Singapore's growth can boost earnings strength, says asset manager

He is bullish S'pore stocks have even more room to run despite global trade uncertainty

- Angela Tan Senior Business Correspondent

Singapore equities are staging a broad-based rally fuelled by strong economic growth, bold market reforms and ambitious new tax incentives, and this is propelling the market into a new phase of outperformance.

The Straits Times Index (STI) - which tracks the performance of the top 30 largest and most liquid companies listed on the Singapore Exchange (SGX) - hit record highs in 2025.

Compared with a year ago, it has risen more than 20 per cent. This is on top of a more than 20 per cent gain in 2024.

Mr Robert St Clair, head of investment strategy at Fullerton Fund Management, told The Straits Times he is optimistic that Singapore stocks have even more room to run, despite the global trade uncertainty.

He believes that Singapore's macro performance can trigger sustainably stronger earnings performance than investors appreciate.

Looking ahead, he expects the Singapore market to deliver earnings growth closer to 10 per cent in 2026 and the year after, more than the market expectation of 6 per cent currently.

Mr St Clair said Prime Minister Lawrence Wong's announcement in Budget 2025 in February that there would be major tax breaks to encourage new listings and increase demand for Singapore-listed stocks was a watershed moment for the local equities market.