Latest news with #STEngineering
Straits Times
29-07-2025
- Business
- Straits Times
No clarity yet on baseline or pharmaceutical tariffs with US: DPM Gan
Deputy Prime Minister Gan Kim Yong said he has told US officials that Singapore would be keen to negotiate its baseline tariff rate if the opportunity arises. SINGAPORE – The US government did not negotiate its tariffs on Singapore and did not want to commit on whether the 10 per cent baseline tax could rise or fall in the future, said Deputy Prime Minister Gan Kim Yong. DPM Gan, who visited the US from July 20 to 26 , added that he did not get to further discussions on pharmaceutical tariffs being contemplated by the Trump administration. He told the SG60 IPS-SBF Conference on July 29 that these talks did not take place as he did not get the chance to meet Commerce Secretary Howard Lutnick. He did, however, meet other officials, including Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. They discussed ways to keep up the long and mutually beneficial bilateral economic relationship, as well as potential collaboration in areas like the digital economy. DPM Gan also met business leaders in New York, and congressional leaders handling trade issues in Washington. He also visited an ST Engineering aerostructures factory in Maryland. The US administration was 'not in the mood to discuss any discount to the baseline tariff', DPM Gan said at a dialogue moderated by Mr David Rennie, The Economist's geopolitics editor. 'We also wanted to know whether the baseline tariff will stay at 10 per cent or will it be higher or lower? The answer was non-committal. They are still reviewing the tariff and, in time to come, they will make the appropriate announcement. So we just have to wait and see.' Top stories Swipe. Select. Stay informed. Singapore Grace Fu apologises for Tanjong Katong sinkhole, says road may stay closed for a few more days Singapore Terrorism threat in Singapore remains high, driven by events like Israeli-Palestinian conflict: ISD Singapore Liquidators score victory to recoup over $900 million from alleged scammer Ng Yu Zhi's associates Singapore Man on trial for raping woman who hired him to repair lights in her flat Sport IOC president Kirsty Coventry a 'huge supporter' of Singapore Singapore 7, including child and firefighter, taken to hospital after fire breaks out in Toa Payoh flat Singapore S'pore can and must meaningfully apply tech like AI in a way that creates jobs for locals: PM Wong Singapore Doctor who forged certificates for aesthetic procedures gets 4 months' jail DPM Gan, who is also Minister for Trade and Industry, said he has told US officials that Singapore would be keen to negotiate its baseline tariff rate if the opportunity arises. Pharmaceuticals and semiconductors, which are key exports from Singapore to the US, are currently exempt from baseline tariffs. But US President Donald Trump had earlier in 2025 threatened to end an exemption for pharmaceutical imports, saying tariffs would be imposed 'at a level that you haven't really seen before'. The US is a major market for Singapore-based drugmakers including American multinationals like Pfizer and Johnson & Johnson. DPM Gan said official-level discussions between Singapore and the US Department of Commerce, which commenced before his trip, are still ongoing. 'I can't go into detail because negotiation is ongoing and there's a bit of a confidentiality we need to maintain on both sides,' he said when asked what the US was looking to secure through these talks. He added that the US generally had concerns about what the country experienced during the Covid-19 pandemic, when supplies of critical pharmaceuticals were disrupted. 'They want to make sure that they have a secure supply line of pharmaceuticals. They do want to see whether they can onshore this production, so that they can produce (it) themselves. But they also know that it's not possible to onshore everything, because some of the raw materials are actually (from) outside of America,' he said. 'They do need to think about how they can work with partners, trusted partners, to make sure that their supply chain is secure and reliable. So that is what they are looking for in their partners, including Singapore,' he added. 'I think the administration's focus now is to finish the negotiation of reciprocal tariffs. Then it will start to engage countries on specific sectoral tariffs in pharmaceuticals and semiconductors.' DPM Gan said Singapore has yet to engage the US on the prospect of semiconductor tariffs . However, he added that discussions to preserve the country's access to artificial intelligence equipment and semiconductors are under way. Speaking at the same conference earlier in the day, Prime Minister Lawrence Wong said Singapore's trade and investment relationship with America, even with the tariffs, remains important. 'We would prefer to have zero tariffs of course, but if it is the baseline rate, then we are at the lowest category. We can live with it, and we can still do business and there will still be many opportunities for trade with the US, because whatever is happening in America now, the economy is still resilient, and there is still tremendous innovation happening in American companies, and so there will still be opportunities there,' he said. DPM Gan in his dialogue said the US economy continues to be relatively resilient. He said that based on the feedback from US businessmen he met on his trip, the outlook for the US economy seems cautiously optimistic, adding that Mr Trump's One Big Beautiful Bill , which includes tax cuts and business support measures, may have contributed to this. He said Singapore continues to have a good working relationship with the US. The US was Singapore's second-largest trading partner in 2024, while Singapore was its 16th-largest trading partner. Singapore was also the third-largest Asian investor in the US. More than 250 Singapore companies operate across 45 states, supporting around 350,000 jobs in the US, according to the Republic's Ministry of Trade and Industry. The US also has a longstanding trade surplus and free trade agreement with Singapore. The recent deals between the US and several countries, as well as the European Union economic bloc, are good news, DPM Gan said. 'This gives us a sense that there's good progress in the tariff negotiation. But I also come back with the sense that there remains significant uncertainty. I'm not sure whether the uncertainty has really been eliminated or even reduced,' he added. He cited the lack of clarity on the rules of origin that will be used to determine where products originate from. He also said it is unclear how reciprocal tariffs will be implemented, and how components from different countries and transshipped goods will be assessed. This comes on top of the uncertainty around sectoral tariffs, which are yet to be determined. There is also uncertainty about whether the investments that countries have pledged to the US under tariff deals are new contributions, or money that is currently invested in another country, DPM Gan said. 'For example, the EU has committed to make an investment... over a period of time. Japan has also committed investments into the US. Japan has been a major investor in Singapore. Whether the Japanese investment in Singapore will be diverted to the US is a question that is yet to be seen,' he said. 'There are (also) uncertainties as to how countries will respond to the outcome of the tariff negotiation. Some countries have also committed to purchase more from the US, and they would have been purchasing these products from other countries. Whether now, instead of purchasing from country A, country B, they will now purchase from the US, and therefore exports from these countries to affected countries will be changed,' he added. 'I think these uncertainties (are) second derivative uncertainties. No one is paying much attention yet, because we need to have a tariff settled, then we work out how the secondary impact would be.' Global supply chains will also be restructured if countries move their investments from destinations facing higher US tariffs to those facing lower tariffs, he added. 'The overall global trading system, what we call the rules-based multilateral trading system, that we depend on rules, respecting trade agreements with one another, and not change at will, is something that has been challenged,' DPM Gan said. 'Today, we can agree with one another on a certain tariff, but tomorrow, something happens. We start to change our tariff rate, and that is something that is very uncertain, and that has been seen over the last few months.'
Business Times
24-07-2025
- Business
- Business Times
Stocks to watch: ST Engineering, MPACT, MLT, Digital Core Reit, Sabana Reit, OUE Reit
[SINGAPORE] The following companies saw new developments that may affect trading of their securities on Thursday (Jul 24): ST Engineering : The group on Wednesday announced that it won new contracts valued at S$4.7 billion in Q2 of this year. These comprise S$1.5 billion from the commercial aerospace segment, S$1.5 billion from the defence and public security segment and S$1.7 billion from the urban solutions and satcom segment. Shares of ST Engineering closed down 2.13 per cent or S$0.18 at S$8.27 before the news. Mapletree Pan Asia Commercial Trust (MPACT) : The manager of MPACT said on Wednesday that it will be selling two office buildings in Japan for 8.7 billion yen (S$78.7 million). These buildings are Abas Shin-Yokohoma, which will be divested at 3.3 billion yen, and TS Ikebukuro Building, which will be sold for 5.4 billion yen. The consideration represents a 1.7 per cent premium against the aggregate purchase price of 8.6 billion yen. Units of MPACT ended flat at S$1.28 on Wednesday before the announcement. Mapletree Logistics Trust (MLT) : The manager of MLT announced on Wednesday that its distribution per unit (DPU) for Q1 ended June fell 12.4 per cent to S$0.01812, from S$0.02068 in the same corresponding period a year prior. Distributable income also declined 11.3 per cent to S$92 million in Q1, from S$103.7 million in the same year-ago period amid higher borrowing costs. The distribution will be paid out on Sep 10, after the record date on Jul 31. Units of MLT ended 0.8 per cent or S$0.01 up at S$1.21, before the results were posted. Digital Core Reit : The manager of the Digital Core Reit on Wednesday posted a DPU of US$0.018 for the first half ended Jun 30. This was unchanged from the same period a year prior, even as the Reit's distributable income rose 3.5 per cent to US$23.4 million, from US$22.6 million in H1 FY2024. The distribution will be paid on Sep 18, after the record date on Jul 31. Its units ended Wednesday 0.9 per cent or US$0.005 down at US$0.555, before the results were released. Sabana Industrial Reit : The manager of Sabana Reit reported a DPU of S$0.017 for the first half of its fiscal year ended Jun 30, up 26.9 per cent from S$0.0134 in the same year-ago total income available for distribution grew to S$21.1 million, up 26.8 per cent from S$16.6 million in the same year-ago period. However, with the retention of around 10 per cent of distributable income – to fund costs incurred including those related to the internalisation of its manager function – the final distribution amount declared per unit is S$0.017. The counter closed at S$0.41, up S$0.01 or 2.5 per cent on Wednesday, before the news. OUE Reit : OUE Reit reported a DPU of S$0.0098 for H1 ended Jun 30, up 5.4 per cent from S$0.0093 in the corresponding year-ago period. The growth reflects effective capital management and the resilience of its diversified Singapore portfolio, its manager said in a Wednesday evening bourse filing. Distributable income stood at S$54.3 million, 5.9 per cent higher than H1 2024's S$51.3 million. Its units closed flat at S$0.31 on Wednesday, before the announcement. CNMC Goldmine : The group on Wednesday announced that it expects significant year-on-year net profit improvements for its first half ended June. This comes as a preliminary review of its financials shows significant improvements, attributable to higher realised prices for gold and silver as well as increased production output at some of its plants. The company will post its earnings on or before Aug 14. The counter finished Wednesday 3.3 per cent or S$0.015 higher at S$0.475. ST Group Food : The company on Wednesday said it plans to liquidate its indirect UK subsidiary, GCTea Outlets 2B, which currently operates a food and beverage outlet under the Gong Cha brand in the country. This comes as part of its plans to exit from the Gong Cha Brand in the UK, as the unit has been loss-making and is in a net liabilities position as at end December 2024. The counter finished Wednesday unchanged at S$0.145.
Business Times
23-07-2025
- Business
- Business Times
ST Engineering bags new contracts worth S$4.7 billion in Q2 2025
[SINGAPORE] ST Engineering on Wednesday (Jul 23) announced that it secured S$4.7 billion in new contracts in the second quarter of 2025. These comprise S$1.5 billion from the commercial aerospace segment, S$1.5 billion from the defence and public security segment, and S$1.7 billion from the urban solutions and satcom segment. The commercial aerospace segment clinched several new contracts across its maintenance, repair and overhaul (MRO), as well as its aerostructures and systems sub-units. Some of the MRO contracts include a component services agreement with a South-east Asian airline, an offload contract with a major engine original equipment manufacturer, as well as a five-year agreement with Air Cairo. The aerostructures and systems sub-unit of the commercial aerospace segment secured several passenger-to-freighter orders, including one from Confity Capital Partners, a Dubai-based global financial advisory and growth equity firm. ST Engineering noted that demand for nacelles and composite floor panels remained steady, supported by increasing new aircraft production. 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 Separately, the defence and public security segment won new orders across its business lines. For instance, the digital systems business was awarded contracts by Singapore's Ministry of Defence to provide a suite of mine countermeasure unmanned systems to detect and eliminate underwater mines. This includes a fleet of unmanned surface vessels and autonomous underwater vehicles. Meanwhile, the segment also scored contracts to implement data centre services, training and simulation, as well as develop and integrate command and control systems that are enabled by artificial intelligence, among other things. The cyber sub-segment secured new contracts for its advanced encryption products and the provision of cloud-based managed security services, and a cyber range for a customer in Asia. The land system business secured orders for ammunition as well as weapon MRO services, while the marine segment won various ship repair and maintenance contracts for commercial and naval ships. The defence aerospace business also won contracts to provide MRO services for international customers, including a North African air force. ST Engineering also won contracts to provide turnkey rail services for the Taichung MRT Blue Line, as well as its platform screen door solution for the Chennai Metro project and the Xidong Line in New Taipei City. Meanwhile, smart utilities and infrastructure contracts included integrated smart security management projects for implementation in Singapore. Satcom received ground infrastructure contracts for the government, defence and enterprise segments in the US, Europe and the Middle East. ST Engineering does not expect the contracts to have a material impact on the group's consolidated net tangible assets per share and earnings per share for the current financial year. Shares of the company closed 2.13 per cent or S$0.18 lower at S$8.27, before the announcement.
Business Recorder
22-07-2025
- Business
- Business Recorder
Asian currencies subdued; rupiah and peso slip
BENGALURU: Equities in Singapore climbed for an 11th consecutive session on Monday, driven by a rush into its high-yield stocks, while Indonesian shares matched the streak as investors cheered its trade deal with the United States. An MSCI gauge of stocks in emerging Asia touched their highest since mid-November 2021, while a subset of equities in ASEAN countries, dominated by Singapore, jumped to an over 9-month peak. Singapore's benchmark scaled to a new intraday all-time high for the 14th consecutive session, last trading at a record level of 4,225.79 points, with strong inflows into high-dividend industrials, telecom and safe-haven driving the rally. Southeast Asia's largest bank, DBS, and defence firm, ST Engineering, last traded at record highs, while Singapore Airlines rose to its highest in two years and telecom Singtel hit a near nine-year peak. DBS analysts predict increased investor interest, particularly from retail investors, in high-yielding alternatives such as domestic REITs and banks if returns on fixed deposits and short-term government debt securities stay below 2%. In Indonesia, the benchmark jumped 1%, and was on track to close at its highest since mid-December last year. The index has clocked gains for the 11th straight day, on hopes of monetary easing and a favourable tariff deal with the US Maybank economists expect further cuts of 50 basis points with risks skewed to more easing, depending on Indonesian rupiah stability. Elsewhere in emerging Asia, stocks in Manila added 0.6%, while those in Bangkok erased early 1% gain to trade marginally lower in the afternoon trade.
Straits Times
17-07-2025
- Business
- Straits Times
ST Engineering to book one-off gain of $80 million from sale of broadband joint venture SPTel
Find out what's new on ST website and app. ST Engineering and SP Group are to divest their joint venture SPTel, an enterprise broadband connectivity provider. SINGAPORE - ST Engineering's wholly-owned subsidiary, ST Engineering Urban Solutions, has entered into an agreement with SP Group to divest their joint venture SPTel, an enterprise broadband connectivity provider. The buyer is AQX, a digital infrastructure investment platform wholly-owned by home-grown private equity firm Seraya Partners. It will acquire SPTel for $290 million, subject to closing adjustments. In a July 17 statement, ST Engineering and SP Group said the proposed transaction will better position SPTel to scale under a new owner. '(It) will enable SPTel to grow under a new owner whose primary mandate is in investing and growing digital infrastructure platforms,' they said. Divestment proceeds will be distributed to the sellers in proportion to their shareholdings in SPTel, which is 51 per cent owned by ST Engineering Urban Solutions and 49 per cent owned by SP Group. The proposed sale is expected to yield a one-off gain of around $80 million for ST Engineering based on its carrying value for SPTel of around $65 million. Besides this, it is not expected to have material impact on ST Engineering's consolidated net tangible assets per share and earnings per share for the current financial year. Top stories Swipe. Select. Stay informed. Singapore HSA launches anti-vaping checks near 5 institutes of higher learning Opinion The workplace needs to step up on mental health to match Singapore's efforts at the national level Business Market versus mission: What will Income Insurance choose? Singapore Singapore Zoo celebrates reptile baby boom, including hatchings of endangered species Life First look at the new Singapore Oceanarium at Resorts World Sentosa Business Singapore key exports surprise with 13% rebound in June amid tariff uncertainty Opinion AI and education: We need to know where this sudden marriage is heading Singapore Coffee Meets Bagel's Singpass check: Why I'll swipe right on that Additionally, the sellers may receive an earn-out amount of up to $15 million if certain buyer's return thresholds are met in the future, ST Engineering and SP Group said. The proposed transaction is expected to close in the fourth quarter of 2025.
