Source:
ChatGPT:
The STI, which closed at 4,393.92 (up 16% year-to-date), benefits from attractive dividend yields, solid price-to-book valuations, and low interest rates—features DBS describes as “part of the Singapore equity market’s DNA.” However, it remains relatively underinvested. The rally has broadened beyond banks to include real estate, industrials, IT, and communications, reflecting healthier market depth.
DBS identifies three funding sources to sustain growth:
Passive fund inflows into large-cap stocks from global investors seeking stability.
Government programmes, such as the Equity Market Development Programme, boosting small-cap interest.
Falling interest rates, which could push depositors toward equities and income stocks.
However, DBS warns that Singapore must foster a culture of risk-taking to attract high-growth tech firms and shift beyond its bank-heavy, conservative structure. Embracing higher-valuation “new economy” sectors will be crucial for the next leap.
Economically, Singapore’s GDP is forecast to more than double to US$1.2–1.4 trillion by 2040, with 2.3% average annual growth driven by services, resilient manufacturing, and productivity gains. The SGD’s rise toward parity may be fueled by productivity-led growth and continued safe-haven inflows, as Singapore cements its role in finance, digital services, green tech, and AI adoption.
Opinion:
Erm... is the outlook too positive? π
I hope it happens π
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