Singapore entered 2026 with economic growth moderating as higher energy costs and tighter monetary policy weighed on activity. GDP growth slowed to 4.6% in the first quarter, down from the previous quarter. Against this backdrop, M&A outcomes diverged from the macro picture. Deal value reached US$18.3bn in Q1, marking Singapore’s strongest quarter in nearly three years and making it the largest deal market by value in Southeast Asia during the period. 

Fewer transactions, higher aggregate value 

Singapore recorded 78 announced transactions in Q1, broadly in line with the same period last year. What materially changed was the scale of those transactions. Aggregate deal value increased sharply, driven by a small number of high‑value deals rather than a broad rise in activity. 

Data centers account for the largest transactions 

Large platform‑level transactions featured prominently in Singapore’s Q1 deal landscape. The largest was the US$9bn acquisition of a controlling stake in STT Global Data Centres by KKR and Singapore Telecommunications, Singapore’s biggest deal in four years. The transaction consolidated ownership of a 2.3‑gigawatt, 12‑market footprint serving cloud and AI‑related demand across Asia. 

Additional digital infrastructure activity also featured during the quarter. Indonesia’s sovereign wealth fund joined Coatue Management and SJL Partners in a US$2bn Series C investment in DayOne Data Centers, supporting capacity expansion across the Singapore–Johor–Batam corridor. 

Platform activity beyond infrastructure 

The first 3 months of the year also included large transactions involving regional platforms headquartered in Singapore. Lotte Group consolidated its Southeast Asian confectionery operations through a US$2.7bn internal transaction, while KKR acquired a majority stake in XCL Education for US$1.3bn, creating a regional education platform with operations across Southeast Asia. 

Together, these transactions accounted for a significant share of Singapore’s Q1 deal value. 

What Q1 2026 showed dealmakers 

Singapore’s deal activity was characterized by a stable number of transactions and a sharp increase in aggregate value. The quarter featured a small number of large, platform‑level deals, particularly in digital infrastructure and business services. Several of Southeast Asia’s largest transactions during the period were announced in Singapore, contributing to the city‑state’s leading position by deal value in Q1.  

For dealmakers, Q1 highlighted a market defined by fewer transactions with significantly higher individual deal values, set against a broader backdrop of increased digital infrastructure investment across Southeast Asia.