SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

<ul><li>Institutions were net buyers of Singapore stocks with S$250 million inflow, led by DBS Group and Sembcorp Industries.</li><li>Keppel REIT raised S$113 million through a private placement to finance a 75% stake in Top Ryde City Shopping Centre.</li><li>ASL Marine Holdings entered a placement agreement for 41,104,000 shares at S$0.1703 each to support business expansion.</li></ul>

Institutions were net buyers of Singapore stocks with S$250 million inflow, led by DBS Group and Sembcorp Industries.Keppel REIT raised S$113 million through a private placement to finance a 75% stake in Top Ryde City Shopping Centre.ASL Marine Holdings entered a placement agreement for 41,104,000 shares at S$0.1703 each to support business expansion.

Placements Continue, SERT Buys Back Units 

Offering Senior Secured Loans, Kilde

Kilde

Offering Senior Secured Loans

Kilde connects family offices, funds, and accredited investors to investment-ready private credit deals in developed and emerging markets. We offer senior secured loans from last-mile lending companies with strong capitalization, a healthy balance sheet, and a capable management team.

Thematic (Sector/Industry)

<ul><li>Singapore’s chemical sector is very large versus its overall economy, comprising 18% of its manufacturing and 10% of total exports, and far ahead of its global economic weight for chemical exports, at about 4.0% of the world total, although its share of sector output and trade has trended down over a decade </li><li>The growth in the value of Singapore chemical production has been a magnified version of the global trend in recent years, with a global health crisis-induced slump in 2020 and surge in 2021, followed by a downtrend in 2022 and 2023, while there finally appears have been stabilization in 2024 with a muted recovery  </li><li>The prices of most major chemicals were relatively flat yoy in 2024 and have reverted to near 2019 levels after peaking between 2020-2022, while overall demand growth for many sectors in the global industry remained relatively slow and some segments are still facing substantial oversupply </li></ul>

Singapore’s chemical sector is very large versus its overall economy, comprising 18% of its manufacturing and 10% of total exports, and far ahead of its global economic weight for chemical exports, at about 4.0% of the world total, although its share of sector output and trade has trended down over a decade The growth in the value of Singapore chemical production has been a magnified version of the global trend in recent years, with a global health crisis-induced slump in 2020 and surge in 2021, followed by a downtrend in 2022 and 2023, while there finally appears have been stabilization in 2024 with a muted recovery  The prices of most major chemicals were relatively flat yoy in 2024 and have reverted to near 2019 levels after peaking between 2020-2022, while overall demand growth for many sectors in the global industry remained relatively slow and some segments are still facing substantial oversupply 

Singapore Chemicals: Stabilizing After Extended Volatility

<ul><li>Share buybacks by primary listed companies 10 Apr - 13 Apr 2023 DBS, OCBC, Singapore Technologies Engineering (ST Engg), CapitaLand Investment and Sembcorp Industries led the net institutional outflow.</li><li>There were 15 primary-listed companies conducting share buybacks over the four trading sessions through to Apr 13, with a total consideration of S$10.1 million.</li></ul>

Share buybacks by primary listed companies 10 Apr - 13 Apr 2023 DBS, OCBC, Singapore Technologies Engineering (ST Engg), CapitaLand Investment and Sembcorp Industries led the net institutional outflow.There were 15 primary-listed companies conducting share buybacks over the four trading sessions through to Apr 13, with a total consideration of S$10.1 million.

OCBC, ST Engg lead buybacks; TCA’s Francis Tjia adds to stake

<ul><li>Dyna-Mac CEO adds to stake at S$0.188 per share Overall, institutions were net buyers of Singapore stocks for the five sessions ending Nov 17, with S$139 million of net inflows.</li><li>On Nov 16, Dyna-Mac Holdings executive director and chief executive officer Lim Ah Cheng acquired 500,000 shares of the company at S$0.188 per share.</li></ul>

Dyna-Mac CEO adds to stake at S$0.188 per share Overall, institutions were net buyers of Singapore stocks for the five sessions ending Nov 17, with S$139 million of net inflows.On Nov 16, Dyna-Mac Holdings executive director and chief executive officer Lim Ah Cheng acquired 500,000 shares of the company at S$0.188 per share.

Dyna-Mac CEO adds to stake at S$0.188 per share

<figure class="editor-figure mceNonEditable"><img src="https://api2.sgx.com/sites/default/files/2021-09/Megachem-CEO.jpg" class="editor-image img-responsive"></figure>
<div class="content-caption">Megachem - CEO</div>

For chemicals veteran Sidney Chew, analysing the complex relationships between atoms, molecules and compounds is a life-long passion. “Chemicals are essential in our everyday life. The heart of chemistry lies in studying changes in the properties and behaviour of the matter that makes up our world,” said the Co-Founder and Group Managing Director of SGX-listed chemical solutions provider Megachem Ltd. “Chemicals is also a great teacher - I’m constantly learning about new molecules and compounds, as well as their applications, all of which can help my customers in the development and formulation of their products.” Chew, who graduated from the University of Guelph in Ontario, Canada with a Bachelor of Science in Chemistry with Honours and a Bachelor of Arts with a major in Business Administration, has spent more than three decades of his career building Megachem into a one-stop specialty chemicals company.&nbsp; During these 33 years, the Group has weathered three major crises - the 1998 Asian Financial Crisis, the 2008 Global Financial Crisis, and the 2020 COVID-19 Crisis. “Every crisis has tested our fundamentals, the stoutness of our business model, the competency of our people, and the effectiveness of our processes. Each crisis gave us an opportunity to review and address the gaps we had, to recalibrate our business model in order to stay relevant, as well as push ourselves continuously towards digitalisation,” Chew noted. “At the end of the day, one lesson that stood out was this: A sound financial position is the best antidote for any and every crisis.” With this goal in mind, Megachem took steps to boost its fundamentals even as COVID-19 exacted its toll on the global economy.&nbsp; “During the past year, we sharpened our focus on premium products by widening our product range in higher-growth sectors - specialty chemicals tend to command higher margins and its demand is also less price-sensitive,” Chew pointed out. Megachem also adopted a more client-focused approach by helping its customers overcome some of the challenges that arose during the pandemic, including supply-chain disruptions and product shortages. “Our diversified business model, in terms of our products, geography and market segments, has enabled us to remain resilient and sustainable amidst various economic cycles,” he added. Decade of Opportunities Established in 1988, Megachem listed on the then SGX Sesdaq board in 2003. It distributes over 1,000 different types and grades of specialty chemicals with a wide range of applications to an established and diversified base of more than 2,000 industrial customers, comprising mostly multinational companies.&nbsp; The Group serves a wide spectrum of industries, including water treatment, construction, oil and gas, food and beverage, fragrance, pharmaceuticals, polymers, coatings, electronics, rubber and plastics. It also provides integrated value-added services, such as contract manufacturing of specialty chemicals to meet specific customer requirements. Megachem’s extensive distribution network spans Singapore, Malaysia, Indonesia, Thailand, the Philippines, Vietnam, Myanmar, China, India, the Middle East, Australia and the UK. Looking ahead, Chew remains confident that this is the decade of opportunities, especially for Asia, despite the challenges created by the pandemic. “We see Asia as the driver of our next phase of growth, on the back of a burgeoning middle class, the rollout of large infrastructure projects, and presence of high-growth industries,” he noted. “There are many untapped market segments in Asia, such as infrastructure and construction, electronics, cleaning, nutraceuticals and pharmaceuticals. We believe our extensive footprint in the region and diversified industry coverage will provide us with the platform to take advantage of vast opportunities in this part of the world.” Additionally, the contract manufacturing of specialty chemicals is expected to become another growth driver as customers increasingly streamline their operations to cut costs. “In contract manufacturing, we add value by blending materials according to our customers’ formulations. Clients can outsource their non-core production to us, which allows them to reduce their capital spending and other expenses,” he said. Megachem’s role as a one-stop solutions provider will also help its customers consolidate their supply sources and minimise the risk of supply disruptions, some of which were seen during the pandemic. “These are some of the key pivots of our strategy to sustain and accelerate our business in the Group’s next phase of growth,” he added. Future-Proof Operations Despite bright prospects, risks remain. The resurgence in the number of COVID-19 infections and rise of new coronavirus variants, as well as recurring geopolitical tensions, may dent global growth in the months ahead, which in turn could impact the chemicals industry, Chew admitted. “Nonetheless, our sales have remained quite steady, thanks to our highly diversified business model and stable customer base,” he said. “Over the years, we’ve developed partnerships with a wide variety of customers, comprising largely multinational companies spread across a plethora of industries, which protects us against market volatility.” Not surprisingly, Chew is constantly mulling ways to future-proof Megachem’s business model and beef up operational resilience. “Similar to other corporate leaders, what keeps me awake are thoughts on business risks such as possible disruptors in the chemicals industry, as well as how to improve our operating model such that we will remain relevant for years to come,” he said.&nbsp; Megachem is equally focused on its Environmental, Social and Governance (ESG) strategy, Chew noted. The Group aims to achieve an uncompromised level of health and safety standards in its plants, products and processes.&nbsp; “Our plants are built to meet stringent health and safety regulatory requirements, and our processes are designed with features to reduce any health and safety risk. Our goal is to operate the plant safely with no leaks or incidents that may cause serious injury to our employees, contractors or neighbours,” he said. At the same time, Megachem routinely prepares and practises its emergency response to potential incidents like a chemical spill or fire. If an incident does occur, it has procedures in place to mitigate the risk and reduce the impact on people and the environment. Furthermore, as a distributor of chemicals, the Group plans to add more sustainable products to its product portfolio and introduce them to its customers, thereby contributing to the industry’s sustainability objectives, he added. In the meantime, when Chew is not managing the day-to-day operations of the Group, he can be found outdoors, enjoying a long-distance run or walk. “This is one activity which gives me inspiration, and helps me think through the issues of the day,” he said with a laugh. Another source of motivation for this 60-year-old includes inventors and entrepreneurs.&nbsp; “I look to them for insight as they have undertaken learning journeys and gained much from their failures and challenges. They have also enjoyed the experience of building something from nothing - we can all gather many life lessons from these individuals.” Megachem Ltd
Established in 1988, Megachem is a one-stop specialty chemical solutions provider. The Group provides integrated value-added services, including distribution and contract manufacturing of specialty chemicals to meet customer requirements. Megachem distributes over 1,000 different types and grades of specialty chemicals, with a wide range of applications to an established and diversified base of more than 2,000 industrial customers, comprising mostly well-known multinational companies. The Group serves a wide spectrum of industries including water treatment, construction, oil and gas, food, beverage, flavours, fragrance, pharmaceuticals, polymers, coatings, electronics, rubber and plastics. Its extensive distribution network comprises Singapore, Malaysia, Indonesia, Thailand, the Philippines, Vietnam, Myanmar, China, India, the Middle East, Australia and the UK. The company website is: <a href="http://www.megachem.com.sg" target="_blank" rel="noopener">www.megachem.com.sg</a> Click&nbsp;<a href="https://www.sgx.com/securities/equities/5DS" target="_blank" rel="noopener">here&nbsp;</a>for the company's StockFacts page. For the six months ended 30 June 2021 financial results, click&nbsp;<a href="https://links.sgx.com/1.0.0/corporate-announcements/C8HNTZE6NDKC68UG/678399_Megachem_News%20Release%20H1%202021.pdf" target="_blank" rel="noopener">here</a>.
&nbsp;
About&nbsp;kopi-C: the Company brew
Text: Jennifer Tan-Stanisic Photo: Company file kopi-C&nbsp;is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations. For previous editions of&nbsp;kopi-C: the Company brew,&nbsp;please click&nbsp;<a href="https://www.sgx.com/research-education/market-dialogues" target="_blank" rel="noopener">here</a>. &nbsp; For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to&nbsp;<a href="https://www.sgx.com/jennifer.t@sgx.com" target="_blank" rel="noopener">jennifer.t@sgx.com</a>.


Megachem - CEO

For chemicals veteran Sidney Chew, analysing the complex relationships between atoms, molecules and compounds is a life-long passion.  “Chemicals are essential in our everyday life. The heart of chemistry lies in studying changes in the properties and behaviour of the matter that makes up our world,” said the Co-Founder and Group Managing Director of SGX-listed chemical solutions provider Megachem Ltd.  “Chemicals is also a great teacher - I’m constantly learning about new molecules and compounds, as well as their applications, all of which can help my customers in the development and formulation of their products.”  Chew, who graduated from the University of Guelph in Ontario, Canada with a Bachelor of Science in Chemistry with Honours and a Bachelor of Arts with a major in Business Administration, has spent more than three decades of his career building Megachem into a one-stop specialty chemicals company.&nbsp;  During these 33 years, the Group has weathered three major crises - the 1998 Asian Financial Crisis, the 2008 Global Financial Crisis, and the 2020 COVID-19 Crisis.  “Every crisis has tested our fundamentals, the stoutness of our business model, the competency of our people, and the effectiveness of our processes. Each crisis gave us an opportunity to review and address the gaps we had, to recalibrate our business model in order to stay relevant, as well as push ourselves continuously towards digitalisation,” Chew noted.  “At the end of the day, one lesson that stood out was this: A sound financial position is the best antidote for any and every crisis.”  With this goal in mind, Megachem took steps to boost its fundamentals even as COVID-19 exacted its toll on the global economy.&nbsp;  “During the past year, we sharpened our focus on premium products by widening our product range in higher-growth sectors - specialty chemicals tend to command higher margins and its demand is also less price-sensitive,” Chew pointed out.  Megachem also adopted a more client-focused approach by helping its customers overcome some of the challenges that arose during the pandemic, including supply-chain disruptions and product shortages.  “Our diversified business model, in terms of our products, geography and market segments, has enabled us to remain resilient and sustainable amidst various economic cycles,” he added.  Decade of Opportunities  Established in 1988, Megachem listed on the then SGX Sesdaq board in 2003. It distributes over 1,000 different types and grades of specialty chemicals with a wide range of applications to an established and diversified base of more than 2,000 industrial customers, comprising mostly multinational companies.&nbsp;  The Group serves a wide spectrum of industries, including water treatment, construction, oil and gas, food and beverage, fragrance, pharmaceuticals, polymers, coatings, electronics, rubber and plastics. It also provides integrated value-added services, such as contract manufacturing of specialty chemicals to meet specific customer requirements.  Megachem’s extensive distribution network spans Singapore, Malaysia, Indonesia, Thailand, the Philippines, Vietnam, Myanmar, China, India, the Middle East, Australia and the UK.  Looking ahead, Chew remains confident that this is the decade of opportunities, especially for Asia, despite the challenges created by the pandemic.  “We see Asia as the driver of our next phase of growth, on the back of a burgeoning middle class, the rollout of large infrastructure projects, and presence of high-growth industries,” he noted.  “There are many untapped market segments in Asia, such as infrastructure and construction, electronics, cleaning, nutraceuticals and pharmaceuticals. We believe our extensive footprint in the region and diversified industry coverage will provide us with the platform to take advantage of vast opportunities in this part of the world.”  Additionally, the contract manufacturing of specialty chemicals is expected to become another growth driver as customers increasingly streamline their operations to cut costs.  “In contract manufacturing, we add value by blending materials according to our customers’ formulations. Clients can outsource their non-core production to us, which allows them to reduce their capital spending and other expenses,” he said.  Megachem’s role as a one-stop solutions provider will also help its customers consolidate their supply sources and minimise the risk of supply disruptions, some of which were seen during the pandemic.  “These are some of the key pivots of our strategy to sustain and accelerate our business in the Group’s next phase of growth,” he added.  Future-Proof Operations  Despite bright prospects, risks remain. The resurgence in the number of COVID-19 infections and rise of new coronavirus variants, as well as recurring geopolitical tensions, may dent global growth in the months ahead, which in turn could impact the chemicals industry, Chew admitted.  “Nonetheless, our sales have remained quite steady, thanks to our highly diversified business model and stable customer base,” he said.  “Over the years, we’ve developed partnerships with a wide variety of customers, comprising largely multinational companies spread across a plethora of industries, which protects us against market volatility.”  Not surprisingly, Chew is constantly mulling ways to future-proof Megachem’s business model and beef up operational resilience.  “Similar to other corporate leaders, what keeps me awake are thoughts on business risks such as possible disruptors in the chemicals industry, as well as how to improve our operating model such that we will remain relevant for years to come,” he said.&nbsp;  Megachem is equally focused on its Environmental, Social and Governance (ESG) strategy, Chew noted. The Group aims to achieve an uncompromised level of health and safety standards in its plants, products and processes.&nbsp;  “Our plants are built to meet stringent health and safety regulatory requirements, and our processes are designed with features to reduce any health and safety risk. Our goal is to operate the plant safely with no leaks or incidents that may cause serious injury to our employees, contractors or neighbours,” he said.  At the same time, Megachem routinely prepares and practises its emergency response to potential incidents like a chemical spill or fire. If an incident does occur, it has procedures in place to mitigate the risk and reduce the impact on people and the environment.  Furthermore, as a distributor of chemicals, the Group plans to add more sustainable products to its product portfolio and introduce them to its customers, thereby contributing to the industry’s sustainability objectives, he added.  In the meantime, when Chew is not managing the day-to-day operations of the Group, he can be found outdoors, enjoying a long-distance run or walk. “This is one activity which gives me inspiration, and helps me think through the issues of the day,” he said with a laugh.  Another source of motivation for this 60-year-old includes inventors and entrepreneurs.&nbsp;  “I look to them for insight as they have undertaken learning journeys and gained much from their failures and challenges. They have also enjoyed the experience of building something from nothing - we can all gather many life lessons from these individuals.”  Megachem Ltd
Established in 1988, Megachem is a one-stop specialty chemical solutions provider. The Group provides integrated value-added services, including distribution and contract manufacturing of specialty chemicals to meet customer requirements. Megachem distributes over 1,000 different types and grades of specialty chemicals, with a wide range of applications to an established and diversified base of more than 2,000 industrial customers, comprising mostly well-known multinational companies. The Group serves a wide spectrum of industries including water treatment, construction, oil and gas, food, beverage, flavours, fragrance, pharmaceuticals, polymers, coatings, electronics, rubber and plastics. Its extensive distribution network comprises Singapore, Malaysia, Indonesia, Thailand, the Philippines, Vietnam, Myanmar, China, India, the Middle East, Australia and the UK.  The company website is: www.megachem.com.sg  Click&nbsp;here&nbsp;for the company's StockFacts page.  For the six months ended 30 June 2021 financial results, click&nbsp;here.
&nbsp;
About&nbsp;kopi-C: the Company brew
Text: Jennifer Tan-Stanisic Photo: Company file  kopi-C&nbsp;is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.  For previous editions of&nbsp;kopi-C: the Company brew,&nbsp;please click&nbsp;here. &nbsp;  For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to&nbsp;jennifer.t@sgx.com.

Megachem Explores Chemistry of Growth in Asia

Singapore

Megachem Limited distributes and trades chemicals and chemical-related products to industrial customers.  The Company also provides contract manufacturing of specialty chemicals to its customers' specifications and requirements.

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Megachem Ltd (MGCM SP)

Placements Continue, SERT Buys Back Units

Institutions were net buyers of Singapore stocks with S$250 million inflow, led by DBS Group and Sembcorp Industries. Keppel REIT raised S$113...

Singapore Exchange Ltd (SGX)

Singapore Chemicals: Stabilizing After Extended Volatility

Singapore’s chemical sector is very large versus its overall economy, comprising 18% of its manufacturing and 10% of total exports, and far ahead...

Kilde

OCBC, ST Engg lead buybacks; TCA’s Francis Tjia adds to stake

Share buybacks by primary listed companies 10 Apr - 13 Apr 2023 DBS, OCBC, Singapore Technologies Engineering (ST Engg), CapitaLand Investment and...

Singapore Exchange Ltd (SGX)

Megachem Explores Chemistry of Growth in Asia

For chemicals veteran Sidney Chew, analysing the complex relationships between atoms, molecules and compounds is a life-long passion.“Chemicals...

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Placements Continue, SERT Buys Back Units

Institutions were net buyers of Singapore stocks with S$250 million inflow, led by DBS Group and Sembcorp Industries. Keppel REIT raised S$113...

Singapore Exchange Ltd (SGX)

Singapore Chemicals: Stabilizing After Extended Volatility

Singapore’s chemical sector is very large versus its overall economy, comprising 18% of its manufacturing and 10% of total exports, and far ahead...

Kilde

OCBC, ST Engg lead buybacks; TCA’s Francis Tjia adds to stake

Share buybacks by primary listed companies 10 Apr - 13 Apr 2023 DBS, OCBC, Singapore Technologies Engineering (ST Engg), CapitaLand Investment and...

Singapore Exchange Ltd (SGX)

Dyna-Mac CEO adds to stake at S$0.188 per share

Dyna-Mac CEO adds to stake at S$0.188 per share Overall, institutions were net buyers of Singapore stocks for the five sessions ending Nov 17,...

Singapore Exchange Ltd (SGX)

Megachem Explores Chemistry of Growth in Asia

For chemicals veteran Sidney Chew, analysing the complex relationships between atoms, molecules and compounds is a life-long passion.“Chemicals...

Singapore Exchange Ltd (SGX)