This year marks the 60th year since Singapore gained its independence on 9 August 1965.

Over the past 60 years, the country has undergone a remarkable transformation from a swampland to a thriving metropolis.

A host of activities, discounts, promotions and special celebrations have been planned for this year as the nation comes together to celebrate this significant milestone.

Retail outlets, grocery stores, restaurants and even places of interests have special packages, and many companies have also planned special events.

We provide here a list of reasons why investors should continue to stay invested in Singapore to welcome the decade and participate in the nation’s prosperity.

Singapore’s success in the past 60 years was no pure luck but rather a carefully planned series of developments and investments that shifted Singapore’s focus from textile and then electronics manufacturing in the 1960s and 1970s, to a digital nation now.

Looking ahead into the coming decade, the combination of regional growth and rising affluence will bring about more opportunities here and in this region.

Singapore’s stability is often underappreciated

With rising global uncertainty – from elevated geopolitical tensions and higher trade tariffs – stability is increasingly going to be more valuable.

Singapore’s economic stability is often over-stated, but at times it seems to be underappreciated.

In a climate of rising geopolitical tensions, one of the Singapore’s key investment merits is its economic stability. This is sharpened through years of strategic government initiatives and policies; well-established housing and well-connected infrastructure; and a transparent and robust financial system.

The political landscape is stable, with no change to the leading political party since independence. This has allowed for the continuation of several long-term initiatives to enhance infrastructure and develop core skills to meet changing needs.

Safe haven status

The recent re-rating of the Singapore stock market was largely fuelled by its safe haven status as seen from the good gains by defensive stocks.

The benchmark Straits Times Index (STI) has provided a stable growth of 3% per annum over the past 20 years. Singapore’s safe haven status has not only attracted a constant stream of foreign investments into key industries and recently into its stock market, but it also means that the island will remain a key wealth hub as more family offices and assets flow into the country. Strong foreign investments reinforce the country’s appeal to foreign companies and is also reflective of the confidence of foreign investors despite elevated global uncertainties.

In Asia, the wealth and credit card business is growing. Asia is going to be home to more and more middle-class families due to rising affluence. It is also estimated that Asia will account for more than 50% of the world’s wealthiest people and this is a key indicator for the region. Based on a study by Knight Frank, the Asia Pacific region is projected to account for nearly half of all new high net-worth individuals (HNWI) between 2025 and 2028. This will be supported by digital transformation happening throughout Asia, policies encouraging entrepreneurship, higher regional trades and investments.

High dividend yields – a key differentiator

As a wealth hub and with funds looking for attractive yields in an environment that is likely to see lower interest rates, Singapore listed companies have consistently offered one of the highest dividend-yield in this region and globally. The strong Singapore Dollar also means that foreign investors investing in local equities in Singapore Dollar terms have enjoyed both good currency gains as well as steady dividend income. With the prohibitive property measures for foreign investors buying into local residential properties, Singapore equities offer a compelling alternative for investors holding Singapore Dollars. At current levels, the average dividend yield for the STI is about 5%. This is attractive for investors looking for stable and sustainable long-term returns.

In the Singapore Treasury bills market, the average auction amount in 2025 was S$7.4 billion versus applications of S$17.5 billion or a cover ratio of 2.4x. Demand far outstrips supply. A recent auction for example, closed with a cut-off yield of 1.79% (auction results on 17 Jul 2025). As an indication, the cut-off yield was an average of 3.85% in 2023, 3.46% in 2024 to around 2.52% so far this year. However, these rates are still higher than the averages seen pre-Covid levels of around 0.58% in 2020 and 0.37% in 2021. Meanwhile, the US Dollar has weakened against Singapore Dollar this year by about 6.1%.

The compounded average growth rate for the STI in the last 20 years was 3%. The average dividend yield during the same period was 4%, giving total return of 7.0% – a decent rate of return for the past 20 years.

Global tariffs and geopolitical tensions

In the past few months, the volatile Middle East situation and trade tariffs have risen and ebbed, capturing the dynamic and fluctuating global developments and changes. These have added uncertainty to the investment climate and created both opportunities and challenges. While certain countries are more impacted than others, Singapore has been comparatively less impacted versus the rest of the world. Nevertheless, higher tariff rates for regional countries will still have some spillover effects on certain Singapore companies. However, there is a need to distinguish between noises and signals.

Equity market reforms and initiatives

The Equities Market Review Group established by the Monetary Authority of Singapore (MAS) provided a progress update recently: an initial tranche of S$1.1 billion will be placed with three asset managers under the S$5 billion Equity Market Development Program (EQDP). The MAS will appoint more asset managers in the second tranche by 4Q2025. Additionally, the MAS will also provide S$50m under the Grant for Equity Markets (GEMS) schedule to strengthen equity research and listing support. We expect quality small/mid-cap stocks, as well as S-REITs, to be potential beneficiaries of these developments. A key risk, in our view, is investors overcrowding into certain small/mid-cap names; if liquidity cannot be maintained over the longer term, especially after the funds are fully deployed, small/mid-cap counters trading at frothy valuations without supportive underlying fundamentals could be at risk of sharp drawdowns or profit-taking activity.

Why Singapore equities matter for your portfolio

Singapore equities allow the investor to gain exposure to a healthy economy known for its strong governance, political stability and robust financial regulations. Singapore equities provide geographic diversification, and relative defensiveness during times of uncertainties and this will help to reduce overall portfolio risks. The attractive dividend yields for many Singapore stocks are appealing to income-focused investors, while discerning investors could discover stocks that offer growth opportunities. Exposure to the Singapore dollar through Singapore equities adds currency diversification benefits and a hedge against volatility in other currencies.