The strength of the banks’ performance is not really surprising, given their strong earnings and Singapore’s appeal as a safe harbour for funds. In the wake of the recent crisis in the Middle East and elsewhere, there has been a huge inflow of funds.
In all fairness, the strength of the ST index, and the banks in particular, reflects Singapore’s unique circumstance – and vigour – as a key global financial centre.
SINGAPORE IS MORE THAN BANKS AND FINANCE
But Singapore is more than just the financial sector and banks. Its listed market is filled with strong property players, tech companies, manufacturers, world-beating biotech enterprises and more that are far less visible on the STI.
Bringing more attention and investment to this broader market has, in fact, been a key aim of Singapore’s efforts to revive its equities market.
The Monetary Authority of Singapore (MAS) launched its Equity Market Development Programme, starting with S$5 billion in early 2025 and expanding it to S$6.5 billion this year, to boost investor participation in the broader market. The twin aims were to revive a moribund market and attract more listings to the SGX.
The effort has had some success, but the “concentration problem” means the ST index continues to give investors an incomplete picture of the market.
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