SINGAPORE Law and Practice Contributed by: Terence Quek, Benjamin Cheong, Hoon Chi Tern and Favian Tan, Rajah & Tann Singapore
1. Market Trends 1.1 Technology M&A Market
operations. Investors are increasingly drawn to opportunities that align with global megatrends and the city-state’s strategic priorities. There is also hope and expectation of a revival in M&A activity driven by further anticipated rate cuts. The specific sectors highlighted in the forego- ing are expected to remain pivotal in supporting the more robust M&A landscape anticipated for the rest of 2024 and continuing into 2025. Cur- rent anecdotal evidence suggests early signs of recovery, indicating the potential for positive surprises in the year ahead. In addition, as part of Singapore’s Green Plan 2030, the Singapore government has been pro- moting the use of electric vehicles (EVs) to facili- tate its broader efforts to reduce carbon emis- sions and transition to a more sustainable and energy-efficient transportation system. Singa- pore’s ambitious EV adoption goals are likely to create new opportunities for M&A activity in the region. As Singapore races towards widespread EV adoption, there will be increasing interest in innovative businesses working on technologies like EV batteries and EV charging infrastruc- ture. Both start-ups and established companies that focus on these technologies may become attractive acquisition targets for investors look- ing to tap into the rapidly expanding EV market in the region.
Start-up funding in South-East Asia continued to slow through the third quarter of 2024, result- ing in a historic low for the first nine months of the year. The cumulative capital deployed year-to-date of SGD3.26 billion is less than half of what was raised during the same period in 2020, when the COVID-19 pandemic first affected the market, underscoring a prolonged downturn in funding activity amid ongoing global economic chal- lenges. Singapore however, maintained its leading posi- tion in South-East Asia, drawing in 65.6% of the total regional funding in the first nine months of 2024, a share consistent with last year’s perfor- mance. This steady inflow highlights Singapore’s resilience and appeal to investors, even amid a broader regional funding slowdown. Additionally, Singapore continues to lead in the vertical funding of software and IT, accounting for 89% and 81% of South-East Asia’s volume and value, respectively, in the first nine months of 2024. 1.2 Key Trends Notwithstanding the challenging climate for the region described in 1.1 Technology M&A Mar- ket , tech-related M&A and fundraising activity in Singapore continues in specific sectors such as artificial intelligence (AI) and digital infrastruc- ture, sustainability and energy transition, semi- conductors, e-commerce, and foodtech. The AI landscape, in particular, has been under the spotlight in 2024, with keen interest amongst investors in AI infrastructure and AI-related
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