Singapore Edition: A big bet on the future of air travel

Welcome to the Singapore Edition newsletter. Each week we bring you insights into one of Asia's most dynamic economies. If you haven't yet, please sign up here.

Amid all the uncertainty surrounding the path of the global economy, Singapore just made a huge vote of confidence in the future. Audrey Wan looks at the start of something big, while Ishika Mookerjee marvels at the delights of Labubu and Alfred Cang considers the impact of DeepSeek's "tech madman."

Taking Off

Just days after winning a strong mandate in the general election, Prime Minister Lawrence Wong's government has begun work on the long-delayed mega expansion of Changi Airport.

Changi Airport Group on Wednesday broke ground on Terminal 5, which will be almost as large as all the existing terminals combined. When completed in the mid-2030s, it would raise capacity from 90 million to 140 million passengers a year.

Expected to cost tens of billions of dollars, it's a bold bet on a prolonged surge in post-pandemic air travel. Seven of the world's 10 busiest international routes last year were in Asia Pacific, a region that the International Air Transport Association predicts will capture half of all global passenger demand by 2040.

But there are a lot of potential headwinds.

"Payback may be delayed" as economic uncertainty, geopolitical tensions and evolving travel patterns slow air traffic growth, said Denise Wong, Asia infrastructure analyst at Bloomberg Intelligence.

Lawrence Wong was among those at the T5 groundbreaking ceremony. Photographer: Ore Huiying/Bloomberg

Put on hold for more than two years during the Covid-19 pandemic, the T5 project doubles down on one of Singapore's most successful economic pillars.

It's hard to overstate the importance of Changi in Singapore's growth, economic prosperity and national pride. Winner of the Skytrax world's best airport 13 times, the aviation hub contributes about 5% to GDP and 200,000 jobs.

It includes a glitzy mall with the world's tallest indoor waterfall, a butterfly garden and a four-story video wall depicting a spectacular cascade of water. There are hundreds of high-end shops and even a nature trail. Young Singaporeans routinely visit the airport just to study or date.

Behind the scenes are the mass of logistics, catering, ground handling and aircraft maintenance operations that are key to the airport's success, including ST Engineering's vast new maintenance facility for widebody jets that's due to be completed by the end of next year.

Rival Asian cities are also upping their aviation game. Bangkok's main hub is looking to more than double capacity to 150 million by 2030. Hong Kong is in the middle of a $12.8 billion expansion, and Seoul has just completed work to handle more than 100 million passengers. Next door, Kuala Lumpur is also considering adding new terminals and another runway.

Still, it's hard to replicate Changi's magic formula. "Singapore's efficient operations, robust airline partnerships, coordinated government planning, and high service quality could probably underpin its hub status," said Wong. —Audrey Wan

Weekend Catch-Up

A selection of the best of Bloomberg storytelling, from podcasts and video to explainers and feature stories.

Read:

A new wave of Covid-19 is spiking in Hong Kong and Singapore.
US sanctions against an oil-cargo inspector jolt Singapore traders.

Watch:

Xi's defiance against Trump paid off. So what's next?

Is the age of American exceptionalism over? Watch the Bloomberg Originals documentary.

Listen:

Is the US-China trade war coming to an end?
How Trump's Middle East power play is working out.

Market Place: Doll House

Bringing you up to speed on the most interesting moves in the markets.

That little Labubu doll you bought last week in Pop Mart is doing more than just adorning your bag.

Pop Mart's shares have doubled this year, after quadrupling in 2024, driven by demand for the expensive monster and crybaby toys. While China's economy is grappling with the effects of the tariffs spat and an interminable property slowdown, its Gen-Z shoppers have been spending big on "emotional consumption" — stuff that provides sensory pleasure.

An ad for Pop Mart's signature character Molly at one of the company's stores in Beijing. Photographer: Na Bian/Bloomberg

The Chinese company, founded by billionaire Wang Ning, has also been expanding abroad and now has six stores in Singapore. Earlier this month, the Singapore Tourism Board inked a deal to bring in some exclusive Pop Mart products, and the island is set to host the only Pop Toy Show outside of China this year. —Ishika Mookerjee

The Limelight: Liang Wenfeng

Who's in the news in Singapore's global, multicultural population.

Liang Wenfeng — a "true nerd" who "understands the research better than his researchers," according to a person who worked with him — is one of that small group of tech entrepreneurs who can claim to have reset an industry.

Born in the southern port of Zhanjiang, his talent earned him a spot in the prestigious Zhejiang University in Hangzhou. There began an IT career that led him and a pair of classmates to apply computer algorithms first to stock trading, then to machine learning and finally in the artificial intelligence phenomenon that shook the world: DeepSeek.

DeepSeek founder Liang Wenfeng in January. Source: ZUMA Press

When Deepseek unveiled its R1 model early this year, claiming that it delivered the performance of OpenAI's ChatGPT at 5% of the cost, it started a debate about how the Chinese company had acquired the chips it needed to make such a big leap forward.

Singapore became embroiled in that debate after allegations that some traders had been buying sophisticated AI chips here to help circumvent a US ban on exports to China.

Those allegations are being investigated, but the saga is another indication of the delicate path the trade-dependent island has to tread in a more confrontational world.

Read the full story here. —Alfred Cang

The Review: Quenino

From the best spots for a business lunch to drinks with the boss, we sample the city's eateries, bars and new experiences.

It took me a while to find Quenino by Victor Liong, tucked away in the boxy, foliage-draped Artyzen Hotel near the top of Orchard Road. Named after the Malaccan Creole Portuguese word for "little one," it's the Melbourne chef's first concept in Singapore. Chef de Cuisine Sujatha Asokan serves up complex tastes that blend Peranakan heritage with Southeast Asian flavors in a modern style.

The vibe. An elevator lit by colorful lights takes you to the restaurant on the fourth floor, where warm lighting from a barrel-vaulted ceiling and wooden furniture surround a large crystal chandelier centerpiece.

Quenino's dining room. Source: Quenino by Victor Liong

Can you conduct a meeting here? It's a good spot in the Orchard-Tanglin area for meeting a client or a business group. The restaurant is spacious, with a stylish and quiet ambience, and the waiters only appear at your side when you need them.

What about a romantic dinner? The cozy style and Peranakan accents of colorful tiles provide an intimate mood, with plenty of tables for couples and a tapestry of greenery behind large picture windows to mask the city-center setting.

What we'd order again. The degustation-only menu included a starter of octopus slices and a wagyu steak main course that were both delicious. The green lip abalone with prawn and green chili was also impressive and came with fresh bread full of the fragrance of wheat. Try the unusual orange wine.

A seafood dish on the Discovery Menu. Source: Quenino by Victor Liong

Need to know. Quenino by Victor Liong is on the 4th floor of Hotel Artyzen Singapore, 9 Cuscaden Road. The Discovery Menu of six courses and two desserts is S$240++ per person. Lunch is 12-3 p.m. and dinner 6-10:30 p.m. The restaurant is closed on Sundays and Mondays. —Alfred Cang

Have a place you'd like us to review or feedback to share? Get in touch at [email protected].

Thanks for reading our newsletter! Subscribe here if you haven't already.