Singapore promotes green energy transition, benefiting real estate and utility stocks the most | Lianhe Zaobao

The Singapore government is vigorously promoting the transition to green energy. In addition to increasing the use of green energy and technology in various fields, it is also accelerating the expansion of related businesses. Stock analysts believe that real estate companies and utility companies will be the biggest beneficiaries. For many years, our country has primarily relied on natural gas for power generation, but in order to achieve the goal of zero emissions by 2050, it is now gradually increasing the use of lower carbon-emitting hydrogen and solar energy for power supply. The latest report from Industrial Bank Research points out that Singapore has four key transformation focuses: building hydrogen power plants, increasing solar power generation and storage facilities, importing large amounts of clean energy from neighboring countries, and adopting low-carbon alternatives such as hydrogen energy. Utility companies, which originally mainly used natural gas, are gradually switching to turbines and storage facilities suitable for hydrogen. Real estate companies and real estate investment trusts (REITs) are investing in installing solar panels and green decorations on rooftops. Data centers, which consume a lot of electricity, are now facing stricter electricity usage restrictions, posing growth challenges for telecom companies' data center businesses. Banks providing loans are believed to be one of the biggest winners in this energy transition, as they can take advantage of the situation to expand their sustainable financing business. However, green energy also brings new products and services to the market, allowing affected sectors to develop more new business opportunities. Industrial Bank Research lists seven benefiting sectors, with the most attention on real estate and real estate investment trusts, the aviation industry, energy infrastructure, and utilities. Revenue of Green Building Material Suppliers Expected to Increase Among various real estate and real estate investment trusts, Industrial Bank Research recommends City Developments Limited (CDL), CapitaLand Ascendas REIT, AIMS APAC REIT, and Suntec REIT, as all or most of their properties have received green building certification and they actively adopt green measures, such as installing solar panels and using clean energy. The report states: "Properties with high green building mark ratings, installed solar facilities, and smart energy management will have advantages in coping with rising electricity costs, carbon pricing risks, and tenants' environmental, social, and governance requirements. They can also enjoy lower operating costs, stronger leasing demand, and opportunities for green financing." Real estate emphasizes energy conservation and emission reduction, and building materials can also be environmentally friendly, leading to an expected increase in revenue for green building material suppliers as demand rises. Further Reading [Planning to Say Goodbye to Coal Power Generation by 2028, Our Country's Energy Transition "Pulls Everything Along" ![](https://dss0.zbstatic5.com/s3fs-public/styles/article_small_crop/public/articles/2025/12/14/2L7A3702_0.JPG? Energy transition creates new jobs, clean energy jobs increase by 60% in 10 years FSMOne Singapore research and portfolio management analyst Gao Yuanhui pointed out that cement supplier Pan United supplies carbon-mineralised concrete, and the revenue from this type of environmentally friendly building material accounts for more than half of the company's local business revenue. With the increase in green buildings, the company's revenue in this area is expected to grow. Another company worth investors' attention is Keppel Infrastructure Trust. According to research from Industrial Bank, the trust holds a 51% stake in the Keppel Merlimau Cogen Plant, which is one of the most energy-efficient energy facilities. City Energy, a subsidiary of the trust, plans to import hydrogen from Malaysia to replace grey hydrogen used for producing pipeline gas with low-carbon hydrogen. Sembcorp Industries is also one of the beneficiaries. Gao Yuanhui believes that Sembcorp Industries is a leader in the local solar energy industry, supplying solar power that accounts for half of Singapore's solar production target this year. Short to medium-term growth in charging infrastructure business is the fastest The national green transition cannot be achieved overnight, and the contribution of green business to company profits and growth expectations varies. Chen Dade, Chief Strategist for Wealth Management at Amundi Asia, said in an interview that energy companies supplying electricity and those providing energy storage services are experiencing the most immediate and positive impacts. Builders of energy infrastructure may also secure more related contracts. Gao Yuanhui believes that in the short to medium term, the growth of electric vehicles and charging infrastructure business is expected to be the fastest, especially the charging infrastructure business, as it can quickly generate recurring revenue. She said, "Upgrading green buildings is expected to bring gradual but tangible benefits, as improving energy efficiency can reduce operating costs, and green certification helps enhance real estate valuation and leasing competitiveness. However, these benefits take time to accumulate rather than appearing suddenly." Although the green transition is expected to boost the profit growth of listed companies, Chen Dade reminds investors to pay attention to relevant policies, especially the subsidies and regulatory provisions provided by the government to enterprises. Investors should also consider companies with strong fundamentals and competitiveness. He also mentioned that companies must invest a large amount of capital expenditure in the early stages of the transition, and it may take a long time to recoup the costs. Additionally, no matter how advanced green technology is, there may come a day when it becomes obsolete, and companies may need to invest again to replace technology and facilities