SG Morning Call｜Singapore Will Stick to Rules-Based Trade Principles, Even If Unfavourable in Short Term: DPM Gan

Market Snapshot

Singapore stocks opened higher on Wednesday. STI up 0.4%; SIA, OCBC up 1%.

Stocks in Focus

$SIA(C6L.SI)$: The flag carrier will fly to Sydney’s new 24-hour airport, it said on Tuesday. The new airport allows SIA to offer red-eye flights from Sydney, enabling it to bypass the 11 pm to 6 am curfew at the existing Sydney airport, with such flights preferred by corporate travellers. It will also help feed into SIA’s regional network, using Changi as a transit point after the dawn arrival of the new Sydney flight. Shares of SIA rose 0.3 per cent or S$0.02 to close at S$6.51 on Tuesday, before the announcement.

$CapLand Ascendas REIT(A17U.SI)$: The manager of the real estate investment trust (Reit) on Wednesday announced that it will list 249.4 million private placement units at S$2.406 apiece and 129.1 million preferential offering units at S$2.35 each. This is part of its S$900 million fundraising to finance three Japan and Singapore assets and other purchases. Units of Clar fell 2.7 per cent or S$0.07 to close at S$2.50 on Monday, before it called for a trading halt that is now lifted.

$F & N(F99.SI)$: The F&B conglomerate on Tuesday announced that the CEO of its Malaysian unit – Lim Yew Hoe – will retire on Sep 30 this year. The 59-year-old will be leaving after an 11-year tenure with F&N Holdings Berhad, according to his LinkedIn profile. Tarang Gupta will be appointed as CEO designate with effect from Jul 1, and will assume the role of CEO on Oct 1. Shares of F&N closed up 0.7 per cent or S$0.01 at S$1.43 on Tuesday, before the announcement.

SG Local News

Singapore Will Stick to Rules-Based Trade Principles, Even If Unfavourable in Short Term: DPM Gan

The Republic’s trade practices and decisions are grounded in rules-based principles, and the city-state will uphold these even if doing so is disadvantageous in the short-term, said Deputy Prime Minister Gan Kim Yong.

“Singapore always adopts the attitude that our approach and decisions are based on principles,” said Gan, who is also trade and industry minister.

“This is important for us as a hub economy. We have to be a trusted partner… No one will send their goods through Singapore if they do not trust us.”

Germany's TKMS Teams up with Singapore's ST Engineering for Marine Hub

Germany's TKMS ‌and the Marine arm of Singapore's ST Engineering ​signed a memorandum of ​understanding (MoU) aimed at establishing ⁠a joint service ​and maintenance centre in Singapore, ​the German company said on Tuesday.

The agreement, part of ​an already existing ​partnership between the two firms, aims ‌to ⁠ensure the long-term operational readiness of the submarines operated by Singapore's ​navy ​and ⁠other international users of TKMS submarines, ​the company added.

Heineken to Wind Down Singapore Brewery, Shift Output to Malaysia, Vietnam

Heineken will wind down large-scale production at its Tuas brewery in ​Singapore, home of its Tiger beer brand, by ‌the end of 2027 and shift it to other sites in Malaysia and Vietnam, the world's No.2 brewer by ​market value said on Tuesday.

The move comes as ​Heineken looks to cut up to 6,000 jobs ⁠globally over the next two years. Heineken said ​once the move is complete, it will import beers ​from other regional breweries to Singapore, where Tiger beer was created in 1932.