RHB has revised its 2025 GDP forecast for Singapore, citing a favourable macroeconomic outlook and potential opportunities in the stock market. The firm suggests that recent pullbacks in the Straits Times Index (STI) present buying opportunities, particularly in real estate investment trusts (REITs) and high-yield stocks, as interest rates decline. Analyst Shekhar Jaiswal highlights that the Monetary Authority of Singapore’s (MAS) policy initiatives are expected to drive a rally in small and mid-cap stocks by enhancing liquidity and unlocking value.
The report, titled “Market Strategy: Improving Growth, Expanding Opportunity,” outlines that Singapore’s equities could benefit from easing US-China trade tensions and a stronger Singapore dollar. With market earnings projected to grow over 7% annually from 2026 to 2027, Singapore is poised to offer one of Asia’s highest dividend yields.
RHB’s analysis also points to the potential for increased investor sentiment, driven by these favourable conditions. The report underscores the importance of strategic investments in sectors poised for growth, such as REITs and small-mid caps, which are expected to benefit from the current economic climate.
In addition to the market strategy, RHB’s recent publications cover various topics, including women on boards, sustainable practices in Johor’s plantations, and the ASEAN investment landscape. These insights provide a comprehensive view of the opportunities and challenges in the region’s economic environment.
