Professor Johan Sulaeman on Temasek's and MAS' green investments
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Business Times
3 hours ago
- Business Times
Mixed H1 2025 performance, but hospitality S-Reits push ahead with portfolio reconstitution and diversification
[SINGAPORE] Three out of five Singapore-listed hospitality trusts have reported half-yearly financial results for the first half of 2025 over the past week, with two more due to report this week. CapitaLand Ascott Trust (Clas) reported a resilient performance in H1 2025, with revenue rising 3 per cent year on year to S$398.5 million and gross profit up 6 per cent to S$182.5 million, driven by stronger operating performance, portfolio reconstitution and asset enhancement initiatives (AEIs). Core distribution in H1 2025 rose 1 per cent to S$91.6 million, although distribution per stapled security (DPS) dipped slightly to 2.53 Singapore cents. Clas benefited from stable income streams, with 66 per cent of gross profit derived from master leases and living sector assets. Notably, most of its key markets – Australia, Japan, the UK and US – registered revenue per available unit (RevPau) growth year on year, while Singapore experienced a slight decline due to increased competition and the absence of major events. Clas continued its proactive portfolio reconstitution strategy in H1 2025, aimed at enhancing long-term value and income stability. Since 2024 to date, the trust completed more than S$500 million in divestments at up to 55 per cent premium to book value, and redeployed into accretive acquisitions totalling S$530 million in assets in Japan and the US and lyf Funan Singapore. Three more AEIs are planned throughout 2026, and redevelopment of the Somerset Clarke Quay serviced residence is under way with completion expected in 2026. Far East Hospitality Trust (FEHT) faced headwinds in H1 2025, with gross revenue declining 4.2 per cent year on year to S$51.6 million and net property income (NPI) falling 7.7 per cent to S$45.6 million. The decline was mainly due to softer performance from Singapore hotels and serviced residences, partially offset by contributions from commercial premises and the newly acquired Four Points by Sheraton Nagoya in Japan. Distribution to stapled securityholders decreased 8.7 per cent to S$36.0 million, translating to a DPS of 1.78 Singapore cents. Despite the earnings decline, FEHT maintained a strong balance sheet with aggregate leverage at 32.8 per cent, interest coverage ratio at 3.1 times, and average cost of debt at 3.4 per cent. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The trust's portfolio remained anchored in Singapore, with Japan contributing to income diversification. Gerald Lee, chief executive officer of the Reit manager said: 'After a slow start in the first half of the year amid macroeconomic headwinds and cautious corporate sentiments, demand has started to trend more positively.' CDL Hospitality Trusts (CDLHT) experienced a softer first-half, with NPI falling 11.9 per cent year on year to S$58.6 million and total distribution after retention declining 20.2 per cent to S$25.1 million, or DPS of 1.98 Singapore cents. The decline was attributed to softer performance in most markets, except for Japan, the UK and Australia, as well as higher interest costs. Singapore revenue per available room (RevPar) fell 14.2 per cent due to the absence of large-scale events and ongoing renovations at W Hotel. However, CDLHT had positive contributions from its UK portfolio, particularly from new acquisitions such as Hotel Indigo Exeter and living assets Benson Yard and The Castings. Japan also performed well, with RevPar up 13.7 per cent and NPI rising 11.4 per cent. Frasers Hospitality Trust will be reporting business updates for the third quarter period on Aug 4, while Acrophyte Hospitality Trust will be reporting financial results for the first half of 2025 on Aug 6. SGX RESEARCH The writer is a research analyst at SGX. For more research and information on Singapore's Reit sector, visit for the S-Reits & Property Trusts Chartbook.
Independent Singapore
3 hours ago
- Independent Singapore
Johor sees 13MP as strategic roadmap to 2030 development goals
MALAYSIA: The 13th Malaysia Plan (13MP) has been adopted by Johor as a strategic and timely blueprint aligned with its Maju Johor agenda. This has been created to help Johor become a developed state by 2030 through inclusive and sustainable development. According to the New Straits Times , the state government views 13MP as a key accelerator of this vision, with strong focus on strengthening the economy, enhancing infrastructure, and improving quality of life for the rakyat. State growth reinforced by highest GDP performance Johor's confidence in the 13MP is underpinned by its recent economic performance. The state recorded the highest gross domestic product (GDP) growth in Malaysia at 6.4% 'It proves Johor is on the right track, and 13MP will further fuel this,' said State Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han, as quoted by the New Straits Times . He added that the plan would reinforce Johor's role as a national growth engine through targeted support for investment, infrastructure, and regional cooperation. JS-SEZ and IMFC-J to drive regional economic growth One of the core initiatives under the 13MP is the Johor–Singapore Special Economic Zone (JS-SEZ), which has been recognised as a key regional economic driver. According to Lee, the establishment of the Invest Malaysia Facilitation Centre Johor (IMFC-J) under 13MP will streamline cross-border investment and create a more efficient business environment between Johor and Singapore. Infrastructure to support mobility and trade A number of major infrastructure projects under the 13MP have been outlined to support regional mobility and logistics. These include the Gemas–Johor Baru double-tracking railway, the Elevated ART (E-ART) system in Iskandar Malaysia, and upgrades to the Senai Utara–Machap stretch of the PLUS Expressway. The Johor–Singapore Rapid Transit System (RTS) Link was described as a 'transformational project' that will reduce border congestion, improve daily commuter traffic, and deepen economic integration with Singapore. Lee also welcomed the planned expansion of the Port of Tanjung Pelepas, which he said would strengthen Johor's maritime trade capacity and Malaysia's regional logistics standing. Commitment to sustainable growth and tourism Johor also noted that under the 13MP, green economy efforts, including the AIR2040 water reform initiative, smart grid systems and battery energy storage, will be prioritised. These are expected to support the state's sustainability agenda, as highlighted in Maju Johor. Tourism is another key focus area. In a move that is expected to drive tourism growth in the lead-up to Visit Johor Year 2026, Johor has been designated a host state for the Strategic Tourism Investment Zone (STIZ). Stronger Johor–Singapore integration expected The 13MP's emphasis on cross-border infrastructure, investment facilitation, and regional economic collaboration is also likely to have direct implications for Singapore. This may also enhance trade flows, help ease commutes and create business opportunities between the two. These developments could also help Singaporean businesses by giving them expanded access to talent, land, and logistics in southern Johor, while boosting tourism and joint ventures across the Causeway. See also MHA: Malaysians are not singled out for capital punishment Towards a developed and inclusive Johor 'RMK13 is a comprehensive roadmap that will elevate Johor's development, empower its people, and reinforce our position as a new engine of national growth,' Lee said, according to the New Straits Times . As Johor advances towards its 2030 goals, Singapore is expected to remain a key partner, both benefiting from and contributing to Johor's next phase of growth. Read more: Johor businesses urged to tap JS-SEZ for growth and investment opportunities
Business Times
4 hours ago
- Business Times
South-East Asian firms test Hong Kong waters amid IPO surge
[SINGAPORE] South-east Asian companies have mostly sat out Hong Kong's 2025 listing boom , but a cautious revival may be under way with four more initial public offerings (IPOs) from the region in the pipeline, according to the Hong Kong Stock Exchange (HKEX). Johnson Chui, HKEX's head of issuer services, told The Business Times that four South-east Asian companies are preparing to list, though he did not name them. If these plans proceed, they would mark the highest annual number of South-east Asian IPOs in Hong Kong since 2020, signalling a slow rebound after a prolonged slump. The pandemic and unfavourable macroeconomic conditions drove a steep decline in regional interest, with just three South-east Asian IPOs recorded between 2021 and 2024, compared with more than 65 in the five years prior. The new listings could include that of Singapore-headquartered apparel retailer Shein. In July, it filed for an IPO on HKEX after its plans to debut in New York and London were stymied by regulatory pressures . Chui told BT that the exchange continues to seek opportunities from the south. 'HKEX is deeply committed to strengthening ties with Asean markets,' he said, noting that the bourse frequently conducts roadshows in the region. 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 In the first half of 2025, three regional companies listed on HKEX: Indonesia-based Nanshan Aluminium, Singapore biotech firm Mirxes , and Thai coconut water-maker IFBH . They accounted for 7 per cent of the bourse's 43 IPOs so far this year, as overall activity rebounded sharply. In H1, IPOs and cross-listings on HKEX totalled 210 deals, raising US$49.2 billion – more than nine times the US$5.3 billion raised a year ago, based on data from S&P Global Market Intelligence. The 43 IPOs in H1 2025 marked a sharp jump from the 29 in the same period in 2024, and the 27 in H1 2023. 'Most of the success we've seen in the capital markets in Hong Kong has been from Chinese companies,' said Jon Withaar, head of Asia special situations at Pictet Asset Management. Much of HKEX's fundraising surge has stemmed from the 175 dual-listed companies that also trade on the mainland's A-shares market. For these firms, Hong Kong's deep capital markets and currency fungibility provide greater flexibility. Mainland markets The prospect of expanding into the Chinese market has prompted some South-east Asian companies to make the leap. Listing on HKEX could lead to greater recognition among investors across Greater China, or the leverage of brand familiarity for fundraising. Thailand's IFBH, whose coconut water brand IF commands a significant market share in China, cited desires to grow its business in the wider region following its Hong Kong debut in June. ' Most of the success we've seen in the capital markets in Hong Kong has been from Chinese companies. ' — Jon Withaar, head of Asia special situations at Pictet Asset Management In addition, Hong Kong's efforts to attract listings from key sectors could draw the attention of Greater China companies. Specialist technology firms in China have flocked to HKEX as the bourse offered pathways to lessen compliance burdens for applications within the sector. This may be why cancer diagnostics startup Mirxes chose HKEX over the Singapore Exchange (SGX) for its IPO in May, citing better valuations and a more savvy investor pool. This is despite the company's links with Singapore government bodies such as the Agency for Science, Technology and Research, and the Economic Development Board. Homecoming bias Admittedly, South-east Asia's own IPO market has been relatively quiet, with fundraising reaching a decade-long low in 2024 . Fresh listings in H1 2025 have also underperformed compared to the year before, a Deloitte report noted. Local exchanges have remained more attractive than HKEX for new listings, with fundraising flexibility and policy incentives laying the foundations for domestic players to access funds. 'Major Asean members have their own currencies and domestic stock markets to fund business growth,' a Bloomberg Intelligence report noted in July. 'The bias remains for South-east Asian companies to list on their local exchanges in 'homecomings',' said Pictet's Withaar, pointing out that government-linked investment companies and sovereign wealth funds in countries such as Malaysia, Indonesia and Singapore often support large listings in the region. Such government involvement is expected to persist in South-east Asia's capital markets. 'Companies increasingly favour local exchanges over international ones due to regulatory support and growing domestic investor interest,' Stephen Bates, partner and head of deal advisory at KPMG in Singapore, told BT last month. As a result, little of Hong Kong's listing activity in the last few years has come from South-east Asia, Withaar noted. 'These are markets for Chinese and Hong Kong investors, who can understand Chinese businesses much more than (those) in Thailand, Vietnam or Malaysia.' Cross-listings Notably, HKEX may still find additional reach in dual-primary or secondary-listed companies which already trade on Asean exchanges. The bourse may already have signalled a strategic shift, which HKEX chief executive Bonnie Chan hinted at in a June interview: 'I am now beginning to realise that our sweet spot may not be private companies.' 'We're now more focused on companies which are actually already listed on another market, but might have outgrown their domestic market,' she added. Since 2022, international issuers have been included in HKEX's Stock Connect programme, which allows mainland Chinese investors to trade and settle shares listed on Hong Kong boards. Access to these investors may be why companies such as Malaysia-listed Capital A, the parent company of low-cost carrier AirAsia, is now seeking a secondary listing on the Hong Kong bourse. ' I am now beginning to realise that our sweet spot may not be private companies. We're now more focused on companies which are actually already listed on another market, but might have outgrown their domestic market. ' — Bonnie Chan, HKEX chief executive As part of efforts to woo more South-east Asian firms, HKEX has included several exchanges from the region in its list of recognised stock exchanges – allowing companies already listed on these boards to pursue secondary listings in Hong Kong without being subject to additional regulatory requirements. The bourse added the Indonesia Stock Exchange to this list in 2023, and the Stock Exchange of Thailand in March this year. The list already includes SGX, but not Malaysia's or Vietnam's main stock exchanges. Seventeen companies from South-east Asia –- including 16 from Singapore and one from Malaysia – are currently trading on both HKEX and their domestic bourses, Bloomberg data indicated. Even so, access to additional fundraising is far from a given for South-east Asian companies. SGX-listed real estate player LHN discovered this as it voluntarily delisted from the Hong Kong bourse in July, citing compliance costs and low trading volumes. Liquidity concerns, the company's board said, had limited its opportunities to conduct secondary equity fundraising on HKEX. Pictet's Withaar also warned that dealmaking in Hong Kong still suffers from deep cyclicality, where listing booms come and go. 'Just 18 months ago, there were miniscule levels of activity in the Hong Kong capital markets,' he said. 'This is unlike the US, which has a very deep and liquid market. There is always a steady stream of capital markets transactions.' When it comes to overseas listings, Wall Street exchanges Nasdaq and the New York Stock Exchange remain the gold standard for foreign companies due to better liquidity and valuations, he added. Compared to the three South-east Asian listings on HKEX, six regional companies have already gone public on Nasdaq in 2025, all of which are headquartered in Singapore.
