But half-year profits slumped 84%.

GuocoLand has posted an improvement in net profits for the quarter ending last December, up 58% to $67.6m from $42.8m a year ago.

This came as its revenue contracted 3% to $232m in the said quarter, due to different sales mix in two periods of review. Other income increased by 19% to $24.8m mainly due to the fair value gain on foreign exchange hedges in the current quarter.

"In the previous corresponding quarter, there was a fair value loss on the foreign exchange hedges of $7.1 million, recorded in other expenses.," the group said.

Meawhile, finance costs increased by 10% to $18.9m. Share of profit from associates and joint ventures increased by $44.1 million in the current quarter. This was due to higher profit contributed by an associate in Malaysia, arising from the completion of its disposal of a parcel of land located in Mukim and District of Sepang, Selangor.

In terms of half-year period, GuocoLand recorded a 36% decline to $434.7m, mainly due to the absence of contribution from the sale of an office block in Shanghai Guoson Centre in the previous corresponding period. On the bottomline, there was an 84% decline to $91.5m

Looking forward, the group expects a rough road given the fall in Singapore's private residential property prices.

"Flash estimates released by the Urban Redevelopment Authority showed a decline of 0.4% for the 4th quarter 2016, and a decline of 3.0% for full year 2016. While the decline for the full year was smaller than the 3.7% decline recorded in 2015, property consultants do not expect a recovery in home prices in the near term given the muted economic growth outlook and job market uncertainties. Office and mall vacancies have been on the rise and are expected to increase further. However, the office and retail components of the Group’s Tanjong Pagar Centre, which received Temporary Occupation Permits in October 2016, have achieved commitment levels in excess of 80%," the group said. 

Losses were due to renovations at Northpoint.

Frasers Centrepoint Asset Management announced that the distribution per unit of Frasers Centrepoint Trust were up 0.7% in 1Q17 to 2.89 Singapore cents.

This came as gross revenue came down by 6.4% to $44.1m, due to lower contribution from Northpoint which is undergoing renovations. The upgrading is set to be completed by September this year and the group claims that there are already retailers showing keen interest by pre-committing their leases.

Meanwhile, Causeway Point’s revenue rose 3.4% and accounts for about 48% of the total revenue. Net property income for the quarter declined 5.7% YoY to $31.6m, in line with the lower revenue achieved. Higher net property income contributions from Causeway Point, Bedok Point and YewTee Point helped to offset the lower contributions from rest of the malls.

During 1Q17, 66 leases accounting for 12.4% of FCT’s total net lettable area (“NLA”) were renewed at an average rental reversion of 6.9%. Causeway Point, which accounted for 52% of the total NLA of the leases renewed during the quarter, achieved average rental reversion of 10.6%.

Frasers Centrepoint Asset Management CEO Dr. Chew Tuan Chiong said, “We are pleased that FCT has delivered steady performance for 1Q17, with higher DPU of 2.89 cents compared with 1Q16. The financial position of FCT remains strong with gearing level at 29.7% and we will continue to stay vigilant on capital market conditions and mall operations.

One big-cap is a potential outperformer.

Investors in Hong Kong and Malaysia are looking to oversold offshore and marine names as the way to profit from the Singapore market, a report by CIMB revealed.

"Most of the investors we met during our marketing in Hong Kong and Malaysia were receptive of our view that the under-owned offshore & marine names could be the
way to play the Singapore market, as oil prices sustain at the current level," CIMB noted.

While CIMB remained neutral on the sector's overall prospects, the report highlighted that Sembcorp Marine is a potential outperformer as it is a direct proxy to ride the oil price upturn.

Apart from O&M names, investors are also interested in stocks which would benefit from the US dollar's strength, as well as undervalued consumer stocks.

In sum, CIMB reported that there is slightly warmer interest in Singapore stocks from international investors, as the rally in the local market made the STI the strongest performer in the region.
 

Its attraction strategy is paying off.

The Singapore Exchange is expecting more listings and fundraising activities this year, a report by CIMB said.

During the analyst briefing following its second-quarter results, CEO Loh Boon Chye guided that the IPO pipeline appears to be healthy, with more listings and funds to be raised in FY17 vs. FY16.

"SGX’s sectoral approach to attracting listings appears to be paying off, with the new IPOs expected to come from the consumer, real estate, infrastructure and technology sectors that they have targeted," CIMB noted.

During the second quarter, the local bourse booked higher securities revenue on back of increased market volatility, while derivatives volume picked up on back of higher demand for INR/US FX futures.

"Upside risks could come from higher market volatility and return of investor confidence amid more positive economic data, while downside risks could stem from the market returning to a risk-off mode amid political uncertainty," CIMB said.  

And here's how you know if you are compensated fairly in land acquisition.

When Singapore pulls the plug on its 2G mobile phone network this year, thousands of people could be stuck without a signal -- digital have-nots left behind by the relentless march of technology. From technophobic pensioners to cash-strapped migrant workers, some 140,000 people in highly-wired Singapore still use the city-state's second generation (2G) network and cheap, robust handsets. First rolled out in 1994 -- when playing Snake was the pinnacle of mobile entertainment -- 2G has long been superseded technologically, with new gold standard 5G offering lightning fast connectivity for a generation used to streaming movies and TV directly to phones. Read more here.

One of the first few resale transactions in 2017 resulted in a hefty loss for the seller. On Jan 3, a high-floor unit at St Regis Residences Singapore was sold at a loss of $2.3 million. The seller bought the unit in a sub-sale transaction in 2008 at $3,100 psf and resold it at $2,268 psf. The loss works out to 27%, or 4% annually over 8½ years. The buyer, a Singaporean, appeared to have scored a bargain. There have been a total of 237 transactions at St Regis so far, based on caveats lodged. The latest price of $2,268 psf was in the bottom 16% of all historical transactions at the development. Check out full story here.

If your property were to be acquired by the government, how much compensation would you be entitled to? The recent spate of compulsory land acquisitions to make way for the Kuala Lumpur-Singapore High Speed Rail (HSR), North-South Expressway and new MRT lines might raise questions on matters pertaining to compensation. Click here to know if you are compensated fairly in land acquisition.

As we embark on a New Year perhaps looking for a better job opportunity, or a more fulfilling dream career, here are some recruitment trend shifts you need to be aware of. Artificial Intelligence (AI) penetration has impacted almost all industries, and recruitment space is the least spared of it all.

Influence of AI on talent acquisition and business decision-making goes beyond finding the right talent with skills and experience, to meet the organisational fit. AI tools and technologies have empowered recruitment and talent acquisition efforts by culling through data and gathering insights about a potential candidate for senior management roles.

Impact of AI on jobs in Asia in the future
According to a research paper by MIT Technology Review¹ focussing on the Asia Pacific penetration of AI and its impact on the future, 70% of HR executives feel that AI and adoption of robotics will result in significant job losses in Asia over the next five years. However HR managers and talent acquisition professionals feel that their roles will evolve into broader, and more strategic, “productivity management” roles. The business landscape in Asia is not only poised to embrace AI but the future will be defined by it.

Singapore and Hong Kong are competing to become leading financial technology hubs, seeding investment of AI tools in financial service applications. Most executives positively think use of AI will prove to be business value addition.

“Asian governments are particularly suspicious of the threat AI poses to their efforts to transform skills in the labour force. Governments should be more focussed on ways to retrain displaced workers rather than defending existing jobs from disintermediation,” says Tak Lo, a partner at Hong Kong–based AI accelerator Zeroth.AI. “The pace of work displacement in Asia will be at a much faster rate, because of the relatively higher percentage of low-skilled jobs in the labour force relative to more developed economies.”

Whilst most professionals believe that their job roles will be altered as a result of AI and robots taking over lower-skilled jobs, Baidu IDL director Lin Yuanqing believes, “Even the best robotic financial analyst is only going to prepare a report at 70% of the capability and insight of its human counterpart.” AI and robotics will only complement for the better and jobs will not be replaced.

Rise in AI would only create a seismic shift in processes that senior managers use, to grow talent and increase productivity across every industry sector. Whilst the outlook on implications and penetration of AI at the workplace is bleak for most Asian workers, who thrive in economies threatened by automation, there is a crucial need to develop skills and build careers.

Recruitment in the AI Era
With global talent war at its peak, organisations are now looking at harnessing Artificial Intelligence (AI) capabilities, to use search optimisation tools, data analytics, and talent mapping to reach out to the right talent for crucial job roles. Technology has been revolutionising the way recruitment works with the entire process being now automated with ATS and other talent management softwares. This saves time and costs involved with recruiting for HR managers, whilst allowing them to do away with third-party service providers for talent sourcing such as employment bureaus and traditional recruitment agencies.

With modern talent acquisition technology empowered by AI, the time taken for recruitment is halved and search narrowed to reach out to only the best talent that matches job requirements. There is no need for human intervention and manual personality matching to choose the best candidates for suitable job roles.

“Automated HR tools have built-in capabilities to think faster; that leaves HR to focus on more meaningful things like getting the candidates onboarded,” says Glenn Dittrich, Director Smarter Workforce, IBM Asia Pacific². With recruiting teams struggling to recruit candidates, sourcing continues to remain a number one challenge. Use of AI in recruitment helps find passive candidates that meet your exact job requirements, whilst streamlining the process and saving you hours instead.

AI tools have been extensively used to automate the resume screening process as well, by providing recommendations to learn about an existing employee experience, skills, and experience to get cumulative insights before arriving at a hiring decision.

Automation of repetitive tasks such as screening through candidates allows recruiters to save on time, whilst realigning their priorities to engage with those candidates who are the perfect fit. Matching the best talent with the right job roles is an even bigger challenge than sourcing them. Most recruiters will agree with the fact that identifying the right candidates from a large talent pool is one of the hardest parts of their job.

AI for candidate matching uses algorithm to identify the best matches for suitable job roles. Multiple algorithms analyse multiple sources of data to include skills, salary preferences, personality traits, qualification, experiences as against the job requirements and organisational culture. AI in recruitment will free up recruiters’ time, to allow them to engage with candidates and fuel proactive hiring initiatives for future business growth.

In an exclusive interview with HR in Asia, James Galvin, founder of TalentDash says, “In today’s new world of recruitment, it is no longer enough to simply post job ads and wait for talent to come along.”

“Talent mapping, with the help of big data, is definitely the next step in recruitment technology. With talent mapping, recruiters can determine their candidate needs well in advance and develop a strategic plan for hiring long-term. This includes filling any skill gaps, bolstering the team for sudden changes in the workplace, or just simply having suitable talent in mind for the future. All of these, when prepared ahead of time, can save companies the trouble and time in future,” Galvin added.

Recruiters who are able to understand how AI works, harness the technology to save on time and costs will be rewarded with improved quality of hires, enhanced efficiency, more productive workforce and less turnover.

Industries likely to be impacted by AI in the future
As companies prepare for the next wave of digital and penetration of AI, Weber Shandwick in association with KRC Research conducted a study, Al-Ready or Not: Artificial Intelligence Here We Come!, which found that nearly seven in ten CMOs report their company is doing or planning for business in the Al era, and 55% of CMOs expect Al to have a greater impact on marketing and communications than social media ever had.

Artificial Intelligence Market Forecasts³ by Tractica⁴ suggests that revenue will reach US$36.8b by 2025, with almost every industry seeing an impact from AI. Tasks like customer acquisition and planning, job candidate finders, predictive sales and marketing, travel concierge and booking services, and chatbot-based e-commerce and sales will be impacted by AI tools.

On the consumer front, elderly care robots, family robots, and cleaning robots will impact household and care jobs. As AI penetrates deeper into the healthcare industry, doctors will see their roles being augmented with AI working on improved diagnosis and recommendation, treatment planning for patients.

“The advent of driverless taxis, autonomous trucks, and delivery drones will represent a major impact on professional drivers, and is possibly the most visible and politically charged disruption that will occur in the coming years and decade. Stock traders and insurance claims processing jobs are also at high risk, and so are warehouse workers with an increasing number of logistics tasks being automated.”

Journalism and legal jobs in the future will be impacted by algorithmic news stories and contract analysis. AI will help IT coding professionals with error checking and able to automatically write the code.

Businesses will become leaner in the future, requiring fewer people at lower and middle management levels with the business services domain into sales, marketing, and human resources become automated. Overall, the impact of AI will not be felt by blue-collar jobs alone, even the white-collar workforce will be impacted. This is an issue to which policy makers and the governments should pay close attention, to be better prepared for the next wave of technology, “The AI Revolution”, expected to disrupt the world of work and workplaces in the future.

References:
1) Research Paper by MIT Technology Review: https://www.technologyreview.com/s/602995/asias-ai-agenda-executive-summary/
2) Glenn Dittrich, Director Smarter Workforce, IBM Asia Pacific: https://www.thehindubusinessline.com/specials/when-machines-do-the-recruiting/article9357390.ece
3) Artificial Intelligence Market Forecasts: https://www.tractica.com/research/artificial-intelligence-market-forecasts/
4) https://www.tractica.com/artificial-intelligence/how-will-artificial-intelligence-impact-jobs/

Firms are advised to use the new framework starting January 2018.

The Monetary Authority of Singapore (MAS) announced today that registered business trusts will adopt a new Singapore financial reporting framework that is identical to the International Financial Reporting Standards (IFRS), while authorised collective investment schemes will continue to prepare financial statements using accounting practices recommended by the Institute of Singapore Chartered Accountants (ISCA).

To recall, the Accounting Standards Council (ASC) announced that Singapore-incorporated companies must apply the new Singapore financial reporting framework for annual periods beginning on or after January 2018.

This decision, however, does not cover financial statements of registered business trusts and authorised collective investment schemes includind REITs.

MAS has decided that registered business trusts wiill be required to prepare financial statements in accordance with the New Framework for annual periods, aligning the treatment for such with that of Singapore-listed companies.

On the other hand, authorised CIS will not be required to prepare financial statements in accordance with the New Framework.

"Authorised CIS should continue to prepare financial statements according to the Statement of Recommended Accounting Practice 7 : Reporting Framework for Unit Trusts (RAP 7), issued by ISCA. This treatment for Authorised CIS is consistent with practices in other major fund jurisdictions such as the United Kingdom and the United States of America," MAS said.

It could reduce site requirements by 30% to 40%.

Lesser telco giants StarHub and M1 have signed a MOU to study mobile infrastructure sharing focused on radio access network and backhaul transmission. What does this have to do with the their 5G plans?

According to UOB KayHian, the economics of network sharing become more compelling when sharing to build a new 5G network, which could be rolled out in 2019.

"Network sharing could reduce site requirements by 30-40%. For network sharing that encompasses new coverage, additional capacity and network modernisation, the combined savings in capex could be as high as 20-30%," the firm said, citing Ericsson.

More so, UOB noted that network sharing also reduces network-related opex by 25-30% due to savings from backhaul transmission, site rentals, utilities and maintenance.
 

But expect markets to be fairly cautious today.

The Straits Times Index (STI) ended 8 points or 0.27% higher to 3008.22 on Thursday, taking the year-to-date performance to +4.35%.

The top active stocks today were CapitaLand, which gained 1.92%, DBS, which gained 0.44%, Singtel, which gained 0.27%, Global Logistic, which closed unchanged and UOB, with a 0.10% advance.

OCBC said this came as the Dow Jones Industrial Average on Thursday suffered its worst losing streak since November as investors remained cautious a day ahead of Donald Trump’s presidential inauguration.

Meanwhile, nine out of eleven S&P 500 industries ended lower, led by Real Estate (-0.99%) while Industrials (0.59%) and Telecommunication Services (0.32%) gained.

"The STI index managed to hold its ground above 3000 immediate support yesterday, but the weakness on Wall Street overnight is likely to keep local sentiment fairly cautious today," OCBC said.

Here's more from OCBC:

On the upside, we peg the initial hurdle at 3040, ahead of its subsequent base at 3065. On the downside, we peg the immediate support at 2980, ahead of 2940.

Overall volume climbed 22.5% with 1.9b units traded, while total value fell 8.7% to S$0.9b, and average value/unit dipped 25.5% to S$0.49.
 

And here's everything you need to know in investing stocks in Singapore.

Two former currency traders from Deutsche Bank AG and HSBC Holdings Plc were convicted of cheating the banks by making false trades. Former HSBC senior dealer Ivan Chng and ex-Deutsche Bank trader Toh Hway Khuan pleaded guilty in separate hearings in Singapore’s High Court on Wednesday. The men both admitted to using their banks’ accounts in 2009 to get preferential rates on the dollar. The cases are unrelated and the men will be sentenced at a later date. Chng, 48, was charged in 2015 with 149 counts of buying and selling about $800 million and unlawfully making about S$230,000 ($160,000). He pleaded guilty to 25 of the charges. Toh, 51, was also charged in 2015, with 39 counts of buying and selling more than $250 million and unlawfully making about S$140,000. Read more here.

Singapore’s three-year decline in home prices could see relief from an unexpected quarter in 2017: Hong Kong. So says Cushman & Wakefield Inc., which expects the slide in the city-state’s home prices to end this year as foreign investors turned off by Hong Kong’s move to increase the stamp duty for overseas buyers look to Singapore instead. Desmond Sim, head of research for Singapore and Southeast Asia at CBRE Ltd., said Singapore house prices are approaching their trough, with a forecast price move of flat to minus 2 percent. Savills Plc forecasts Singapore prices will rise 1 percent on average this year. “The fallout from the stamp duty could be beneficial for Singapore,” said Sigrid Zialcita, managing director for Asia Pacific research at Cushman & Wakefield. “Singapore is always seen as a place where you can preserve capital and we are expecting interest from foreign nationals to come back.” Read full story here.

If you are a new investor who is just starting out, aside from mutual funds, one of the first things that you would probably be interested to find out more about is likely to be stocks, or otherwise known as equities. This is because it is widely-believed that a well-planned out stock investment strategy is a viable way to accumulate wealth in the long term. Trading stocks also happens to be a less intimidating way to dip your toes in the world of investments as it is relatively convenient and inexpensive these days. Get to know the full story here.

Basic living cost for a month is at US$2,148.45.

If the Movinga's 2017 Relocation Price Index is anything to go by, then Singapore is becoming more and more costly for expats and foreign workers.

According to the index, the basic living cost in Singapore is around $ 2,148.45, making it the 8th most expensive city globally.

The index noted that the average rent for a 35sqm flat in Singapore a month is around US$1,414.13, while phone set-up, food, and transport needs cost US$34.74, US$629.77, and $69.81, respectively.

"For 75 cities across the globe, we researched the four main factors contributing to the total cost of an expat’s first month in a new home: the rent for a one-bedroom apartment in the city center, the cost of mobile phone set up and data plan, the price of a monthly public transportation pass, as well as food and drink for thirty days. Our list was then ranked based on the total average cost for each city," Movinga said.

Topping the list is Luanda in Angola, where basic living cost for a month is at a high US$3,259.32. New York came in second, followed by San Francisco, Zurich, London, Hong Kong, and Sydney.
 

It is set to add 220,000 sf to the health facility.

Raffles Medical Group is ramping up well at the start of the year, with its hospital extension expected to fully materialize in 2H17.

According to UOB KayHian, the completed extension will contribute an additional 220,000 sf of GFA to Raffles Hospital.

"The integrated medical complex will provide support to the hospital’s existing range of specialist services, healthcare training and clinical research as well as open opportunities for growth and expansion for future years," the brokerage firm noted.

Meanwhile, UOB pointed out that the medical group remains positive on the performance of Raffles Holland V Medical Centre.

"We believe Raffles Holland Village Medical Centre may achieve breakeven at a faster pace than Shaw Centre, potentially in a year," UOB said, noting its strategic location near residential areas and schools as well as easy access via proximity to the train station.

About 95% of space has been leased out to tenants as at the end of 2016.
 

It registered a 9.4% growth in December.

Singapore's non-oil domestic exports continued the strong uptrend in December with a 9.4% growth, following the 11.5% growth in the previous month, latest data by International Enterprise said.

Meanwhile, total trade rose 9.9% in December, after the 8.7% increase in the previous month. Total exports grew by 9.5% while total imports expanded 10.2%.

Electronic products rose 5.7%, mainly driven by the expansion ICs, parts of PCs and consumer electronics at 29.9%, 4.9% and 8.8%, respectively. Non-electronic NODX also increased, registering a 11.3% growth. Specialised machinery, petrochemicals and primary chemicals grew by 63.6%, 28.5% and 58.2% respectively, contributing the most to the rise in non-electronic NODX.

The group's distributable income increased 10.1%.

Capitaland Commercial Trust got a shot in the arm from its increased stake in CapitaGreen, according to OCBC Investment Research.

"The trust reported an estimated DPU for the quarter of 2.39 S-cents which similarly grew 10.1% YoY and as a result, FY16 DPU now cumulates to 9.08 S-cents – up 5.3% YoY," OCBC said.

In terms of headline, CCT's revenue and net property income increased 32.7% and 35.4% to $89.7m and $70.8m, respectively.

Weak business sentiment lowers spending on display ads.

The growth in Singapore Press Holdings' earnings is largely dependent on its media business, which is highly affected by the city-state's economic prosperity.

According to UOB KayHian, the group's media revenue was down 9%, led by a sharp 14% drop in advertisement revenue to $202m due to declines from display and classified advertisements.

One reason for this is the lacklustre business sentiment lowers spending on display and classified ads, UOB mentioned.

Meanwhile, UOB pointed out that the ad revenue is fairly correlated with Singapore’s GDP, with weak GDP growth numbers usually corresponding with weak advertising revenue.

"With full-year 2017 GDP growth for 2017 expected at 1-3%, ad spending and hence revenue likely will remain weak. Diversification efforts into property and other businesses have yet to supplant earnings from the media segment. As such, overall earnings will continue on its downward trajectory, impacting dividend payout," the brokerage firm said.

The group also calls for improved productivity schemes ahead the Budget 2017.

Ahead of the Budget 2017, the National Trade Union Congress calls for the Singapore government to endeavour a labour force that is competitive. One such proposal is for the government to support women looking to re-enter the workforce.

"Targeted support to help back-to-work women could come in the form of a 'Returnship Programme' that the Government can fund, with pilot programmes in sectors such as Early Childhood & Social Services. The existing Work-Life Grant could be enhanced, to enable companies that offer the programme and progressive workplace practices such as flexible work arrangements, to tap on the Grant, NTUC said.

This is included in one of the four key areas included in NTUC’s recommendations for Budget 2017. Another key area is the placement to address cyclical and structural unemployment.

"To do so, we need to be more informed on the necessary skills required. This will enable us to customise training programmes, and design them in a modular fashion so that it makes it easier for working people to acquire relevant skills," the group said.

One way for this to happen, NTUC argued, it for the government to work with the Labour Movement’s Future Jobs, Skills and Training (FJST) capability and e2i (Employment and Employability Institute) on cross-sharing of Jobs Bank information.

"Both parties can collaborate to identify new skills and translate this to training requirements, by working with Institutes of Higher Learning (IHLs) and private institutions to hasten rollout of such training programmes, thus enabling workers to better prepare themselves for jobs of tomorrow."

The group also called for more productivity schemes to unleash the potential of workers. One of the proposal for this key area is for the government to take the lead as fair and responsible buyers of outsourced services like cleaning, security and landscaping as an example for the private sector. More so, it argued that schemes can be enhanced with sector-level projects and resource-pooling amongst companies. Special emphasis to be placed in sectors such as F&B, Retail and Construction.

Additionally, it wants the government to provide better support for workers afflicted by workplace injuries such as the development of a case management system.

Lastly, NTUC said there is a need for protection for workers in new forms of employment by enhancing the Government Procurement Act to improve procurement practices for outsourced services.

"Given the changing employment models, we need to ensure that workers can continue to enjoy fair work terms. There is a need to examine how laws can better protect the interests of working people on non-traditional work arrangements, such as contract workers and freelancers. The welfare of low-wage workers and outsourced workers must similarly be protected," it said.

Apart from this, NTUC noted the importance of Tripartism to evolve and deepen at the sectoral level, which will sustain it as a competitive advantage for Singapore’s continued success.

"In this aspect, the Labour Movement calls on Government agencies to institutionalise staff exchanges and cross-learning between the Civil Service, the Labour Movement and the Singapore National Employers Federation, to strengthen mutual understanding and trust amongst the future generation of tripartite leaders," it said.

Growth in the region is expected to reach US$115m in 2030.

Singapore, amongst other highly-connected economies, will play a vital role in boosting Asia's smart home market, which is expected to reach US$115m in 2030.

This would account for 30% of the global share, according to global management consulting firm A.T. Kearney.

The firm said the global smart home market to grow to US$50b by 2020 and surge to US$400b by 2030, from US$15b currently. More so, it noted that the growth in Asia will be driven by China and Japan, with highly-connected economies such as Singapore, South Korea and Taiwan also playing a key role.

“Asia’s socio-economic landscape provides a great opportunity for the region to be a global driver of growth in the smart home sector over the next few years. While the smartphone market is peaking out, the smart home market is becoming the next promising market,” A.T. Kearney partner and Asia-Pacific head of communications, media and technology Nikolai Dobberstein said.

He furthered, “Japan, which is already among the top five global markets in terms of smart home penetration, will see continued growth driven by an ageing population enticing households to install health and wellness solutions. The opportunity in China is even greater with a phenomenal number of households seeing increased incomes, and a strong local manufacturing and technology ecosystem. Meanwhile, South-Korea, Taiwan and Singapore are all expected to have high penetration of smart homes given the large proportion of high-income households and the data connectivity in these economies."

The firm also noted that the idea of the connected, intelligent home is becoming a reality in Asia due to four major shifts that are accelerating market expansion. These four shifts include connectedness & intelligence, interoperability, product availability and cost, and new monetization models.

“The smart home market presents significant opportunities for companies across the region. However, to succeed in the sector companies will require a combination of things including balancing a local and global strategy, evolving products quickly to be service-orientated, partnering with the right industry players, and coming up with a standardized way for different products to speak to each other. The first players to successfully launch this last requirement will achieve a decisive advantage," A.T. Kearney Singapore partner Sridhar Narasimhan said