Market Snapshot

Singapore stocks opened higher on Tuesday. STI up 0.1%; YZJ Shipbldg up 2%; SATS up 1%; SGX fell 1%.

Stocks to Watch

SEMBCORP INDUSTRIES LTD: Its subsidiary Sembcorp Utilities entered an agreement with several of its South-east Asian counterparts to explore exporting renewable energy from Vietnam into Malaysia and Singapore, the group said on Monday. Under the agreement, the parties will focus on unlocking Vietnam’s renewable energy resources, particularly offshore wind power, as a source for green electron generation and to supply clean electricity across borders. The counter ended Monday 1.4 per cent or S$0.09 higher at S$6.65, before the news.

Bukit Sembawang: The property developer posted a net profit after tax of S$51.4 million for its second half ended March, a 13 per cent increase from S$45.6 million in the year-ago period. The increase was mainly due to the recognition of higher profits for residential development projects Pollen Collection, Liv@MB and Fraser Residence Orchard, the group said on Monday. Shares of Bukit Sembawang Estates closed Monday 0.3 per cent or S$0.01 lower at S$3.92, before the news.

SBS Transit: Member of Parliament for Tampines Changkat Desmond Choo stepped down from the board of SBS Transit with immediate effect on Monday, following his appointment as Minister of State for Defence last Friday. Choo, who has been a board member of the transport company since April 2021, will also relinquish his membership on the board’s remuneration and nominating committee. He continues to be assistant secretary-general at the National Trades Union Congress. Shares of SBS Transit closed Monday 0.4 per cent or S$0.01 higher at S$2.75, before the news.

Boustead: The engineering and technology group on Monday posted a net profit of S$59.1 million for the six months ended March, representing a 58 per cent increase on the year, although revenue slid 42 per cent to S$231.9 million. The mainboard-listed company said that profits had risen despite lower revenue due to lower income tax expenses and a one-off gain. The counter ended lower by S$0.01 or 1 per cent at S$1.04, before the update.

Trading halt: Printing cylinder supplier Fuji Offset called for a trading halt with immediate effect on Tuesday morning, pending an announcement. Its shares closed Monday 19.7 per cent or S$0.065 higher at S$0.395.

SG Local News

Malaysia, Singapore Explore Importing Wind Energy from Vietnam

Major power companies in Singapore, Malaysia and Vietnam have agreed to explore renewable energy links across their borders, as Southeast Asia takes steps to realize its long-held vision of a regional supergrid.

The “industry alliance” will look to export green electricity, especially offshore wind power, from Vietnam to the other two countries, according to a statement from Singapore’s Sembcorp Industries Ltd. on Monday.

The pact comes as the Association of Southeast Asian Nations steps up efforts to connect its 10 member countries through a regional power grid, which is seen as critical to meeting ambitious climate targets and voracious demand from sectors like artificial intelligence and data centers. Still, the region will need to significantly ramp up grid investment to accommodate rapidly expanding renewables.

Asean Must Strengthen External Ties in New Growth Areas, Even as Integration Continues: PM Wong

Asean must deepen and expand its external partnerships, especially in new growth areas, even as it steps up its own internal integration, said Prime Minister Lawrence Wong on Monday (May 26).

Doing so will help the bloc build a more secure, stable and prosperous region amid an increasingly challenging environment, he said on the first day of the 46th Asean Summit in Kuala Lumpur.

Noting that Asean was formed at the height of the Cold War, PM Wong said that while the circumstances are different, today’s great power rivalry feels like a “new Cold War”.

Singapore’s Factory Output Growth Slows to 5.9% in April as Tariffs Cloud Trade Outlook

Singapore’s manufacturing output grew at a slower pace in April from a month ago as pharmaceutical production dropped amid continuing uncertainty in the Republic’s trade outlook.

April’s factory production rose 5.9 per cent from a year ago, down from 6.8 per cent growth in March, according to monthly data from the Economic Development Board (EDB) on May 26. EDB upwardly revised the March growth rate from 5.8 per cent.

Still, April’s factory output growth easily topped the 2.5 per cent increase forecast by analysts in a Bloomberg poll – with front-loading driving up key electronics production.