In 2023, Singapore led a subdued Southeast Asian private equity market, securing $3.7 billion of the $9 billion regional total, according to Bain & Company’s Southeast Asia Private Equity Report 2024.
Despite this dominance, private equity activity in the region dropped significantly due to macroeconomic and geopolitical concerns. Singapore's deal value halved from $7.4 billion in 2022, while the region saw a 35% decline to $8.9 billion. The number of deals in Singapore fell 37% to 62, and the region experienced a 40% drop to 109 deals.
High interest rates, upcoming elections, and China's influence were key concerns for investors, noted Bain's advisory partner Suvir Varma. Despite this, sectors like healthcare and financial technology showed promise, with healthcare accounting for 24% of deal value.
The region's private equity market remains under-penetrated relative to GDP, with significant potential in consumer product companies due to rising urbanization and GDP per capita. Defensive sectors such as healthcare and education are gaining investor interest in Singapore, alongside fintech, artificial intelligence, and precision engineering.
Article by Timothy Goh for ST. Read more here or in the PDF below.
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