Business & Finance
Marina Square, Yishun Cineplex Set for Major Redevelopment as Singapore Markets React to Shein's Rocky Debut
By Sue-Ann Tan
Singapore Land Group (SingLand) announced on Sept 1 that Marina Square mall will shut down on March 31, 2027, to make way for a large-scale redevelopment. The project, led by the UOL Group subsidiary, will introduce luxury residences, serviced apartments, offices and a new 304-key hotel. The three hotels already on site—Pan Pacific Singapore, Parkroyal Collection Marina Bay and Mandarin Oriental Singapore—will continue operating throughout construction, which is expected to finish in 2031. Current tenants have told The Straits Times they plan to relocate amid tough retail conditions.
DBS analyst Tabitha Foo issued a "buy" rating on UOL, describing the redevelopment as "highly anticipated" and predicting it would create "a new landmark" in the Marina Bay district. She estimated the gross development value of the revamped Marina Square at nearly $5.5 billion, excluding the existing hotels—suggesting the property's value could rise more than fivefold. UOL shares slipped 0.1 per cent to $9 on Sept 4.
A similar transformation is planned in Yishun, where Singapore's first cinema multiplex will be redeveloped into a mixed-use complex featuring 110 residential units and a street-level retail podium. Frasers Property said Yishun 10 will close in March 2027, with completion targeted for 2031. Frasers had purchased the cineplex from Golden Village for $48 million in June 2025. Separately, the developer disclosed on Aug 31 that it acquired Cuppage Terrace—17 conservation shophouses near Orchard Road—for $175 million, following its earlier $391.9 million purchase of a leasehold plot near The Centrepoint in February. Frasers shares rose 1 per cent to $1.02 on Sept 4.
The Straits Times Index (STI) ended the week at 5,801.96, gaining more than 1.5 per cent. DBS analysts raised their year-end STI target to 5,850 on Aug 31, citing strong economic growth, attractive dividend yields and Singapore's safe-haven appeal, though they noted future gains would likely depend on corporate earnings. Their top STI picks include OCBC, Singtel, UOL, City Development, Yangzijiang, Seatrium, ST Engineering and SATS.
The Singapore Exchange also introduced a new ETF, the CGS Fullgoal Singapore Next 50 Active ETF, which tracks mid-cap firms outside the STI's 30 constituents. At least 80 per cent of its holdings must be in these mid-cap companies, with the rest allowed in broader Singapore equities. Listed at $1, the ETF closed at 99.7 cents on Sept 4, with $28.7 million in assets as of Sept 3. SGX's Ng Yao Loong said the fund would give investors access to "a dynamic segment of the market" while strengthening the exchange's overall depth.
Economic forecasts for Singapore also improved. Private-sector economists surveyed by the Monetary Authority of Singapore raised their 2026 GDP growth projection to 5 per cent, up from 3.5 per cent, following stronger-than-expected export and manufacturing data. This follows the Ministry of Trade and Industry's earlier upgrade to a growth forecast range of 4.5–5.5 per cent, citing the global AI boom. Analysts pointed to continued AI-driven technology growth and potential easing of Middle East tensions as upside factors, while warning that a prolonged conflict or an AI market correction could pose risks.
In corporate news, Shein, the Singapore-based fast-fashion company, raised US$1.7 billion (S$2.2 billion) through its Hong Kong IPO on Aug 31, valuing the firm at roughly US$26.3 billion. It sold 280 million shares at HK$48.56 each, closing its debut trading day nearly flat after recovering from a 10 per cent drop. By week's end, shares had fallen to about HK$38. Shein had originally sought listings in New York and London before regulatory issues redirected it to Hong Kong. Founded in China in 2012 and based in Singapore since 2021, the company posted a US$99 million net loss in the first quarter of 2026 amid tariff pressures and rising competition from rivals like Temu.
Elsewhere, flexible workspace provider JustCo opened its 24th Singapore location at Raffles City Tower on Sept 2, a 16,000 sq ft space across two floors accommodating over 300 people. The company noted that flexible workspaces made up 5.5 per cent of Singapore's total office stock in the first half of 2026, signaling room for further expansion. JustCo's chief commercial officer, Kong Wan Long, said businesses are increasingly prioritizing quality and flexibility in office space. JustCo, which listed on the SGX in May 2026 at 94 cents per share, closed at 58 cents on Sept 4.
Data centre operator STTGDC confirmed on Sept 2 that its acquisition by a consortium including KKR and Singtel had been completed, with the company retaining its name under a refreshed brand focused on AI-ready infrastructure across Asia, Britain and Europe. CEO Bruno Lopez said the new ownership structure would support the firm's next phase of growth.
Separately, Keppel DC REIT and Keppel announced on Sept 1 a joint acquisition of controlling stakes in two Tokyo data centres for 171 billion yen (S$1.39 billion), with each entity holding 90 per cent of the freehold, hyperscale facilities in Inzai City. Keppel DC REIT CEO Loh Hwee Long said the deal strengthens the firm's presence in Japan's data centre market. Keppel DC REIT shares closed flat at $2.19 on Sept 4.
Looking ahead, markets will watch Singapore's upcoming retail sales figures for signs of consumer confidence, alongside US inflation data that could influence the Federal Reserve's mid-September rate decision. Global oil markets remain volatile amid the Middle East conflict, with Brent crude trading between US$95 and US$96 per barrel following US strikes on Iranian targets near the Strait of Hormuz. Analysts are also monitoring bond markets, where a recent sell-off has pushed yields to multi-year highs. R.J. Gallo, chief investment officer at Federated Hermes, noted that rising global sovereign bond yields reflect ongoing inflationary pressures compounded by geopolitical tensions.