Monday Wrap: Wealth shifts, bank crosswinds, and deal concentration

Bank stocks fell on China curbs as Singapore tops business rankings and SMEs turn cautious.

Last week in Singapore Business Review, insurers expanded beyond protection into wealth and retirement planning as coverage gaps persisted, whilst banks saw currency headwinds offset by safe-haven inflows, and M&A shifted toward fewer but larger AI and private equity-driven deals.

Insurers are expanding into wealth, retirement, and legacy planning as protection gaps persist, with only 41% of consumers holding life insurance despite growing demand for broader financial solutions.

Banks face mixed currency impacts, with Indonesian rupiah (IDR) and Indian rupee (INR) weakness pressuring earnings whilst a stronger Malaysian ringgit and safe-haven inflows help offset losses.

M&A activity is shifting toward fewer but larger deals, with record-high transaction values driven by private equity and AI infrastructure despite a continued decline in overall deal volumes. 

Bank stocks fell amidst concerns over China’s tighter capital outflow rules, though analysts said the impact on lenders may be limited and flagged weakness as a potential buying opportunity.

Singapore ranks as Southeast Asia’s top business environment and 11th globally, underpinned by strong logistics infrastructure, trade openness, and competitiveness as a regional hub.

Small and medium enterprises show the lowest optimism on overseas expansion, citing geopolitical instability, supply chain disruption, and tariff risks as key barriers to international growth. 

Re-employment rates for retrenched residents improved in the first quarter of 2026, with the six-month re-entry rate rising to 60.7% and 69.4% securing jobs within a year, reflecting gradual labour market recovery despite earlier volatility.