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Business Times
22-07-2025
- Business
- Business Times
South-east Asia's IPO market shows signs of revival after subdued H1
[SINGAPORE] Initial public offering (IPO) activity across South-east Asia remained subdued in the first half of 2025 amid ongoing geopolitical and macroeconomic uncertainty, but market observers say signs of recovery are emerging for H2. The number of IPOs on major South-east Asian exchanges – in Indonesia, Malaysia, Singapore, Thailand, the Philippines and Vietnam – declined compared to the same period last year. Based on a recent Deloitte report, 53 listings were recorded in H1 2025, down from 64 in H1 2024. Ben Charoenwong, associate professor of finance at Insead, told The Business Times that the slowdown was driven not only by a reduced appetite to list but also by a widening valuation gap, fuelled by tariff uncertainty and global trade tensions. He described South-east Asia's IPO activity in H1 2025 as 'a classic supply-demand mismatch story' – where companies that proceeded with listings often accepted significantly smaller capital raises and longer timelines than initially planned. Prof Charoenwong said: 'Companies needed capital, but investors simply weren't willing to pay the prices that issuers expected. Yet, the private market has also dried up.' A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Still, signs of recovery are becoming evident. Stephen Bates, partner and head of deal advisory at KPMG in Singapore, noted that while large IPOs remain rare, smaller sector-focused listings – particularly in technology, fintech and renewable energy – are gaining momentum. He added that this rebound is supported by easing macroeconomic conditions and sector-specific growth drivers, such as the rapid expansion of tech and artificial intelligence (AI)-driven businesses, increased demand for renewables and infrastructure, and growing activity in consumer and healthcare sectors. Tay Hwee Ling, transactions accounting support leader at Deloitte South-east Asia, said renewed investor confidence is also reflected in the uptick of IPO activity in the consumer and real estate sectors, alongside a gradual reopening of capital markets for larger issuers. She pointed to a notable increase in sizeable mainboard IPO prospectuses lodged on South-east Asian bourses in June 2025 as an encouraging indicator. 'This signals positive market sentiments, and positions the region for a more vibrant second-half performance.' Bates also observed that the region's regulatory reforms and government initiatives – including improved market transparency, streamlined listing processes, International Financial Reporting Standards adoption and tax incentives – have bolstered sentiment and helped attract new listings. 'Companies increasingly favour local exchanges over international ones due to regulatory support and growing domestic investor interest,' he said. He added that strong foreign direct investment inflows into South-east Asia's digital and green sectors, amid supportive policies for IPOs in these areas, have further benefited the region. 'Cautious optimism' This year, global markets have become notably more upbeat. 'Investor sentiment has shifted from caution in 2024 to cautious optimism in the first half of 2025,' said Bates. Jimmy Seet, capital markets partner at PwC Singapore, observed that while macroeconomic fundamentals such as inflation and growth are showing signs of improvement, heightened geopolitical tensions continue to temper market enthusiasm. 'In this environment, investors are increasingly selective, gravitating towards high-quality issuers with proven profitability and operating in resilient sectors,' he added. Prof Charoenwong highlighted that investor caution intensified, following US President Donald Trump's 'Liberation Day' tariffs on Apr 2. He said: 'When US tariffs hit 145 per cent in April and regional indices dropped 10 per cent, we saw a complete freezing of IPO windows. And despite the US market recovering from that shock, the increased uncertainty also means that CFOs (chief financial officers) are holding off more, part of the option value of waiting to proceed with projects in the future.' In contrast, Bates said that geopolitical tensions have actually boosted IPO activity, as investors increase exposure to the region amid global uncertainties. Malaysia leads Amid global market jitters, Malaysia's stock exchange outshone its regional peers with a surge in IPO activity. According to the Deloitte report, the number of listings in Malaysia increased about 48 per cent year on year to 32, with proceeds raised increasing by some 109 per cent to US$940 million. This was accompanied by an uptick in total IPO market capitalisation by about 165 per cent to US$4.04 billion, accounting for over two-thirds of total proceeds raised across the South-east Asian region. Market watchers attributed this strong performance to regulatory reforms, including a faster IPO approval process. Prof Charoenwong noted that Bursa Malaysia's new framework, which cuts approval timelines from six months to three months, enables companies to respond more swiftly to market conditions. The Leap Market Transfer Framework has further added agility, allowing firms to pivot across market segments without being stalled by lengthy procedures. Seet also pointed to stabilising macroeconomic indicators, such as improved gross domestic product growth and moderating inflation, as additional drivers of market liquidity. These conditions made it easier for Malaysia to respond effectively to shifting global market conditions. 'When markets became volatile in March, Malaysian issuers could delay or accelerate based on conditions, while companies stuck in other jurisdictions' slower systems missed their windows entirely,' said Prof Charoenwong. He added that other government incentives further supported this agility. For the opposite reason, another standout IPO market for Prof Charoenwong was Thailand. 'Instead of high-conviction government policies aimed at supporting a vibrant stock market, Thailand was hit with both an earthquake and the tariffs, amid an already slowing economy and further political turmoil,' he said. On the Singapore Exchange (SGX), the IPO market has shown signs of renewed momentum. Seet attributed this to recent reforms in the listing framework and supportive initiatives by the Monetary Authority of Singapore, which have sparked increased interest in listing on the bourse. 'Although only one IPO was completed in H1 2025, the outlook for H2 is promising, with several offerings already announced,' he said. The IPO of NTT DC Reit, for example, marks a notable milestone, given it is the first real estate investment trust listing on the SGX in nearly four years. Looking ahead IPOs are expected to perform better across South-east Asia in H2, supported by strong growth and key reforms, though risks persist. 'Ongoing regulatory reforms across the region are expected to sustain interest in new listings,' said Seet, adding that escalating trade tensions could pose headwinds to broader IPO activity. Similarly, Bates noted that potential issuers will need to manage challenges arising from the uncertain geopolitical environment. 'New tariffs, the ongoing US-China trade decoupling and supply chain disruptions create IPO delays and valuation challenges.' He explained that regional currency swings and shocks like the April 2025 sell-off make it harder to time listings and attract foreign investors. Varying regulations across Asean, global tax reforms and stricter listing standards also increase compliance burdens and preparation time. Additionally, Bates sees the financial and operational demands of preparing for an IPO – including legal, accounting and management time – posing significant challenges, particularly for smaller firms in less developed markets. Against this backdrop, Prof Charoenwong said companies that can tap into the AI-driven momentum in the US and Chinese markets stand to benefit, especially if positioned as diversification plays away from dominant incumbents. In a related trend, Seet noted that the continued underperformance of and waning investor interest in China's A-shares market may prompt more Chinese companies to pursue offshore listings. He believes SGX is well-positioned to capture this interest, given its reputation as an international capital-raising hub and a strategic gateway for Chinese firms seeking access to South-east Asian investors.
Straits Times
11-06-2025
- Business
- Straits Times
Nearly 1 in 2 business leaders in S'pore ready to tackle geopolitical and other challenges: Report
Kroll surveyed 1,200 C-suite executives from more than 20 markets including the United States, Britain, Hong Kong and Singapore in February. PHOTO: LIANHE ZAOBAO Nearly 1 in 2 business leaders in S'pore ready to tackle geopolitical and other challenges: Report SINGAPORE – Business leaders in Singapore are among the most confident globally about their level of business preparedness when it comes to dealing with challenges ranging from geopolitical tensions to cyber-security threats and developments in the artificial intelligence (AI) space. In its first edition of the Business Sentiment Report, global risk and financial advisory firm Kroll found that 48 per cent of respondents in Singapore were 'very prepared' to face the challenges. This is higher than the 34 per cent in the Asia-Pacific region and 38 per cent globally. Kroll surveyed 1,200 C-suite executives from more than 20 markets such as the US, Britain , Hong Kong and Singapore in February . About one-third of all those surveyed work in the financial services industry, and more than one-fifth are in technology companies. The report highlighted geopolitical tensions, such as tariffs, as one of the most significant business challenges facing organisations over the coming year. The survey was conducted before US President Donald Trump slapped 'Liberation Day' tariffs on economies on April 2, which he then put on hold as he strikes trade deals with different nations. Singapore runs a goods trade deficit of US$2 .8 billion (S$3.6 billion) with the US, according to data from the Office of the United States Trade Representative. This means that the Republic imports more goods than it exports. As a result, businesses here would not have expected to be slapped with tariffs, said Mr Joshua Tucker, senior geopolitical adviser at Kroll. Singapore was hit by a baseline tariff of 10 per cent. Mr Tucker said business leaders here were probably a bit too optimistic about their ability to predict the US policy on tariffs. The survey had found that 22 per cent of Singapore business leaders identified geopolitical tension as a significant business concern, compared with 33 per cent globally and 28 per cent in the Asia-Pacific. Insead economics and political science professor Pushan Dutt believes business sentiment should have since shifted substantially after the imposition of the tariffs. 'One school of thought is that we will live in a Taco (Trump Always Chickens Out) world – that his bark is worse than his bite and he always backs off. However, what Trump has induced in the global economy is uncertainty,' he said. He explained that Taco-like behaviour increases uncertainty as firms and political leaders will not be able to ascertain how long the tariffs will be imposed for, if and when they will be lifted and how the conditions and types of tariffs could evolve. 'We should distinguish between risk and uncertainty – the first is about known unknowns and the second is about unknown unknowns. We have been catapulted into a world of uncertainty and should not live in denial,' he added. Mr Tucker said that while tariffs, like other direct business costs, can be factored into decision-making, there are other indirect costs stemming from uncertainty over the US tariff policy. If businesses do not know what tariffs will be in 30 days, six months or a year, they will not be able to plan ahead to mitigate the effects of tariffs . They may thus be less willing to take large risks, make acquisitions or enter new markets, he added. Mr Nick Baker, co-lead for trade and customs at Kroll, said companies risk falling into 'analysis paralysis', where they are constantly reassessing strategies but not taking action to implement their plans. Mr Tucker noted that Singapore is heavily dependent on trade with other economies. The 10 per cent baseline tariff on the Republic , as well as higher tariffs on neighbouring economies, could thus have an 'outsized economic impact on businesses'. Kroll stated in its report that whether companies can weather the 'economic and geopolitical upheaval' will depend on their underlying financial health. Singapore companies scored relatively well on this front, with 20 per cent of business leaders here saying they have full confidence in their companies' financial health, versus 9 per cent of respondents in the Asia-Pacific and globally. Ms Annabelle Cai, managing director in the restructuring practice at Kroll, said 'strategic measures' announced in Singapore's Budget 2025, such as the 50 per cent corporate tax rebate, enhanced wage support for lower-income workers, and more funding support for firms to make AI investments, will help firms to manage rising costs and drive sustainable growth. A stable government and business-friendly environment contribute to business confidence in Singapore, Ms Cai added. On the whole, Dr Huynh Bao Tan, senior lecturer of economics at the Singapore Management University, stresses that while Singapore is impacted by the imposition of the tariffs, the 10 per cent levy is imposed across the board, and hence will likely have minimal impact on Singapore's relative competitiveness overall. 'Overall, I wouldn't be surprised if businesses' sentiment has dropped a little (from the time the survey was conducted), but I'm not really expecting things to have changed much,' he said. 'Markets seem quite hopeful that there'll be good outcomes regarding the trade negotiations,' he added, referring to the US trade talks with China as well as the European Union. Additional reporting by Megan Wee Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
04-06-2025
- Business
- Business Times
China's AI play is rewiring Asean's manufacturing game
[SINGAPORE] As the US and China race to dominate artificial intelligence (AI), Beijing's industrial-first approach is quietly redrawing Asia's tech landscape, opening doors for Asean manufacturers and shifting the region's centre of gravity. At Insead's AI Forum Asia last week, economists said China's focus on applying AI to real-world sectors like precision engineering and healthcare, rather than chasing software dominance, could accelerate tech transfer to South-east Asia, especially as geopolitical rifts deepen. Since launching its 'Made in China 2025' strategy, Beijing has used AI to push its manufacturing sector up the value chain, lifting industries like electric vehicles and solar energy in the process, said Dr Pushan Dutt, professor of economics and political science at Insead. Dr Dutt explained that China's approach stands in contrast to US tech companies, who have prioritised a push towards software supremacy through a strong talent pool and widespread implementation across business needs. For instance, Dr Dutt noted that 40 notable AI models in the last ten years had been developed in the United States, more than double of the 15 models developed in China. In addition, AI infrastructure in the US remains far stronger than in China, with ten times more data centres and four times more spending on AI servers. 'Yet 70 per cent of patents in the AI sector are coming from China,' Dr Dutt noted. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up 'China is much more pragmatic in solving social problems such as manufacturing and healthcare, whereas the Americans have spent more time on knowledge diffusion,' he said. The Asian giant's acceleration of its AI ecosystem is as much a response to external pressure as it is an internal strategy, Dr Dutt explained. He noted that rising US export controls on semiconductors and advanced computing tools have only pushed China to innovate more aggressively. Natural partners In addition, US trade policies under Trump could change the way AI technology spreads geographically. 'Trump's policies could also trigger China to build its own alliances within its sphere of influence, which might mean exporting more of its technologies to Asia and the Middle East,' said Dr Lily Fang, professor of finance and dean of research and innovation at Insead. One of the regions that stands to benefit directly from this realignment is Asean, Dr Fang told The Business Times. South-east Asia's strong manufacturing base makes it a natural partner for Chinese AI solutions, particularly in areas such as precision engineering and industrial robotics. While leading US models such as Open AI's GPT-4 and Anthropic's Claude remain closed source, Chinese AI developers have lowered barriers toward more widespread cross-border adoption, Dr Fang noted. DeepSeek, for instance, has released its model weights, source code and documented its training methodologies. 'These countries will be competitive because they have both the hardware and software capabilities,' Dr Fang added. Evolving infrastructure South-east Asia's infrastructural capabilities for AI, such as energy and data centres, have also made the region increasingly attractive to Chinese firms as domestic supply reaches bottlenecks. Still, the region's AI capabilities have not developed on equal footings, said Kevin Pereira, managing director at the AI consulting firm BluAI. 'There are big differences in infrastructure across South-east Asia,' he noted. 'If you don't have good infrastructure, no matter how good the individual products are, using AI becomes really difficult.' For Asean countries to capitalise on their strengths, these economies will need to evolve with the times, Dr Fang noted. 'For South-east Asia, perhaps the most important step is to upskill the workforce beyond lower-end manufacturing,' she said. Such upgrading does not necessarily mean widespread loss of jobs in manufacturing, Dr Fang noted. 'For example, tasks that rely on the dexterity of human fingers will not be replaced by robotics,' she said. 'But certain tasks that may be dangerous, tiring or repetitive can be done by robots instead, allowing humans to focus on more meaningful tasks.' The need to upskill was echoed by the forum's keynote speaker Andrea Phua, senior director at the Ministry of Digital Development and Information's digital economy office and lead author of Singapore's AI strategy that was launched in 2023. While Asean's lower-end manufacturing jobs are likely to witness meaningful development, Phua noted that white collar jobs across several sectors would likely experience significant disruption. 'AI is transforming the newsroom, the courtroom, the factory floor and laboratories,' said Phua. 'The shifting of value chains will be a painful conversation that requires a hard look,' cautioned Phua. 'On top of technological innovation, business leaders will have to introduce organisational and bureaucratic innovation to keep moving forward,' she added. She noted that while optimism towards AI technology is not misplaced, the speed of change demands a mindset shift across the labour force. 'When AI development moves at the pace that it does, our learning needs to happen in weeks, not even months,' she said.
Business Times
30-04-2025
- Health
- Business Times
Sodexo, Insead partner Montfort Care to help seniors eat healthier meals
[SINGAPORE] Armed with a rice cooker and ingredients such as chicken and chopped shiitake mushrooms, a chef from Sodexo conducted a live cooking demonstration for about 60 seniors at Goodlife Studio (Bukit Purmei), an active ageing centre by Montfort Care, on Tuesday (Apr 29). Chef Iskandar Zulkarnain, who is also an account manager at Sodexo Singapore, was a volunteer at the pilot initiative of Sodexo and Insead's community programme, SG60: Doing Good Through Food. The programme aims to teach seniors how to make healthy meals, and meal kits using healthier ingredients were provided. Abel Ariza, managing director at Sodexo Singapore and Malaysia, said: 'One of the main reasons why we wanted to put this initiative together is because we wanted to do something that stays over time and impacts seniors positively. We thought about not just meal delivering – which is what we normally do – but also helping to upskill the ageing population through a cooking class. Hopefully, they can take some of the learnings back home.' Both Sodexo and Insead collectively delivered more than 3,600 meal kits last year to marginalised communities. Ariza stressed the importance of using healthier options that impact seniors' health positively. A NEWSLETTER FOR YOU Friday, 2 pm Lifestyle Our picks of the latest dining, travel and leisure options to treat yourself. Sign Up Sign Up Soy chicken rice was chosen because it is a 'staple' in Singapore, he added, and it is 'relatively easy to cook in a setup like this', making it easier for seniors to pick up this skill. Liew Zi Qi, senior programme executive at Goodlife Studio (Bukit Purmei), Montfort Care, said: 'Learning healthy cooking is very important, so that they will be aware of their own condition to (accordingly) match the correct diet.' Supporting seniors' independent living James Middleditch, senior director of operations and campus services at Insead, said this initiative will enable seniors to live more independently. More seniors now live alone – a Ministry of Health report stated that the number grew from 58,000 in 2018 to 79,000 in 2022, and this figure is expected to continue rising. 'Singapore has an ageing population, but also a low fertility rate, so now we're getting this imbalance. You're going to have smaller families taking care of seniors, so more and more seniors will be obliged to live independently. Supporting them in this journey – giving them knowledge and skills – will enable them to live a much more fulfilled... life,' he noted. Liew added that there has been an increased focus on preventive healthcare, especially in Singapore's current ageing society. 'At an early stage, it's important to share with seniors how to keep up a good and healthy lifestyle. At this active ageing centre, we encourage them to live healthily and stay active,' she said. These participatory sessions with Sodexo chefs also help to tackle social isolation – another issue that seniors living alone face. Sodexo and Insead plan to roll out more events to benefit the community throughout the year. SG60: Doing Good Through Food builds on Sodexo and Insead's past community initiatives, which included a waste management programme and farm-to-table demonstrations. It is also part of Montfort Care's Good Makan! initiative, aimed at empowering seniors through food, confidence-building and social connection.
The Guardian
11-02-2025
- Politics
- The Guardian
Former solicitor general: UK's miscarriage of justice watchdog is ‘beyond a joke'
The former solicitor general and conservative peer Lord Garnier has said the situation at the miscarriage of justice watchdog is 'beyond a joke' and leaves 'a big hole in our criminal justice fleet'. Following revelations in the Guardian about the Criminal Cases Review Commission (CCRC)'s spending on expensive French business courses for its chief executive and allegations about its 'absent' leadership, Garnier said it was time to ask the justice secretary: 'Have you got a grip on this?' The Guardian reported on Monday that the chief executive of the CCRC, Karen Kneller, had regularly attended Insead business school in Fontainebleau over the past five years, including a course whose fees are advertised at more than £21,000 for 10 days' teaching. Helen Pitcher, the former chair of the CCRC, held multiple positions at Insead while Kneller attended these courses. The Ministry of Justice (MoJ) said it would be appointing an interim chair 'as quickly as possible' to conduct a thorough review of how the organisation operates. Garnier, who co-chaired a Westminster commission into the CCRC, was one of several figures calling for an overhaul of the body in light of the reporting. Making reference to a photograph of Pitcher by a motorboat in Montenegro, which she posted during the crisis over the wrongful conviction of Andrew Malkinson, Garnier said of the dysfunction at the top of the organisation: 'This is a big hole in our criminal justice fleet, I hate to give a nautical term with her boat in Montenegro, but this long ago got to the stage where it's beyond a joke. 'We're talking about human misery for poor Mr Malkinson and other possibly wrongly convicted people in prison. It can't just be a joke show. It can't be a circus. It's got to be a properly functioning organisation, and it's essential. We discovered that way back after the Birmingham Six.' Garnier, who belongs to the parliamentary group on miscarriages of justice, questioned why it was necessary for Kneller to attend multiple expensive Insead courses which 'presumably teaches you all sorts of things, but not necessarily how to run the CCRC'. He said he was 'unpersuaded' that it was 'a good use of public money'. He added: 'There will come a time, and I think it's happening right now, when the secretary of state for justice must pull her finger out and get this sorted out, because it can't just dribble on.' The Guardian revealed that Kneller was accused of attempting to 'sanitise' an independent review into her organisation's handling of Malkinson's case. In response, Malkinson said: 'I am not sure how much more of this my battered psyche can take. In 2018 the incoming CCRC chair was told she needed to fire the CEO to redeem that organisation. Instead, she allowed the CEO to go off to Fontainebleu on fancy training courses while people like me sat behind a door in prison night after night, waiting for the CCRC to act. Sign up to Headlines UK Get the day's headlines and highlights emailed direct to you every morning after newsletter promotion 'The CCRC's arrogance and incompetence cost me 10 extra years in prison, and I am not the only one. Surely the Ministry of Justice can see that it is over for the current CCRC? Overhaul it now.' Matt Foot, co-director of the legal charity Appeal, which was behind Malkinson's exoneration, said: 'For years campaigners and lawyers have been saying that the CCRC does not investigate cases properly. We were told that resources were an issue. These revelations of lavish management spending show that it was not about resources but priorities. The CCRC urgently needs a completely new senior leadership team with a track record of challenging injustice.' A spokesperson for Pitcher said she 'was appointed to overhaul the leadership, processes and governance of the CCRC and her progress towards those goals was acknowledged in every appraisal during her tenure. It is for others to take the CCRC forward now.' A CCRC spokesperson said: 'The CCRC carries out extremely important, challenging work in an often-difficult environment. 'We note that there have been criticisms of us, particularly recently. The hard-working CCRC team remains focused on finding, investigating, and sending potential miscarriages of justice back to the courts; six people have had their cases referred since the start of last month. 'It is not unusual for leaders of high-profile, national organisations to attend advanced management courses.' An MoJ spokesperson said: 'Given the importance of the CCRC's work, we will appoint an interim chair as quickly as possible who will be tasked with conducting a full and thorough review of how the organisation operates.'
