38 STRATEGICALLY ADVANCING FY2024 KEY TRENDS UNDERPINNING OUR STRATEGY The global economy is set to face greater uncertainties that could significantly influence global economic stability and growth in 2025. In particular, political shifts in the U.S. and new tariffs imposed by the new administration have created much anxiety as everyone waits to see the impact of its policies. While the U.S. economy has shown resilience, these tariffs could affect economic stability by stoking inflation concerns and slowing growth, which in turn affects global supply chains and trade dynamics. The United Nations projects subdued global economic growth in 2025, reflecting ongoing challenges such as trade tensions, high debt burdens, and geopolitical risk that will continue to cloud economic outlook. These uncertainties have contributed to the volatile interest rate environment witnessed in recent years, which has significantly impacted the REIT sector given the sector’s sensitivity to interest rate fluctuations. Navigating this evolving landscape requires agile financial management to mitigate risks and capture opportunities amid ongoing market volatility. EVOLVING NEEDS OF INDUSTRIALISTS MANAGING GLOBAL ECONOMIC UNCERTAINTIES SUSTAINABILITY AND CLIMATE CHANGE The rapid advancement in technology is expected to remain an important market driver in 2025. Its impact on the digital economy is expected to continue to influence and shape how real estate adapts to support this trend. The rapid growth and advancement in the artificial intelligence and digital services space has fuelled an increasing demand for the electronics industry and artificial intelligence applications. The electronics cluster, led by growth in the semiconductor segment is expected to see continued demand for manufacturing spaces. This in turn, is expected to benefit third-party logistics companies supporting the supply chain for these sectors. In addition, sustained demand for logistics and distribution centres continue to be fuelled by ongoing growth of e-commerce and the need for efficient supply chain solutions. Sustainability and climate change have emerged as significant, long-term global trends. These fundamental shifts are reshaping the global economy, industries, and lifestyles. There is greater emphasis from investors and tenants to seek out energy-efficient buildings that reduce costs and support sustainability goals. Investment in renewable energy has also been increasing as governments and corporations seek to meet Net Zero targets. Regulatory sustainability frameworks encourage businesses to increase innovation in emission reduction technologies. This has also created a market for green bonds and other similar sustainability-focused investments and financing methods. As governments, corporations, and individuals push for a cleaner, more sustainable world, one can expect these trends to continue its pace in 2025 and beyond.
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