Singapore’s new leader will have no honeymoon 16 Apr 2024 Prime Minister Lee Hsien Loong will hand over power next month in a well-planned move. His successor Lawrence Wong needs to shore up the ruling party’s votes ahead of elections, manage Singapore’s growing pains as a finance hub, and keep China happy. There won’t be any easy wins.
Commodity trading giants get in cotton M&A spin 26 Mar 2024 Singapore's Olam has bested Louis Dreyfus' offer for one of Australia's largest processors of the fibre. The two suitors have battled Down Under in the past, and Olam looks to have the edge for a second win. But the volatility of earnings in this small deal warrants caution.
Singtel can dial up long distance call 18 Mar 2024 The Temasek-controlled firm denies it is selling Australia's Optus to Brookfield for up to $12 billion, twice what some analysts reckon the business is worth. If done right, a deal Down Under could help CEO Yuen Kuan Moon narrow the extreme discount Singtel suffers.
Taylor Swift is Thai economy’s antihero 6 Mar 2024 Singapore's exclusive deal to host the pop star's Southeast Asia concerts has irked its neighbours. Thailand, with the slowest post-pandemic recovery, is upset at missing out on the spoils. Those are debatable and in any event wouldn't shake off the $500 bln economy's malaise.
Shein’s China and ESG risk puts IPO on iffy ground 25 Jan 2024 The fast-fashion giant is preparing a New York stock market listing. In this Viewsroom podcast, Breakingviews columnists explain how US investors might be wary of links to Beijing, and how its hard-to-recycle $5 tops and sweaters could be vulnerable to future regulation.
Shein’s waste factor is its ultimate IPO risk 19 Jan 2024 The China-linked retailer’s lean production model helps it keep inventory low. Yet its polyester garments are carbon-intensive and hard to recycle. Regulators’ growing unease about textile pollution, and the cost of addressing the mess, may require giving up clients or margins.
Capital Calls: Birkenstock 19 Jan 2024 Concise views on global finance: The German sandal maker gets a reality check from investors three months after its much-hyped IPO.
Asia’s tech giants lean toward desperate deals 30 Nov 2023 TikTok is in talks to tie up with Indonesia’s GoTo to avoid a ban on social media entities in e-commerce, per Bloomberg. China’s growth woes incentivises its companies to compromise as they push overseas. A share price rout means Southeast Asian foes could soon become friends.
Piyush Gupta: Asia’s most disrupted digital banker 2 Nov 2023 The CEO of Singapore’s DBS is often feted as the region’s top financier and a candidate to lead rivals. Yet following repeated tech fails, the regulator has banned the bank from activities including M&A. It puts dividends at risk and will attract the eye of watchdogs overseas.
Singapore policy review shift is sign of times 13 Oct 2023 The central bank will double the frequency of its monetary settings statements from 2024. The unexpected move to quarterly meetings is overdue. Flexibility to respond fast to the risks posed by volatile geopolitics is paramount, more so for Singapore’s open economy.
Grab can feast on Delivery Hero’s Asia leftovers 21 Sep 2023 The Singapore giant is an obvious buyer for its rival’s Southeast Asian food business, a potential $1 bln purchase. It has extended its lead before by gobbling up operations of retreating Western firms. Investors are tepid on the tech recovery but Grab has the muscle for a deal.
Singapore’s wealth boom hits most sensitive phase 6 Sep 2023 A ballooning $1.3 bln money laundering scandal and China’s angst about capital flight may be unrelated but together they point to a slowing of inflows into the Asian hub. Banks will scrutinise clients more closely and toe a careful diplomatic line. That may not be a bad thing.
UBS inherits tricky wealth legacy in Asia 29 Aug 2023 By gobbling up Credit Suisse, Sergio Ermotti is expanding his bank’s clout in serving the Asian super-rich. Yet exposures to risk-taking entrepreneurial clients used to big leverage pose a challenge. Regaining the wealth ground lost by its Swiss rival will also not come cheap.
DBS shareholders show little interest in interest 3 Aug 2023 Rising rates powered most of the $65 bln Singapore bank’s bumper profit jump in another record quarter. Yet the stock is up less than 10% in 12 months. Whether it’s fears about the economy or interest income sustainability, CEO Piyush Gupta isn’t getting the benefit of the doubt.
GIC’s real estate safe haven is hard to copy 26 Jul 2023 Singapore’s $690 bln sovereign fund nearly doubled its real estate allocations to 13% in three years. Its student homes to logistics portfolio provides a timely inflation hedge for one of the most active investors in its class. Peers trying to catch up will overpay.
Singapore’s clean reputation gets a timely test 18 Jul 2023 Officials arrested a cabinet minister and a prominent hotel tycoon without saying why. Corruption cases are rare in Singapore. But as the hub becomes a favourite destination for the rich, the investigation is a useful opportunity to burnish its reputation for tough enforcement.
Temasek is betting on all its stars aligning 12 Jul 2023 Singapore’s state investor had a tricky year with its net value dropping 5.2% to $285 bln and the FTX debacle. Half its portfolio is in unlisted assets, so it’s relying on public markets picking up, Southeast Asia thriving and China recovering. Most of that is out of its hands.
Pricey property is a pointy dilemma for Singapore 28 Jun 2023 Rich foreign arrivals including family offices are an easy scapegoat for house prices bucking a global slump. But Asia’s safe haven needs to keep the public onside more than other hubs like Hong Kong as it vies for global capital. The stakes of keeping everyone happy are high.
Global airlines grasp at the 100% recovery 21 Jun 2023 Passengers are slowly taking back to the skies but remain reluctant to travel internationally. Singapore Airlines logged a record net profit but won’t say when it will return to pre-pandemic capacity. Rivals are more committed but whether they can deliver is up in the air.
Private equity hurtles towards hard Asia reset 7 Jun 2023 China is the area’s powerhouse, but funds are under pressure from investors to limit exposure to the People’s Republic. Sequoia splitting the country off from the rest of emerging Asia formalises a growing trend, but an industry pivot to politically safer shores may sap returns.