It’s been a historic week on the SGX.
Singapore has officially dethroned Indonesia to become Southeast Asia’s largest stock market, with the STI hitting fresh highs.
But that’s not all that’s shaking up the local landscape.
From the dramatic, last-minute collapse of Keppel’s S$1.43 billion M1 deal, to a massive national AI refresh backed by tech giants OpenAI and Google, and the buzzworthy SGX debut of co-working pioneer JustCo – we have plenty to unpack.
M1 Sale Formally Terminates After IMDA Probe
Keppel Ltd (SGX: BN4) has let its S$1.43 billion cash deal to sell M1’s telecom operations to Simba Telecom lapse.
Following the passing of the May 21 long-stop date, Simba’s parent company, Australia-listed Tuas Limited (ASX: TUA), announced on the ASX that both parties have been formally released and discharged from their respective obligations under the sale and purchase agreement.
The transaction collapsed after the Infocomm Media Development Authority (IMDA) suspended its regulatory review on 18 May 2026 to investigate whether Simba had been utilising unassigned radio frequency bands.
Such unauthorised spectrum use constitutes a severe breach of the Telecommunications Act 1999 and Simba’s Facilities-Based Operations Licence, exposing the operator to a potential financial penalty of S$1 million or up to 10% of its annual turnover, whichever is higher.
While Simba continues to cooperate with the probe and maintain normal operations, Keppel CEO Loh Chin Hua clarified that no fee payments are due and no legal costs are being pursued against Tuas.
Consequently, Keppel will remove the anticipated S$1 billion in net cash proceeds from its 2025 asset monetisation totals, though its broad 2026 target of S$2 billion to S$3 billion remains in place.
Because the initial transaction was intentionally structured for Keppel to carve out and retain M1’s corporate ICT business, management has seamlessly activated its contingency “Plan B” to run the core telecom unit under majority ownership.
Keppel has launched an immediate 90-day efficiency plan for M1, which includes reducing technology platform and network costs, deploying artificial intelligence for automation, and rationalising products.
Despite the setback, Keppel maintains that Singapore’s hyper-competitive mobile sector requires consolidation, a sentiment echoed by Singtel (SGX: Z74) CEO Yuen Kuan Moon, who publicly stated the market leader is seeking regulatory clarity on its own ability to participate in future industry consolidation.
On the news, shares of Keppel fell nearly 5%, while Tuas plunged more than 60% on the ASX.
Singapore Refreshes National AI Strategy, Inks Deals With OpenAI and Google
Singapore unveiled a refresh of its National AI Strategy at the ATxSummit on 20 May 2026, with Minister for Digital Development and Information Josephine Teo announcing new partnerships with OpenAI and Alphabet (NASDAQ: GOOGL) subsidiary Google.
OpenAI committed more than S$300 million to strengthen Singapore’s AI ecosystem and will establish its first Applied AI Lab outside the United States.
Google signed a separate National AI Partnership to collaborate on healthcare, education, workforce readiness, and enterprise innovation.
The updated strategy outlines 10 refreshed priorities under the National AI Strategy 2.0 framework.
The government aims to help 10,000 enterprises adopt AI meaningfully over the next three years, with four priority sectors identified: connectivity, advanced manufacturing, healthcare, and finance.
Nvidia Corporation (NASDAQ: NVDA) also announced a new Singapore research hub focused on embodied and efficient AI.
Singapore’s positioning as a neutral and talent-rich AI hub continues to attract significant global investment.
Singapore Overtakes Indonesia as Southeast Asia’s Largest Stock Market
Singapore has dethroned Indonesia as Southeast Asia’s largest stock market by total market capitalisation.
Data compiled by Bloomberg shows Singapore’s market capitalisation has climbed to US$645 billion, while Indonesia’s has fallen more than 30% from its January peak to US$618 billion.
Singapore’s equities are on pace to outperform their Indonesian counterparts by the widest margin on record in 2026.
The shift reflects contrasting investor sentiment: Singapore has benefited from economic and political stability, government-led market reforms, and safe-haven capital flows, with the Straits Times Index (SGX: ^STI) climbing to a fresh record this week.
Indonesia, meanwhile, has been weighed down by credit outlook downgrades from both Fitch Ratings and Moody’s Ratings, as well as concerns over a potential MSCI reclassification to frontier-market status.
Global investors have withdrawn more than US$4 billion from emerging Southeast Asian equities this year, with Indonesia accounting for over half the total.
UOB Divests S$387 million in Property Interests to SingLand and UOL Group
United Overseas Bank (SGX: U11), or UOB, is selling property interests worth a total of S$387 million to related parties as part of its capital reallocation strategy.
The bank will divest its 20% stake in Novena Square to joint venture partner Singapore Land Group (SGX: U06), or SingLand, for S$299 million, and separately sell and lease back a bank branch at the development for S$19.5 million.
These transactions value Novena Square at approximately S$1.495 billion.
SingLand noted that the deals will increase its share of recurring income from a stabilised asset, helping to supplement its investment property income while other properties such as The Clifford undergo redevelopment.
Following the transactions, SingLand will hold 40% of Novena Square, with parent company UOL Group (SGX: U14) holding the remaining 60%.
UOB will also sell its various interests in 230 Orchard Road, formerly known as Faber House, for S$68.5 million to UOL Group, which is rebuilding the site into a mixed development featuring the NoMad Hotel.
The properties are carried on UOB’s books at S$149.5 million.
GIC-backed JustCo Makes Its SGX debut With S$100 million IPO
GIC-backed co-working operator JustCo Holdings (SGX: JCO) commenced trading on the SGX Mainboard today at an offering price of S$0.94 per share, raising gross proceeds of S$100 million.
The offering drew strong demand and was 3.4 times subscribed overall, driven by an international placement that was 3.6 times subscribed and a Singapore public offer that was 2.7 times subscribed.
Nine cornerstone investors, including J.P. Morgan Asset Management, Fullerton Fund Management, and Maybank Asset Management, subscribed to approximately S$69.8 million worth of shares.
Founded in 2011 by brothers Kong Wan Sing and Kong Wan Long, JustCo has built one of Asia-Pacific’s largest flexible workspace platforms, operating 54 centres across 12 cities.
GIC holds a 29.1% stake, while SGX-listed Frasers Property (SGX: TQ5) holds 22.5%.
The company swung to its first annual net profit of US$2.7 million in the financial year ended December 2025, reversing losses of US$10.1 million a year earlier, on revenue of US$144.2 million.
JustCo intends to use the net proceeds to open 28 new centres in 2026 (bringing its year-end footprint to roughly 78 centres), focusing heavily on Japan while laying the groundwork to reach over 100 centres across 20 cities by 2029 via expansions into Hong Kong, India, Malaysia, and the Philippines.
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