- Singapore enters 2026 with a rare combination of macro resilience, structural reforms and valuation support. This could underpin a widening “certainty premium” vs volatile global peers.
In the Sweet Spot.
- Renewed large-cap reforms can accelerate capital returns. SMIDs remain inexpensive. MAS reform implementation and directed liquidity should drive significant value unlocking. Scaling AI could lift productivity and margins across sectors. As a result, earnings risk is on the upside.
- - Read this at SGinvestors.io -
Themes: Certainty, large-cap returns, value-up, AI
- Four key themes:
- Singapore is offering political and fiscal stability, and policy credibility amidst fast fragmenting geopolitics. Together with strong domestic resilience, we expect its “certainty premium” to widen, accelerating safe-haven flows.
- - Read this at SGinvestors.io -
- Despite gains in 2025, SMIDs trade at 1.0x P/BV: 30-50% below peer markets. Earnings are accelerating. Implementing MAS reforms and EQDP should drive significant value unlocking. Similar reforms in North Asia have delivered 40% re-ratings.
- Singapore is leading AI adoption regionally. As use-cases scale, expect operating leverage to drive earnings upside across sectors.
STI target 5,600. Rates, mkt micro-structure catalysts
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