Industry News

The Singapore Department of Statistics has revealed that the services sector is bracing for a less favourable business environment from April to September 2026. The Business Expectations Survey indicates that 13% of firms are optimistic, whilst 17% foresee deteriorating conditions, resulting in a net weighted balance of 4% expecting a downturn.

The survey, conducted from March to April 2026, highlights the impact of geopolitical tensions, including the US-Israel-Iran conflict, on business sentiment. The Food and Beverage Services industry anticipates a challenging period due to fewer festive events and rising prices, which are expected to kerb consumer spending. Similarly, the Transport and Storage industry is concerned about overcapacity and lower freight rates, further exacerbated by geopolitical issues.

Retail Trade also predicts a tough six months, with concerns over reduced tourism and consumer spending due to ongoing Middle East tensions. Conversely, the Wholesale Trade industry remains optimistic, driven by sustained demand for AI-related products. The Recreation, Community and Personal Services industry also expects growth, particularly in healthcare and childcare services.

Operating revenue for the sector is expected to decline slightly in the second quarter of 2026, with a net weighted balance of 1% predicting a downturn. Employment levels are anticipated to remain stable, with no net change expected. The survey results are crucial for informing government policy and business planning in Singapore.

Singapore’s labour market is experiencing a shift from expansion to selection, according to Jobstreet by SEEK, following the Ministry of Manpower’s (MOM) Labour Market Advance Release for Q1 2026. The data reveals a more competitive job environment, with fewer new roles compared to a year ago and an increase in candidates vying for each position.

Jobstreet by SEEK’s platform data indicates a slight rise in job postings by 1.9% quarter-on-quarter, yet these remain below last year’s levels. Meanwhile, job applications have surged by 14.8%, intensifying competition among jobseekers. This has led to what Jobstreet describes as a “talent paradox,” where there is a mismatch between the skills employers seek and the qualifications of available candidates.

The commentary notes that whilst applications are concentrated in areas like accounting and logistics, demand is growing in specialised sectors such as semiconductors, manufacturing, and government-related functions. This discrepancy means that despite a higher volume of applications, employers struggle to find candidates with the necessary skills.

Jobseekers are reportedly becoming more selective, prioritising roles that offer flexibility, stability, or purpose, even if it means accepting lower titles or pay. This trend is contributing to the rise in applications, as candidates test the market whilst being cautious about job changes.

For employers, success hinges on clearly defining role expectations and aligning them with candidate priorities. Jobseekers, on the other hand, are advised to adopt a strategic approach, focusing on transferable skills and viewing any “trade down” as a step towards long-term career growth.

Lenovo has announced the launch of its xIQ platform in Singapore, marking a significant step in the company’s efforts to provide enterprises with a comprehensive AI solution. Unveiled at the Milipol TechX 2026 summit, the platform integrates AI agents, digital workplace tools, and hybrid cloud operations into a single framework designed to address the growing need for secure and scalable AI deployment.

The xIQ platform is part of Lenovo’s Hybrid AI Advantage™, which combines the Hybrid AI Factory, Lenovo AI Services, and the AI Library. This suite is designed to help organisations in Singapore deploy, govern, and scale AI with confidence. The platform’s infrastructure is built to ensure security, sovereignty, and scalability, addressing the critical need for data privacy and compliance as highlighted by the Lenovo CIO Playbook 2026.

Fan Ho, Vice President and General Manager of Lenovo Asia Pacific’s Solutions and Services Group, stated, “Enterprises across the region are looking for AI that delivers results responsibly, securely, and at speed, without added complexity.”

The xIQ platform includes three AI-native platforms: the xIQ Agent Platform for rapid AI agent deployment, the xIQ Digital Workplace Platform for enhancing employee productivity, and the xIQ Hybrid Cloud Platform for optimising hybrid and multi-cloud environments. These tools aim to streamline operations and accelerate innovation, helping organisations achieve measurable business outcomes.

Lenovo’s collaboration with Yili Group, a leading dairy producer, exemplifies the platform’s potential. By implementing Lenovo’s AI services, Yili enhanced customer engagement and supply chain visibility, showcasing the practical benefits of Lenovo’s AI solutions. As Lenovo continues to expand its AI offerings, the xIQ platform is set to play a pivotal role in advancing AI adoption in Singapore.

Visa has unveiled its Agentic Ready programme in Singapore, collaborating with 13 banks and fintech partners to enhance the payments ecosystem in the era of agentic commerce. This initiative aims to support issuer readiness by providing a structured path for testing and validating agent-initiated transactions within a controlled environment.

The programme, powered by Visa’s trust layer—which includes tokens, identity, risk, and controls—will initially focus on issuer readiness. Participating partners include Bank of China Singapore, CIMB Singapore, DBS Bank, DCS, GXS Bank, HSBC Singapore, Maybank Singapore, OCBC, Standard Chartered, StraitsX, Trust Bank, UQPay, and UOB. Additional partners are expected to join as the programme expands.

Adeline Kim, Visa’s Country Manager for Singapore and Brunei, highlighted Singapore’s role as an innovation hub, stating, “Singapore is an innovation hub where ideas move quickly from concept to real-world impact, making it the ideal market to progress agentic commerce.” A Visa-commissioned study revealed that 77% of Singapore residents already use generative AI tools, with eight in 10 relying on AI assistance for online shopping.

The Agentic Ready programme builds on Visa Intelligent Commerce, aiming to enable trusted AI-driven commerce experiences at scale. Visa is also working with merchants and ecosystem partners to identify consumer-relevant use cases. As the programme progresses, Visa plans to ensure trust and control are embedded across the payments ecosystem to facilitate secure and transparent commerce experiences.

This initiative marks a significant step in advancing digital payments, with Visa and its partners poised to explore the potential of agent-initiated transactions in a secure and scalable manner.

New research from PlanRadar indicates that artificial intelligence (AI) could play a crucial role in retaining talent within Singapore’s construction sector, which is currently grappling with manpower shortages. The study, involving 1,728 construction professionals, found that 58% believe AI can alleviate significant challenges such as project delays and managing changes. More than half of the respondents expressed a higher likelihood of staying with their employer if there was increased investment in AI tools.

The survey highlights that nearly half of the professionals spend over 11 hours weekly on tasks they believe AI could streamline. Those already utilising AI report saving at least two hours per project each week. Despite these benefits, adoption remains slow, with nearly half of the respondents indicating no current plans to invest in AI-enabled tools.

Trust and cost are the primary barriers to AI adoption in Singapore, with cost concerns ranking higher than the global average. This suggests that firms are carefully evaluating the return on investment before committing to new technologies. “Construction professionals are not resistant to AI. They are asking for tools they can trust,” said Sander van de Rijdt, Co-Founder and CEO of PlanRadar.

The findings come as the sector prioritises productivity and digitalisation under initiatives like the Built Environment Industry Transformation Map. With the Project Management Institute estimating a need for nearly 2.5 million additional project professionals by 2035, AI investment could serve as a vital retention strategy.

Landmark Real Estate Investment Trust (REIT) has announced a strong performance for the first quarter of 2026, with gross revenue rising by 4.6% to S$52.2m compared to the same period last year. This growth is attributed to increased rental revenue and a significant rise in carpark income, which jumped by 29.1% following a change in management arrangements.

The REIT’s net property income also saw a boost, climbing 5.7% to S$30.8m. In Indonesian Rupiah terms, gross revenue and net property income grew by 14.3% and 15.6%, respectively. The increase in carpark income, from IDR28.6b to IDR40.4b, was a notable contributor, now recognised on a gross basis rather than net of operating expenses.

The portfolio’s occupancy rate remains robust at 87.5%, surpassing the industry average of 78.4%, according to data from Cushman & Wakefield. This high occupancy rate underscores the REIT’s resilience and strategic enhancements in its portfolio management.

Looking ahead, Landmark REIT continues to focus on maintaining its strong market position amidst a slightly softening Indonesian economy. The World Bank and OECD have adjusted their growth projections for Indonesia, but the REIT remains confident in its strategic direction and operational resilience.

DBS Group has reported a 1% increase in net profit for the first quarter of 2026, reaching S$2.93b. The bank’s total income hit a new high of S$5.95b, driven by exceptional performance in wealth management, which boosted fee income and treasury customer sales. Despite challenges from lower interest rates and a stronger Singapore dollar, DBS maintained a cost-income ratio of 39% and a stable non-performing loan (NPL) ratio of 1.0%.

Compared to the previous quarter, DBS’s net profit surged by 24%. Non-interest income saw a 41% rise, with significant gains in fee income and treasury customer sales, whilst markets trading income more than doubled. Expenses decreased by 3%, and specific allowances were reduced by more than half.

DBS CEO Tan Su Shan commented, “We had a strong start to the year, with record total income and a return on equity of 17% despite continued rate headwinds and heightened geopolitical uncertainty.” She highlighted the bank’s resilience and ability to support client needs in a challenging environment.

The bank remains vigilant about potential uncertainties, such as the Iran war, but stress tests indicate a sound credit portfolio. DBS continues to invest in growth initiatives, including transformational technology, to enhance customer service and seize long-term opportunities.

Looking ahead, DBS’s solid balance sheet, strong capital position, and robust liquidity are expected to underpin its resilience amidst ongoing global uncertainties.

Singapore’s Minister for Foreign Affairs, Dr Vivian Balakrishnan, underscored the importance of the Singapore-European Union (EU) partnership during the European Chamber of Commerce (EuroCham) Singapore’s Annual General Meeting (AGM) on 29 April. Held at the Amara Hotel, the event gathered EuroCham’s Board of Governors, senior government officials, and diplomatic stakeholders, including Artis Bertulis, the EU Ambassador to Singapore.

In his address, Dr Balakrishnan highlighted the necessity for consensus in dealing with global diversity, stating, “The key point for the principle of consensus and deliberations is when you’re dealing with such diversity, getting everyone on board is critical.” He also called for accelerated EU-ASEAN free trade agreements, noting the shared belief in the rule of law amidst global disruptions.

EuroCham President Jens Rübbert echoed the sentiment, advocating for increased communication in Europe about the value of globalisation and free trade. He remarked, “At the end of the day, there’s no alternative.”

Ambassador Bertulis praised the EU-Singapore partnership for creating jobs, driving innovation, and generating wealth. He highlighted the EU-Singapore Digital Partnership and collaboration on decarbonisation as key areas of cooperation.

The AGM also marked EuroCham’s 25th anniversary, unveiling a new brand identity and website. Rübbert emphasised EuroCham’s commitment to thought leadership and public-private engagement, stating, “Our role has never been more relevant.”

As both regions approach significant anniversaries in 2027, the focus remains on strengthening ties and addressing global challenges collaboratively.

Sheng Siong Group, one of Singapore’s leading supermarket chains, has announced a 12.4% increase in revenue for the first quarter of the financial year 2026, reaching S$452.8m. This growth is attributed to the opening of 12 new stores in FY2025 and robust festive sales during the Lunar New Year and Hari Raya Puasa.

The group’s net profit also rose by 12.6% to S$43.4m, supported by a 15% increase in gross profit to S$140.3m. The gross profit margin improved by 0.7 percentage points to 31%, reflecting a better sales mix that helped offset rising business costs.

Sheng Siong secured three new store locations, with two expected to open in the second quarter and one in the third quarter of FY2026. The company is also awaiting the results of five tenders from the Housing Development Board (HDB).

CEO Lim Hock Chee stated, “The Group remained resilient amid macroeconomic uncertainties and delivered steady performance in the first quarter, reflecting our operational strength and solid fundamentals.”

Despite challenges such as geopolitical tensions and rising energy costs, Sheng Siong is focused on refining its sales mix, diversifying its supplier base, and investing in automation to enhance operational efficiency. The company aims to continue its expansion in areas with limited presence, ensuring its value-for-money proposition meets evolving consumer needs.

International travel is experiencing a significant surge this Labour Day holiday, with outbound flight bookings from Singapore and China rising by 15% year-on-year, according to data from Trip.com Group. The extended five-day holiday in China, from 1 to 5 May, has encouraged more Chinese travellers to explore international destinations, often visiting multiple cities in one trip.

Edmund Ong, Senior Regional Director at Trip.com, noted, “Singaporeans are making use of the long weekend for quick international escapes, whilst Chinese travellers are not just venturing abroad, but often exploring two or more cities within a single overseas trip.” Popular destinations for Chinese travellers include Seoul, Bangkok, Singapore, Kuala Lumpur, and Tokyo.

In Singapore, the three-day Labour Day break has prompted many to travel abroad, with a notable 16% increase in multi-city bookings. Destinations such as Kuala Lumpur, Bangkok, and Seoul remain popular, whilst cities like Shanghai, Guangzhou, Sydney, and Tokyo have seen over 30% growth in bookings.

Chinese travellers are also showing a strong preference for international travel, with a 31% increase in multi-destination trips. Top international destinations include Seoul, Bangkok, and Singapore, whilst Shanghai, Beijing, and Chengdu are favoured for domestic travel.

For inbound travel to Singapore, China leads as the top source market, followed by Malaysia, Thailand, Indonesia, and the Philippines. This trend highlights the growing appeal of Singapore as a travel destination during the Labour Day holiday.