SINGAPORE – Investors remain bullish about local stocks despite concerns over low dividends, meagre capital gains and weak market liquidity, noted a new survey.
It found that around 80 per cent of respondents were keen to invest in the equities market, with older people particularly drawn to the familiarity and stability of local shares.
The survey of about 1,000 retail investors was conducted between November 2024 and January 2025 by the Securities Investors Association (Singapore), or Sias, and financial insights platform Beansprout.
Around half of those polled were over the age of 45 while the rest were between 21 and 44. About 50 per cent were classified as intermediate investors, with the rest falling into the novice, advanced and beginner categories.
The survey found that older investors preferred Singapore stocks, with those aged 55 to 64 allocating more than 50 per cent of their portfolios to them while those above 64 allocated 70 per cent or more.
Younger investors were less keen: Those up to age 34 had only 14 per cent of their portfolios in local stocks.
Sias president David Gerald told The Straits Times that younger investors are “eager to make money in a hurry” and tend to find opportunities in US markets while also willing to take bigger risks like investing in cryptocurrencies.
“But for the older generations of investors, they are here, they don’t really go to the US markets, unless they get their children to invest for them,” Mr Gerald said.
The poll also found that investors with a larger portion of their portfolios in the Singapore market are more likely to deepen their exposure to local equities.
But investors still have concerns such as perceived low returns, weak market liquidity and the need for reliable and easy-to-read analyst reports.
Over half of the respondents also noted that they were seeking “better investment options”, rather than just having access to a wider selection of stocks.
The survey comes on the heels of recent measures announced by the Monetary Authority of Singapore (MAS) to revitalise the local stock market.
The central bank will launch a $5 billion programme that will partner with selected fund managers to invest in stocks, it said on Feb 21.
There were also tax incentives announced in Budget 2025 to get more companies and fund managers to list on the Singapore Exchange (SGX).
The aim is to cultivate more quality initial public offerings to pique investor interest, as well as build a greater range of Singapore-focused funds to boost institutional activity and shareholder involvement in listed companies, the MAS said.
Regulations will also be streamlined to make the listing process more efficient, it said.
Mr Gerald noted that addressing investor concerns and enhancing market confidence are crucial to revitalising retail participation in the local stock market.
He said: “The recent measures announced by SGX are meant to make our stock market attractive to investors, but it will take a while for the measures to achieve the objectives.”
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