Little red dot with big potential: The Singapore story
Little red dot with big potential: The Singapore story
Article summary
- Singapore equities have quietly outperformed major global peers, with the Straits Times Index (STI) delivering stronger total returns than the S&P 500 over both 2025 and the first half of 2026.
- Attractive dividends remain a key pillar of the investment case, with the STI offering among the highest dividend yields across developed and emerging markets.
- Beyond income, Singapore is increasingly positioned to benefit from structural growth trends such as artificial intelligence (AI), given its role as a regional financial hub and data centre nexus.
- Government-led efforts to deepen capital markets could drive sustained interest, as initiatives such as the EQDP and SGX-Nasdaq Global Listing Board boost liquidity, broaden investor participation and enhance market vibrancy.
A steady harbour in a turbulent world
In just over six decades, Singapore has transformed from a humble trading port into a leading global financial centre, underpinned by political and policy stability, world-class infrastructure and a business-friendly environment. These strengths have earned it a reputation as a safe haven for businesses and investors alike.
Being a small and open economy, the country is inherently exposed to external economic shocks and geopolitical risks, of which there have been plenty over the last five years. Yet, Singapore has navigated this period of uncertainty shrewdly and strategically, maintaining a principled neutrality that has served the nation’s strategic interests.
Furthermore, after years of volatility, local businesses have also adjusted, becoming more adaptable, resilient and diversified, reinforcing investor confidence. Indeed, as a steady harbour amid a sea of geo-economic tumult, Singapore has attracted significant investor capital.
This is reflected in the quiet outperformance of the Straits Times Index (STI) over the last few years. Notably, Singapore equities have significantly outperformed the US market in 2025, with the STI delivering total returns of over 28% against the S&P 500’s roughly 18%. Even in 1H 2026, the STI bested the S&P 500 benchmark, clocking 13.7% in total returns against the S&P 500’s 10% over the same period.
Chart 1: Total returns of Singapore equities have surpassed US stocks over the last one and a half years.
Source: Bloomberg, OCBC Wealth Management. Data as of 30 June 2026.
Come for income…
It’s not a secret that investors tend to flock to Singapore’s equity market for income, looking to harness compelling dividends in sectors like financials, telecommunications and real estate investment trusts. At around 4%, the 12-month forward dividend yield of the STI meaningfully exceeds other emerging and developed markets alike, as can be gleaned below.
Chart 2: Singapore stocks boast among the highest dividend yields versus developed and emerging markets.
Source: Bloomberg, OCBC Wealth Management. Data as of 17 July 2026.
Indeed, a dividend-focused Singapore equity strategy would have yielded robust returns over the long term. Even for the STI alone, reinvested dividends account for over 60% of the cumulative total return over the last 20 years ending 30 June 2026.
On an annualised basis, investors would have earned around 3.4% per annum from price appreciation of the index and over 4% from reinvesting dividends, summing up to a total return of around 7% annually.
Chart 3: Dividends account for over 60% of total returns over the long-term.
Source: Bloomberg, OCBC Wealth Management. Data as of 30 June 2026.
High-quality, dividend-yielding stocks should form part of an investor’s core holdings, as they provide a potential source of recurring income. For younger investors, these payouts present additional liquidity that can be ploughed back into the market to benefit from compounding returns. For those closer to retirement, they may provide a steady income stream that can supplement other retirement funds.
…stay for growth
While investors typically turn to Singapore for dividends, the local bourse increasingly offers plenty of growth opportunities across the country’s evolving technology landscape. Singapore may lack locally listed artificial intelligence champions in the vein of Korea’s SK Hynix and Samsung Electronics or Taiwan’s TSMC, but it doesn’t mean it isn’t plugged into the AI value chain.
Being a regional financial hub and data centre nexus, Singapore sits at the intersection of three structural AI-related tailwinds: infrastructure demand, financial services adoption, and government-led digitalisation. Investable opportunities in this space span enablers such as data centre operators, power and utility providers, and select technology and engineering firms, as well as AI adopters across sectors including industrials and financials.
Positioning for a revival
Beyond AI-related growth opportunities, state-led initiatives have been potent catalysts for a re-rating of the market. Continued deployment of the Equity Market Development Programme (EQDP) funds and the upcoming launch of the SGX-Nasdaq Global Listing Board will continue to boost liquidity, enhance price discovery and broaden both the investment opportunity set as well as investor base, creating a more vibrant financial ecosystem.
Importantly, these are not one-and-done programmes, but multi-year strategic priorities to reinvigorate capital market activity.
Singapore's equity market is no longer just a destination for yield-seeking investors. Supported by robust fundamentals, exposure to multi-year structural growth trends and a concerted government-led push to deepen capital markets, it is evolving into a more dynamic investment proposition.
Coupled with the country's enduring strengths as a trusted financial centre and safe harbour amid global uncertainty, these factors position Singapore equities to deliver both resilient income and growth, supporting long-term wealth creation in the years ahead.
Get started in three simple steps
- Accumulate gradually: Blue-chip Singapore stocks, representing some of the largest and most established companies listed on the Singapore Exchange, could provide one avenue to participate in Singapore’s growth story. Investing via the OCBC Blue-Chip Investment Plan takes the guesswork out of when to invest and builds discipline by automatically deploying a fixed amount every month in select names.
- Harness a portfolio approach: Investors can also take advantage of actively managed equity funds with a long track record of investing in Singapore markets, be it through an income-focused approach like the LionGlobal Singapore Dividend Equity Fund or a more growth-focused approach like the LionGlobal Singapore Trust Fund.
Singapore-themed RoboInvest portfolios (Singapore Cash is King, Singapore Stable REITs and Stable Singapore Giants) could be another avenue to gain exposure in the local equity market. - Do it yourself: For stock pickers, established companies with strong track records, consistent dividends and exposure to long-term growth trends could be a wise starting point. Even then, diversification matters – don’t put all your eggs in one basket. Exchange-traded funds (ETFs) and actively managed strategies provide readily diversified solutions. Learn more about the OCBC Online Equity Account.
General disclaimer
This advertisement has not been reviewed by the Monetary Authority of Singapore.
- Any opinions or views of third parties expressed in this document are those of the third parties identified, and do not represent views of Oversea-Chinese Banking Corporation Limited (“OCBC Bank”, “us”, “we” or “our”).
- This information is intended for general circulation and / or discussion purposes only. It does not consider the specific investment objectives, financial situation or needs of any particular person.
- Before you make an investment, please seek advice from your Relationship Manager regarding the suitability of any investment product taking into account your specific investment objectives, financial situation or particular needs.
- If you choose not to do so, you should consider if the investment product is suitable for you, and conduct your own assessments and due diligence on the investment product.
- We are not making an offer, solicit to buy or sell or subscribe for any security or financial instrument, enter into any transaction or participate in any trading or investment strategy with you through this document. Nothing in this document shall be deemed as an offer or solicitation to buy or sell or subscribe for any security or financial instrument or to enter into any transaction or to participate in any particular trading or investment strategy.
- No representation or warranty whatsoever in respect of any information provided herein is given by OCBC Bank and it should not be relied upon as such. OCBC Bank does not undertake an obligation to update the information or to correct any inaccuracy that may become apparent at a later time. All information presented is subject to change without notice.
- OCBC Bank shall not be responsible or liable for any loss or damage whatsoever arising directly or indirectly howsoever in connection with or as a result of any person acting on any information provided herein.
- Investments are subject to investment risks, including the possible loss of the principal amount invested. The information provided herein may contain projections or other forward-looking statements regarding future events or future performance of countries, assets, markets or companies. Actual events or results may differ materially. Past performance figures, predictions or projections are not necessarily indicative of future or likely performance.
- Any reference to a company, financial product or asset class is used for illustrative purposes and does not represent our recommendation in any way.
- The information in and contents of this document may not be reproduced or disseminated in whole or in part without the Bank’s written consent.
- OCBC Bank, its related companies, and their respective directors and/or employees (collectively “Related Persons”) may, or might have in the future, interests in the investment products or the issuers mentioned herein. Such interests include effecting transactions in such investment products, and providing broking, investment banking and other financial services to such issuers. OCBC Bank and its Related Persons may also be related to, and receive fees from, providers of such investment products.
- You must read the Offer Document/Indicative Term Sheet/Product Highlight Sheet before deciding whether or not to purchase the investment product, copies of which may be obtained from your relationship manager.
- Any hyperlink to any third party article, or other website or webpage (including any websites or webpages owned, operated and maintained by third parties) is for informational purposes only and for your convenience only and is not an endorsement or verification of any such article, website or webpage by OCBC Bank and should only be accessed at your own risk. OCBC Bank does not review the contents of any such articles, website or webpage, and shall not be liable to any person for the same.
Collective Investment Schemes
- A copy of the prospectus of each fund is available and may be obtained from the fund manager or any of its approved distributors. Potential investors should read the prospectus for details on the relevant fund before deciding whether to subscribe for, or purchase units in the fund.
- The value of the units in the funds and the income accruing to the units, if any, may fall or rise. Please refer to the prospectus of the relevant fund for the name of the fund manager and the investment objectives of the fund.
- Investment involves risks. Past performance figures do not reflect future performance.
- Any reference to a company, financial product or asset class is used for illustrative purposes and does not represent our recommendation in any way.
- For funds that are listed on an approved exchange, investors cannot redeem their units of those funds with the manager, or may only redeem units with the manager under certain specified conditions. The listing of the units of those funds on any approved exchange does not guarantee a liquid market for the units.
- The indicative distribution rate may not be achieved and is not an indication, forecast, or projection of the future performance of the Fund.
Foreign Currency
- Foreign currency investments or deposits are subject to inherent exchange rate fluctuation that may provide opportunities and risks. Consequently, exchange rate fluctuations may affect the value of your foreign currency investments or deposits.
- Earning on foreign currency investments or deposits may change depending on the exchange rates prevalent at the time of their maturity if you choose to convert.
- Exchange controls may apply to certain foreign currencies from time to time.
- Any pre-termination costs will be taken and deducted from your deposit directly and without notice.
Global Equities Disclamier
- Dividend growth is not guaranteed, nor are companies in which you invest obliged to pay dividends;
- Companies may go bankrupt rendering the original investment valueless;
- Equity markets may decline in value;
- Corporate earnings and financial markets may be volatile;
- If there is no recognised market for equities, then these may be difficult to sell and accurate information about their value may be hard to obtain;
- Smaller company investments may be difficult to sell if there is little liquidity in the market for such equities and there may be substantial differences between the buying price and the selling price;
- Equities on overseas markets may involve different risks to equities issued in Singapore;
- With regards to investments in overseas companies, foreign exchange rates may move in an unfavourable direction affecting adversely the valuation of investments in base currency terms.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
General Disclaimers
- Any opinions or views of third parties expressed in this document are those of the third parties identified, and do not represent views of Oversea-Chinese Banking Corporation Limited (“ OCBC Bank ”, “us ”, “we” or “our ”).
- This information is intended for general circulation and / or discussion purposes only. It does not consider the specific investment objectives, financial situation or needs of any particular person.
- Before you make an investment, please seek advice from your Relationship Manager regarding the suitability of any investment product taking into account your specific investment objectives, financial situation or particular needs.
- If you choose not to do so, you should consider if the investment product is suitable for you, and conduct your own assessments and due diligence on the investment product.
- We are not making an offer, solicit to buy or sell or subscribe for any security or financial instrument, enter into any transaction or participate in any trading or investment strategy with you through this document. Nothing in this document shall be deemed as an offer or solicitation to buy or sell or subscribe for any security or financial instrument or to enter into any transaction or to participate in any particular trading or investment strategy.
- No representation or warranty whatsoever in respect of any information provided herein is given by OCBC Bank and it should not be relied upon as such. OCBC Bank does not undertake an obligation to update the information or to correct any inaccuracy that may become apparent at a later time. All information presented is subject to change without notice.
- OCBC Bank shall not be responsible or liable for any loss or damage whatsoever arising directly or indirectly howsoever in connection with or as a result of any person acting on any information provided herein.
- Investments are subject to investment risks, including the possible loss of the principal amount invested. The information provided herein may contain projections or other forward-looking statements regarding future events or future performance of countries, assets, markets or companies. Actual events or results may differ materially. Past performance figures, predictions or projections are not necessarily indicative of future or likely performance.
- Any reference to a company, financial product or asset class is used for illustrative purposes and does not represent our recommendation in any way.
- The information in and contents of this document may not be reproduced or disseminated in whole or in part without the Bank’s written consent.
- OCBC Bank, its related companies, and their respective directors and/or employees (collectively “Related Persons”) may, or might have in the future, interests in the investment products or the issuers mentioned herein. Such interests include effecting transactions in such investment products, and providing broking, investment banking and other financial services to such issuers. OCBC Bank and its Related Persons may also be related to, and receive fees from, providers of such investment products.
- You must read the Offer Document/Indicative Term Sheet/Product Highlight Sheet before deciding whether or not to purchase the investment product, copies of which may be obtained from your relationship manager.
- Any hyperlink to any third party article, or other website or webpage (including any websites or webpages owned, operated and maintained by third parties) is for informational purposes only and for your convenience only and is not an endorsement or verification of any such article, website or webpage by OCBC Bank and should only be accessed at your own risk. OCBC Bank does not review the contents of any such articles, website or webpage, and shall not be liable to any person for the same.
- In the event of links or hyperlinks which link you to websites of other third parties (the “Third Parties”), OCBC Bank hereby disclaims liability for any information, materials, products or services posted or offered on the website of the Third Parties.
Global Equities Disclaimer
- Dividend growth is not guaranteed, nor are companies in which you invest obliged to pay dividends;
- Companies may go bankrupt rendering the original investment valueless;
- Equity markets may decline in value;
- Corporate earnings and financial markets may be volatile;
- If there is no recognised market for equities, then these may be difficult to sell and accurate information about their value may be hard to obtain;
- Smaller company investments may be difficult to sell if there is little liquidity in the market for such equities and there may be substantial differences between the buying price and the selling price;
- Equities on overseas markets may involve different risks to equities issued in Singapore;
- With regards to investments in overseas companies, foreign exchange rates may move in an unfavourable direction affecting adversely the valuation of investments in base currency terms.
Exchange Traded Funds Disclaimers
- OCBC Online Equities Account primarily invest in Exchange Traded Funds (ETFs), although on occasion it may invest in other Exchange Traded Products (ETPs) such as Exchange Traded Commodities (ETCs). For the purposes of these terms, these are collectively referred to under the term ETFs.
- The prices of the underlying investments of the ETFs will vary according to the markets on which these are listed or traded;
- Dividend growth is not guaranteed, nor are companies in which you invest obliged to pay dividends;
- Underlying assets may decline in value;
- ETFs on overseas markets may involve different risks to ETFs issued in Singapore;
- As with all funds, ETFs may be suspended from trading due to the closure of the underlying market or due to the winding down of the fund.
- For funds that are listed on an approved exchange, investors cannot redeem their units of those funds with the manager, or may only redeem units with the manager under certain specified conditions. The listing of the units of those funds on any approved exchange does not guarantee a liquid market for the units.
FX Disclaimers
- Foreign currency investments or deposits are subject to inherent exchange rate fluctuation that may provide opportunities and risks. Consequently, exchange rate fluctuations may affect the value of your foreign currency investments or deposits.
- Earning on foreign currency investments or deposits may change depending on the exchange rates prevalent at the time of their maturity if you choose to convert.
- Exchange controls may apply to certain foreign currencies from time to time.
- Any pre-termination costs will be taken and deducted from your deposit directly and without notice
Collective Investment Schemes
- A copy of the prospectus of each fund is available and may be obtained from the fund manager or any of its approved distributors. Potential investors should read the prospectus for details on the relevant fund before deciding whether to subscribe for, or purchase units in the fund.
- The value of the units in the funds and the income accruing to the units, if any, may fall or rise. Please refer to the prospectus of the relevant fund for the name of the fund manager and the investment objectives of the fund.
- Investment involves risks. Past performance figures do not reflect future performance.
- Any reference to a company, financial product or asset class is used for illustrative purposes and does not represent our recommendation in any way.
- For funds that are listed on an approved exchange, investors cannot redeem their units of those funds with the manager, or may only redeem units with the manager under certain specified conditions. The listing of the units of those funds on any approved exchange does not guarantee a liquid market for the units.
- Any indicative distribution rate may not be achieved and is not an indication, forecast, or projection of the future performance of the Fund.