Latest news with #developedeconomies
Independent Singapore
a day ago
- Business
- Independent Singapore
AI could help Singapore sustain 3% annual GDP growth despite ageing population: Morgan Stanley
Photo: Freepik/frimufilms SINGAPORE: Artificial intelligence (AI) could help Singapore maintain annual GDP growth of 3% over the long term, even as it faces the structural challenge of a shrinking workforce, according to a new report by Morgan Stanley Research. Released this month, the report points to AI as a pivotal force for sustaining national productivity and ensuring Singapore remains one of the fastest-growing developed economies. 'Singapore's deliberate and coordinated approach to AI is beginning to bear fruit,' the report said, noting that more than 70% of companies covered in the study have already implemented AI technologies in some form. AI adoption is strongest in four main areas: internal productivity tools, customer-facing services, supply chain optimisation, and product development. These technologies, the report suggests, are helping firms automate repetitive tasks, improve customer experience, and make better, data-driven decisions. The report categorises companies into two broad groups. First are the 'AI Enablers' or firms like Singtel, Keppel, and Sembcorp Industries which are building the infrastructure necessary for widespread AI deployment, such as next-generation data centres, energy systems, and high-speed connectivity networks. The other group are the 'AI Adopters' such as Grab, Sea Group, Singapore Airlines, and ST Engineering, which are applying AI to sharpen operations and drive innovation. While most companies surveyed remain cautious about attaching hard numbers to the financial returns of AI investment, some reported early signs of growth in earnings and capital expenditure. Despite this, the report flagged several risks on the horizon such as cybersecurity, AI misuse, and workforce disruption. 'The need to retrain and upskill workers will be essential,' the report read, highlighting government programmes like SkillsFuture that aim to bridge emerging skill gaps. Morgan Stanley also described Singapore's approach as a potential model for other small, advanced economies navigating similar demographic and technological shifts. 'Singapore shows how strategic planning and cross-sector commitment can enable a country to integrate emerging technologies and turn structural challenges into growth opportunities,' the report noted. () => { const trigger = if ('IntersectionObserver' in window && trigger) { const observer = new IntersectionObserver((entries, observer) => { => { if ( { lazyLoader(); // You should define lazyLoader() elsewhere or inline here // Run once } }); }, { rootMargin: '800px', threshold: 0.1 }); } else { // Fallback setTimeout(lazyLoader, 3000); } });
Telegraph
11-07-2025
- Business
- Telegraph
A changing fiscal world should be salve for this popular painkiller giant
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. Consumer goods company Haleon has experienced a difficult set of operating conditions since its demerger from GSK in July 2022. The FTSE 100-listed owner of popular healthcare-related brands such as Sensodyne, Panadol and Voltaren has had to contend with a period of elevated inflation across developed economies that has put severe pressure on disposable incomes. Alongside this, a restrictive monetary policy has further dampened the spending power of consumers by acting as a drag on the economy's performance and wage growth. Consumers have, in some cases, traded down to cheaper alternatives or reduced their consumption of branded products. Still, the stock has delivered a 26pc capital gain since Questor tipped it as a 'buy' during December 2022. In doing so, it has beaten the FTSE 100 index by 10 percentage points. Haleon has not previously featured in our wealth preserver portfolio. However, it becomes the latest addition because of its increasingly upbeat outlook amid falling inflation and monetary policy easing. While inflation could remain sticky across developed economies in the short run, it is widely expected to moderate so that it consistently meets central bank targets over the medium term. This should prompt further interest rate cuts that, alongside the impact of recent monetary policy easing, boost wage growth and lead to improved spending power among consumers. In turn, this is likely to prompt reduced price consciousness that provides consumer goods companies such as Haleon with greater scope to raise prices in order to boost profit margins over the coming years. Of course, this process is likely to be very gradual in nature. Time lags following interest rate cuts could mean the company's financial performance remains rather lacklustre in the short run. Although its latest quarterly trading update was in line with previous expectations, organic revenue growth (which excludes the impact of acquisitions and disposals) amounted to just 3.5pc. For the full year, the company is on track to meet previous guidance – however, it expects organic revenue growth of only 4-6pc, albeit with a faster pace of increase in organic operating profits. Next year, though, the company is forecast to post a double-digit increase in earnings per share. Given its excellent competitive position as a result of having a wide range of strong brands, Questor expects further upbeat profit growth over the coming years as trading conditions continue to improve. Acquisitions could act as a further catalyst on Haleon's bottom line and share price. It recently completed the purchase of the remainder of its Chinese joint venture, which increases its exposure to what remains a highly attractive long-term growth market for consumer-focused companies. With Haleon in the midst of a £500m buyback programme set to be completed this year, its share price could experience further support in the short run. Of course, some investors may argue that an improving operating outlook has already been priced into the company's shares. They currently trade on a forward price-to-earnings ratio, using current year forecasts, of around 20. Although this is significantly higher than a figure of 15.5 at the time of our 'buy' recommendation in December 2022, the combination of an increasingly upbeat growth outlook, sustainable competitive advantage and sound finances means the stock is worthy of a premium valuation. Indeed, its net gearing ratio amounts to just 49pc. Net interest costs, meanwhile, were covered over seven times by operating profits in its latest financial year. Both figures suggest Haleon is well placed to make further acquisitions, as well as ride out potential economic difficulties over the short run. Notably, the prospect of increasingly protectionist trade policies could weigh on both its financial performance and investor sentiment towards cyclical sectors. This company is set to release interim results later this month – it would be unsurprising if its share price becomes increasingly volatile over the coming weeks. Questor, though, has a firmly long-term perspective. Therefore, the potential for paper losses does not dissuade us from using existing cash generated from previous sales to complete the notional purchase of Haleon in our wealth preserver portfolio. Overall, it is a high-quality company that is well placed to capitalise on the current era of persistent interest rate cuts and modest inflation.
Telegraph
25-06-2025
- Business
- Telegraph
It's time to tune out the market noise and focus on your portfolio
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. Market noise has been at maximum volume over recent months. Constant updates regarding a highly fluid global trade war, wider geopolitical risks including conflict in various regions and rapidly evolving economic news may understandably have left many stock market investors feeling somewhat dazed. In Questor's view, it is imperative to keep abreast of developments but not allow news flow to dominate investment decisions. Otherwise, investors may find they continually switch between a bullish and bearish mindset that leaves them struggling to determine exactly what course of action to take when seeking to generate a high return on their capital. Indeed, the stock market's track record shows it has always ultimately recovered from even its very worst downturns. Long-term investors, therefore, should not give too much credence to market noise – even when it is painfully loud. Rather, they should periodically seek to gain perspective on their portfolio's prospects by considering whether they are still invested in the right assets, geographies, sectors and, crucially, the most attractive companies. For example, this column firmly believes that equities offer a relatively attractive risk/reward opportunity at present. Sticky inflation is likely to dissipate over the medium term so that price rises consistently equal central bank targets across developed economies. This should allow policymakers to implement further monetary policy easing.
