SG Morning Highlights | Singtel and SK Telecom Forge Partnership to Progress 6G Technology

Advancers / Decliners is 82 to 50, with 77.43 million securities worth S$97.67 million changing hands.

Despite experiencing a 3.8% year-on-year decrease in foreign direct investments (FDIs) to $32.7 billion in the first quarter, Singapore has maintained its position as the leading Southeast Asian destination for FDIs, according to McKinsey's quarterly economic review. The city-state saw its economy grow by 2.7% year-on-year in Q1, marking the strongest annual growth since Q3 2022, but also the slowest quarterly expansion since Q1 2023. Factors such as major events, including Taylor Swift's concert, and improvements in sectors that depend on external factors contributed to this economic growth. Inflation in Singapore remains at 3% and is expected to stay high until at least the end of 2024. McKinsey anticipates that the central bank may maintain its policy rate in the upcoming quarter due to sustained inflation, with relief potentially arriving by Q4 2024.

Singapore witnessed a decrease in IPO activity with only one listing in the first half of the year, compared to three during the same period in 2023, as reported by Deloitte. The Singapore Institute of Advanced Medicine Holdings was the sole company to go public on the SGX, raising US$20 million. Despite the lower number of IPOs, Singapore's IPO market capitalization increased to US$173 million from US$101 million the previous year. The overall Southeast Asian IPO market also saw a downturn, with the number of IPOs dropping from 85 to 67 and market capitalization falling from US$20.1 billion to US$5.8 billion. Despite the local market's stagnant performance, five Singapore-based companies made their debut in the US in the first half of 2024. Deloitte suggests that while overseas markets have their advantages, they may not be the best option for every company. Looking forward, Deloitte forecasts a significant influx of AI-driven IPOs in Southeast Asia and a resurgence in REIT listings, potentially stimulated by any reductions in interest rates.

Key collaborative efforts will include enhancing network slicing capabilities to meet varying demands, developing disaggregated mobile networks for flexible and cost-effective network management, and creating standardized telco APIs through an Open Gateway. This gateway aims to foster service growth in sectors like fintech and smart mobility. To manage the complexity of future 6G networks, Singtel and SK Telecom will work on orchestration platforms such as Singtel CUBE to help enterprises manage services seamlessly. They will also explore using automation and AI to improve operational efficiency and service responsiveness, laying the groundwork for the transition into the 6G era.