Investment & Market Trends

Japanese trading giant Mitsubishi has announced a significant expansion of its salmon farming portfolio through the acquisition of businesses in Norway and Canada, underlining its commitment to strengthening its foothold in the global food sector with an emphasis on protein. Amid volatile fossil fuel markets and the pursuit of stable revenue streams, Mitsubishi and other Japanese conglomerates have increasingly diversified into the food industry, anticipating sustained demand driven by global population growth. “Securing food resources has become a critical global challenge in recent years, propelled by population increases,” Mitsubishi stated. The acquisition, valued at 10.2 billion Norwegian crowns (US$988.3 million), involves three companies owned by Norwegian seafood producer Grieg Seafood ASA. The deal was executed through Cermaq Group, Mitsubishi’s salmon farming subsidiary with existing operations in Norway, Canada and Chile. The move is set to raise Cermaq’s annual salmon production from its current level of approximately 200,000 tonnes to an estimated 280,000 tonnes by fiscal 2027, positioning the group as a key player in the industry. Salmon remains one of the most popular sushi ingredients in Japan, yet the majority of supplies are imported from countries such as Norway and Chile. In response, Japan has set a target to increase the proportion of locally sourced seafood it consumes to 94 per cent by 2033, from 54 per cent at present. In a similar development, Marubeni began marketing salmon last October from a farm operated near Mount Fuji in partnership with a Norwegian company, adding to the growing seafood ventures where competitors Mitsubishi and Mitsui are also active. -Reuters

Maybank Singapore Ltd has entered into a memorandum of understanding with the Singapore Chinese Chamber of Commerce and Industry to enhance cross-border business collaboration and drive investments with a strategic focus on the Johor-Singapore Special Economic Zone. In a joint statement, the parties said the collaboration aims to promote economic development, investment and trade between the two countries. The partnership will see both organisations jointly organise meetings, visits, conferences, workshops and networking events while introducing new initiatives to advance shared objectives. Maybank will offer tailored solutions to businesses, including green lane financing, trade finance, cash management and ESG-linked products, as well as facilitate faster account onboarding. Members of the Chamber will also gain access to capacity-building programmes in areas such as sustainability, Halal advisory and financial services, supported by dedicated advisory services from Maybank’s Johor-Singapore Special Economic Zone Desk. The agreement is expected to benefit approximately 5,000 corporate members of the Chamber. SCCCI president Kho Choon Keng said the combination of the Chamber’s extensive business network with Maybank’s financial strength would enable members and local businesses to access cross-border financing, build ESG competencies and gain valuable market insights. He added that the partnership would open new economic opportunities and help businesses succeed in Malaysia and across Southeast Asia. Maybank Singapore chief executive officer Alvin Lee Han Eng highlighted the bank’s dual-market advantage in Singapore and Malaysia as one of the earliest proponents of the Johor-Singapore Special Economic Zone. He said Maybank is committed to supporting businesses with a comprehensive suite of banking solutions while identifying twinning opportunities for expansion into the zone. -The Star

Huawei has regained its position as the leading smartphone maker in China for the first time in over four years, surpassing US rival Apple and domestic brands including Xiaomi, according to data from the US-based International Data Corporation (IDC). The Shenzhen-based technology giant captured an 18.1 per cent share of China’s smartphone market in the second quarter of this year, with shipments reaching 12.5 million units, IDC reported on Tuesday. Huawei’s resurgence comes despite years of pressure from US export controls, Western bans, and a graft investigation in Belgium. The company has been at the centre of geopolitical tensions between the world’s two largest economies after Washington alleged its equipment could be used for espionage by Beijing, a charge the company has repeatedly denied. China’s broader smartphone market contracted after six consecutive quarters of growth. IDC data showed total shipments fell four per cent year on year to 69 million units in the second quarter. “Despite the recent US-China trade truce, the broader economic environment presents ongoing challenges, with consumer confidence remaining subdued,” said Arthur Guo, senior research analyst at IDC. “This suggests that a significant uplift in smartphone demand is unlikely in the immediate term, and the market will navigate a more complex landscape in the second half of the year.” Apple, meanwhile, experienced a slowdown in iPhone sales in China and last year lost its title as the country’s best-selling smartphone brand to two local competitors. The California-based firm ranked fifth in the IDC report, with a 13.9 per cent market share and 9.6 million units shipped. China’s economy expanded by more than five per cent in the second quarter, according to official data, even as the fallout from tariff disputes with the United States weighed on consumer sentiment. -AFP

NTT DC REIT, the data centre real estate investment trust backed by Japan’s Nippon Telegraph and Telephone Corporation (NTT), made a subdued debut on the Singapore Exchange (SGX) on Monday, despite raising US$773 million in the city-state’s largest initial public offering (IPO) since 2021. The units opened modestly at US$1.03 within the first 30 minutes of trading, edging just above the offer price of US$1.00. The STI benchmark index was up 0.4 per cent during the same period. NTT DC REIT holds a portfolio of six data centres located in Austria, Singapore and the United States, with a total valuation of approximately US$1.6 billion. The trust’s cornerstone investors include Singapore’s sovereign wealth fund GIC, which holds a 9.8 per cent stake, making it the second-largest stakeholder after NTT Ltd, which retains 25 per cent. The listing highlights increasing global investor appetite for data centre assets across Asia-Pacific, underpinned by accelerating demand for artificial intelligence infrastructure and services. This IPO marks Singapore’s most substantial listing since Digital Core REIT’s US$977 million debut in 2021, according to data from LSEG. It also stands as Southeast Asia’s largest IPO since Thai Life Insurance raised US$942.9 million in 2022. Expanding IPO Pipeline in Singapore The SGX has seen renewed listing activity following the rollout of market-strengthening initiatives in February, including a 20 per cent corporate tax rebate for companies pursuing primary listings. “There is a broad base of potential REIT IPOs on the horizon, including data centre, industrial, logistics, hospitality, commercial and retail assets,” said Art Karoonyavanich, Global Head of Equity Capital Markets at DBS. “This marks the first time we have such a pipeline within a 12-month horizon, and these IPOs could raise anywhere between S$600 million (US$468.27 million) and S$1 billion.” Beyond REITs, China Medical System (CMS), listed in Hong Kong, is set to commence trading on the SGX on Tuesday via a secondary listing. “We believe that upon completion of the proposed secondary listing on the SGX, CMS will be able to attract funds focusing on Asia-Pacific investments and local capital in Southeast Asia, thereby optimising the shareholder structure,” the company said in a statement to Reuters. Other listing candidates in Singapore include Foundation Healthcare and Centurion, which plans to launch a REIT focused on employee dormitory assets. The uptick in listing activity comes amid a buoyant stock market. Singapore’s benchmark index has climbed more than 8 per cent since the beginning of the year and reached record highs in the past nine trading sessions, according to LSEG data. -Reuters