15/05/2025

BIZ & FINANCE THURSDAY | MAY 15, 2025

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Frasers offers to take REIT private for S$1.37 billion

BYD tops Singapore vehicle sales, replacing Toyota SINGAPORE: China’s BYD became the most popular vehicle brand in Singapore so far this year, outselling Toyota for the first time, government data showed, as the fast-growing electric vehicle maker steps up efforts to boost overseas sales. In the first four months of 2025, BYD sold 3,002 cars, or 20% of total vehicle sales in Singapore. Toyota and BYD’s main EV rival Tesla sold 2,050 and 535 units each during the same period. Toyota used to hold the crown in the wealthy Asian financial hub where the population of cars is kept steady by an expensive certificate system, selling 7,876 cars in 2024, versus BYD’s 6,191 sales. BYD’s robust sales growth in Singapore underscores its efforts to focus on overseas markets amid bruising price competition in China. Reuters reported this month that China’s top automaker aims to sell half of its vehicles outside the Chinese market by 2030, a massive increase that would make it a rival to the world’s largest automakers. BYD entered Singapore’s consumer car market in 2022, more than a year later than Tesla, but has since reported much stronger sales growth. In 2023, for example, the Chinese firm’s sales almost doubled to 1,416, while Tesla sales rose just 7% to 941 units during the same period. Singapore is one of the most expensive cities in the world to own a car, where a compact BYD Atto 3 SUV costs at least S$165,888 (RM546,000) and the rival Toyota Corolla Altis is priced at S$170,888. BYD has already had early success in Southeast Asia, claiming Thailand as its biggest overseas market as it plans to expand in Europe and Latin America. – Reuters Thai minister says US trade pitch gets positive response BANGKOK: Thailand has told Washington it will crack down on transshipments through its ports, buy more US goods and improve local market access as part of a pitch to avoid steep tariffs on its exports, its finance minister said yesterday. Thailand is among Southeast Asian nations hardest hit by US President Donald Trump’s measures, facing a 36% tariff on its exports if a reduction cannot be negotiated before a global moratorium expires in July. “Our trade proposal is a ‘win-win’ solution,” Pichai Chunhavajira told reporters, adding US Treasury Secretary Scott Bessent had responded positively to the proposal. “This shows that Thailand is one of the trading partners that the United States considers important and is ready to discuss and find a solution on the reciprocal tariffs.” The proposal submitted to Washington includes strengthening cooperation in sectors such as food processing and digital technology as well as increased Thai investment in the US, Pichai said. There would also be strict enforcement of rules of origin to the routing of shipments from third countries through Thailand, he said. Steps to increase imports of US energy, agricultural products, aircraft and parts, and to provide greater market access for US farm products, including fruits and feed corn, were also in the offer, he said. – Reuters

enhancement initiatives,” the companies said. Frasers Property also added that the REIT would remain constrained by both macroeconomic challenges and structural limitations, potentially hindering its ability to grow distributions per security (DPS) and net asset value (NAV). The REIT, which debuted on the Singapore Exchange in 2014, manages a portfolio of 14 hospitality assets – including hotels and serviced residences – across nine cities in Asia, Australia, and Europe. “While our portfolio has demonstrated resilience, sustained growth has been hampered by persistent FX headwinds, inflationary cost pressures and broader geopolitical developments – from Brexit to escalating trade tensions and the evolving global tax regime,” said Eric Gan, CEO of Frasers Hospitality Trust’s manager. – Reuters

o Hospitality trust pressured by macroeconomic challenges and structural limitations: Parent company

SINGAPORE: Thai business magnate Charoen Sirivadhanabhakdi’s Frasers Property made a second attempt to take over its hospitality real estate investment trust (REIT) at a valuation of S$1.37 billion (RM4.71 billion), sending shares to their strongest level in over 30 months. The parent company has offered S$0.71 apiece for every share it does not already own to shareholders of Frasers Hospitality Trust, according to a joint statement yesterday. The offer represents a 6.8% premium to the unit’s last closing price. Shares of the hospitality REIT surged 4.5% to S$0.695 per share, its strongest level since early September in 2022.

The Singapore-based developer made a buyout attempt in 2022, offering S$0.70 per share but failed to get the required 75% shareholder support. The billionaire and his family together control more than 60% of the REIT’s shares, according to data compiled by LSEG. Singapore’s REIT sector has faced worries since the Covid-19 pandemic due to issues over rising interest rates, macroeconomic uncertainties and a weaker foreign exchange rate against the local dollar. “Hospitality trusts are inherently exposed to more business volatility due to shorter stays and periodic capital expenditure for asset

Vietnam PM vows to fight counterfeits, trade frauds HANOI: Vietnam’s Prime Minister Pham Minh Chinh yesterday urged the country’s anti-counterfeit task force to devise new ways to fight fake goods, trade frauds and smuggling, the government said in a statement. Vietnamese officials often refer to as trade fraud. The government said frauds were widespread and were increasing on online platforms, noting recent cases of fake milk, food and supplement products had “seriously affected people’s health and social order”. “Domestically, the production and trade of counterfeits, poor-quality goods and goods of unknown origin is openly widespread, and is on the rising trend on e-commerce environment on a large scale and for a long time, directly affecting people’s health,” the government said. On Tuesday, the Ministry of Public Security said police arrested the former head of the Ministry of Health’s food safety department in a fake supplement production and trading case. Nguyen Thanh Phong was accused by police of taking bribes since 2016 to issue quality certificates to nine local companies that produced counterfeit supplements, the ministry said. – Reuters OCBC to integrate securities business into global markets division The pledge came as Vietnam is in talks to avoid crippling US tariffs, offering Washington multiple measures to address longstanding concerns, including on intellectual property breaches and transhipment of Chinese goods through the country. Internal documents reviewed by Reuters showed the government last month instructed officials to step up the fight against counterfeits, digital piracy and the transhipment of Chinese goods to the United States, which The government said 1,100 cases of counterfeit and intellectual property violations, 25,100 cases of trade and tax frauds and 8,200 cases of smuggling contraband and prohibited articles had been detected this year. There were no comparative figures in the statement. “The situation of smuggling and illegal cross-border transportation of goods remains complicated,” the government said.

SINGAPORE: Oversea-Chinese Banking Corp (OCBC) said yesterday it will integrate its three securities units into its global markets division as Singapore’s second-largest lender seeks to streamline operations and boost its equities business. The integration, scheduled for July, will merge the bank’s securities operations in Singapore, Hong Kong, and Indonesia, potentially reducing costs and helping cross-selling amid increasing interest in Asia’s equity markets. All existing staff will continue in their current roles, with no disruption to trading services because of the integration, OCBC said. Kenneth Lai, head of global markets, will oversee the securities business as part of the newly-formed division, centralising the administration of all financial market products – equities, FX, rates and credit. The restructuring follows Singapore’s February initiative to revive its stock market through listing initiatives and a S$5 billion (RM16.28 billion) domestic investment programme. While the island republic’s main index has gained over 2% this year, OCBC aims to capture more business opportunities in Hong Kong, where the Hang Seng index has surged over 15%. – Reuters

People passing an OCBC Bank signage in Singapore. – REUTERSPIC