In his keynote address, Gan notes that the JS-SEZ has made “good headway” following the designation of nine flagship zones in January and the establishment of the joint JS-SEZ project office in April. The joint JS-SEZ project office is made up of Singapore’s Ministry of Trade and Industry, the Economic Development Board (EDB) and Enterprise Singapore. It will complement Malaysia’s Invest Malaysia Facilitation Centre, which was established in February. “This partnership is already taking shape on the ground,” says Gan.
Besides Gan, Malaysia’s Minister of Investment, Trade and Industry, Zafrul Abdul Aziz and Chief Minister of Johor, Onn Hafiz Ghazi, were at the forum as well.
“The global economy is shifting in fundamental ways,” says Gan, without directly mentioning the ongoing US-China trade war. “Trade routes are being redrawn as companies shorten and diversify their supply chains. Technology is also transforming how businesses are done — from manufacturing and logistics, to energy and services. And with greater volatility and uncertainty, businesses are placing a higher premium on consistency and reliability,” he adds.
According to Gan, companies seek a stable foundation to operate efficiently, access resources, enter new markets, and form partnerships with governments that understand and support their business needs.
“The JS-SEZ represents the creation of a connected business community that can grow together and compete more effectively in a changing global environment,” says Gan.
Three companies were flagged for making significant commitments to the JS-SEZ. The first is Archisen, a Singapore-based agritech company which develops and operates smart indoor vertical farms. Archisen had signed a memorandum of understanding (MOU) with Malaysian government-linked Southern Catalyst before the forum to develop a 200-acre modern agricultural hub in Sedenak.
Global logistics firm Kuehne + Nagel has also developed an integrated transport and logistics network across Singapore and Johor, which will enable it to offer cost-effective, scalable and resilient supply chain options, Gan adds.
See also: MAS maintains rate of appreciation of the S$NEER policy band in October MPS
Finally, medtech firm ResMed will operate on both sides of the Causeway. This will allow the US- and Australian-based company to leverage Johor’s cost and scale advantages with Singapore’s manufacturing and logistics capabilities.
Shifting supply chains is also a theme alluded to by UOB at its Gateway to Asean conference on Oct 16. With the pandemic as the catalyst, Asean, according to UOB, has emerged as a key beneficiary as businesses move outsourcing, production and sales activities into the region as part of their risk management. “In a multi-polar world, Asean is more relevant than ever,” says UOB CEO Wee Ee Cheong.
Citing UNCTAD’s World Investment Report, inbound foreign direct investments in Asean reached US$225 billion in 2024. The bank expects this number to grow to US$370 billion ($479 billion) by 2030.
Middle East corridor
Separately, on Oct 16, DBS and leading Saudi financial institution Banque Saudi Fransi (BSF) announced a strategic partnership to expand their trade settlement, financing and regional currency clearing solutions.
Via this partnership, the two banks want to provide greater support for businesses and end-consumers seeking to conduct trade, investments and remittances along the growing Asia-Gulf Cooperation Council (GCC) economic corridor.
According to DBS, economic flows between Asia and GCC nations have been increasing over the years. For instance, in 2023, trade between Southeast Asia and GCC nations amounted to around US$130.7 billion, and an additional US$50 billion in new trade flows between both regions is expected to be generated by 2027.
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The partnership was formalised at an apt platform, Sibos, which is the leading global conference of banks organised by Swift, the messaging system entrenched in the global banking ecosystem.
Trade the company behind Indomie
For years, the Singapore Exchange (SGX) has tried to position itself as a listing hub for companies across the region. Those who have chosen SGX for their primary listing are a handful, although there is a growing number here as secondary listings.
In a parallel move, SGX has been broadening the number of Singapore Depository Receipts (SDRs), giving investors here, especially retail ones, additional ways to trade famous overseas companies.
On Oct 16, SGX launched the SDR linkage for Indonesian stocks, following Thailand and, more recently, Hong Kong. Three renowned blue chips, Bank Central Asia, Telkom Indonesia and Indofood CBP, are in the first wave, leading what the exchange hopes will be more of such products to come. Currently, there are 26 SGX-listed SDRs, introduced as part of the exchange’s overall bid to expand its product shelf.
SGX group CEO Loh Boon Chye calls the launch a “significant milestone” in the exchange’s bid to beef up regional connectivity as well. “Indonesia is a dynamic and fast-growing market, and this collaboration enables investors in Singapore to participate seamlessly in its growth story,” says Loh. “Collaborations with other exchanges are also one element within the holistic set of recommendations that the Equities Market Review Group had announced in February,” he adds.
Iman Rachman, president director, Indonesia Stock Exchange (IDX), calls the launch of these SDRs a “strategic milestone” in advancing his exchange’s aim of boosting regional synergy and connectivity. “This initiative will enhance market liquidity, expand investor participation, and strengthen cross-border investment flows,” he adds.
Luke Lim, managing director of the SDR issuer Phillip Securities, says the Indonesian SDRs provide local investors with trading access to high-quality Indonesian companies through a familiar framework. “We believe that cross-border investing within Asean should be straightforward and accessible, allowing investors to focus on building their portfolios,” he says.
The launch of the Indonesian SDR follows last year’s signing of a Memorandum of Understanding (MOU) between SGX and IDX. The three underlying for the SDRs, Bank Central Asia, Telkom Indonesia and Indofood CBP, are all constituents of the benchmark IDX30 Index.
Through SDRs, Singapore investors can gain easy access to Indonesian-listed securities via their local brokers during SGX trading hours. Prices of the SDRs and the underlying shares have moved in close tandem, says Tan.
Having SDRs has helped bring in a broader group of investors, which increases liquidity in the underlying market and enhances the visibility of these Indonesia-listed companies here in Singapore.
SGX has observed the growing popularity of SDRs. Since the launch of the Hong Kong SDRs last October, turnover has grown by more than 30 times, hitting a record high of $16 million in September alone, thanks to strong retail interest in prominent names such as Contemporary Amperex Technology (CATL) and Pop Mart International Group (Pop Mart).
The draw of Indonesia is quite apparent. Southeast Asia’s largest economy in the region, which grew by 5% last year, combined with positive policy changes as well, provides the market with a good tailwind, says Serene Cai, executive director and head of securities trading at SGX.
She acknowledges that for investors here with an eye for overseas equities, trading Indonesian stocks is not as popular as, say, US or Hong Kong stocks. “It is a matter of trying to use the SDRs as a vehicle to enhance the visibility of these Indonesian opportunities here to local Singaporean investors. And it is an ongoing process and journey,” says Cai.
She also points out that as part of the comprehensive suite of market revival measures, there was a specific item to allocate research grants on SDRs, which had been “buried” as the headlines had focused on the $5 billion Equity Market Development Programme.
When asked if having an SDR is a prelude to having the underlying Indonesian companies do a secondary listing on SGX, Cai says this is not the case. Instead, attracting secondary listings from companies across the region and promoting these SDRs are complementary efforts serving different purposes. A secondary listing might involve raising new funds, but SDRs will give investors here more choices, thereby broadening the investor base of the underlying stocks.
However, is the timing of the launch of the three SDRs optimal, given Indonesia has seen weeks of protests in recent months? Cai reasons that markets go through different cycles, while the political landscape changes as well. “We are not here to time the market,” she says.
Given SGX’s stated aim to broaden and deepen Asean connectivity, and given an existing MOU, Cai hints that Vietnam might be the fourth SDR market. The exchange is also mulling over whether other developed markets can be added, says Cai. — with additional reporting by Felicia Tan, Jovi Ho and Teo Zheng Long
