Singapore ranked top in ASEAN for stability and earnings: report

The report forecasts Singapore’s 2025 earnings per share growth at 1–2%

Singapore is emerging as a relatively safe haven within ASEAN markets, according to CGS International’s latest strategy note, which ranks the city-state ahead of Malaysia based on earnings growth potential, currency and political stability, valuations, and dividend yield.

Despite regional market turbulence, Singapore is expected to maintain modest earnings momentum and show resilience in key sectors such as capital goods and internet services.

The report forecasts Singapore’s 2025 earnings per share (EPS) growth at 1–2%, a stronger outlook compared to neighboring markets facing declines. However, the analysts flagged downside risks, particularly in the banking sector.

“We believe weaker macroeconomic conditions suggest that Singapore banks, being the 50% contribution to MSCI SG earnings, may see potential earnings cuts,” wrote analysts Lock Mun Yee and Lim Siew Khee.

They added that a downward revision of 6–7% to FY25F EPS is possible if loan growth slows to the range seen during the Global Financial Crisis and wealth management fees drop 20% year-on-year. Even so, they noted that “we could still see market growth of c.1–2% backed by capital goods and Internet services.”

Singapore’s valuations appear relatively attractive, with the market trading at 12.27 times 2025 forward earnings, a dividend yield of 5.1%, and a return on equity of 12.1%.

Whilst the Straits Times Index is down 10.4% YtD, that performance is more resilient than peers such as Thailand, which is down 19.1%, and Indonesia, down 16.7%.

CGSI also highlighted several Singapore-listed stocks that are trading at or below historic valuation troughs, presenting potential “bounce back” opportunities.

These include Genting Singapore, described as “at trough valuations since Covid despite strong cash position and incremental catalysts in 2H25F from opening of new attractions,” and City Developments, where “improved corporate governance and buyers’ interest are key catalysts.” Other notable mentions include Keppel DC REIT, UOB, DBS, and SATS Ltd.

Despite these positives, macroeconomic risks remain. Singapore’s government is in the process of reviewing its current GDP growth target of 1–3% for 2025 in light of global economic uncertainties.

CGSI cautioned that “markets are not convinced that the governments have full control of what lies ahead,” though it noted that any potential recession “may not be a real shock if it comes.”