Lim & Tan Securities Pte Ltd
Report Date: 26 August 2025

Singapore’s Market Pulse: Offshore Wind Ambitions, Green Finance, and Shifting Investment Flows

Market Overview: Global Indices, Commodities, and Interest Rate Movements

Global equity markets presented a mixed picture, with Wall Street giving back some of last week’s gains as hopes for imminent US Federal Reserve interest rate cuts were tempered. The S&P 500 closed 0.4% lower but remains near record highs, while the Dow Jones Industrial Average slipped 0.8% after a new high. Technology stocks showed resilience, with Alphabet and Nvidia posting gains, offsetting weaknesses in healthcare names like Pfizer and Eli Lilly.

Key commodities saw gold at US$3,353.3/oz (-0.4% daily, +27.8% YTD), crude oil at US$65.3/bbl (+1.9% daily, -9% YTD), and crude palm oil at 4,482.0 (-0.2% daily, +9.6% YTD). The VIX volatility index rose 4% to 14.8, reflecting an uptick in uncertainty.

Spotlight: Marco Polo Marine’s Bold Push into Offshore Wind

Marco Polo Marine (MPM) ($0.069, up 0.2 cents) has announced a major strategic move to cement its leadership in the rapidly expanding offshore wind energy sector. Through its 49%-owned subsidiary, PKR Offshore Co. Ltd. (PKRO), the group is targeting an IPO in Taiwan, with the application expected by Q3 2026.
The listing will unlock new capital, funding an aggressive fleet expansion—especially in Commissioning Service Operation Vessels (CSOVs)—to support the surging demand in Asian wind markets including Taiwan, South Korea, and Japan.
The region is at the epicenter of Asia’s offshore wind boom, with Taiwan singled out as a vital springboard for broader regional growth.
According to the Global Wind Energy Council (GWEC), installed global offshore wind capacity hit 83 GW as of May 2025, with another 48 GW under construction. Auction activity was robust at 56.3 GW last year, and a further 100 GW is projected in the next two years.
Sean Lee, CEO of Marco Polo Marine, emphasized the strategic nature of the listing, positioning the company as a key infrastructure builder for clean energy in Asia. For investors, this represents a unique opportunity to participate in a high-growth, renewable energy story, underpinned by MPM’s maritime experience.

Recommendation: Maintain BUY, with expectations of more positive news flows in the near to medium term.

OUE REIT: Securing the Future with Green Financing

OUE REIT ($0.335, up 1 cent) has made a significant stride with its first green loan via its joint venture OUE Allianz Bayfront LLP. The S$600 million green loan, along with S$225 million in revolving credit and a S$5 million bank guarantee, will refinance existing debt due in 2026 and support general corporate needs.
Key highlights:
Anchored by OUE Bayfront’s BCA Green Mark upgrade from Gold to Platinum.
Post-refinancing, only 22.5% of OUE REIT’s total debt will be due in 2026.
Weighted average cost of debt will decrease by 10bps to 4.1% p.a., and the average term extended to 2.9 years.
Green/sustainability-linked financing will rise to 86.1% of total borrowings.
Management highlighted the strategic benefits—interest cost savings, enhanced financial flexibility, and a strong commitment to sustainable development. OUE REIT is now a pure-play Singapore REIT with quality retail, hospitality, and office assets, offering an attractive 5.9% yield at 0.6x P/B.
Recommendation: Accumulate on Weakness due to its high yield, low valuation, and potential benefits from a lower interest-rate environment.

Dividend Highlights: Key Upcoming Payouts

Singapore Market: Yield, Valuation, and Consensus

Hong Kong Rental Market: Mainland Influx Lifts Rents

Hong Kong’s rental housing market is poised to reach new highs by October, with a sustained influx of Chinese students and professionals. Notable trends:
North Point rents up 8.8% YoY, driven by location advantages.
Mid-Levels West rents surged ~10% YoY, favored by proximity to business districts and universities.
July’s asking rents rose 1.1% MoM, just 2.2% below the 2019 peak.
The city has absorbed over 220,000 new arrivals under work visa programs, while expat-heavy areas like Deep Water Bay saw a 17.2% YoY rent drop. Leasing volumes jumped 30% in July, reflecting robust demand.

US Macro: Political Pressure and the Fed’s Balancing Act

Mounting political pressure on the Federal Reserve is raising concerns over long-term inflation expectations and policy credibility. Persistent attacks on Fed Chair Powell, alongside trade tensions and tariff threats, complicate the outlook:
A less independent Fed could prompt higher long-end yields and more volatile inflation.
The market’s current low volatility may be unsustainable amid these macro risks.
BCA Research analysts recommend a defensive stance, citing potential for a “new Cold War” dynamic in global trade, with shifting alliances and deepening fragmentation.

Share Transactions: Insider Activity and Buybacks

Major acquisitions, disposals, and share buybacks signal active management and confidence across several Singapore-listed names.

Buyback activity was robust in several blue chips, including Keppel Ltd, OCBC, UOB, Raffles Medical, ST Engineering, and more, reflecting strategic balance sheet management.

Institutional and Retail Fund Flows: Shifting Tides

For the week of 11 August 2025:
Institutional investors were net sellers, with outflows of S$385.5 million (vs. S$256.8 million the prior week).
Retail investors posted net buys of S$329.4 million (vs. S$144.3 million previously).
Top institutional buys included City Developments, iFast, Genting Singapore, and Jardine Matheson; top sells were Sembcorp Industries, DBS, UOB, and SIA.
Retail flows favored Sembcorp Industries, UOB, DBS, and ST Engineering, while City Developments, Singtel, and OCBC led outflows.

SGX Watch-List: Companies Under Regulatory Scrutiny

There are 32 companies currently under the SGX watch-list, including newly added names such as Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare. This list is a crucial reference for risk monitoring and investor awareness.

What’s Ahead: Key Dates and Announcements

August and September are packed with earnings and dividend events from blue chips and mid-caps, including OCBC, Lendlease Global, Ascendas REIT, CICT, Parkway Life, UOB, DBS, Genting, SGX, Wilmar, and many more. These events could trigger significant price movements and should be on every investor’s calendar.

Conclusion: Navigating Opportunity and Risk Amid Global Shifts

Singapore’s markets are at an inflection point, shaped by global monetary policy, regional sectoral growth (such as offshore wind and green finance), and evolving capital flows. Investors should stay vigilant for opportunities in high-yield, low-valuation plays, while monitoring macro risks and regulatory developments both locally and globally.