Singapore Stocks at Record Highs — Is This Bull Run Just Getting Started?

Singapore’s stock market has shaken off its old reputation as a sleepy, dividend-only play. The Straits Times Index (STI) has climbed nearly 13% so far in 2025 — matching the S&P 500 — and is now up more than 20% from its April low. With big banks calling this “a baby bull” just getting started, investors are asking: how much further can this rally run?

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What’s Driving the Rally?

Market watchers point to a potent mix: safe-haven status, strong dividends, and foreign inflows. The Singapore dollar has appreciated about 6% year-to-date, boosting overseas investors’ returns. GDP growth stayed resilient at 4.3% in Q2, while Singapore’s average dividend payout ratio of 60% ranks among the highest in Asia-Pacific.

Sector leaders include $Singtel(Z74.SI)$ (+42%), $Sembcorp Ind(U96.SI)$ (+15%), and $Union Gas(1F2.SI)$ (+17%). Institutional funds are beginning to rotate into REITs and consumer names, adding breadth to the rally.

The government is also playing its part. The Monetary Authority of Singapore’s EMDP program is injecting S$5B into small- and mid-cap stocks, with the first S$1.1B tranche already deployed — a move aimed at boosting liquidity and market activity.

How Far Can It Go?

JPMorgan has raised its base case for the STI to 4,500, with a bull case of 5,000 — implying 20% upside from here. Morgan Stanley sees 2025 as a turning point, forecasting the MSCI Singapore index could double in five years, fueled by equity reforms, IPO inflows, and AI-driven productivity gains.

Still, risks remain. Citibank has warned of a potential “liquidity trap” as retail money piles into less liquid small- and mid-caps. And longer-term, Singapore faces competition from rival hubs like Hong Kong and Tokyo if reforms stall or IPO activity dries up.

Is This Just the Beginning?

With Singapore stocks hitting record highs and handing out double-digit gains, bulls argue this is only the opening phase of a longer bull market. Skeptics warn that small-cap froth could trigger pullbacks.

👉 The big question now: Is Singapore’s bull run just getting started, or are we near the top?

🧭 Share your outlook below — are you riding the bull, or waiting on the sidelines?

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