SINGAPORE Trends and Developments Contributed by: Evelyn Wee, Sandy Foo, Tracy-Anne Ang, Terence Quek, Hoon Chi Tern, Goh Jun Yi and Tricia Teo, Rajah & Tann Asia Singapore LLP
Sectors in Focus A report by Deloitte noted that as capital allocations to China reduce and investors seek alternative invest - ment destinations, South-East Asia is well positioned to gain investment momentum driven by factors such as a young and growing population, as well as rapid urbanisation and digital transformation, all of which continue to attract both regional and international PE investment. However, investors appear more focused on stable sectors in which to park their investments, and a sur - vey by Bain shows that South-East Asia investors are concerned about exit difficulties, fundraising chal - lenges and quality deal flow. Investor focus on sec - tors such as digital infrastructure, healthcare (includ - ing healthtech) and semiconductors appears to reflect this shift in investor mindset. Healthcare The healthcare sector remains robust, with signifi - cant investments aimed at enhancing service deliv - ery, expanding medical technologies and meeting the rising demand for quality healthcare. Healthtech in particular is driving innovation in healthcare by using technology to improve care delivery, enhance patient outcomes and increase system efficiency. According to a report by DealStreetAsia, Singapore was responsible for 65% of healthtech investments in South-East Asia over the past year, highlighting its position as the region’s premier hub for innovation in this sector. Notably, in May 2025, Temasek’s SeaTown Holdings International, via its SeaTown Private Capital Mas - ter Fund, announced its investment into AddVita, a Singapore-headquartered healthcare and life sciences distribution company. With a capital commitment of up to SGD115 million from SeaTown PCap Fund, the investment provides AddVita with a strong foundation and network to accelerate its growth. Digital economy As the digital economy in Singapore and South-East Asia continues to grow in tandem with global develop - ments, it comes as no surprise that sectors aligned with the digital economy are expected to demonstrate
sustained growth in Singapore. PE investors in par - ticular are likely to be drawn to the strategic value and growth potential of the semiconductor industry and data centres. Singapore’s semiconductor industry began in 1969 with the arrival of Fairchild Semiconductor, laying the foundation for a world-class hi-tech ecosystem. Today, Singapore is an integral part of the global semi - conductor supply chain and contributes approximate - ly 11% of global semiconductor production, hosting over 60 multinational and specialised firms including major players like GlobalFoundries, Micron, Applied Materials and ASML. Singapore’s close collaboration between government and industry – through agencies such as A*STAR, IMDA and Temasek – has fostered a secure, innova - tion-led environment for semiconductor development. The country is a regional leader in electronic design automation access, chiplet design and advanced packaging R&D, exemplified by Singapore-based Sili - con Box’s pioneering work in next-generation chiplet integration. Given the importance of semiconductor technologies in global megatrends such as AI and digitalisation, and the ecosystem for semiconductor technology and development in Singapore, PE inves - tors will likely continue to seek opportunities in the semiconductor space. • In August 2024, a group of investors led by Prysm Capital acquired an undisclosed stake in Silicon Box, in an approximately USD99.9 million Series B funding. • More recently, in July 2025, EDBI Pte Ltd, the Singapore-based PE arm of Singapore Economic Development Board, acquired a 35.12% stake in Advanced Micro Foundry Pte Ltd, a Singapore company specialising in fabricating semiconduc - tor wafers, from US-based PE firm SAIL Venture Partners LP. With the rising demand for cloud computing and the commercialisation of AI expecting to place pressure on data storage resources, a consistent flow of data centre-related deals took place in the city-state in 2024.
578 CHAMBERS.COM
Powered by FlippingBook