Stocks to watch: OCBC, Kim Heng
[SINGAPORE] The following companies saw new developments that may affect trading of their securities on Tuesday (Jun 10).
OCBC : Independent directors of Great Eastern Holdings (GEH) are recommending that shareholders to accept OCBC's conditional exit offer that will ultimately lead to the delisting of the insurer. This is based on advice from EY, the independent financial adviser (IFA) involved in the deal, GEH said after the market closed on Monday. The insurer noted the IFA is of the opinion that the financial terms of the exit offer are 'on balance, fair and reasonable'. Shareholders will be voting at an extraordinary general meeting on Jul 8. Shares of OCBC closed 0.6 per cent or S$0.09 higher at S$16.37 on Monday.
Kim Heng : The offshore marine services contractor Kim Heng has inked an agreement with the newly set-up Singapore Energy Interconnections (SGEI), to cooperate in submarine power projects, the Catalist-listed company said on Monday. The partnership covers the purposes of operating, repairing and maintaining submarine power cable systems within the Asean region, Kim Heng said. Shares of Kim Heng closed flat at S$0.075 on Monday.
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Straits Times
6 hours ago
- Straits Times
DayOne gets $4.6 billion funding for Johor data centres
A DayOne data centre in Johor. The state has about 30 data centre projects completed or under construction, plus 20 more awaiting approvals. PHOTO: DAYONE Kuala Lumpur – DayOne Data Centers Singapore secured RM15 billion ($3.6 billion) of multicurrency financing to support its green data centers in Malaysia's Johor state, OCBC said. OCBC and its Malaysian unit OCBC Bank (Malaysia) acted as joint coordinators for the syndicated financing, which comprises a RM7.5 billion Islamic financing and a US$1.7 billion (S$2.2 billion) offshore term-loan facility, the bank said. The proceeds will be used for both refinancing and capital expenditure of DayOne's data centres that are expected to obtain green digital infrastructure certification, it said. DBS Group Holdings said that it was also involved in the syndicated financing, along with United Overseas Bank, CIMB Group Holdings, Malayan Banking, Credit Agricole CIB and Standard Chartered. UOB said the financing was one of the largest in South-east Asia for data centres and the biggest green Islamic syndicated facility in Malaysia. Maybank said it underwrote RM2.5 billion, or the biggest portion, of the Islamic financing tranche for DayOne. DayOne's anchor data centre campuses will be located at Nusajaya and Kempas Tech Parks in Johor, and will be part of investments into the Johor-Singapore Special Economic Zone, it added. Malaysia is turning into a beneficiary of Asia's growing need for data centres to support the boom in artificial intelligence. Johor has about 30 projects completed or under construction, plus 20 more awaiting approvals. Companies investing have included Microsoft and ByteDance. Johor is expected to host 60 per cent of Malaysia's total data centre capacity by 2030, Trade Minister Zafrul Aziz said in a speech delivered at the signing ceremony for the syndicated financing. DayOne, formerly the international arm of China's GDS Holdings, is now an independent group after deconsolidation. The facility, which is its biggest-ever loan, would be among the largest syndicated financings for the sector by a borrower in Asia, Bloomberg News reported. Earlier this month, DBS and UOB jointly arranged a 6.7 trillion rupiah (S$530 million) loan to fund a data center project in Indonesia that DayOne is helping to develop. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
7 hours ago
- Straits Times
Prices are easing across Asia paving way for rate cuts and US divergence
Consumer price indexes have moderated across most of the economies in the region that have already reported data for May. PHOTO: EPA-EFE Prices are easing across Asia paving way for rate cuts and US divergence SYDNEY – Inflation is easing across Asia as lower food and fuel prices and stronger local currencies against the US dollar push down costs. That's giving the region's central bank chiefs scope to support their trade-reliant economies as the risk of US tariffs and related uncertainty weigh on the outlook. Consumer price indexes have moderated across most of the economies in the region that have already reported data for May. In April, regional consumer prices on a simple average basis excluding Japan slowed to about 1.5 per cent, the lowest level since the first quarter of 2021, according to economists at Nomura Holdings. Overnight indexed swaps have priced in more dovish bets for the Reserve Bank of Australia and less hawkish moves from the Bank of Japan over the past month. Money market pricing also implies more dovish outlooks over the three-month horizon for South Korea, India and Malaysia. Central banks have already begun taking action. The Reserve Bank of India last week cut interest rates by a bigger-than-expected 50 basis points, while Australia's central bank adopted a surprisingly dovish stance after delivering a quarter percentage point cut. In both cases, officials pointed to demand concerns and the potential impact of US tariffs. 'Inflation, deflation, stagflation – what happens in each economy will hinge on trade agreements and how central bankers react,' said KB Securities head of global markets Peter Kim. Figures on June 11 showed US inflation accelerated to 2.4 per cent in May from a year ago, compared with 2.3 per cent in April. By contrast, Asia's biggest economy remains mired in deflation. China's factory deflation persisted into a 32nd month in May, with producer prices falling the most in nearly two years. In the region's second-biggest economy, Bank of Japan Governor Kazuo Ueda this week said the central bank is still some distance from its inflation goal in comments that helped accelerate a weakening of the yen. While Mr Ueda also talked down the possibility of any rate cut, the mention of a possible need to offer support for the economy gave the impression that the bank's next move to raise rates will be more distant. Meantime, an unexpected slowdown in South Korea's inflation strengthened the case for monetary easing. Bloomberg Economics sees the Bank of Korea cutting rates 25 basis points both in August and November, bringing down the base rate to 2 per cent by year-end. And it's a similar story across much of South-east Asia. 'Central banks, instead of getting policy back to neutral if they weren't already there, they're now going into easing territory,' said Tamara Henderson, Bloomberg Economics' Asean economist. 'The question is how fast will they go? These tariffs are going to be around, they're going to be high and they're going to stick in some form.' Ms Henderson now forecasts a recession in Singapore and Thailand, on the back of higher US levies hitting global goods demand. Indeed, forecasts for this year's economic growth across much of the region have been dialed back since late 2024, Bloomberg surveys of economists show, as crude oil prices fall and tariffs weigh on sentiment. Broad weakening of the US dollar – if sustained – means central banks won't need to worry as much about their currencies when cutting rates. But that could also come with complications. 'In past cycles, local currency weakness in Asia served as an important shock absorber during periods where exports were weak, but this cushion may not be available this time,' said Sonal Varma, chief economist at Nomura. The bank sees further appreciation for the yen, Taiwanese dollar and the Korean won this year. For currencies, the Fed's policy path will also be key. Chair Jerome Powell has resisted calls from US President Donald Trump to lower interest rates, preferring a cautious approach to assess the impact of tariffs on prices and jobs. As for Asia's economic and policy outlook, much will hinge on what happens with US tariffs. Officials from across the region are scrambling to negotiate with the Trump administration to avoid the steep 'reciprocal' tariffs announced on April 2 before being paused to allow time for deal making. 'Unlike Covid, tariffs are not a shock that'll push up inflation around the world,' said Robin Brooks, a senior fellow at the Brookings Institution. He pointed out that replacing US demand will not be easy, which means there'll be downward price pressures in net exporter countries. 'The global inflation picture is about to diverge.' BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
7 hours ago
- Straits Times
Singapore to host US$50m fund by Norway-based firm for start-ups in Asia ocean health
UN data also shows that Asia accounted for 75 per cent of the world's total fisheries and aquaculture production. PHOTO: AFP NICE, France – Norway-based impact investment firm Katapult Ocean will launch a US$50 million (S$64.1 million) fund in Singapore in early 2026 to invest in start-ups that support ocean health in Asia, The Straits Times has learnt. The firm, which has made 75 investments in companies globally since 2018 , is considered one of the world's most active ocean impact venture fund managers. It has investments in sustainable seaweed production and offshore wind power infrastructure, among other areas. Katapult Ocean Asia associate director Maureen Bresil told The Straits Times on June 11 that there are many opportunities in the region. These include decarbonisation, tackling ocean pollution, sustainable aquaculture, and eco-tourism. Speaking on the sidelines of the UN Ocean Conference in Nice, Ms Bresil said: 'We wanted to be in Asia – closer to funders, closer to issues we need to tackle.' Existing estimates suggest that five Asian countries – China, Indonesia, the Philippines, Vietnam and Thailand – accounted for up to 60 per cent of the plastic waste leaking into the ocean. UN data also shows that Asia accounted for 75 per cent of the world's total fisheries and aquaculture production. Ms Bresil added: 'We also want to be in Singapore, because we know that there's a lot of capital there that can be diverted into ocean impact in Asia.' News of Katapult's Ocean Asia Fund comes amid growing interest from the private sector in the blue economy. The World Bank defines the blue economy as the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ocean ecosystem. Ahead of the UN Ocean Conference, which started on June 9, some of the world's top financial institutions gathered in Monaco on June 7 and 8 to spotlight the economic opportunity from investing in the health of the ocean and the perils of inaction. The Blue Economy and Finance Forum hosted about 2,000 delegates from major banks, asset management funds and other financial institutions. Singapore's Foreign Affairs Minister Vivian Balakrishnan, speaking on behalf of Asean during a panel on advancing sustainable ocean-based economies on June 11, said the waters in the region are one of the most vital, congested, busy and strategic maritime spaces in the world. 'Our countries depend on these very waters for trade, livelihood, transportation and the other elements of life. Sustainable ocean-based economies, sustainable maritime transport and coastal community resilience are therefore key priorities for all Asean member states,' said Dr Balakrishnan. He added that Asean is now formulating a blue economy implementation plan from 2026 to 2030, which aims to harness the potential of this blue economy across a range of key sectors. 'It will take into account the varying levels of development among the Asean member states to promote a regional blue economy development based on principles of value creation, inclusivity and sustainability,' said the minister. Other developments show that the blue economy is picking up in South-east Asia. In May, the 1,000 Ocean Startups coalition Asia Pacific was launched in Singapore as the regional chapter of a World Economic Forum initiative that started in 2021. The coalition aims to help start-ups in the region scale up ideas or business models that are profitable or have the potential to generate profit, while also contributing to ocean health. Mr Thomas Knudsen, a principal of Singapore-based family office Rumah Group, which is a member of the coalition, said it was significant that Katapult Ocean decided to establish a fund for Asia based in Singapore. 'At this moment, there are no ocean-focused funds that are based in Singapore, so having one of the global leaders in this space is important,' he told ST. Their investments in South-east Asia-based start-ups could enable these firms to grow in the region, potentially helping them scale up globally too. Mr Knudsen said Katapult's global portfolio could also introduce potential new solutions for the region – concepts or technologies tested elsewhere that have relevance for South-east Asia. 'I also think Katapult's involvement in the blue economy in South-east Asia gives companies based here more confidence to invest in the region,' he said. 'These firms may not have been comfortable in the past because the blue economy may be a new area for them, but having a partner on the ground will allow them to deploy capital through this fund.' Another key player in the ocean space in the region is Circulate Capital, a private equity firm founded in 2018 in Singapore. Its key mandate is to prevent plastic pollution from ending up in the oceans in South and South-east Asia. Speaking to ST on June 11, founder and chief executive of Circulate Capital Rob Kaplan said: 'We are thrilled that Katapult is investing more in the region. I think the blue economy is an under-invested sector, particularly in South-east Asia, and it's where most of the impact is.' Circulate Capital has a focus on the circular economy – promoting the reuse and recycling of plastic so that it does not end up in the oceans. 'We see a lot of great start-ups that are way outside our scope. But there are a lot of other areas, and there's not enough capital flowing to it,' he said. On the business case for investing in plastic recycling, Mr Kaplan said: 'The idea is that if we can build a market for plastic and profitably collect it, sort it, recycle it, manufacture using it, we can divert it from the environment and into the supply chains of global multi-national packaging and consumer goods companies.' He noted that many of such firms want access to recycled plastic, but cannot get the quality and quantity they need to meet that demand. 'We saw that there were a lot of quality recycling companies, small and medium enterprises and family businesses, but they have never had any outside capital to help them professionalise and scale up. So that's where our strategy fits in,' he said. Mr Kaplan added that Circulate Capital has shown that investing in the ocean economy – particularly in efforts that prevent plastics from ending up in the blue – is feasible. 'The path forward for the next five years unlock billions of dollars more,' he added. Audrey Tan is an assistant news editor overseeing sustainability coverage. She has reported on the environment for more than a decade and hosts the Green Pulse podcast series. Find out more about climate change and how it could affect you on the ST microsite here.
