SG Morning Highlights | Hong Kong Economy to Grow Faster, Singapore to Slow: Survey

Advancers / Decliners is 105 to 49, with 127.52 million securities worth S$94.67 million changing hands.

Hong Kong's economy is expected to grow faster than previously forecast this year as consumer spending rebounds, while growth in rival financial hub Singapore is likely to slow as global demand weakens.

The latest Bloomberg survey of economists, conducted Jun 1-7, shows growth in Hong Kong will come in at 4.6 per cent in 2023, up from a previous estimate of 3.4 per cent. Singapore's gross domestic product is projected to expand 1.4 per cent, down by half a percentage point, according to the survey.

"Hong Kong's economy continues to see a consumption-driven rebound supported by tourism, boosting its short-term cyclical prospects," said Gary Ng, a senior economist at Natixis. Still, there are risks to the outlook from a slowdown in the global economy and rising interest rates, he said.

The underperformance of environmental, social and governance (ESG) funds may gradually turn in the next few quarters, said MSCI chief executive officer Henry Fernandez.

This is because technology companies, which tend to feature quite prominently in ESG funds, are beginning to outperform energy stocks as oil prices come down. Asset managers in the European Union (EU) are also expected to start launching ESG products at the same pace prior to the slowdown, an activity that has taken a backseat as ESG funds in the region are being reclassified as a result of greater regulatory scrutiny.

South-east Asian companies in the businesses of sustainability, consumer goods and services, and digitalisation will likely be the drivers of capital market activity in the second half of 2023, market players say.

The region is "extremely well-placed" to benefit from any global market recovery, said Jwalant Nanavati, managing director and head of South-east Asia investment banking at Nomura.

He expects four big themes to drive growth in the region from the second half of 2023: energy transition, digitalisation, consumption, and financial inclusion.

Sustainable energy and energy transition have been receiving increased attention from both governments and companies, he said.

In response to The Business Times' queries, Cortina again declined to disclose the number of customers affected by the cybersecurity incident and said that not all its customers' data had been affected.

When asked about seemingly unflattering information the hacker had released about the company, it said: "We advise our customers to exercise prudence when reading reports on the case and (they) should only obtain information on the case from reliable official sources such as the SGX (Singapore Exchange) and Cortina."

If the resolutions Quarz wants to put forward at the EGM are passed, the current manager of Sabana Reit – a company called Sabana Real Estate Investment Management, which is ultimately owned by Hong Kong-listed ESR Group – will stop receiving fee income from the Reit.