Singapore’s regional M&A lead masks deal volume flatline: report

KKR and Singtel’s $6.6b STT GDC deal drove most of SEA’s value. 

Singapore topped Southeast Asia’s (SEA) disclosed mergers and acquisitions (M&A) value in the first quarter of 2026, but its lead did not signal a broad market recovery, DealStreetAsia said.

The report showed that the market accounted for 27 of the region’s 47 completed inbound and domestic acquisitions during the quarter, or 57.4% of deal volume.

However, Singapore’s completed deal volume was flat year-on-year (YoY), as SEA activity fell from 66 deals in Q1 2025.

“Singapore topped the region when it comes to deal count,” DealStreetAsia said. “The number was broadly stable YoY, but its share rose because other major markets weakened.”

The city-state recorded $9.4b (US$7.28b) in disclosed transaction value, compared with $244.6m (US$190m) for Vietnam, $108.2m (US$84m) for Malaysia, and $32.2m (US$25m) for Indonesia. Values for the Philippines and Thailand were undisclosed.

It also accounted for 96.1% of the region’s disclosed transaction value.

The Q1 figures followed a weaker 2025. A separate LSEG report showed transactions involving Singapore totalled $90.1b (US$70.4b) in 2025, down 9.1% in deal value from a year earlier, whilst the number of announced deals fell 22.1% to a decade low.

Singapore’s regulatory backdrop has since shifted. Revised merger procedure guidelines, which took effect on 1 May, shortened review timelines and reduced filing requirements.

Experts said the reform is expected to speed up deal approvals and give companies certainty on competition concerns.

DealStreetAsia said the largest transaction for this year’s quarter was KKR and Singtel’s $6.6b (US$5.1b) acquisition of ST Telemedia Global Data Centres, which accounted for 67.3% of the region’s identified M&A value.

Other Singapore-linked transactions in the top 10 included Zhejiang Longsheng Group’s $887.2m (US$689m) purchase of Dystar, Grab’s $606.5m (US$471m) Foodpanda deal, and Hongkong Land’s $547.3m (US$425m) purchase of Suntec.

Across Southeast Asia, completed deal volume fell 28.8% YoY and was 41% below the average first-quarter volume recorded from 2018 to 2025.

DealStreetAsia said the decline reflected higher interest rates, weaker technology valuations, slower startup fundraising, and more disciplined capital deployment by strategic buyers and financial sponsors.

It added that instability in the Middle East could weigh on cross-border M&A by lengthening due diligence, widening valuation gaps, and making foreign buyers more cautious.

$1 = US$0.78