Monday Wrap: Policy support, supply strains, and early-stage funding

Continuous monitoring was flagged as key to sustaining supply chains and jobs.

Last week in Singapore Business Review, targeted support was seen as key to sustaining supply chains and jobs, storage constraints limited construction growth, and early-stage funding dominated startup investments in March.

Tay Hong Beng, Chairman, Singapore Chartered Tax Professionals, said continuous monitoring was flagged as key to sustaining supply chains, competitiveness, and jobs, following a $1b government support package to ease cost pressures from Middle East tensions.

Storage constraints were described as a policy blind spot, experts said, with temporary occupation licences on vacant state land commonly used for short-term storage by builders, highlighting its lack of long-term planning and investment appeal.

In March, early-stage funding made up the bulk of startup investment at $178.2m (77.7%), followed by seed-stage deals at $51.1m (22.3%), with no late-stage funding recorded.

Meanwhile, the startup ecosystem recorded no IPOs and four acquisitions during the same month.

The Monetary Authority of Singapore is expected to hold policy steady in April, with analysts citing growth risks, subdued inflation, and an uncertain outlook.

On the other hand, stagflation concerns have triggered a near-term market correction, creating potential entry opportunities in Singapore REITs, with risks linked to a supply-driven energy shock from the Middle East conflict.

Lastly, airlines are expected to be hardest hit by rising crude oil prices, with jet fuel more than doubling since late February and higher fuel costs likely to push up ticket prices.