ASEAN FIRST TO MARKET

Research evidence excerpt

ASEAN FIRST TO MARKET

Asia Pacific Equity Research

ASEAN First to Market 03 July 2026

Top Stories

ASEAN (Charnon Boonnuch)

• We expect BNM to stay on hold next week with a neutral stance with no revision to the growth outlook

• June CPI Inflation is likely to undershoot consensus forecasts again in the Philippines and Thailand

• ASEAN PMI in June supports our constructive view for Thailand but cautious outlook for Indonesia

• For Thailand, we have raised our 2026 GDP growth forecast substantially, but now expect a current account deficit

• For Indonesia, we will watch FX reserve data next week after May registered the first trade deficit since 2020

Singapore Data Centers (Terence M Khi/Mervin Song, CFA), Singapore

Impending PUE caps could accelerate DC upgrades

Singapore launched a public consultation for the Digital Infrastructure bill (link) on 1 July, with licensed DC operators (≥3MW)

required to meet PUE requirements which will be set via industry consultation and aligned with international benchmarks. We

believe this likely implies a PUE ceiling near 1.3–1.5 for full-load operations, based on Singapore’s Green Data Center

Roadmap’s (link) goal to uplift all Singapore DCs to achieve PUE ≤ 1.3 over 10 years, and also Germany’s target PUE ≤1.5 by

mid-2027 and ≤1.3 by mid-2030 for existing DCs. We expect this impending legislation to accelerate the upgrading and

redevelopment of older data centers, such as KDCREIT’s SGP 1 (link), which we estimate has PUE of >1.66. We also

anticipate greater scrutiny on PUE of the existing Singapore DCs in REITs such as CLAR and MINT.

Emerging Markets Equity Strategy (Rajiv Batra/Emy Shayo Cherman/Anindita Gandhi), Global

June & 2Q 2026 Wrap – Fed turn, geopolitical resolution, and AI dispersion