Speech by Ms Indranee Rajah, Minister in the Prime Minister’s Office, Second Minister for Finance and National Development at the 26th ASEAN Valuation Association Congress on 5 November 2024

Dr Lim Lan Yuan, President of ASEAN Valuers Association,

Distinguished Delegates from the various ASEAN Valuers Association chapters,

Ladies and Gentlemen,

A very good morning to everyone and to all our overseas guests, welcome to Singapore.

Introduction

1   I am delighted to join you today for the 26th Congress of the ASEAN Valuers Association. The last time the AVA Congress was held in Singapore was in 2017, and we are very happy to welcome everyone back to Singapore this year. 

2   At its core, valuation is the process of determining the current or projected worth of an asset or company. It is not just about arriving at a number – it is about applying professional expertise, market knowledge, and rigorous methodology to assess value. Whether we are looking at a startup's potential, a commercial building's worth, or a company's fair market value, proper valuation provides the foundation for informed decision-making in our financial markets. 

3   Valuation is an important part of work for many organisations, beyond the traditional industries of real estate and property development. The practice of business valuation is constantly evolving, as businesses adopt new technologies and adapt to new trends. 

4   Take Nvidia for example, which briefly became the most valuable company in the world in September with a market capitalisation of over US$3 trillion, but just five years ago, its market value was around US$100 billion. Nvidia’s meteoric rise in value could be attributed to the role its graphics cards play in the AI boom, and shows how evolving trends and technology affects valuation.

5   However, one thing becomes abundantly clear – valuation is no longer just about putting a price tag on assets: we need to understand how the rapidly changing world impacts value creation and preservation, and how transformative forces are shaping the valuation industry. 

Changing demands in the valuation industry

6   One of these transformative forces is digitalisation. Valuers today can access real-time market data, utilise AI-powered analytical tools, and generate insights that previously would have taken weeks to compile. This would greatly improve your efficiency and value to clients. 

7   Data itself has also become an asset. Some have even described data as the “new oil”. But unlike oil, data becomes more valuable with use. Companies today are sitting on large repositories of customer insights, transaction records, and behavioural patterns that, when properly harnessed, can create new value through enhanced customer service, higher operational efficiency, and new product types. This presents new challenges for the valuation industry, which needs to properly value a company’s data assets and account for the potential future value of data that has not yet been fully exploited.  

8   Second, the changing nature of assets. Apart from physical assets such as land, plants, and machinery, there has been significant growth in “intangible” assets. This includes intellectual property, brand value, and human capital, each of which requires new valuation approaches and expertise. In 2023, intangible assets made up over 90% of the market value of S&P 500 companies, a substantial increase from just 17% in 1975. Valuers’ ability to properly value and advise companies on how to leverage intangible assets will be crucial in an increasingly knowledge-based global economy. 

9   Third, sustainability. You may ask: “Why should valuers care about sustainability?" Well, a recent 2024 study by Cushman and Wakefield has found that office buildings with Green Mark certifications commanded higher rents than their non-certified counterparts or those with lower Green Mark ratings, and were able to achieve higher occupancy rates. This suggests that sustainable building practices, and the visibility provided by the Green Mark certification, can result in a “green premium”. There can be a measurable increase in asset value stemming from sustainable features.  

10   This “green premium” reflects not just the tangible benefits of lower operating costs through energy efficiency, but the intangible value of environmental stewardship and future proofing buildings against climate change. We expect sustainability to be an increasingly significant component of asset valuation, reflecting both market preferences and regulatory requirements. The transformation in our built environment sector illustrates how sustainable products and services are now valued as an intangible asset.

Implications for ASEAN

11   Now, what does this mean for ASEAN? As the ASEAN economy continues to grow, the role played by valuers and organisations like the AVA will only become more important, and events such as the AVA Congress are useful opportunities to discuss how the valuation industry could contribute to development in the region.

12   I am glad that AVA has put together a comprehensive list of topics under the theme of this year’s Congress, “Embracing Globalisation in the Region – Valuation Education, Sustainability, and Standards”. Much has been said about the headwinds facing globalisation today. ASEAN’s trajectory tells a different story, one of greater integration with global markets anchored by ASEAN member states’ commitment to creating value across borders. Let me highlight the importance of some of these themes.

13   Firstly, skills development and education. We need to equip our valuers with new capabilities. The Singapore Institute of Surveyors and Valuers, or SISV, has a long-standing Continuing Professional Development programme to enable SISV members to keep informed about the latest developments in the valuation industry. SISV organises courses and practical workshops, which now include using data analytics and AI in valuation work. Its partnership with the IVSC ensures that local training programmes are aligned with global best practices. 

14   Second, sustainability. As announced earlier this year, from Financial Year 2025, Singapore will implement mandatory climate-related disclosures for listed companies, expanding to large non-listed companies in Financial Year 2026. This represents a strategic opportunity for companies to differentiate themselves through robust Environmental, Social, and Governance practices. 

15   Valuers must now develop more sophisticated methodologies to quantify and value sustainability initiatives, which creates opportunities for value differentiation. Companies that can demonstrate superior environmental performance will likely command higher valuations. This can be captured through multiple lenses: a lower risk premium for companies that are more climate resilient, the competitive advantage from early adoption of sustainable practices, and the potential to unlock green financing at preferential rates. The role of professional valuers as sustainable performance quantifiers is particularly important as Singapore positions itself as a green finance hub for ASEAN.   

16   Thirdly, and this is crucial, regional coordination on standards. Singapore’s launch of the Intangibles Disclosure Framework (IDF) marks a significant step forward in standardising the approach to disclosing intangible assets. This allows companies to reflect their true value to potential investors and financiers. This also reflects our recognition that in the interconnected ASEAN economy, national standards alone are insufficient. Other than the disclosure process, working with regional partners to develop harmonised valuation standards will promote portability and mutual recognition of valuation assessments across borders. I am glad to hear that the AVA has organised a course on ASEAN and international valuation standards to support this.  

17   As we move forward, let us remember that change, while challenging, brings opportunities. The valuation profession has always adapted to meet the needs of the time. Today's challenges around sustainability and digitalisation are no different – they are simply the next chapter in the industry's evolution.

Conclusion 

18   Organisations like AVA have an important role to play in readying the ASEAN valuation industry for the future. I am confident that together, we can build a valuation industry that not only keeps pace with change but helps drive positive transformation across ASEAN. One that combines technical excellence with sustainability awareness. One that leverages technology while maintaining professional judgment and one that serves not just today's needs but anticipates tomorrow's challenges. 

19   With that, I wish you all fruitful discussions ahead at the 26th ASEAN Valuers Association Congress. Thank you.