At a time when increased geopolitical risks stemming from the US-Iran war are keeping not only Asian but also other major global markets under pressure, the Singapore stock market is exhibiting remarkable resilience.
The Straits Times Index (STI), the benchmark stock market index of Singapore, is near its all-time high levels. The index is flat since the US-Iran war started on February 28, compared to an over 6% fall in the Indian stock market benchmark Nifty 50 and a 1% fall in the S&P 500 for the same period.
The Singapore dollar has also outperformed several Southeast Asian peers lately, offering safe-haven appeal to investors.
What underpins the Singapore stock market?
The resilience of the Singaporean stock market is due to the Southeast Asian country’s healthy economic growth. Last year, Singapore’s economy expanded by 4.8%, beating estimates.
Another key factor is a S$5 billion equity market development programme, announced in February 2025. The programme is aimed at strengthening local asset management and research ecosystem and increasing investor interest in Singapore’s stock market.
“I have had a round 5% exposure to Singapore in my Global fund, for the past few years, and the market has really done well,” Shankar Sharma, stock market veteran and founder of AI-tech firm GQuant Investech, told Mint.
“Singapore’s GDP growth remains robust at 5%, marking a clear improvement from the earlier range of 3–4%. This acceleration reflects strengthening economic momentum and improved underlying demand conditions,” Sharma added.
Additionally, an interesting point was highlighted by a Bloomberg report that the composition of the Straits Times Index is such that it is dominated by some high dividend-paying companies, such as DBS Group Holdings and Oversea-Chinese Banking Corporation. They together account for more than 40% of the index, adding to the appeal.
The road ahead for the Singapore market will depend on the country’s growth-inflation dynamics, valuations, and the US President’s tariff trajectory.
Due to the high base, geopolitical uncertainties, and Trump tariffs, growth may ease to about 2% in 2026.
Sharma pointed out that a key driver of this uptick has been the ongoing AI boom, which is beginning to translate into tangible gains for the domestic economy.
“Sectors such as manufacturing, logistics, and electronics are witnessing increased activity, supported by rising investments and technological adoption,” said Sharma.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
