Japan May factory output rises 0.5% month-on-month
Manufacturers surveyed by the Ministry of Economy, Trade and Industry expect seasonally adjusted output to rise 0.3 per cent in June and fall 0.7 per cent in July.
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CNA
25 minutes ago
- CNA
Singapore's largest IPO since 2017 sees muted debut
SINGAPORE: Despite its initial public offering (IPO) being oversubscribed, market reaction to a data centre-focused real estate investment trust (REIT) that was billed as the largest to debut on the Singapore bourse since 2017 was muted on the first day of trade. The NTT DC REIT, which started trading on the Singapore Exchange (SGX) at 2pm on Monday (Jul 14), opened at US$1.02, above its offer price of US$1. During the afternoon, the REIT's share price rose as high as US$1.03, before closing at US$1. The trust raised a total of US$773 million and is backed by Singapore's sovereign wealth fund GIC and Japan's telecommunications giant NTT Group. It is the biggest listing on the exchange since 2017, when fibre network-centred NetLink NBN Trust raised S$2.3 billion (US$1.8 billion). NTT Group is the world's third-largest data centre provider through its global data centre business NTT GDC, according to the IPO's prospectus. Mr Yutaka Torigoe, chief executive officer of the manager of NTT DC REIT, said he was encouraged by the "excellent debut" and said it underscores confidence in the quality of the REIT's portfolio, its growth prospects and the outlook for data centres globally. However, analysts were less impressed by the trading performance. "We were hopeful that unit price should hit US$1.10 but the market reaction is much more muted than we anticipated," said Mr Jonathan Koh, a director of research at UOB Kay Hian. He said investors may be holding back their optimism because of the ongoing trade tensions and threats of higher reciprocal tariffs that have led to business uncertainty. Mr Oriano Lizza, a sales trader at CMC Markets, described the share price moves as "notably measured rather than exuberant", but said he viewed it positively. "While the IPO was 4.6 times oversubscribed overall and the public offer was 9.8 times oversubscribed, the tepid price performance actually demonstrates mature investor behaviour," he said. He said the price action suggests institutional discipline rather than retail speculation, noting that GIC holds a 9.8 per cent stake, and is a long-term holder rather than a short-term trader. Mr Lizza also pointed to the current interest rate environment being elevated, which traditionally pressures REIT valuations. He added that investors are "appropriately pricing in execution risk" given that the portfolio of NTT DC REIT spans three continents. "The measured but positive reception demonstrates that Singapore's capital markets are evolving toward greater maturity and sustainability, focusing on long-term value creation – a positive development for the broader market ecosystem," he said. "BREATH OF FRESH AIR" Analysts also said that the successful listing of NTT DC REIT holds significance, in particular because of the size of the listing and the business being focused on data centres. UOB Kay Hian's Mr Koh said the listing signifies a resumption of large-cap companies going public on the SGX. The interest in the listing shows that investors are keen to invest in REITs with a good sponsor and that data centres remain a sought-after asset class, he said. The IPO raised publicity for Singapore REITs since it was the largest REIT listing on the SGX mainboard in a decade, said Mr Jayden Vantarakis, head of ASEAN equity research at Macquarie Capital. "As such, NTT DC REIT brings a breath of fresh air to the space," he said. The listing will likely elevate Singapore REITs and the SGX if it does well, given that there are limited pure data centre-focused REITs in Asia, he added. Mr Lizza said the listing represents a "watershed moment" for Singapore's capital markets. "Beyond the impressive scale, this listing strategically positions Singapore as a regional hub for AI-related investment opportunities," he said. NTT DC REIT provides investors direct exposure to critical digital infrastructure that is powering artificial intelligence and cloud computing growth, he said. SGX Group's head of global sales and origination Pol de Win said the listing taps into the immense growth potential of data centres, which is gaining strong investor interest globally. "As the first REIT by a global tech powerhouse like NTT, it underscores Singapore's position as Asia's leading REIT hub," he said. The outlook for the company appears fundamentally positive, Mr Lizza said, pointing to exceptional growth in the global data centre market. Locally, the government plans to add 300 megawatts of additional capacity, so the structural demand environment is robust, he said. He also said the IPO sends a "strong positive signal" about renewed confidence in Singapore's capital markets, which the government is trying to revive. The quality of the transaction demonstrates that Singapore can attract premium international assets, and should give a boost of confidence to other potential SGX listings, said Mr Lizza. "The combination of government support measures, improved market infrastructure, and this successful large-scale listing creates a more favourable environment for companies considering SGX as their listing destination," he said. He sees a broad base of potential REIT IPOs on the horizon, including data centre, industrial, logistics, hospitality, commercial and retail assets that could raise between S$600 million to around S$1 billion, he said.
Straits Times
28 minutes ago
- Straits Times
Malaysia tightens domestic oversight on US chip movements as tariffs negotiation tactic
Industry players and analysts view Kuala Lumpur's plan on the domestic movements of the high-end chips as a concession to Washington. - Malaysia has moved to tighten oversight on the movement of high-end chips from the United States by imposing a strategic trade permit requirement, in the hope of lowering the tariffs imposed by US President Donald Trump from Aug 1. Mr Trump on July 8 sent a letter to Malaysia's King Sultan Ibrahim Iskandar and Prime Minister Anwar Ibrahim, formally notifying them of a 25 per cent tariff on Malaysian exports – a percentage point higher than the 24 per cent announced in April 2025. Industry players and analysts view Kuala Lumpur's plan on the domestic movements of the high-end chips as a concession to Washington aimed at preserving its trade ties with the US – Malaysia's second-largest trading partner after China, and its top export destination, especially for semiconductors and electronic goods. Malaysia recorded a trade surplus of US$24.8 billion (S$31.77 billion) with the US in 2024. Malaysia's Ministry of Investment, Trade and Industry on July 14 invoked the Strategic Trade Act 2010 (STA 2010) – regulates the export, transit, transhipment and brokering of sensitive goods to prevent their use in weapons of mass destruction (WMDs) – to compel individuals or companies to notify the authorities at least 30 days before the cross-border movement of these chips if there is a possibility that they may be used for a restricted activity. 'This initiative serves to close regulatory gaps while Malaysia undertakes further review on the inclusion of high-performance AI chips of US origin into the strategic item listing (SIL) of the STA 2010,' the ministry's statement said. Nuclear materials, electronics, computers, telecommunication and information security goods that may facilitate the development of WMDs are regulated under the SIL. Singapore's Home Affairs and Law Minister K Shanmugam on May 3 revealed that computer servers that might contain Nvidia chips had been exported to Malaysia from the Republic, and possibly to an unknown final destination . Singapore had come under the spotlight in a Washington investigation in February into whether Chinese start-up DeepSeek had circumvented US restrictions on advanced Nvidia chips by buying them from third parties in other countries, including the Republic. Top stories Swipe. Select. Stay informed. Singapore HSA intensifies crackdown on vapes; young suspected Kpod peddlers nabbed in Bishan, Yishun Singapore Man charged over distributing nearly 3 tonnes of vapes in one day in Bishan, Ubi Avenue 3 Singapore Man allegedly attacks woman with knife at Kallang Wave Mall, to be charged with attempted murder Singapore Singapore boosts support for Timor-Leste as it prepares to join Asean Singapore UN aviation and maritime agencies pledge to collaborate to boost safety, tackle challenges Asia Thailand's anti-graft agency set to probe suspended premier Paetongtarn Singapore High Court dismisses appeal of drink driver who killed one after treating Tampines road like racetrack Singapore 18 years' jail for woman who hacked adoptive father to death after tussle over Sengkang flat Kuala Lumpur's move to enforce the new permit requirement for high-end chips signals the country's commitment to curbing activities prohibited by Washington, said Malaysia Semiconductor Industry Association president Wong Siew Hai. 'It's another reinforcement from the government to show its dead seriousness in complying with US requirements. We want to position Malaysia as a trusted nation for handling high-end chips,' he told The Straits Times. Datuk Wong noted that Malaysia's semiconductor industry, which accounted for over 7 per cent of global export market share in 2024, has a longstanding track record of compliance, including adhering to US export controls that prohibit shipments to sanctioned countries for more than four decades. While acknowledging that high-end chips are not directly linked to WMD, academic Dr Lam Choong Wah said Malaysia is taking US concerns over potential misuse of the technology seriously. 'Regulating these chips under the STA 2010 shows that Malaysia is willing to align with Washington's rules. Hopefully, Washington may consider reducing the tariff by a few percentage points,' Dr Lam, the deputy head of Department of International and Strategic Studies at the University of Malaya told ST. However, senior lecturer Dr Tee Chwee Ming of Monash University Malaysia believed the restriction on AI chips is primarily aimed at preventing Malaysian companies from being blacklisted by US firms, which could disrupt the AI chip supply chain and undermine Malaysia's ambition to become a global data centre hub. Dr Tee added that to secure more favourable tariff terms, Kuala Lumpur may be expected to move away from certain domestic policies the US has cited as trade barriers – such as pro-Bumiputera preferences in government procurement and halal certification requirements – as well as to reduce the involvement of Chinese firms in its semiconductor supply chain. 'The first two are red lines for the Malaysian government, while the last is an impossible request to fulfil,' he told ST. Minister of Investment, Trade and Industry Tengku Zafrul Aziz on July 14 said Malaysia remains open to US agricultural exports, provided they meet local regulatory requirements. But areas such as 'digital commerce, government procurement, and standards related to health or technical matters' are considered red lines and are unlikely to be open to negotiation, he noted.
CNA
an hour ago
- CNA
CNA938 Rewind - Q2 growth: Could we be in for a tougher second half?
According to advance estimates from the Ministry of Trade and Industry, Singapore's economy grew 4.3 per cent in the second quarter of 2025 - faster than the 4.1 per cent growth in the first quarter of the year. But the ministry flagged significant uncertainty and downside risks remaining in the global economy in the second half of the year - given the lack of clarity over U.S tariff policies. Lance Alexander discusses with Selena Ling, Chief Economist and Head of Global Markets Research and Strategy, OCBC.
