💰 SGX 2× Boom? MS Says AI & Data Hub Upgrade Could Double Market Cap by 2030

1. $Morgan Stanley(MS)$ 's Blue Book:SGX Stock Market Cap could Double by 2030

“ $Morgan Stanley(MS)$ anticipates it will become a hub for data and artificial intelligence (AI) reasoning in the future. Currently, hub industries contribute approximately 63% of Singapore's GDP.“

Singapore Economy

Morgan Stanley’s "Singapore Blue Book." explores how Singapore has aligned with global trends over the past 60 years, achieving remarkable economic success. The book highlights Singapore's wealth creation potential and predicts a significant increase in its return on equity (RoE), potentially leading to a doubling of its stock market capitalization by 2030.

The core message of the Blue Book is that Singapore is poised for significant wealth creation.

• The bank projects strong growth in equity returns, from 12% to 14%, driven by productivity gains.

• This could lead to a price-to-book ratio (P/B) increase from 1.7 to 2.3, doubling the stock market capitalization by 2030.

• Furthermore, Morgan Stanley forecasts Singapore's five-year GDP compound annual growth rate of 3%, among the highest among developed economies.

• The bank also predicts that household net worth will nearly double, reaching US$4 trillion by 2030, a sign of true wealth creation.

The Blue Book notes that behind this success lies Singapore's ability to capitalize on global trends. Initially, Singapore focused on manufacturing exports to create jobs. Subsequently, the country began to shift towards value creation.

Data source:https://en.macromicro.me/

$Morgan Stanley(MS)$ believes that Singapore's next step will be wealth creation, building on its existing brand and economic achievements to further enhance its capital strength and global financial standing.

2. The Blueprint report identifies three pillars for wealth creation:

1. The world's largest hub: Singapore is already a global energy, financial, and transportation center. Morgan Stanley anticipates it will become a hub for data and artificial intelligence (AI) reasoning in the future. Currently, hub industries contribute approximately 63% of Singapore's GDP.

2. Early adoption of new technologies: This report explores three emerging technology sectors that Morgan Stanley believes will help Singapore overcome key constraints and create wealth through significant productivity gains, higher company valuations, and potential IPOs. These three industries are artificial intelligence, humanoid robots, and autonomous vehicles (AVs).

3. Stock Market Reform: As a financial center, Singapore lacks a vibrant stock market. Many portfolio managers consider the Singapore stock market "small, safe, and boring" due to a lack of new economy growth stocks. By addressing this issue, Singapore can shed its image as a safe haven with limited liquidity and a limited number of investable bank and real estate investment trust (REIT) stocks. (BC)

3. Large cap opportunities(as of Sep 10th 2025.)

• $Sembcorp Ind(U96.SI)$ , YTD 2025 is 15%.

The utilities group is set to benefit from Singapore’s growth ambitions in carbon trading and solutions for industrial customers, as well as increased electricity generation needs. 

The company is already one of the highest returns on equity utilities in Asia (18 per cent) and is forecast to maintain that position as it continues to grow.

• $DBS(D05.SI)$，YTD 2025 is 26.32%.

The bank is set to benefit from Singapore’s deepening push towards higher return on equity wealth business, where it is already the third-largest player in Asia-Pacific after UBS and HSBC.

With a broader pivot towards higher value-add and higher-return wholesale banking services, the group is forecast to maintain a robust return on tangible equity of 18 per cent.

• $CapitaLandInvest(9CI.SI)$ , YTD 2025 is 10.53%.

The largest real estate investment trust (Reit) manager in Asia – by assets under management (AUM) – stands to benefit from Singapore continuing to develop as a regional Reit hub.

It plans to scale AUM to S$200 billion by 2028.

• $CapLand Ascendas REIT(A17U.SI)$ ,YTD 2025 is 15.92%.

Singapore’s largest new economy Reit is poised to ride the wave of Singapore’s continued rise as a regional Reit hub.

Morgan Stanley Research highlights a longer-term data centre opportunity worth over S$1 billion, which could catalyse further upside from the Reit’s current 6 per cent yield.

• $SGX(S68.SI)$ ,YTD 2025 is 31.51%.

The bourse operator is likely to emerge as a key beneficiary of ongoing equity market reforms and rising volumes in FX and energy trading.

Morgan Stanley expects FY2026-2027 net profit to come in 5 to 7 per cent ahead of consensus, raising its bull-case price-to-earnings multiple to 30 times, from 26 times previously.

• $Genting Sing(G13.SI)$ ,YTD 2025 is 4.83%.

The company offers steady earnings and dividend visibility amid a rebound in visitor arrivals and new attractions. The stock trades at compelling valuations, with yields at over 5%.

Singapore's second-quarter GDP growth exceeded initial expectations, and the country raised its 2025 GDP growth forecast.

4. Technology-driven growth opportunities

Singapore’s early move into emerging technologies is opening up new opportunities for investors, with several listed names set to ride the Republic’s push into AI, automation and the digital economy.

• $Grab Holdings(GRAB)$ ,YTD 2025 is 12.08%.

Grab remains the market leader in Singapore’s on-demand services space, generating more than 20 per cent of group revenue – and a substantial portion of earnings before interest, taxes, depreciation and amortisation (Ebitda) – from its home market. 

According to Oxford Economics, Grab contributed 0.8 per cent of Singapore’s gross domestic product in 2023. Its newly launched AI Centre of Excellence is expected to accelerate the group’s foray into autonomous vehicles and intelligent logistics solutions.

• $Sea Ltd(SE)$ , YTD 2025 is 81.59%.

The Singapore-headquartered tech giant is intensifying investments in AI, fintech and local talent. Its new fintech headquarters, which will house an AI research centre, is expected to support long-term growth.

Morgan Stanley Research projects revenue and Ebitda CAGR of over 20 per cent and 40 per cent, respectively, from 2024 to 2027.

• $Singtel 10(Z77.SI)$ ,YTD 2025 is 38.68%.

The telco is currently building Nvidia’s accelerated AI factories across South-east Asia and has a partnership with Bridge Alliance.

Despite these efforts, Morgan Stanley Research notes that the market has yet to assign meaningful value to Singtel’s AI initiatives.

• $Keppel(BN4.SI)$ and $Sembcorp Ind(U96.SI)$ ,YTD 2025 are 31.74% and 15.07% respectively.

Both companies are seen as beneficiaries of increased electricity and gas demand, driven by growth in Singapore’s core hub sectors.

Keppel, in particular, is targeting S$200 billion in AUM as it aligns with global megatrends including the energy transition and sustainable infrastructure development.

[Miser]Do you have faith in Singapore’s up coming progress?

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