What are the four catalysts to an influx of business deals?

Deal volumes and sizes are the highest since Q4 2019.

According to a report by Maybank Kim Eng, four key drivers were seen as catalysts for business deals in Singapore.

These four catalysts lie in the pandemic-aided acceleration of structural shifts, distressed business models, integration of green business strategies, and government initiatives. 

"Underlying trends of digitalization and hybrid-work have accelerated due to COVID restrictions, and this is forcing businesses to adopt fresh strategies of service and product delivery," MayBank Kim Eng said.

Also included in this restructuring is the movement to reach climate goals and de-risk their environmental, social, and governance exposures. 

Singapore’s government has also introduced initiatives, which include a special purpose acquisition company framework, funding for late-stage and initial public offering capital raisins to further support the ecosystem going forward. 

This is on the back of deal volumes and sizes reaching a peak since the fourth quarter of 2019. Currently, privatizations of Singapore Stock Exchange listings are 71% higher than the whole year 2020.

Deal volumes are notable in real estate in technology, so far this year. Meanwhile, US$20b of mergers and acquisitions transactions are still pending—an amount double of the deals that have already been completed. "This indicates an acceleration of deal-related activity in [the second half], MayBank said.