SINGAPORE Trends and Developments Contributed by: Terence Quek, Benjamin Cheong, Favian Tan and Rajesh Sreenivasan, Rajah & Tann Singapore
intend to expand their portfolios in sustainable technologies. In addition, as part of Singapore’s Green Plan 2030, the Singapore government has been promoting the use of electric vehicles (EVs) to facilitate its broader efforts to reduce carbon emissions and transition to a more sustainable and energy-efficient transportation system. By 2030, Singapore aims to phase out the sale of internal combustion engine vehicles. In a bid to encourage the adoption of EVs, the government has introduced the Singapore EV Early Adoption Incentive (EEAI). This scheme, which has been extended to December 2025, offers a rebate on the vehicle’s registration fee to individuals and businesses who buy fully electric cars and taxis. To support the transition to EVs, Singapore also plans to significantly increase the availability of EV charging points nationwide. The govern- ment has set a target of installing 60,000 charg- ing points across the island by 2030, to provide convenient access to charging stations for both private vehicle owners and fleet operators. As of November 2024, Singapore has made significant progress towards its goal, with more than 15,300 charging stations now available nationwide. Singapore’s ambitious EV adoption goals are likely to create new opportunities for M&A activ- ity in the region. As Singapore races towards widespread EV adoption, there will be increas- ing interest in innovative businesses working on technologies like EV batteries and EV charging infrastructure. For example, in 2023, Singa-
pore gas provider City Energy teamed up with a Malaysian company, Jom Charge, to launch a cross-border EV charging network, enhancing connectivity for such drivers in Singapore and Malaysia. Both startups and established com- panies that focus on these technologies may become attractive acquisition targets for inves- tors looking to tap into the rapidly expanding EV market in the region. Looking ahead In conclusion, while the current market faces challenges such as heightened regulations and geopolitical uncertainties, companies are anticipated to actively engage in more strategic transactions within the TMT sector in the com- ing months, as investor confidence begins to recover. Sustainability continues to be a top priority for many businesses, with an increasing number of companies integrating sustainability into their capital allocation decisions and using it as a key driver of M&A activity. The excitement surrounding AI, particularly gen- erative AI, remains strong. As a result, invest- ments in AI companies across the region are expected to rise. Looking ahead, the authors anticipate more stra- tegic deal-making activity focused on acceler- ating digital transformation or decarbonisation within businesses.
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