Look for income-paying assets amid uncertainties: CIMB Bank
CIMB expects fixed income will outperform, at least in the second half of the year, while it is staying neutral on equities.
SINGAPORE – Investors can navigate volatile markets by focusing on investments that generate income, such as fixed income securities and shares, noted CIMB Bank on June 18.
Mr Jason Kuan, Singapore director of investment research and advisory at its Chief Investment Office, told a briefing that the US tariff announcements in April prompted customers to ask the bank if they should adjust their portfolios or even sell up.
'We've always advocated that you should build a globally diversified portfolio,' noted Mr Kuan.
'But probably more importantly, it is to stay invested. And the best way is to weather the volatility because these things come time and time again.'
He also backed investments that pay dividends: 'This income can really help to cushion volatility in the portfolio. When things start to finally settle, you can shift your assets over to more growth-oriented and more exciting stuff.'
Mr Kuan said CIMB expects that fixed income will outperform, at least in the second half of the year, while it is staying neutral on equities.
He also referred to Singapore as 'a harbour in choppy waters', one that offers neutrality and a relatively stable currency, so investors could consider Singapore dollar assets as part of their diversified portfolios.
Top stories
Swipe. Select. Stay informed.
Singapore 30% of aviation jobs could be redesigned due to AI, automation; $200m fund to support workers: CAAS
Singapore HSA looking to get anti-vape cyber surveillance tool with AI capabilities
Singapore Alleged Kpod peddler filmed trying to flee raid in Bishan charged with 6 offences
Singapore NTU upholds zero grade for student who used AI in essay; panel found 14 false citations or data
Singapore Character counts as much as grades: Desmond Lee tells students after a class on race and culture
Singapore Residents in South West District get help to improve employability, find career opportunities
Life Kinokuniya opens third bookstore at Raffles City, weeks ahead of schedule
Business DBS shares rally to a new record as STI clocks yet another high
'This can be in the form of shares listed on the Singapore Exchange, Singdollar-denominated bonds or hedged share classes for mutual funds.'
Mr Kuan added that the Singdollar has been appreciating against the weakening US dollar and expects this to continue. The Singdollar is up more than 6 per cent against the greenback in 2025.
He is also hopeful of an upswing in the fortunes of the Singapore stock market, in the light of the Monetary Authority of Singapore announcing measures in February to revive the bourse.
Mr Jason Kuan, CIMB Singapore's director of investment research and advisory at its Chief Investment Office, told a briefing that the US tariff announcements in April prompted customers to ask the bank if they should adjust their portfolios.
PHOTO: CIMB
Mr Kuan noted that the stock market is largely capitalised by the three local banks – DBS, OCBC and UOB – and other blue-chip stocks.
'They are trying to find ways to re-energise the Singapore equity market and really to get more companies to list here. So we look forward to that.'
National projects could also boost the economy amid a weaker global economic outlook and the impact of US tariffs, he said.
The Singapore Government in April
lowered its forecast for 2025 growth to 0 per cent to 2 per cent, from a range of 1 per cent to 3 per cent previously.
The construction of Changi Airport's Terminal 5 and the expansion of Marina Bay Sands continue to provide support for the Singapore economy and jobs market, he added.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
36 minutes ago
- Straits Times
US, China to resume tariff talks in effort to extend truce by 90 days
Find out what's new on ST website and app. US Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng will lead tariff talks on July 28, in Stockholm. STOCKHOLM – Senior US and Chinese negotiators will meet in Stockholm on July 28 to tackle longstanding economic disputes at the centre of the countries' trade war, aiming to extend a truce keeping sharply higher tariffs at bay. The South China Morning Post reported on July 27 that the two sides are expected to agree to extend the truce by three more months. China is facing an Aug 12 deadline to reach a durable tariff agreement with President Donald Trump's administration, after Beijing and Washington reached a preliminary deal in June to end weeks of escalating tit-for-tat tariffs. Without an agreement, global supply chains could face renewed turmoil from duties exceeding 100 per cent. The Stockholm talks, led by US Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng, take place a day after European Union chief Ursula von der Leyen meets Mr Trump at his golf course in Scotland to try to clinch a deal that would likely see a 15 per cent baseline tariff on most EU goods. Trade analysts on both sides of the Pacific say the discussions in the Swedish capital are unlikely to produce any breakthroughs but could prevent further escalation and help create conditions for Mr Trump and Chinese President Xi Jinping to meet later in 2025. Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia H20 AI chips and other goods halted by the United States. Top stories Swipe. Select. Stay informed. Singapore Sewage shaft failure linked to sinkhole; PUB calling safety time-out on similar works islandwide Singapore Tanjong Katong Road sinkhole did not happen overnight: Experts Singapore Workers used nylon rope to rescue driver of car that fell into Tanjong Katong Road sinkhole Asia Singapore-only car washes will get business licences revoked, says Johor govt World Food airdropped into Gaza as Israel opens aid routes Sport Arsenal beat Newcastle in five-goal thriller to bring Singapore Festival of Football to a close Singapore Benchmark barrier: Six of her homeschooled kids had to retake the PSLE Asia S'porean trainee doctor in Melbourne arrested for allegedly filming colleagues in toilets since 2021 So far, the talks have not delved into broader economic issues. These include US complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Beijing's complaints that US national security export controls on tech goods seek to stunt Chinese growth. 'Stockholm will be the first meaningful round of US-China trade talks,' said Mr Bo Zhengyuan, Shanghai-based partner at China consultancy firm Plenum. Deals, deals, deals Mr Trump has been successful in pressuring some other trading partners, including Japan, Vietnam and the Philippines , into deals accepting higher US tariffs of 15 to 20 per cent. He said there was a 50-50 chance that the US and the 27-member European Union could also reach a framework trade pact, adding that Brussels wanted to 'make a deal very badly'. Two of Mr Trump's top trade officials, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer, will attend the Scotland talks and then travel to Stockholm. Analysts say the US-China negotiations are far more complex and will require more time. China's grip on the global market for rare earth minerals and magnets, used in everything from military hardware to car windshield wiper motors, has proved to be an effective leverage point on US industries. Trump-Xi meeting? In the background of the talks is speculation about a possible meeting between Mr Trump and Mr Xi in late October. Mr Trump has said he will decide soon whether to visit China in a landmark trip to address trade and security tensions. A new flare-up of tariffs and export controls would likely derail any plans for a meeting with Mr Xi. 'The Stockholm meeting is an opportunity to start laying the groundwork for a Trump visit to China,' said Ms Wendy Cutler, vice-president at the Asia Society Policy Institute. Mr Bessent has already said he wants to work out an extension of the Aug 12 deadline to prevent tariffs snapping back to 145 per cent on the US side and 125 per cent on the Chinese side. Still, China will likely request a reduction of multi-layered US tariffs totaling 55 per cent on most goods and further easing of US high-tech export controls, analysts said. Beijing has argued that such purchases would help reduce the US trade deficit with China, which reached US$295.5 billion (S$379 billion) in 2024. China is currently facing a 20 per cent tariff related to the US fentanyl crisis, a 10 per cent reciprocal tariff, and 25 per cent duties on most industrial goods imposed during Mr Trump's first term. Mr Bessent has also said he would discuss with Mr He the need for China to rebalance its economy away from exports toward domestic consumer demand. The shift would require China to put an end to a protracted property crisis and boost social safety nets to encourage household spending. Mr Michael Froman, a former US trade representative during former president Barack Obama's administration, said such a shift has been a goal of US policymakers for two decades. 'Can we effectively use tariffs to get China to fundamentally change their economic strategy? That remains to be seen,' said Mr Froman, now president of the Council on Foreign Relations think-tank. REUTERS
Straits Times
2 hours ago
- Straits Times
US says tariff deadline of Aug 1 is firm, no extensions
Find out what's new on ST website and app. US Commerce Secretary Howard Lutnick says the US will no longer offer grace periods after Aug 1. WASHINGTON – The US deadline of Aug 1 for imposing tariffs on its trading partners is firm and there will be no extensions, Commerce Secretary Howard Lutnick said on July 27. 'So, no extensions, no more grace periods. Aug 1, the tariffs are set. They'll go into place. Customs will start collecting the money, and off we go,' Mr Lutnick told Fox News on Sunday. After the levies kick in, President Donald Trump – who was negotiating on July 27 in Scotland with European Union officials – is still willing to keep talking, Mr Lutnick said. Of the Europeans, he said, 'you know they're hoping they make a deal, and it's up to President Trump, who's the leader of this negotiating table. We set the table'. So far, five countries have struck deals with the Trump administration ahead of the Aug 1 deadline as it tries to overhaul the global system of largely free trade by slapping tariffs on countries that the United States deems as engaging in unfair practices. These five are Britain, Vietnam, Indonesia, the Philippines and Japan. The levies they accepted are often higher than the new base rate of 10 per cent that the US has applied to most countries since April. Top stories Swipe. Select. Stay informed. Singapore Tanjong Katong Road sinkhole did not happen overnight: Experts Singapore Workers used nylon rope to rescue driver of car that fell into Tanjong Katong Road sinkhole Singapore Car that fell into Tanjong Katong Road South sinkhole removed; road remains closed for repairs Asia Singapore-only car washes will get business licences revoked, says Johor govt Sport Arsenal beat Newcastle in five-goal thriller to bring Singapore Festival of Football to a close Singapore Benchmark barrier: Six of her homeschooled kids had to retake the PSLE Singapore Younger generation must inherit and strengthen Singapore's multiculturalism: David Neo Asia S'porean trainee doctor in Melbourne arrested for allegedly filming colleagues in toilets since 2021 But they are far below the levels the Trump administration threatened to impose if no deal were reached. AFP
Straits Times
5 hours ago
- Straits Times
Singapore-only car washes will get business licences revoked, says Johor govt
Find out what's new on ST website and app. JOHOR BAHRU – The local authorities in Johor have been instructed to revoke the business licences of car wash operators who refuse to serve Malaysians and cater only to foreign customers. State housing and local government committee chairman Mohd Jafni Md Shukor said he viewed such behaviour seriously following viral social media posts alleging that a car wash outlet in Johor Bahru was only serving vehicles from Singapore. He said local councils would be directed to investigate such businesses and take firm action if the practice continues. 'If someone is doing business in Johor but only prioritises foreigners while sidelining locals just for the sake of bigger profits, then we will not tolerate it,' he said. 'I will instruct local councils to cancel the licence of any car wash operator that insists on only accepting foreign-registered vehicles, especially from Singapore,' he added Datuk Jafni said this during the closing ceremony of the Johor Property Expo (JPEX) 2025 at Angsana Johor Bahru Mall on July 24. He added that the state government would not hesitate to act against business operators who fail to consider the needs of the local community. Top stories Swipe. Select. Stay informed. Singapore Car that fell into Tanjong Katong Road South sinkhole removed; road remains closed for repairs Singapore Workers used nylon rope to rescue driver of car that fell into Tanjong Katong Road sinkhole Singapore Benchmark barrier: Six of her homeschooled kids had to retake the PSLE Sport Arsenal's new signing Viktor Gyokeres unveiled at National Stadium ahead of Newcastle game Life Vet Talk: Pet owners and vets need to work together to prevent infectious zoonotic diseases Singapore For Singapore to do well, PAP govt has to continue to hold its own: SM Lee Asia S'porean trainee doctor in Melbourne arrested for allegedly filming colleagues in toilets since 2021 Business Already owning 5 properties, woman wanted elderly dad's 4 homes 'I would like to remind all business owners in Johor that while it is natural to seek profits, they must also fulfil their corporate social responsibility and not neglect locals' he said. 'This is the same principle applied to the Johor Affordable Housing Scheme. While developers are allowed to make profits, they are also required to contribute through the construction of affordable homes to ensure that Johoreans are not left out amid rapid development,' he said. Social media users recently highlighted a car wash outlet allegedly refusing to serve local customers and only accepting vehicles bearing Singapore registration plates. The outlet, reportedly operated by foreign workers, was said to have rejected local walk-in customers, claiming all available time slots had been booked exclusively by Singaporean clients. THE STAR/ASIA NEWS NETWORK
