these opportunities.

Jeremy Wakeham, CEO of Withers’ Business division, expressed enthusiasm about Gary’s arrival, stating, “We’re delighted to welcome Gary to our corporate team and to have him build on the M&A, funds and regulatory strengths of our Singapore practice.” Gary’s experience aligns well with the firm’s focus on closely held companies, private wealth, and investment funds.

Gary himself is eager to leverage Withers’ global platform, noting, “This is an exciting opportunity to join a dynamic global platform with a leading presence in the private capital space.” He looks forward to collaborating with partners worldwide to establish a market-leading corporate practice.

Withers KhattarWong LLP is the Singapore member of the international law firm Withersworldwide, which has a significant presence across 17 offices globally.

The vacancy rate for Grade A offices in Singapore’s Central Business District (CBD) surged to 8% in the fourth quarter of 2024, marking the highest level since early 2018, according to Savills Research. This increase, a 1.8 percentage point rise quarter-on-quarter, is largely attributed to the addition of the IOI Central Boulevard Towers to the office stock.

Despite the rise in vacancies, office rents continued to climb, with Grade AA offices experiencing the most significant increase. Rents for these offices rose by 1% quarter-on-quarter to S$10.73 per square foot, the fastest growth since mid-2019. Meanwhile, Grade AAA office rents increased by 0.7% to S$12.91 per square foot, the highest since early 2020.

The report highlighted that while the overall net demand for office space remained positive, it has moderated over the past three years, with 285,000 square feet absorbed in 2024 compared to 622,000 square feet in 2022. Submarkets such as Marina Bay saw the most substantial rise in vacancy rates, increasing by 7.6 percentage points to 12%.

Ashley Swan, Executive Director at Savills Singapore, noted, “Q4 saw an increase in leasing activity with IOI Central Boulevard leading the way in terms of transactions.” However, he cautioned that uncertainties from early 2024 persist, impacting net demand.

Looking ahead, Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, suggested that with limited new supply expected in 2025, CBD Grade A office rents may remain stable. He also pointed out that the impact of AI on office employment could become more apparent towards the end of 2025.

The CCCS has granted conditional approval for the proposed expansion of the joint venture between Singapore Airlines and Deutsche Lufthansa AG, following the acceptance of commitments from both airlines. This decision comes after a thorough assessment of the potential competitive impact of the collaboration on the aviation market.

The joint venture aims to enhance cooperation between the two airlines, allowing them to coordinate on pricing, sales, and capacity on routes between Singapore and Europe. The CCCS’s approval is contingent upon the airlines fulfilling certain commitments designed to address competition concerns. These include maintaining a level of competition on overlapping routes and ensuring that consumers continue to benefit from competitive pricing and service options.

The CCCS’s decision underscores the importance of maintaining a competitive aviation market in Singapore, which is crucial for consumer choice and fair pricing. By accepting the commitments from Singapore Airlines and Lufthansa, the CCCS aims to strike a balance between fostering collaboration and protecting consumer interests.

This approval marks a significant step in the strategic partnership between Singapore Airlines and Lufthansa, potentially leading to enhanced connectivity and service offerings for passengers travelling between Singapore and Europe. The airlines are expected to implement the agreed commitments to ensure compliance with the CCCS’s conditions, thereby facilitating a competitive and consumer-friendly aviation market.

Singapore’s top 100 companies have made notable advancements in sustainability reporting, outperforming global averages in six of twelve key indicators, as revealed by KPMG’s 2024 Survey of Sustainability Reporting. This achievement places Singapore among only seven countries where all top 100 companies report on sustainability, compared to a global average of 79%.

The survey, which analysed the sustainability practices of 5,800 companies across 58 countries, highlighted significant progress in Singapore’s corporate sector. Notably, 76% of Singapore’s top companies now recognise climate change as a financial risk, a substantial increase from 49% in 2022, and well above the 2024 global average of 55%. Additionally, 55% of these companies have appointed board or leadership representatives responsible for sustainability governance, up from 35% in 2022.

Cherine Fok, Partner, ESG Consulting at KPMG in Singapore, commented, “This year’s data marks a pivotal moment for sustainability reporting in Singapore, showcasing significant progress in how companies address climate-related risks.”

Despite these achievements, areas for improvement remain. Only 37% of Singaporean companies seek assurance for their sustainability information, below the global average of 54%. Furthermore, the percentage of companies linking sustainability to executive remuneration has decreased from 67% in 2022 to 38% in 2024, although still above the global average of 30%.

Singapore’s continued progress in sustainability reporting is crucial, with opportunities to enhance integrated reporting, align with Sustainable Development Goals, and improve biodiversity and social risk disclosures. As Singapore navigates these challenges, leveraging innovation and collaboration will be key to maintaining its leadership in corporate sustainability.

KPMG in Singapore has released the second episode of its vodcast series, “Singapore Budget 2025 Insights,” focusing on the transformation required to modernise Singapore’s boardrooms. Featuring insights from Pauline Koh, Partner, Tax Governance and IGH & Manufacturing, Tax, and Tea Wei Li, Partner, Risk, Advisory, the episode discusses strategies to enhance corporate governance and agility in an evolving business landscape.

The vodcast highlights the need for strengthened governance to maintain competitiveness. As boardroom discussions increasingly encompass geopolitics, sustainability, and technologies like artificial intelligence, boards must adapt their strategies accordingly. Succession planning is also emphasised due to Singapore’s ageing board leadership and the necessity for innovation.

Government backing and regulatory changes are deemed crucial. Financial incentives could promote transparency and best-in-class governance practices, while programmes like the Directorship Accreditation Programme can empower directors to navigate environmental, social, and governance (ESG) complexities. These resources should be accessible not only to Singapore Exchange (SGX)-listed companies but also to family businesses, startups, and subsidiaries.

The vodcast also addresses the importance of integrating tax governance into board agendas. Companies often overlook tax governance, viewing it merely as a compliance requirement. Aligning with frameworks like the Tax Governance Framework (TGF) and Corporate Tax Risk Management (CTRM) ensures board-level oversight of tax strategies and proactive risk management.

Additionally, the introduction of board shadowing and apprenticeship programmes is suggested to integrate younger professionals into boardrooms, fostering knowledge transfer and equipping boards with expertise in emerging areas such as AI.

This episode of KPMG’s vodcast series underscores the need for comprehensive transformation in Singapore’s boardrooms to ensure they remain agile and competitive in a rapidly changing environment.

CapitaLand Ascott Trust (CLAS) has announced the acquisition of two freehold limited-service hotels in Japan for JPY21 billion (S$178.5 million). The properties, ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae, are strategically located in Tokyo and Kanazawa, respectively. The acquisition, priced at an 8.3% discount to independent valuation, is expected to yield a 4.3% net operating income in FY 2024, significantly higher than the 2% yield from four previously divested properties in Japan.

The acquisition was funded through JPY-denominated debt and proceeds from the divestment of four properties in Japan. This strategic move is part of CLAS’s portfolio reconstitution strategy aimed at enhancing portfolio quality and delivering stable returns to its Stapled Securityholders. Serena Teo, CEO of CapitaLand Ascott Trust Management Limited, stated, “By swiftly redeploying divestment proceeds into these higher-yielding assets, we have fully replaced the income from the four divested properties.”

Japan remains a key market for CLAS, with 18% of its total assets now located in the country. The properties are positioned to benefit from the strong international travel demand, with visitor numbers in Tokyo and Kanazawa surpassing pre-COVID levels by 23% and 12%, respectively. The hotels will operate under management contracts, allowing CLAS to capture income upside.

In the past year, CLAS has completed investments totalling approximately S$530 million, including the recent acquisitions. This aligns with their strategy to recycle capital into quality assets at higher yields, enhancing income distribution for stakeholders.

Elise Mertens emerged victorious at the inaugural Singapore Tennis Open, securing her ninth career WTA singles title. The event, held at the Kallang Tennis Hub, saw Mertens, the second seed, defeat Ann Li in straight sets, 6-1, 6-4, in a match lasting 82 minutes. This victory marks Mertens’ first singles title since Monastir 2023.

Mertens dominated the final, dropping only one set in the tournament prior to facing Li, who had not lost a set until the final. Mertens’ strong baseline play and strategic prowess were evident as she quickly took control of the match, winning the first set in just 26 minutes. Although Li attempted a comeback in the second set, Mertens maintained her composure to clinch the title.

In the doubles final, Desirae Krawczyk and Giuliana Olmos triumphed over Wang Xinyu and Zheng Saisai. The American-Mexican duo showcased their tactical net play and clutch serving, winning the first set 7-5 and dominating the second set 6-0. This victory marks their first title together in nearly five years.

The Singapore Tennis Open attracted nearly 22,000 fans over nine days, offering not only thrilling matches but also a vibrant Fan Village with meet-and-greet sessions and tennis clinics. The event is part of the 2025 Hologic WTA Tour and is set to return in 2026 and 2027, promising more exciting tennis action and fan engagement.

Reflecting on her win, Mertens expressed her delight, stating, “This was the first time the (Singapore Tennis Open) was organised and it was incredibly well-run. I hope to come back next year to defend my title and my points.” Krawczyk and Olmos also thanked the fans, saying, “It’s nice to have a full stadium with all the fans. It’s a great atmosphere for us and we really appreciate it.”

The tournament also featured the Singapore Tennis Invitational Cup, where Singapore claimed victory against Indonesia. The event, organised by the Singapore Tennis Association in partnership with Kallang Alive Sport Management, highlighted the region’s tennis talent and set the stage for future competitions.