Maybank Research Pte Ltd
8 July 2025

Singapore Market Outlook 2025: Key Equity Ideas and Corporate Developments Shaping Investor Strategies

Singapore Market Overview: Stable Ground Amid Global Uncertainty

Singapore’s equity market is positioned on solid footing entering the second half of 2025, according to the latest analysis from Maybank Research Pte Ltd. While global markets are navigating uncertainty—particularly due to US policy shifts—Singapore stands out with strong policy certainty and a promising outlook for capital inflows. New equity market reforms and emerging themes are set to catalyze the Straits Times Index (STI), with Maybank raising its 2025 STI target to 4185.

Five Catalysts Supporting Singapore’s Market Momentum

Investors should watch for these five themes driving Singapore’s equity market this year:

• Domestic Resilience: The local economy continues to exhibit strength, providing a buffer against external volatility.
• China’s Recovery Spill-Over: Positive economic developments in China are benefiting Singapore-based companies.
• Accelerating Corporate Capital Returns: Firms are increasingly returning capital to shareholders, supporting share prices.
• Opportunities from JS-SEZ: The Johor-Singapore Special Economic Zone (JS-SEZ) is opening new avenues for growth.
• AI-Led Efficiencies: Companies leveraging artificial intelligence are unlocking productivity and operational gains.

Maybank’s top Singapore equity picks for 2025 include CICT, ComfortDelGro (CD), CSE Global, Food Empire Holdings (FEH), ISOTeam, Sea Limited, Singapore Exchange (SGX), Sembcorp Industries (SCI), Singapore Technologies (ST), and ST Engineering (STEng).

Singapore Banks: Modest Loan Growth Expected in 2025

The May 2025 preliminary data from the Monetary Authority of Singapore (MAS) reveals a continued deceleration in total loan growth, rising only 3.5% year-on-year—a slight recovery from April’s 3.4% low. Looking forward, Maybank expects Singapore banks to maintain low single-digit growth throughout the year, constrained by international policy uncertainty. As 1H25 earnings approach, the outlook for upside surprises remains muted, leading to a maintained NEUTRAL stance on the sector.

Market Shaping News: Corporate Updates and Strategic Moves

Singapore Airlines and Malaysia Airlines: Strategic JV Gets Regulatory Nod

The Competition and Consumer Commission of Singapore (CCCS) has granted conditional approval for a significant commercial cooperation between Singapore Airlines (SIA) and Malaysia Airlines.
The joint venture will integrate scheduling, pricing, sales, and marketing, and expand code-sharing on routes between Singapore and Malaysia.
This collaboration will enable both airlines to react swiftly to market changes, add more flights on the Singapore-Kuala Lumpur route as demand grows, and ultimately offer passengers more options and competitive fares.
The deal still awaits regulatory approval from the Malaysian Aviation Commission.

Addvalue Technologies: Secures USD2.1 Million in Space Connectivity Orders

Addvalue Technologies has clinched new orders totaling approximately USD2.1 million in its key Space Connectivity (SPC)-related business segment.
The contracts, for the supply of multiple Inter Satellite Data Relay System (IDRS) terminals, come from two leading space technology companies—including a new client.
With this win, Addvalue’s order book now stands at USD17.9 million.
Management expects substantial fulfillment of these orders within the next 12 months, providing a material positive impact on FY25 results.

Nanofilm: Moves to Full Ownership in Hydrogen JV Sydrogen Energy

Nanofilm has announced plans to pay SGD15 million to acquire all 49 million preference shares (35% stake) held by Temasek Holdings in Sydrogen Energy, a hydrogen-focused joint venture founded in July 2021.
The acquisition will occur in two tranches:
1st tranche (11.67% of existing share capital) to complete in November 2025
2nd tranche (23.33%) to complete in November 2026
Full control will allow Nanofilm to better integrate Sydrogen Energy’s solutions with its global commercial, manufacturing, and R&D operations.
This strategic move is expected to unlock new opportunities for operational synergy and scale, underscoring Nanofilm’s long-term confidence in the hydrogen economy, particularly in growth markets such as China.

OCBC: SGD5 Billion Commitment to SME Growth Across Asia

OCBC has unveiled a SGD5 billion loan target to support small and medium-sized enterprises (SMEs) in its core markets—Singapore, Malaysia, Hong Kong, and Indonesia—by 2028.
The financing is aimed at “serial entrepreneurs”, defined as business owners managing multiple companies.
By end-2024, OCBC had already provided over SGD1.5 billion in growth financing to more than 1,800 serial entrepreneurs and over 8,000 companies in Singapore and Malaysia.
Plans are in place to roll out similar offerings to Hong Kong in the second half of 2025 and to Indonesia thereafter.
From 2025 to 2028, OCBC will disburse an additional SGD3.5 billion in financing across the four markets.

Singapore Equity Recommendations and Sector Ratings

Maybank’s latest sector ratings and recommendations include:

Maybank’s Top Singapore Equity Picks for 2025

Investors seeking actionable ideas for the year ahead should focus on the following stocks identified for their exposure to the growth themes and policy tailwinds shaping the Singapore equity market:

• CapitaLand Integrated Commercial Trust (CICT)
• ComfortDelGro (CD)
• CSE Global
• Food Empire Holdings (FEH)
• ISOTeam
• Sea Limited
• Singapore Exchange (SGX)
• Sembcorp Industries (SCI)
• Singapore Technologies (ST)
• ST Engineering (STEng)

Conclusion: Singapore’s Market Poised for Growth Amid Global Volatility

The Singapore equity market enters the latter half of 2025 on a strong foundation, supported by policy stability, resilient domestic fundamentals, and emerging growth catalysts. While the banking sector faces modest loan growth and limited earnings upside, opportunities abound in sectors aligned with Singapore’s strategic priorities—from hydrogen energy and space connectivity to SME financing and aviation partnerships. Investors are encouraged to monitor the evolving landscape and position portfolios to benefit from Singapore’s unique advantages in a shifting global environment.