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Supportive policies, resilient economic growth and diverse investment opportunities continue to make Singapore’s equity market one to watch.
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The Straits Times Index (STI) has closed above 5,400 for the first time, marking a new record after climbing more than 30% over the past year. While some investors may wonder if they have already missed the rally, Singapore’s market continues to be supported by strong economic fundamentals, policy initiatives and attractive investment opportunities.
Why It’s Not Too Late
Singapore’s recent market strength is underpinned by improving corporate earnings, resilient economic growth and renewed investor interest in local equities.
One of the key structural drivers is the Monetary Authority of Singapore’s Equity Market Development Programme (EQDP). Expanded to S$6.5 billion under Budget 2026, the programme is designed to improve liquidity and encourage long-term investment into Singapore-listed companies. As of March 2026, only S$3.95 billion had been allocated to appointed asset managers, leaving further deployments that could continue to support the market.
Valuations also remain relatively reasonable despite the rally. The STI continues to trade close to its historical average valuation rather than the elevated multiples often associated with speculative bull markets. While no investment outcome is guaranteed, today’s market appears to be supported by fundamentals rather than optimism alone.
Why Singapore? Income Meets Growth
Singapore continues to offer investors a compelling combination of stable income and long-term growth potential.
On the income front, Singapore REITs generally distribute at least 90% of their taxable income to qualify for tax transparency, while the STI remains anchored by Singapore’s three major banks, which continue to deliver resilient earnings.
On the growth front, Singapore’s economy expanded 6.0% year-on-year in the first quarter of 2026. The Ministry of Trade and Industry continues to forecast GDP growth of between 2.0% and 4.0% for the year, supported by resilient external demand, including AI-related electronics.
Beyond the STI, investors can also gain exposure to established mid-cap companies through the iEdge Singapore Next 50 Index, which includes businesses across semiconductors, precision engineering, consumer staples and digital infrastructure.
Four Ways to Gain Exposure to Singapore
Singapore’s Market Leaders
Singapore’s three major banks remain the backbone of the STI, benefiting from strong market leadership, diversified businesses and regional expansion. Investors can gain exposure through individual stocks such as DBS (SGX: D05), OCBC (SGX: O39) and UOB (SGX: U11), or through STI-tracking ETFs.
Singapore’s Next-Generation Leaders
Investors seeking opportunities beyond blue chips may consider companies within the iEdge Singapore Next 50 Index. Businesses such as AEM Holdings, Frencken Group, UMS Integration, Sheng Siong and NetLink NBN Trust represent sectors including semiconductors, precision engineering, consumer staples and digital infrastructure. As there is currently no ETF tracking the index, investors typically access these opportunities through direct stock investing.
Singapore ETFs
For diversified exposure through a single investment, Singapore-listed ETFs provide a convenient solution. These include the SPDR STI ETF (SGX: ES3), Amova Singapore STI ETF (SGX: G3B) and Phillip SING Income ETF (SGX: OVQ), offering exposure to Singapore’s leading companies and income-generating sectors.
Tactical Trading Opportunities
For experienced, CAR-qualified investors seeking short-term market opportunities, leveraged and inverse exchange-traded products provide additional flexibility. The Phillip-Nova MSCI Singapore Daily (2x) Leveraged Product (SGX: LSS) allows investors to position for rising markets, while the Phillip-Nova MSCI Singapore Daily (-1x) Inverse Product (SGX: SSS) enables investors to express bearish views on Singapore equities.
The Investment Case
Potential Upside
- Continued deployment of the remaining EQDP capital could further support market liquidity.
- Singapore’s resilient GDP growth and AI-driven manufacturing demand remain supportive of corporate earnings.
- Valuations remain broadly in line with historical averages.
- The Next 50 Index offers exposure to quality mid-cap companies across multiple sectors.
Risks to Consider
- The STI remains heavily weighted towards the banking sector, making it sensitive to interest rate expectations.
- Singapore’s open, trade-dependent economy remains exposed to global economic developments.
- Higher energy prices and inflation could weigh on corporate margins.
- The Next 50 currently has no ETF, and some constituent stocks may have lower trading liquidity.
Access Singapore Markets with NOVA
Whether you’re investing for long-term growth or actively trading market opportunities, NOVA provides access to Singapore’s financial markets through a single trading account.
On NOVA, investors can trade:
- Singapore-listed stocks, including STI constituents and Next 50 companies
- Singapore ETFs
- Leveraged and inverse exchange-traded products (for eligible investors)
- Global markets across stocks, ETFs, futures, forex and CFDs—all from one integrated platform with professional TradingView charting.
总结
Although the STI has reached record highs, Singapore’s investment story continues to be supported by strong fundamentals, supportive government initiatives and a broad range of investment opportunities.
Whether your objective is blue-chip stability, dividend income, emerging growth companies or tactical trading opportunities, Singapore remains a market worth watching—and with NOVA, investors can access these opportunities through a single multi-asset trading platform.
Trade Singapore stocks, ETFs and more on Phillip Nova and stay ready to capture opportunities as market-moving events unfold.
Seize the opportunity with Singapore Stocks and ETFs, with no minimum commission, at 0.08%. Open an account now!
Or take a view via index CFDs, Futures, or the Phillip-Nova MSCI Singapore Daily L&I Products now!
