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India Today
3 days ago
- Lifestyle
- India Today
Singapore is the most luxe city to live in: Julius Baer Global Wealth Report 2025
What does it take to live life king size? A lot. Sipping wine, luxe vacations, private jets, and maybe a Birkin - it's all luxe-coded in Gen Z lingo. And if you dream of luxury and a premium subscription to the idea of 'living well', there are some cities that truly fit the to the Julius Baer Global Wealth and Lifestyle Report 2025, Singapore ranks as the most expensive city for a luxurious lifestyle. The report analyses the cost of living for high-net-worth individuals (HNWIs) across 25 cities globally, based on a basket of goods and services representative of 'living well'. These index items include everything from real estate and luxury travel to high-end shopping, treadmills, MBAs, legal services, watches, and designer three cities report states that the Lion City is the costliest when it comes to upholding a lavish lifestyle. For the third time in a row, the city boasts of quality of life, infrastructure, cleanliness, and safety. In the past year alone, there has been a 14.5 per cent increase in business-class flight prices in Singapore. Interestingly, the costliest index items in Singapore are cars and women's handbags - proof that speed and style come at a serious makes Singapore retain the spot? 'Since the pandemic, population growth has been driven largely by non-residents drawn by regimes such as the Global Investor Programme. As a result, it is one of the world's most densely populated, but will likely continue to draw the wealthy global elite,' the report like Singapore, London also witnessed an uptick in business-class flight prices, securing the second spot on the list. Meanwhile, LASIK, MBA programs, and private schools remain the costliest index items in the British capital. London ranks at the second position (Photo: Pexels) Meanwhile, Hong Kong, once a runner-up, slipped to third this year. Its investment environment, tax incentives continue to attract the elite. The report states, 'although the city recovered at a slower pace than others post-pandemic, it has seen a return to strong economic growth, buoyed by higher tourism receipts and a surge in goods exports.'Speaking of luxury living, how can one not talk about Dubai bling? Not just for Burj Khalifa and the holidays, people are also investing in real-estate here. Interestingly, Dubai jumped five spots. Last year it was in 12th place and now is in seventh position. Its residency schemes, low personal taxation, and growing business opportunities appeal to affluent and elite from these, Monaco, New York, fashion capital Paris and Milan also rank amongst the top 10 the list in order:SingaporeLondonHong KongShanghaiMonacoZurichNew YorkParisSao PauloMilanChristian Gattiker-Ericsson, Head of Research at Julias Baer states that the report is based on 'moments of the 'old' situation, just before President Donald Trump introduced new tariffs, which had and will continue to have ongoing implications for financial markets worldwide.' As the global economic landscape is changing due to escalating trade tensions analysts eagerly anticipate the forthcoming report that is expected to shed light on how these factors evolve.- Ends
Business Times
11-07-2025
- Business
- Business Times
‘Defensive play benefiting from volatility': Analysts positive on SGX earnings, raise target prices
[SINGAPORE] Analysts are positive on Singapore Exchange (SGX), amid the recent months' rise in trading volumes and volatility. SGX can be considered a 'defensive play benefiting from volatility', said CGS International analyst Tay Wee Kuang. 'Given the variety of measures by the government to spur trading volumes alongside volatility amid global macroeconomic uncertainty, we think the current guided revenue growth per annum over FY2025 to FY2027 forward is possible,' he wrote in his Tuesday (Jul 8) note. He has upgraded his rating on the counter to 'add' from 'hold', and raised its target price to S$18.30 from S$13.20. Over the past year, SGX shares have jumped 60 per cent from just under S$6. SGX data indicates that derivatives traded volume rose 17 per cent year on year in the past month to 26.1 million contracts, as its daily average volume (DAV) gained 9 per cent year on year to 1.3 million contracts. As for FY2025 (July 2024 to June 2025), total volume climbed 17 per cent to 315.8 million contracts. Its securities market turnover increased 23 per cent year on year for the month to S$26 billion, while securities daily average value (SDAV) rose 12 per cent year on year to S$1.2 billion. For FY2025, the aforementioned turnover gained 28 per cent to S$336.4 billion, with SDAV up 27 per cent at S$1.3 billion. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up At the group's H1 FY2025 results briefing in February, it had provided the market its medium-term guidance for its financial performance, and guided for 6 to 8 per cent growth per annum for revenue, excluding treasury income. Tay expects the strong volume growth to be a 'good proxy' for SGX's over-the-counter foreign exchange product sales in the second half of FY2025, and estimates net revenue to rise 6 per cent year on year, offsetting seasonally higher operational expenditure. Citibank analyst Tan Yong Hong, also noting the higher trading volumes created by elevated volatility, said he expects 'robust' FY2025 earnings for SGX. He raised the price target for the stock to S$13.10 from S$11.90. However, Citi reiterated its 'sell' rating, saying that market optimism in the review measures is likely to be faced with initial disappointment. The Monetary Authority of Singapore (MAS) announced in February the S$5 billion Equity Market Development Programme to spur the local equities market, and adjustments to the Global Investor Programme. However, Tan stressed that investors are well positioned to gain from the stock. 'We have a valuation at around 25 times its P/E ratio, as compared to the historical 19-to-25 time range, due to MAS review measures in August this year and the bourse's rotation out of Singapore banks,' he wrote. SGX is drawing a few new listings this year, such as that of cloud-based software provider Info-Tech Systems, which closed its first trading day on Jul 4 at S$0.91, around 4.6 per cent above its initial public offering (IPO) price. Automotive group Vin's Holdings made its SGX debut on Apr 15, becoming the first IPO on the bourse in 2025. NTT DC real estate investment trust (Reit) launched its IPO on Jul 7 – the largest in the S-Reit space in ove a decade. It is expected to begin trading at 2 pm on Jul 14. Hong Kong-listed China Medical System is seeking a secondary listing on SGX's mainboard, having slated its listing ceremony for Jul 15. Tay from CGS International warned, however, that interest rate cuts would crimp treasury income, which could be a drag on group revenue for SGX. Tay is also forecasting a year-on-year revenue growth of 4.7 per cent for FY2026, and 5.6 per cent for FY2027. Dividend levels could improve: RHB That said, RHB Group Research analyst Shekhar Jaiswal, who lowered SGX's target price to S$15.90 from S$16, said that the stock's year-to-date gains are likely to have been already priced in, despite the government initiatives announced in February and overall optimism in the market. Jaiswal has kept his 'neutral' call on SGX in his Thursday report, with his earnings forecasts unchanged, though he does raise his dividend expectations on the counter. 'The payout ratio (of SGX) was above 85 per cent in FY2015 to FY2019, above 75 per cent in FY2021 to FY2022, but fell to 69 per cent in FY2020 during the Covid-19 period; it has remained around 61 per cent since,' he said. For FY2025, the RHB analyst expects the payout ratio to stay flat. 'However, with rising cash balances, solid earnings and no major mergers and acquisitions announced, we see room for improvement,' he said. He forecasts the payout ratio to rise gradually to 75 per cent by FY2027. 'But even so, the FY2027 yield would be just 3.4 per cent, still below the market average,' he noted. Citibank's Tan estimates the total potential shareholder return to be under 4 per cent of market value. 'We expect new quarterly dividends per share of S$0.09 (at an approximate annualised 2 per cent yield), with a key risk to our view being share buyback.' SGX is scheduled to announce its FY2025 results on Aug 8, and Jaiswal expects positive updates on dividends. 'Unless SGX prioritises building a cash buffer, we believe it could distribute more to shareholders,' he added.
Business Times
23-05-2025
- Business
- Business Times
Morgan Stanley says Singapore market is a ‘safe haven', raises price target for this sector
[SINGAPORE] Analysts from Morgan Stanley are strong on Singapore equities, as the market continued to outperform global stocks year to date – with a total return of 13 per cent. The local market has recorded such outperformance since 2024, pressing on as investor allocations shifted more defensively amid higher global trade uncertainties this year. 'Singapore's defensive qualities and high dividend yields position it well to cope with geopolitical and trade uncertainties that are likely to persist in an increasingly multipolar world,' wrote the analysts in their Singapore Equity Strategy Mid-year Outlook on Thursday (May 22). Singapore also remains one of their most preferred markets in Asia, with city-state ranking just behind India, in Morgan Stanley's Asia/Emerging Markets equity strategy team's market allocation framework. The bank raised its MSCI Singapore index target by 13 per cent to 2,150, which implies a 13 per cent upside and 17 per cent total return in the next 12 months. 'We see outperformance enduring, as above-trend multiples are well supported by flights to safety, especially during bouts of market volatility, and on capital inflows driven by ongoing market reform initiatives,' the analysts said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Local market reforms offer upside Several market reforms by the Monetary Authority of Singapore (MAS) are underway, in a bid to strengthen the Republic's equities market and its competitiveness, which include regulatory enhancements and tax incentives. In particular, MAS announced its plans in February of a S$5 billion injection into select actively managed funds that invest in Singapore stocks, to attract capital from other commercial investors. 'While a direct liquidity boost is a bold, unprecedented move from the local authorities, some investors have raised concerns that S$5 billion – equivalent to just 1 to 2 per cent of annual value traded on the Singapore exchange – isn't particularly large,' wrote the analysts. Still, they acknowledged how this move by MAS could eventually attract significantly more inflows which cross the S$5 billion mark, with more private capital crowding in and as other measures come into play. Another initiative highlighted was the Global Investor Programme (GIP), which offers a route to Singapore permanent residency for individuals and their family members. New applicants now have to now deploy part of their family office assets under management (AUM) into Singapore-listed equities. This applies to eligible applicants with family office AUM of more than S$200 million, who now have to put S$50 million into Singapore-listed equities, compared with a broader range of qualifying investments previously. 'We estimate this alone could drive an incremental S$500 million per annum in inflows to Singapore equities,' noted the Morgan Stanley analysts. The analysts also stressed that the impact of market reforms such as these are 'far from being fully priced in', as implementation of the first set of measures is still ongoing, with more measures to come in the second half of 2025. Financial services and communications stocks to benefit; mixed on property sector In the analysts' view, the Singapore Exchange (SGX) is expected to be a natural winner from higher Singapore equity trading volumes with ongoing local market reforms. 'Market volatility has also been supportive of trading volumes as seen in recent market statistics,' they explained. 'Additionally, SGX's performance is historically negatively correlated with interest rates, which we expect to fall in 2026.' Local banking stocks are perceived in a similarly positive manner. Nick Lord, director of research for the Asean Research Department at Morgan Stanley, has an 'equal-weight' rating on both DBS and OCBC . He has placed an 'overweight' call on UOB and a target price of S$38.20, noting its approximate 6 per cent dividend yield in 2025, where the bank has retained its place on Morgan Stanley's Singapore Focus List. 'With the banks' commitment in capital returns sustained through share buybacks and higher dividends, meaningful yield support which limits risks to the downside is offered,' the analysts explained. Meanwhile, Singtel has risen 23 per cent year to date on more defensive allocations amid escalating trade war risks, they observed. The telco giant swung back into the black with a S$2.8 billion H2 net profit, while unveiling a S$2 billion share buyback programme, in addition to its recent US$1.5 billion sale of a 1.2 per cent stake in Bharti Airtel. Lee Da Wei, analyst at Morgan Stanley, has an 'overweight' rating on Singtel and a target price of S$4.20. 'As an index heavyweight, the stock is well positioned to benefit from ongoing Singapore market reforms, and offers exposure to artificial intelligence infrastructure through its data centre business,' the analysts said. Sea is the second best performing stock in the MSCI Singapore Index, up 53 per cent year to date. It has also risen to become the second-largest stock on the index with a weight of 19 per cent, according to the analysts. 'Potentially benefitting from passive index inflows due to Singapore market reforms, the stock also seems well positioned for an expected fall in US interest rates in 2026, and Asean currency appreciation relative to the US dollar,' they wrote. As for the property sector, analysts are strong on Capitaland Investment with an 'overweight' rating and target price of S$3.55. 'We believe lower interest rates will have a profoundly positive impact on highly interest rate-sensitive asset managers like CapitaLand Investment,' said the analysts. 'The stock has underperformed the broader Singapore index over the past two to three years on a weakening China outlook and higher interest rates, but a reversal of these trends should bode well for the stock.' Analyst Wilson Ng is 'overweight' on Capitaland Ascendas Reit and Capitaland Integrated Commercial Trust , with target prices of S$3.15 and S$2.05 respectively. 'Our most preferred Reit (real estated investment trust) is CapitaLand Ascendas Reit, which is one of three real estate constituents in the MSCI Singapore index, as it plans for data centre redevelopment works and could offer a meaningful path to dividend growth,' the Morgan Stanley analysts wrote. However, they also noted how 'potential value traps' exist in Singapore's property space as well. 'Both residential developers City Developments and UOL Group were derated to record low multiples after being removed from the MSCI Singapore index last year, and we believe could trade at structurally lower multiples here on,' they warned in their May 22 note. 'We expect Singapore housing market fundamentals to further deteriorate in 2025, and would caution against off-benchmark allocations into developers.' Other counters in the consumer sector such as casino operator Genting Singapore and Wilmar International face 'uncertain outlooks' to the analysts, due to industry competition and global macro uncertainties. Both stocks received 'equal-weight' ratings from analysts with target prices of S$0.85 and S$3.50 respectively. Analyst Praveen Choudary cited competition from Marina Bay Sands in the near term and Thailand in the long term as a 'threat' to Genting Singapore, on top of its 41 per cent decline in Q1 earnings.
Business Times
23-05-2025
- Business
- Business Times
Singapore market a ‘safe haven' amid global volatility; market reforms signal upside potential: Morgan Stanley
[SINGAPORE] Analysts from Morgan Stanley are strong on Singapore equities, as the market continued to outperform global stocks year to date – with a total return of 13 per cent. The local market has recorded such outperformance since 2024, pressing on as investor allocations shifted more defensively amid higher global trade uncertainties this year. 'Singapore's defensive qualities and high dividend yields position it well to cope with geopolitical and trade uncertainties that are likely to persist in an increasingly multipolar world,' wrote the analysts in their Singapore Equity Strategy Mid-year Outlook on Thursday (May 22). Singapore also remains one of their most preferred markets in Asia, with city-state ranking just behind India, in Morgan Stanley's Asia/Emerging Markets equity strategy team's market allocation framework. Their MSCI Singapore index target has been raised by 13 per cent to 2,150 as well, which implies a 13 per cent upside and 17 per cent total return in the next 12 months. 'We see outperformance enduring, as above-trend multiples are well supported by flights to safety, especially during bouts of market volatility, and on capital inflows driven by ongoing market reform initiatives,' the analysts said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Local market reforms offer upside Several market reforms by the Monetary Authority of Singapore (MAS) are underway, in a bid to strengthen the Republic's equities market and its competitiveness, which include regulatory enhancements and tax incentives. In particular, MAS announced its plans in February of a S$5 billion injection into select actively managed funds that invest in Singapore stocks, to attract capital from other commercial investors. 'While a direct liquidity boost is a bold, unprecedented move from the local authorities, some investors have raised concerns that S$5 billion – equivalent to just 1 to 2 per cent of annual value traded on the Singapore exchange – isn't particularly large,' wrote the analysts. Still, they acknowledged how this move by MAS could eventually attract significantly more inflows which cross the S$5 billion mark, with more private capital crowding in and as other measures come into play. Another initiative highlighted was the Global Investor Programme (GIP), which offers a route to Singapore permanent residency for individuals and their family members. New applicants now have to now deploy part of their family office assets under management (AUM) into Singapore-listed equities. This applies to eligible applicants with family office AUM of more than S$200 million, who now have to put S$50 million into Singapore-listed equities, compared with a broader range of qualifying investments previously. 'We estimate this alone could drive an incremental S$500 million per annum in inflows to Singapore equities,' noted the Morgan Stanley analysts. The analysts also stressed that the impact of market reforms such as these are 'far from being fully priced in', as implementation of the first set of measures is still ongoing, with more measures to come in the second half of 2025. Financial services and communications stocks to benefit; mixed on property sector In the analysts' view, the Singapore Exchange (SGX) is expected to be a natural winner from higher Singapore equity trading volumes with ongoing local market reforms. 'Market volatility has also been supportive of trading volumes as seen in recent market statistics,' they explained. 'Additionally, SGX's performance is historically negatively correlated with interest rates, which we expect to fall in 2026.' Local banking stocks are perceived in a similarly positive manner. Nick Lord, director of research for the Asean Research Department at Morgan Stanley, has an 'equal-weight' rating on both DBS and OCBC. He has placed an 'overweight' call on UOB and a target price of S$38.20, noting its approximate 6 per cent dividend yield in 2025, where the bank has retained its place on Morgan Stanley's Singapore Focus List. 'With the banks' commitment in capital returns sustained through share buybacks and higher dividends, meaningful yield support which limits risks to the downside is offered,' the analysts explained. Meanwhile, Singtel has risen 23 per cent year to date on more defensive allocations amid escalating trade war risks, they observed. The telco giant recently swung back into the black with a S$2.8 billion H2 net profit, while unveiling a S$2 billion share buyback programme, in addition to its recent US$1.5 billion sale of a 1.2 per cent stake in Bharti Airtel. Lee Da Wei, analyst at Morgan Stanley, has an 'overweight' rating on Singtel and a target price of S$4.20. 'As an index heavyweight, the stock is well positioned to benefit from ongoing Singapore market reforms, and offers exposure to artificial intelligence infrastructure through its data centre business,' the analysts said. Sea is the second best performing stock in the MSCI Singapore Index, up 53 per cent year to date. It has also risen to become the second-largest stock on the index with a weight of 19 per cent, according to the analysts. 'Potentially benefitting from passive index inflows due to Singapore market reforms, the stock also seems well positioned for an expected fall in US interest rates in 2026, and Asean currency appreciation relative to the US dollar,' they wrote. As for the property sector, analysts are strong on Capitaland Investment with an 'overweight' rating and target price of S$3.55. 'We believe lower interest rates will have a profoundly positive impact on highly interest rate-sensitive asset managers like CapitaLand Investment,' said the analysts. 'The stock has underperformed the broader Singapore index over the past two to three years on a weakening China outlook and higher interest rates, but a reversal of these trends should bode well for the stock.' Analyst Wilson Ng is 'overweight' on Capitaland Ascendas Reit and Capitaland Integrated Commercial Trust, with target prices of S$3.15 and S$2.05 respectively. 'Our most preferred Reit (real estated investment trust) is CapitaLand Ascendas Reit, which is one of three real estate constituents in the MSCI Singapore index, as it plans for data centre redevelopment works and could offer a meaningful path to dividend growth,' the Morgan Stanley analysts wrote. However, they also noted how 'potential value traps' exist in Singapore's property space as well. 'Both residential developers City Developments and UOL Group derated to record low multiples after being removed from the MSCI Singapore index last year, and we believe could trade at structurally lower multiples here on,' they warned in their May 22 note. 'We expect Singapore housing market fundamentals to further deteriorate in 2025, and would caution against off-benchmark allocations into developers.' Other counters in the consumer sector such as casino operator Genting Singapore and Wilmar International face 'uncertain outlooks' to the analysts, due to industry competition and global macro uncertainties. Both stocks received 'equal-weight' ratings from analysts with target prices of S$0.85 and S$3.50 respectively. Analyst Praveen Choudary cited competition from Marina Bay Sands in the near term and Thailand in the long term as a 'threat' to Genting Singapore, on top of its 41 per cent decline in Q1 earnings.
Yahoo
21-02-2025
- Business
- Yahoo
Singapore to Invest $3.7 Billion With Fund Managers to Help Boost Local Stocks
(Bloomberg) -- Singapore plans to invest S$5 billion ($3.7 billion) with fund managers to help boost the local stock market, and will start requiring some family offices to deploy a portion of their assets into domestic equities. Trump to Halt NY Congestion Pricing by Terminating Approval Trump Targets $128 Billion California High-Speed Rail Project Airbnb Billionaire Offers Pre-Fab Homes for LA Fire Victims Sorry, Kids: Disney's New York Headquarters Is for Grown-Ups Trump Asserts Power Over NYC, Proclaims 'Long Live the King' Regulators will also make it easier for companies to list on the city-state's stock exchange, by switching to a more disclosure-based system for initial public offerings and speeding up the listing approval process. The initiatives were among a host of new measures unveiled on Friday by a government-led review group that was created to help revive Singapore's languishing stock market. While the country's benchmark Straits Times Index recently soared to a record, the broader market has been suffering from a dearth of new listings and low trading liquidity in numerous stocks. Delistings have also outnumbered IPOs for years. A new S$5 billion 'Equity Market Development Programme' will be launched by the Monetary Authority of Singapore, the central bank said. It will invest in selected actively managed funds that are focused on Singapore stocks or deploy a substantial portion of their assets into them. The financial regulator said the program 'aims to incentivize fund managers to bring in greater retail and institutional investor interest,' which should in turn improve trading liquidity, price discovery, and valuations for stocks. The money managers would additionally be expected to contribute to Singapore by expanding their activities and employing more people, and should invest beyond index component stocks. The process of evaluating eligible fund managers and strategies will start 'over the next few months,' MAS said. The government also plans to make changes to its 'Global Investor Programme' — which grants Singapore permanent residency to qualifying foreigners — to channel more money into the local stock market. Investors who have set up single family offices in Singapore with at least S$200 million in assets under management currently have to deploy at least S$50 million into certain types of investments. They include Singapore-listed securities, privately held companies operating in the country, and funds distributed in Singapore which may in turn invest elsewhere. The MAS said that new applicants that set up similar family offices under this program will have to deploy the entire S$50 million minimum into Singapore-listed equities. Singapore has over 2,000 single family offices that were granted tax incentives as of 2024, which will not be covered by this requirement. 'If we take the proposed measures together they will hopefully make an impact,' MAS Deputy Chairman Chee Hong Tat said at a press conference on Friday evening. 'It doesn't mean all the measures we put in place will succeed.' Chee, who is also Singapore's Second Minister for Finance and Minister for Transport, has been leading the market review group. Tax Incentives Reviving the stock market has become a national priority for Singapore, as it heads into a general election this year. Earlier this week, Prime Minister Lawrence Wong said in his annual budget speech that the government would introduce tax incentives for Singapore-based companies and fund managers that choose to list in the country. The government plans to give fund managers or their holding companies a 5% concessionary tax rate on qualifying income, if they agree to list publicly in Singapore for at least five years and pay out some of their profits as dividends. It is also offering tax exemptions on fees from funds investing substantially in Singapore-listed equities, and tax rebates for businesses that choose to list locally. Some Wall Street banks and market participants have been hoping that Singapore's government would channel a larger amount of public funds or a slice of its citizens' retirement savings into domestic equities. Morgan Stanley research analysts suggested in a November report that about $15 billion of the yearly growth in the country's Central Provident Fund balances could be 'mobilized to invest in Singapore equities.' The S$5 billion program will be funded by MAS' investment portfolio and another entity the central bank oversees, called the Financial Sector Development Fund. Chee said on Friday that the MAS 'wanted to be able to crowd in private capital' by investing with fund managers. 'We thought S$5 billion would be a good start.' --With assistance from Low De Wei. Japan Perfected 7-Eleven. 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