Maybank Research Pte Ltd
15 September 2025
ASEAN Internet & Telco Stocks Surge: Sea Ltd, Singtel, StarHub, Malaysia Market and More – 2025 Investment Outlook

Executive Summary: Robust Growth Across ASEAN Internet and Telco Sectors

The Southeast Asian internet and telecommunications sectors are experiencing powerful tailwinds, driven by strategic monetization, AI adoption, industry consolidation, and evolving investment themes. This report from Maybank Research Pte Ltd provides a detailed analysis of top regional picks, including Sea Ltd, Singtel, Indosat, StarHub, and key Malaysian names. Read on for comprehensive financials, market insights, and actionable investment ideas.

Sea Ltd: Monetization Momentum and Multi-Segment Growth

Sea Ltd is capitalizing on scale with a shift towards stronger monetization, especially for its e-commerce platform, Shopee. Shopee has raised seller commissions twice in 12 months, with hikes of approximately 1–1.5 percentage points, boosting adjusted EBITDA/GMV by 0.1–0.2 ppt. These commission increases are well absorbed by the market, with further upside expected through offline-to-online expansion and fintech (Buy-Now-Pay-Later).
Garena, Sea’s gaming arm, is sustaining engagement with its flagship Free Fire title through collaborations and is ramping up new releases such as Delta Force and Free City. Meanwhile, AI adoption within Garena is improving cost efficiency, margins, and accelerating content iteration.
Key Financial Metrics and Valuation:
FY25–27 EBITDA raised by 10–25%
Target price upgraded by 16% to USD238
Sea Ltd trades at 2.9x EV/sales and 24.1x EV/EBITDA
Growth-adjusted valuation at a 13–35% discount to global e-commerce peers

ASEAN Telecom: AI-Driven Neocloud and Direct-to-Cell Expansion

Neocloud Boom: Telcos Positioned for Massive AI Growth
AI is propelling global demand for neocloud capacity, with specialized providers offering GPU compute power optimized for AI workloads.
Enterprise and government requirements for AI-sovereignty are creating a significant incremental revenue opportunity, projected at USD21 billion for telcos by 2030.
Within ASEAN, Singtel and Indosat are highlighted as early and leading beneficiaries.
Singtel:
Singtel is scaling its RE:AI platform as a sovereign alternative to global hyperscalers. Its data center (DC) capacity is expanding rapidly, with over 50% of its 58MW Tuas site (live Jan-26) and 80% of its first Thailand facility pre-sold. Additional regional pipeline includes Johor and Batam, totaling 400MW.
Indosat:
Indosat targets approximately 3% EBITDA uplift from AI cloud by 2026, adding a new growth leg.

Starlink’s Direct-to-Cell Launch: Rural Connectivity Revolution

SpaceX is acquiring critical AWS-4 and H-block spectrum for USD17 billion, enabling direct-to-cell (D2C) connections for standard 4G/5G smartphones via Starlink satellites—no terminal required. D2C won’t replace terrestrial networks but will complement coverage, especially in rural and hard-to-reach areas.
Key Market Implications:
Rural Indonesia (~97% 4G coverage, many islands underserved) and the Philippines stand to gain.
In Australia, Optus can leverage D2C to close the rural gap, enhancing its value proposition and helping narrow the gap with Telstra.
Smaller telco operators can use D2C partnerships to address network coverage gaps, with positive knock-on effects for Singtel.

Malaysia Market Strategy: Stabilization and Upside in 2Q25

Malaysia’s market outlook is increasingly optimistic. Following the 2Q results season, small caps outperformed, while large caps in banks, consumer, plantations, and REITs largely met expectations. The KLCI index target remains at 1,660.
Top Picks:
New additions: HLB, IHH, ECOSHOP, SDG, WPRTS, MNH, SOLAR, NE
Removals: PBK, AMMB, AEON, ITMAX, ATECH, YTLP
Maintained: TNB, FFB, GAM, KPJ, FRCB, PREIT
KLCI Earnings Growth:
2025E: 1.5%
2026E: 8.2%

Singapore Telcos: Consolidation Fuels Growth, StarHub Upgraded

Industry consolidation is driving rationality and growth in the Singapore telco sector:
Mobile revenue growth forecasted to rebound 4–5% p.a. in 2026–27 (vs. -3% to -5% declines previously)
ARPU recovery likely as pricing discipline returns (Singapore ARPUs -36–41% since 2017 and 15–40% below Developed Market Asia peers)
StarHub upgraded to BUY with a target price of SGD1.35 (+6% yield, -1σ valuation)
Singtel target price raised 11% to SGD4.75
Optus (Australia):
Benefiting from rational competition, broad-based price hikes, capex optimization, and partnership with TPG
EBIT estimates raised by 5–20%
Singtel’s Nxera Data Center Expansion:
50% of 58MW Tuas site and 80% of Thailand facility pre-sold
Johor and Batam add to 400MW regional pipeline
Overall Outlook:
Marked improvement in Indonesia and Philippines associates
Forex headwinds outweighed by growth opportunities

Major News: IPOs, ETFs, and Dividend Leaders

CapitaLand Commercial C-REIT’s public offer in Shanghai oversubscribed 535 times, raising 2.29 billion yuan. CLI’s eighth listed fund complements its Singapore offering and aligns with its domestic fund strategy for capital recycling and fee income growth.
Lion Global Investors to debut Singapore’s first active bond ETF by end-September, offering a cost-effective way for income and diversification (management fee: 0.25% p.a., up to 1% of NAV).
DBS shares hit an all-time high, further outpacing OCBC and UOB due to strong dividend flows and liquidity; however, net interest margin compression may cap future dividend upside for Singapore banks.

Sector Snapshots: Banking, REITs, Sustainability, and Consumer Plays

Malaysia Banking:
2Q25 results season was solid
Forecasts: Net profit growth of 2.1%/4.9% in 2025/26E; aggregate ROAEs of 10.1%; dividend yields >5%
Sector NEUTRAL, top BUYs: HLBK, AMMB, PBK
Thailand REITs:
Strong outlook due to possible Fed rate cuts
Lower US bond yields could drive up Thai REIT prices
BUY ratings maintained on DIF and CPNREIT; 3BBIF downgraded to HOLD
DIF is now top pick for healthy IRR (6.6%), 10% FY25–26E yields, and low risk
Japfa Comfeed Indonesia:
BUY maintained with TP of IDR2,300 (7x PE target, 0.5SD below 3-year mean)
Efficiency through technology adoption and expansion in consumer goods segment reduces earnings cyclicality
Sustainability Spotlight: Suzlon Energy
Wind turbine capacity increased to 4.5GW p.a.
India to add 6.0GW wind energy in FY26E vs 4.15GW in FY25
FY26E revenue growth guided at 60% YoY; exports to restart FY27
New domestic content rules support level playing field vs Chinese suppliers
Increasing O&M EBITDA strengthens balance sheet

ASEAN Economics: Export Risks and Opportunities

Concerns over a sharp pullback in ASEAN exports due to reciprocal tariffs are overstated.
Key reasons: US inventory build-up not material, “relative” tariff advantage for ASEAN exporters, and tariff exemptions for electronics (a major share of ASEAN exports).

Disclosure and Rating Definitions

Maybank IBG Research rating system:
BUY: Expected return >10% in next 12 months (incl. dividends)
HOLD: Expected return 0–10% in next 12 months
SELL: Expected return <0% in next 12 months

Upcoming Events and Model Portfolio Changes

Maybank-REITAS-SGX Singapore REIT Day in KL (23 September, by invitation)
Model portfolio rebalancing: Malaysia now favored, with momentum outperforming low-volatility styles, and several top pick adjustments post-2Q25 results.

Conclusion: ASEAN Internet & Telco Sectors Poised for Growth

The ASEAN region is entering a new phase of growth and rationality, with key players like Sea Ltd, Singtel, Indosat, StarHub, and top Malaysian names well-positioned to benefit from sector tailwinds, AI-driven transformation, and market consolidation. Investors should monitor evolving trends, new IPOs, and dividend leaders for potential alpha generation in 2025 and beyond.