Singapore

Super-app M&A would be sign of more rational times

25 Feb 2020

A mooted merger of Gojek and Grab could create a $23 bln Southeast Asian food-delivery-to-ride-hailing giant. Strategic investors are still keen to write cheques, but easy money from SoftBank and others is drying up fast. Consolidation is the best path to continued rapid growth.

Thailand’s capital markets are anything but sick

10 Jan 2020

Central Retail is raising up to $2.7 bln in a record IPO, putting the country on course to be top for new issues in Southeast Asia for a fourth year. As Thai Inc looks abroad for growth, helped by a strong currency, it’s a reminder that the market’s relative maturity has upsides.

The Exchange: The Asianisation of the world

17 Sep 2019

A splintering West and increasingly interconnected East is creating a newly powerful mega-region, according to Parag Khanna, author of “The Future is Asian.” He swung by the Breakingviews office in Hong Kong to break down the economic and geopolitical rationales behind his idea.

Singapore is an imperfect global barometer

12 Jul 2019

The Lion City grew 0.1% in the second quarter, the slowest pace in a decade. It’s a perturbing signal from the first big open economy to report, and a sharp contraction in manufacturing will worry other tech exporters. But the volatile numbers can set off false alarms elsewhere.

Singapore Airlines reroutes back to Malaysia

28 Jun 2019

The $8 bln carrier is deepening ties with its struggling Kuala Lumpur rival, from code-sharing to maintenance. It may be a precursor to merging again nearly 50 years after the two split. Reuniting would benefit both, but politics and regulation will be hard to navigate.

Uber and Lyft create Asian valuation conundrum

30 May 2019

U.S. ride-hailing exuberance faded into lacklustre market debuts. At the same time, Singapore’s $14 bln Grab, for example, recently raised capital privately at 7 times expected revenue, compared to Uber’s 5 times. Fast-growing payment units can only justify some of the gap.

Singapore raises stakes for Macau casino permits

24 Apr 2019

Las Vegas Sands and Genting will invest some $7 bln and endure harsher rules to extend their duopoly in the city-state. Investors flinched, wiping $2 bln off shares. It increases the odds that the Chinese gambling hub will demand more onerous terms from Wynn, MGM, and rivals, too.

Tencent-backed Sea makes better second impression

7 Mar 2019

The $7.8 bln tech outfit just sold more stock at a higher price than it did in a shoddy late 2017 IPO. A video game hit and success in an Indonesian e-commerce battle against Alibaba’s Lazada have won over sceptics. Some $1.4 bln of fresh capital can help keep the momentum going.

Wirecard shows fintech stars share banking ills

4 Feb 2019

The payments group denied an FT report alleging false accounting. Yet shares are down 25 pct since last week. Soothing investors will mean bulking up in compliance and boosting transparency. They’re the kind of problems associated with rickety banks, not disruptors.

Singapore’s Grab tempts headquarters curse

1 Feb 2019

The ride-hailing app plans to occupy a newly designed $135 mln building, under an 11-year lease. From Myspace to Yahoo, lavish moves have been a bad omen. Grab has cash, but is young, unprofitable and in a fierce rivalry with Go-Jek. Tech optimism may have gone too far again.

Singapore’s $40 bln flash crash clouds IPO push

25 Jan 2019

Jardine Matheson shares abruptly plummeted some 80 pct before rebounding. A fat finger trade is being ruled out, but the cause remains unknown. Either way, it’s a setback for a market already plagued by outages and liquidity concerns. Attracting new listings just got tougher.

Temasek gives CapitaLand a new economy makeover

14 Jan 2019

The state investor will sell a real estate unit to the Singapore property giant for $4.4 bln. Temasek gets a majority stake in the heavyweight, which it already part-owns. With more exposure to e-commerce and developed markets, CapitaLand gets scale and downside protection.

Singapore offers lessons in corporate succession

27 Nov 2018

The Lion City’s ruling party has set in motion a careful handover, identifying the man who will eventually become premier. Boardrooms, against which the island gauges itself, can learn from the planning. Both, however, would benefit from more diversity to prepare for shocks.

India could clear flight for Singapore Airlines

14 Nov 2018

The $8 bln carrier posted dismal quarterly earnings, weighed down by fuel costs. But opportunity may be knocking, as indebted rival Jet Airways comes into play. A deal by Singapore’s influential Indian partner Tata would bring newfound clout in a promising growth market.

Singapore’s Grab cashes up for a bigger taxi fight

2 Aug 2018

The ride-hailing firm won one battle when it pushed U.S. giant Uber out of Southeast Asia. Much of its latest $1 bln funding round will be spent in Indonesia, where Grab is up against local rival Go-Jek. That country is where the region's tech landgrabs will be won or lost.

Sovereign investors sound market alarm

13 Jul 2018

Singapore's GIC has joined compatriot Temasek in striking a note of caution. It is reducing its exposure to developed markets and holding more cash: trade ructions, tighter rates and stretched valuations are giving it pause. That all points to lower returns ahead.

Singapore makes Uber unlikely techlash test case

5 Jul 2018

City-state regulators say the ride-app’s merger with $6 bln Grab curbs competition. They want drivers freed up and prices held steady, but also threaten to undo the deal unless consumers are happy with the fixes. The hard line may be a small sign of what’s to come for Big Tech.

Toyota plots yet another jittery ride-hail route

13 Jun 2018

The Japanese carmaker is investing $1 bln into Asian startup Grab. It’s the latest in a slew of deals that mostly reflect manufacturer fears about where things are headed in autonomous driving and beyond. As GM’s fading Lyft alliance shows, though, the path is far from clear.

StanChart dream reveals Barclays’ limited options

23 May 2018

The UK bank has considered merging with rivals including Standard Chartered, according to the Financial Times. Combining the two makes little financial sense. But it shows Barclays boss Jes Staley has few obvious ways to boost returns and appease activist Edward Bramson.

Singapore Airlines is cruising comfortably

18 May 2018

The $10 bln flag carrier beat forecasts with a 148 pct jump in annual earnings. Its overhaul is working, and a plan to absorb regional arm SilkAir looks sensible. There is more to do, but the group can afford to take its time evaluating growth options, including India.