2 Building and Construction Authority, “Steady Construction Demand in 2026 as Singapore Steps Up Support for Built Environment Firms Through Collaboration and Innovation”, 22 January 2026. 3 Urban Redevelopment Authority, “Release of 4th Quarter 2025 real estate statistics”, 23 January 2026. 4 Maldives Ministry of Tourism & Environment, “Tourism Statistics Monthly Report, December 2025.” Total construction demand is expected to range between S$47 billion and S$53 billion in 20262 on the back of robust private as well as public sector initiatives such as Changi Airport Terminal 5, a strong pipeline of public housing developments, MRT projects like the Cross Island Line (Phase 3) and the Downtown Line Extension to Sungei Kadut, Tuas Port development, and major road and drainage improvement works. With many of the public sector projects ongoing for the foreseeable future and more in the pipeline, particularly health, educational and community facilities, total construction demand in the medium term is expected to be between S$39 billion and S$46 billion per year from 2027 to 2030. Given our track record in both the public and private sectors, we will vie for high value-added projects which offer an attractive return on investment. PROPERTY DEVELOPMENT AND INVESTMENT – SEEKING NEW OPPORTUNITIES The Group continues to monitor developments in the property sector. It remains an attractive investment class, particularly in land-scarce Singapore, with its stable political scene, businessfriendly environment and clear legal framework. While the property market is showing signs of slowing down as compared to previous years, it is still performing well. Private housing pricing increased by 0.6% in the fourth quarter of 2025 compared with the 0.9% increase in the previous quarter. For the whole of 2025, the price index rose moderately by 3.3%, the smallest rise in a year since 20203. While we do not have immediate plans for land acquisition for development, given the positive outlook, we remain ready to take advantage of attractive opportunities should they arise. HOTEL DEVELOPMENT AND INVESTMENT – ROBUST TOURISM REVIVAL The Maldives continues to draw tourists, recording 2.2 million tourist arrivals for the whole of 2025, which is a 9.8% increase over the same period last year4. The Group’s two hotel investments, Mercure Maldives Kooddoo Hotel and Pullman Maldives Maamutaa Resort in which we have a 49% equity interest, however, registered combined occupancies of 49.6% which were below the average occupancy level 58.3%. We are looking at ways to attract more tourists and exploring measures to improve and enhance our hotel operations. We completed the divestment of our minority interest in Katong Holdings Pte Ltd on 30 June 2025 in accordance with the Sale and Purchase agreement. The sale would enable us to recycle the net proceeds from the sale for our working capital requirements and for potential investment opportunities with higher returns which are in line with our financial strategies. ANNUAL REPORT 2025 KEONG HONG HOLDINGS LIMITED 06 LETTER TO SHAREHOLDERS
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