Singapore firms’ M&A appetite wanes on back of intensifying global headwinds

It’s the only ASEAN country to see a drop in appetite.

Singapore-based firms are less keen on embarking on mergers and acquisitions (M&As) this year, on back of greater concern over global headwinds.

Data from KPMG show that although the capacity to transact is expected to increase 11%, the country’s forward P/E ratio dropped 3%.

Singapore is the only Southeast Asian country to register a drop in appetite. Malaysia’s rose 5%; Thailand by 22%, Indonesia by 19% and the Philippines by 23%.

“The drop in Singapore’s forward P/E ratio is a reflection in some ways of the global concerns around rising interest rates and weak growth expectations from the large economies of China and Japan. Singapore, being an open economy, feels the effects of these likely headwinds faster than some of the other economies such as Thailand, Malaysia and Philippines,” said Vishal Sharma, KPMG’s Asia Pacific Head of M&A.