OCBC CEO Helen Wong to retire; SGX sees biggest Reit IPO in a decade
The benchmark Straits Times Index hit a new all-time high at around 4,100 points on July 11.
SINGAPORE - Shares of OCBC Bank climbed 2.6 per cent over the week to close at $16.89 on July 11, just before the bank announced after market hours that its chief executive would be retiring.
Ms Helen Wong, 64,
will be retiring on Dec 31 , OCBC announced in a bourse filing. She will be succeeded by Mr Tan Teck Long, 55, who will assume the role on Jan 1, 2026.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
24 minutes ago
- Straits Times
Banking and finance jobs will change but won't disappear as AI becomes the new normal: Accenture
Find out what's new on ST website and app. The challenge of AI is not as daunting as many may think. SINGAPORE – The rapidly evolving technology of generative artificial intelligence or Gen AI is unlikely to eliminate many banking jobs, but the nature of them will change. The forecast comes from Mr Michael Abbott, global banking lead at consulting firm Accenture, who noted: 'Banking is still going to be about relationships, trust and deposits. 'Gen AI will rewire how nearly every job in banking is run.' But he also noted that an organisation still needs product experts in credit cards, mortgages and car loans, for example. The challenge of AI is not as daunting as many may think, as Ms Emily Prince, group head of analytics at the London Stock Exchange Group (LSEG), noted. Ms Prince , who spoke to The Straits Times here in March, said a worker does not have to be an expert in AI to use the technology, but will need to be curious and have 'baseline mathematics, physics and engineering' knowledge, similar capabilities required of people in financial services now. This is because the technology is freely available and, once it is deployed in an organisation, harnessing it boils down to an individual's area of speciality, she added. Top stories Swipe. Select. Stay informed. Singapore SMRT to pay lower fine of $2.4m for EWL disruption; must invest at least $600k to boost reliability Singapore MRT service changes needed to modify 3 East-West Line stations on Changi Airport stretch: LTA Singapore S'pore could have nuclear energy 'within a few years', if it decides on it: UN nuclear watchdog chief Asia 'Nothing like this has happened before': At least 16 dead as Thai-Cambodian conflict enters second day Life 'Do you kill children?': Even before independence, S'pore has always loved its over-the-top campaigns Singapore Lung damage, poor brain development, addiction: What vaping does to the body Singapore Tipsy Collective sues former directors, HR head; alleges $14m lost from misconduct, poor decisions Singapore Kopi, care and conversation: How this 20-year-old helps improve the well-being of the elderly 'Do you understand that business area? Do you understand the problem to be solved?' She added that AI is being used in financial services to help workers perform operational tasks much more efficiently. One example is in the area of financial compliance and know-your-customer (KYC) checks. Fenergo, which provides financial compliance software, found that roughly 60 per cent of its customers in Singapore are abandoning their banking applications during the onboarding and KYC stage because of the onerous process. Mr Cengiz Kiamil, its regional managing director, said AI can make it easier to identify and verify the identity of clients and the ultimate beneficial owners of a legal entity. It also automates document management so customers do not have to repeatedly give the same information. Mr Kiamil added that Singapore is one of the most expensive countries in which to undertake KYC checks. Some of the largest banks here employ anywhere between 500 and 2,000 compliance staff and spend on average US$300 million (S$384.5 million) a year on onboarding and KYC operations. 'It is definitely a large area to reap the benefits of AI,' Mr Kiamil said. AI also has the potential to open up new revenue streams for financial institutions. Accenture's Mr Abbott noted that the best banks in the world are optimising the time saved from using AI and 'putting it back into productivity time'. They are holding conversations with their clients so that they can cross-sell or upsell to get more business from them, while driving 'increased growth in the topline' in the meantime, he said. Mr Abbott cited an insurance company that grew its business twofold after adopting Gen AI. The insurer could deal with only 20 per cent to 30 per cent of all its underwriting requests, but Gen AI did the necessary tasks, freeing underwriters to focus on value-added tasks. This is an example of driving revenue and productivity without reducing headcount, Mr Abbott noted. Mr Kiamil added that businesses can utilise AI to analyse the data of customers and better understand their preferences, and so tailor products and services to their needs. This creates opportunities to generate more revenue from each client. AI is evolving so quickly that if there is a problem that might be too difficult or expensive for the technology to resolve today, the odds are that it is going to catch up six to 12 months down the road, noted Mr Abbott. He envisions a time when AI will make experiences 'infinitely more personal and better'. 'Eventually, chatbots will (make it) feel like you are texting your banker,' he said. LSEG's Ms Prince noted that AI will be the new normal , akin to how the world made the shift from pen and paper to computer . 'We will all use it. It will become a norm.'
Straits Times
24 minutes ago
- Straits Times
Can STI continue its defiant climb in second half of 2025?
Find out what's new on ST website and app. The Straits Times Index crossed the 4,000 threshold for the first time in March, and surged past 4,200 in July. SINGAPORE – Singapore's stock market enters the second half of 2025 on the back of a surprisingly robust first-half performance, defying earlier jitters over global trade and geopolitical tensions. The Straits Times Index (STI) crossed the 4,000 threshold for the first time in March, and surged past 4,200 in July. It is up more than 10 per cent since the start of 2025 and up more than 20 per cent in the past 12 months, underpinned by strong corporate earnings, dividends and the Government's ambitious plans to revitalise the stock market. Investors have shrugged off the 10 per cent tariff on most goods entering the United States starting on April 5, dismissing the tariff escalations, de-escalations and delays as negotiation tactics. The final tariff hikes will not be as dire as the first threat, they reckon. But tactic or not, the average weighted tariff slapped on goods entering the US today is 16 per cent compared with 2.5 per cent in 2024, according to UBS calculations. If all of the postponed tariffs were to be reimplemented, the rate would rise to 21 per cent. Asean is likely to receive higher-than-average tariffs to discourage transshipment from China, the JP Morgan economics team said. Sectoral tariffs on semiconductors and electronics will be particularly important, as they account for a majority of total Asean exports. Top stories Swipe. Select. Stay informed. Singapore SMRT to pay lower fine of $2.4m for EWL disruption; must invest at least $600k to boost reliability Singapore MRT service changes needed to modify 3 East-West Line stations on Changi Airport stretch: LTA Singapore S'pore could have nuclear energy 'within a few years', if it decides on it: UN nuclear watchdog chief Asia 'Nothing like this has happened before': At least 16 dead as Thai-Cambodian conflict enters second day Life 'Do you kill children?': Even before independence, S'pore has always loved its over-the-top campaigns Singapore Lung damage, poor brain development, addiction: What vaping does to the body Singapore Tipsy Collective sues former directors, HR head; alleges $14m lost from misconduct, poor decisions Singapore Kopi, care and conversation: How this 20-year-old helps improve the well-being of the elderly The new Aug 1 deadline will be pivotal for global trade and equity markets. There is a possibility that markets could tank like they did in April if there is no progress. Rising tariff levels would also see growth forecasts in the US fall further, and increase the odds of a recession in the world's No. 1 economy. Singapore's export-oriented economy has so far been surprisingly resilient, but it is likely to slow in the second half along with the rest of the world, given the uncertainties over the US tariff policies. For 2025, the Republic's gross domestic product growth is expected to slow to 0 per cent to 2 per cent from 4.4 per cent in 2024. Can STI rise further? The STI's gain past 4,100 has sparked a debate over whether the rally is supported by fundamentals, or whether investors should brace themselves for disappointment if global shocks arrive. One of the most influential investment banks, Goldman Sachs, downgraded Singapore to 'market weight' in June, following the STI's strong year-to-date performance driven by technology, defence and renewables stocks. Valuations are becoming expensive and with earnings growth projected at just 5 per cent for 2025 and 2026, the potential for further outperformance appears limited, the Wall Street bank said. It added that it would be wise for investors to secure profits. Lower interest rates may pressure the net interest margins of the three local banks – DBS, UOB and OCBC – but lower borrowing costs can benefit the property market and real estate investment trusts (Reits), leading to a balanced fundamental outlook, it said. On the other hand, analysts in the bull camp are banking on Singapore's defensive market with strong dividend yields, governance and accommodative policy stance to soften global headwinds. JP Morgan's team believes the country has enough fiscal room to boost the economy if risks emerge. It prefers Singapore-focused Reits over those focused on overseas assets or exposed to global trade, which face greater risks from currency movements, vacancies and variable regulations that can impact returns. Fuelling the bullish sentiment are the Government's market reforms, including a $5 billion programme to boost SGX-listed stocks which bulls see as a rare window for investors to adjust portfolios and seize new trading opportunities. The Equity Market Development Programme (EQDP) is the most ambitious intervention in decades to revive Singapore's ailing equity market. Announced in February by the Monetary Authority of Singapore and the Financial Sector Development Fund, it aims to strengthen local asset management and research, and raise investor interest in the local equities market. The EQDP and a suite of tax and regulatory incentives have already ignited institutional investors' interest and initial inflows are likely to benefit liquid large market value companies, according to Morgan Stanley. On July 21, $1.1 billion was allocated to the first three asset managers under the EQDP. They are Avanda Investment Management, Fullerton Fund Management and JP Morgan Asset Management. Interest in the programme has been strong, given that more than 100 asset managers submitted proposals. More asset managers will be appointed to manage the remaining funds under the EQDP. Beyond the large blue-chip stocks, analysts expect interest to spill over onto certain small and mid-capitalised stocks, which have lagged behind their bigger counterparts by more than 30 per cent in the last two years, JP Morgan experts said. But they warn significant outperformance by the smaller companies versus the larger ones is unlikely due to 'higher multiples and uncertain profitability, lower liquidity and growth of the group'. JP Morgan expects stocks with good track records of earnings growth and quality balance sheets to attract additional fund flows. CapitaLand Integrated Commercial Trust, CapitaLand Ascendas Reit and Keppel DC Reit are among its top picks. Morgan Stanley's Singapore research team led by Mr Nick Lord sees the return on equity (ROE) – a measure of how well companies convert shareholders' investments into earnings – rising and a potential doubling of the stock market value here by 2030. This wealth creation hinges on three key pillars – developing the Republic's hub status, driving early adoption of new technologies and reforming the equity market. 'Singapore is far more than a safe haven,' the team noted. Strong productivity gains from the country's position in key hub industries and rapid technology adoption as well as efforts to improve shareholder returns will boost ROE further, it added. All the three Singaporean banks have been growing wealth management businesses, which will continue to lift profits. Conglomerates like CapitaLand Investment and Keppel have been migrating towards asset management from asset ownership. Other companies have increased their dividend payouts and bought back their shares. DBS Bank's chief investment officer Hou Wey Fook expects Singapore equities to continue to outperform, underpinned by resilient high yields and the EQDP. Large-capitalised blue chips are set to be prime beneficiaries. These include global leaders in aviation and engineering, and household names across retail, telecommunications and healthcare. With enhanced liquidity and the promise of new investor inflows, these companies offer the dual allure of resilient profitability and deep market depth, Mr Hou said. On the sector front, earnings drivers are stacking up. Singapore banks are enjoying a rebound in fee income as markets stabilise, Reits are seeing some relief from lower financing costs, property developers are finding ways to unlock underlying value, and the engineering sector is riding higher on increased aerospace and defence spending. Not to be overlooked – the upcoming SG60 national celebrations, along with the vouchers, are expected to spur consumer sentiment, fuelling a retail spending bump. The market here is also a yield haven in a low interest rate environment. Mr Hou noted that Singapore equities boast an average dividend yield of 4.5 per cent – a standout in the region and all the more compelling with 10-year Singapore government bonds yielding just 2.2 per cent. This should attract income-focused investors, especially those seeking capital preservation in an uncertain world. 'It is particularly attractive now considering the backdrop of a weak US dollar and strong Singapore dollar. Stable and sustainable dividend income can provide a cushion for total returns during periods of crisis,' Mr Hou said. Of course, headwinds remain. Export-oriented companies, particularly those with limited pricing power – such as ports, airline cargo and certain manufacturing exporters – are vulnerable to the evolving tariff backdrop. Rates, transshipment rules and sector-specific curbs, especially in pharmaceuticals, pose ongoing risks. Yet, the shifting global order is also sowing the seeds for new opportunities. As supply chains reconfigure and companies reassess regional footprints, Singapore's reputation for stability, transparency and policy ingenuity positions it as a leading beneficiary of this emerging economic landscape, Mr Hou added. The Singapore Exchange (SGX) is a clear beneficiary if the equities ecosystem is rejuvenated. Ms Carmen Lee, head of OCBC Investment Research, is optimistic that SGX could see more initial public offerings (IPOs) as it rolls out reforms to attract more listings. Ms Audrey Goh, head of asset allocation at Standard Chartered Bank's wealth solutions division, expects the EQDP to enhance liquidity and broaden investor participation beyond the top 30 companies comprising the STI – notably the small and mid-cap firms with strong records of earnings growth and profitability. With interest rates peaking and a decline in the Singapore Overnight Rate Average, Singapore equities, particularly in yield-sensitive sectors, stand to benefit further, she added. Macquarie, an Australian investment bank, has identified a basket of small-mid caps that will benefit from institutional interest under the EQDP. Its top picks for small-cap Singapore stocks that may benefit from the new mandates are ComfortDelGro, First Resources, iFast, Parkway Life Reit and StarHub. ComfortDelGro, a diversified transportation provider with Singapore taxi and public transport operations as well as international bus and rail ones, could reap maiden contributions in 2025 from its acquisitions. With a dividend yield of 6 per cent to 7 per cent, the stock is attractive relative to its valuation and earnings growth. First Resources is an Indonesian palm oil producer, and 'the cheapest planter' in Macquarie's coverage. With earnings projected to grow 25 per cent in 2025 over the previous year, it offers the highest earnings growth potential compared with the sector's average at 4 per cent. iFast is a global digital banking and wealth management platform, which Macquarie rates as an 'outperformer' with a price target of $8.70 a share. The stock is trading below $8. The research team calls it 'a rare high-growth name on the Singapore market', underpinned by its dominant position in the business-to-business wealth platform space, as well as fintech operations in digital banking and e-pension administration. Parkway Life Reit, which manages healthcare and senior living properties, is favoured for its 'impeccable track record of steady growth' since IPO without the need to raise funds. It has limited downside risk with the interest rate and foreign exchange hedged until 2029. The research team expects a big jump in the Reit's Singapore rental growth in 2026 once upgrading works at Mount Elizabeth Hospital in Orchard are completed. Potential growth is seen in the Reit's maiden acquisition of 11 nursing homes in France. StarHub could grab more consumer mobile market share in 2025, and boost its service revenue, Macquarie said. The telco is on a lookout for mergers and acquisitions, which will position it well during a consolidation. Among the large-cap stocks, Macquarie's top picks are OCBC, Sembcorp Industries, ST Engineering, CapitaLand Ascendas Reit, DFI Retail and Keppel DC Reit, which was included in the STI in June. Local brokerage and research house UOB KayHian's list of potential beneficiaries includes Centurion, which owns, develops and manages worker and student accommodations; NetLink Trust, which operates the passive fibre network infrastructure of Singapore's Nationwide Broadband Network; Raffles Medical; supermarket operator Sheng Siong; Jardine Cycle & Carriage; Olam; CapitaLand India Trust; Keppel Infrastructure Trust and SIA Engineering. Maybank Securities' research head Thilan Wickramasinghe believes small and mid-cap companies with stronger corporate governance credentials are likely to attract more investments. Couple this with trading liquidity, growth and balance sheet strength, 18 companies stood out for Maybank Securities: AEM Holdings, Nanofilm Technologies, Centurion, UMS Integration, CSE Global, Frencken Group, ComfortDelGro, First Resources, SingPost, Golden Agri-Resources, Sheng Siong, Sats, iFast, Yangzijiang Financial, SIA Engineering, Food Empire, StarHub and Riverstone Holdings. While the Government's reforms are ambitious, bear in mind that the liquidity gaps in the small and mid-cap segment will not close overnight. Global funds may be slow to increase Singapore allocations given persistent worldwide uncertainty and limited index weightings. The effectiveness of tax incentives and regulatory changes will depend on sustained execution and market buy-in.
Straits Times
an hour ago
- Straits Times
Trump administration to release over $5 billion school funding that it withheld
Find out what's new on ST website and app. FILE PHOTO: U.S. President Donald Trump speaks, as he meets with Bahrain's Crown Prince and Prime Minister Salman bin Hamad Al Khalifa (not pictured), in the Oval Office at the White House in Washington, D.C., U.S., July 16, 2025. REUTERS/Nathan Howard/File Photo WASHINGTON - President Donald Trump's administration will release more than $5 billion in previously approved funding for K-12 school programs that it froze over three weeks ago under a review, which had led to bipartisan condemnation. KEY QUOTES "(The White House Office of Management and Budget) has completed its review ... and has directed the Department to release all formula funds," Madi Biedermann, deputy assistant secretary for communications at the U.S. Education Department, said in an emailed statement. "The agency will begin dispersing funds to states next week," Biedermann added. Further details on the review and what it found were not shared in the statement. A senior administration official said "guardrails" would be in place for the amount being released, without giving details about them. The release of the more than $5 billion amount was reported earlier by the Washington Post. WHY IT'S IMPORTANT Early in July, the Trump administration said it would not release funding previously appropriated by Congress for schools and that an initial review found signs the money was misused to subsidize what it alleged was "a radical leftwing agenda." Top stories Swipe. Select. Stay informed. Singapore SMRT to pay lower fine of $2.4m for EWL disruption; must invest at least $600k to boost reliability Singapore MRT service changes needed to modify 3 East-West Line stations on Changi Airport stretch: LTA Singapore S'pore could have nuclear energy 'within a few years', if it decides on it: UN nuclear watchdog chief Asia 'Nothing like this has happened before': At least 16 dead as Thai-Cambodian conflict enters second day Life 'Do you kill children?': Even before independence, S'pore has always loved its over-the-top campaigns Singapore Lung damage, poor brain development, addiction: What vaping does to the body Singapore Tipsy Collective sues former directors, HR head; alleges $14m lost from misconduct, poor decisions Singapore Kopi, care and conversation: How this 20-year-old helps improve the well-being of the elderly States say $6.8 billion in total was affected by the freeze. Last week, $1.3 billion was released. CONTEXT After the freeze, a coalition of mostly Democratic-led states sued to challenge the move, and 10 Republican U.S. senators wrote to the Republican Trump administration to reverse its decision. Republican U.S. lawmakers welcomed the move on Friday, while Democratic lawmakers said there was no need to disrupt funding in the first place. The frozen money covered funding for education of migrant farm workers and their children; recruitment and training of teachers; English proficiency learning; academic enrichment and after-school and summer programs. The Trump administration has threatened schools and colleges with withholding federal funds over issues like climate initiatives, transgender policies, pro-Palestinian protests against U.S. ally Israel's war in Gaza and diversity, equity and inclusion practices. REUTERS
