SG Morning Highlights | CapitaLand Integrated Commercial Trust Successfully Divests Office Asset for S$688 Million

Advancers / Decliners is 53 / 47, with 42.28M securities worth S$53.32M changing hands.

Singapore has updated its Development and Expansion Incentive (DEI) scheme to include a new 15% tax rate tier in line with the global Base Erosion and Profit Shifting (BEPS) 2.0 initiative. Announced by Minister of State for Trade and Industry, Alvin Tan, the revision aims to keep Singapore competitive for multinational enterprises affected by the global minimum tax rate. Additionally, the eligibility for DEI awards has been extended, and the Investment Allowance (IA) scheme has been made more flexible to adapt to rapid economic changes and support a wider range of industries, ensuring that Singapore remains an attractive hub for global businesses.

Singapore has emerged as a leader in Southeast Asia for private equity (PE) transactions, with the largest deal in the third quarter of 2024 being Warburg Pincus’ acquisition of business parks and specialist facilities valued at US$1.2 billion, as reported by EY. Another significant transaction was the US$1.15 billion exit of PropertyGuru by KKR and TPG Capital. Overall, real estate dominated the sector, attracting 40% of the region's PE deal value, buoyed by Singapore’s high occupancy rates and stable rents. EY highlighted that Southeast Asia's PE deal value increased by 8% quarter-over-quarter to US$6.1 billion across 20 transactions. Following real estate, healthcare and infrastructure were significant sectors, making up 18% and 16% of investments, respectively. EY also anticipates strong future deal activity, driven by interest in digital infrastructure, healthcare, and renewables, alongside a favorable financing environment expected to boost IPO activity and family office investments.