🌏 Gold Rush Amid Global Uncertainty: Investors Flock to Safe Havens as Geopolitics Escalate
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Gold soared past US$3,600 last month, edging toward the US$4,000 mark. Yet for Singapore-dollar investors, gains were offset by a weaker US dollar. The currency debate took centre stage at a recent JP Morgan outlook conference, where the softer greenback was linked to Fed rate cuts and a slowing US economy.
US:MP:MP Materials Corp / US:INTC:Intel
Washington has turned its “mine-to-magnet” rhetoric into policy, backing MP Materials’ California mine expansion and even taking equity stakes in companies like Intel to secure critical rare earth supply chains and curb reliance on China. But uncertainty looms: raids on Hyundai’s Georgia site raised questions about foreign firms’ place in Trump’s America First agenda.
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Despite global volatility, the Straits Times Index surged past 4,300, powered by DBS Group and Singtel. Funds repatriating from the US have helped keep local markets buoyant, with Singapore assets gaining favour among global investors seeking currency stability.
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At the same JP Morgan forum, strategists flagged European and Indian equities as attractive, while expressing caution on China. The Hong Kong IPO rebound, however, signals renewed foreign participation in Chinese markets despite lingering trade tensions.
SGX:5TP.SI:CNMC Goldmine Holdings
Closer to home, CNMC Goldmine shares nearly quadrupled this year, riding on the surge in gold prices. Trading at nearly S$1, the stock remains modestly valued compared to global peers.
SGX:B58.SI:Banyan Tree Holdings / SGX:41B.SI:Huationg Global / SGX:N4E.SI:Nam Cheong / SGX:S56.SI:Samudera Shipping Line / SGX:S7P.SI:Soilbuild Construction / SGX:E3B.SI:Wee Hur Holdings
A string of small- and mid-cap counters have also shone, benefiting from liquidity shifts and value discovery. Some are targets of takeovers and spin-offs, while others are simply catching speculative momentum.
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Property developers like UOL Group and Singapore Land Group, trading at over a 40% discount to net asset value, have drawn investor attention.
SGX:C52.SI:ComfortDelGro / SGX:S68.SI:SGX / SGX:U10.SI:UOB Kay Hian
Investors now await SGX’s new mid-cap index, which could shine a spotlight on companies just outside the STI reserve list, such as ComfortDelGro. Meanwhile, SGX itself trades at a premium P/E, but broker UOB Kay Hian may also ride rising retail volumes with an attractive dividend yield.
Singapore’s STI Shines, But SGX Faces Hollowing Market and IPO Drought
Singapore’s Straits Times Index (STI) has delivered strong returns, up 31.7% over two years, outpacing regional benchmarks. Only the US S&P 500 and Hong Kong’s Hang Seng Index (HSI) beat its gains. Against Malaysia’s KLCI, Indonesia’s JCI and Thailand’s SET, the STI’s edge is striking: 21.7, 17 and 51.9 percentage points respectively.
Yet, behind the headline numbers lies a sobering reality: Singapore’s equity market is shrinking in breadth and dynamism.
A shrinking exchange
The Singapore Exchange (SGX) now lists 622 companies, down 20% since 2013. IPO activity remains subdued, with just four listings in 2024 compared to 67 in Hong Kong. More Singapore firms are delisting than listing, while high-growth players are heading overseas — 14 IPOs by Singapore companies took place abroad in the first half of 2025, 13 in the US and one in Hong Kong.
The “national champions” effect
Six companies — DBS Group Holdings, Singapore Telecommunications, Oversea-Chinese Banking Corp, Singapore Technologies Engineering, United Overseas Bank and Singapore Exchange Group — generated nearly 90% of the STI’s return. The three banks alone delivered two-thirds of the gains, riding on higher interest rates and dividends. ST Engineering benefitted from defence spending, while Singtel pivoted into digital infrastructure and data centres.
With old-economy sectors like banking, industrials, real estate and telecoms dominating 90% of market capitalisation, technology accounts for less than 1%. The STI has become a proxy for “national champions” rather than a broad reflection of the economy.
Structural weaknesses
Beyond the blue chips, the market looks fragile. About 41% of SGX-listed firms are loss-making, 64% trade below book value, and fewer than 7% meet institutional investment benchmarks. Liquidity and investor attention are concentrated among a handful of giants, leaving the wider market stagnant.
Despite Singapore nurturing 20 unicorns worth US$23 billion, most — including SEA, Grab, Razer and Mirxes — chose IPOs overseas. Analysts point to a persistent “SGX discount” in valuations, deterring listings despite government support.
The way forward
Observers say cosmetic fixes won’t work. Raising the number of listings without tackling low valuations will only compound quality issues. Instead, reforms must focus on building a deeper pool of institutional investors, stronger research coverage and market-making support for growth firms.
Proposals include a dedicated “Future Growth Exchange” (FGE) for sectors where Singapore has global edge — AI, fintech, biotech, clean energy — with strict listing standards. Others call for “value-up” programmes modelled after Korea and Japan to boost governance and shareholder returns.
Stewardship and governance
Boards have a critical role to play. Competence, independence and transparency must take precedence over loyalty and box-ticking. Creative strategies, such as dual listings, could also enhance valuations, as seen with UMS Integration’s successful listing in Malaysia.
From safe haven to growth hub
The STI’s success shows the market rewards scale and excellence. But unless SGX transforms into a venue that attracts and retains growth companies, Singapore risks ceding relevance to larger peers. Policymakers and boards must raise standards, improve valuations and rebuild confidence.
The ultimate goal: for SGX to evolve from a defensive safe haven into a premium hub for both value and growth — a natural home for Singapore’s brightest companies, where valuations reflect ambition, innovation and performance.
SEC Proposals Could Drive Asia IPOs Toward Singapore Exchange
Singapore’s IPO market may be on the cusp of renewed momentum as US regulators weigh significant changes to the way international companies access American capital markets.
The US Securities and Exchange Commission (SEC) has proposed updates that could scale back or even eliminate the current framework for foreign firms listed in the US. The changes could affect 45 Singapore-headquartered companies — including Grab, Shopee and Haidilao International — as well as 266 issuers from mainland China, Hong Kong and Macau.
The proposals continue a bipartisan push dating back to 2020, reflecting scepticism in Washington over foreign listings. Analysts say the shift could prompt Asia-based companies to reassess their listing venues, potentially fuelling demand for alternative markets.
SGX as a beneficiary
The Singapore Exchange (SGX) is well-placed to capture this flow. Known for its regulatory stability, political neutrality and proximity to Asia’s growth markets, SGX offers issuers a platform anchored by blue-chip and dividend-paying counters.
The dual listing of Chinese EV maker Nio on SGX in 2022 was an early signal of such a trend. Market observers note that if the SEC introduces stricter requirements — such as “significant” offshore trading volumes — exchanges like SGX that can demonstrate liquidity will stand out as credible alternatives.
At the same time, Singapore’s Monetary Authority has launched a $5 billion Equity Market Development Plan to deepen participation, improve trading activity in small- and mid-cap stocks, and strengthen overall market vibrancy.
A shifting landscape
Liquidity remains a challenge, as trading tends to concentrate in established hubs. But structural reforms and consistent policy credibility could help SGX draw companies considering either a “homecoming” listing or diversifying away from reliance on US markets.
Singapore’s position as the regional headquarters of choice for multinational firms further supports the exchange’s ambitions. Market watchers say SGX can provide a natural venue for SMEs undergoing generational shifts and for venture capital- or private equity-backed companies seeking exits.
Outlook
Whether SGX can convert this opportunity into lasting growth depends on execution. Sustained liquidity, institutional investor engagement and reforms that meet the needs of high-growth firms will be critical.
As global listing dynamics shift, Singapore has the chance to position itself as not just a safe harbour but also a growth platform — one that welcomes the next generation of companies and gives them the depth to thrive.
Genting’s Debt Drive Clouds Dividend Outlook as US Expansion Faces Scrutiny
In a break from precedent, Genting Bhd withheld an interim dividend in its half-year results to June 2025, a move widely read as an attempt to rein in its swelling debt pile. The gaming-to-hospitality conglomerate’s borrowings stood at RM38.9 billion (US$11.85 billion) against total equity of RM52.8 billion.
The decision, unusual for a company known for robust cash flows, spooked investors. Shares slipped to levels last seen in August 2020, when the pandemic shuttered casinos and resorts worldwide. The drop underlines how Genting’s valuation remains stuck at crisis levels, even as global peers have rebounded.
Expansion weighed down by governance concerns
Much of the investor unease stems from Genting’s continued US push and complex related-party dealings involving its listed arm, Genting Malaysia (GENM).
GENM — in which Genting holds a 49.3% stake — has bid for a downtown New York commercial casino licence, pledging to spend more than US$5.5 billion if successful. At the same time, its subsidiary Empire Resorts is disposing of US$550 million worth of non-core gaming assets to pare down debt and fund land acquisitions.
Analysts say the developments could be a rerating catalyst if the licence comes through. “Key positive catalysts are GENM’s Empire Resorts selling its non-gaming assets and GENM winning a full casino licence in New York,” Maybank Research noted. But others caution that Genting’s US track record — from losses at Empire Resorts to the underperformance of the US$4.5 billion Resorts World Las Vegas — tempers optimism.
Governance under the spotlight
Corporate governance questions persist. GENM has repeatedly injected capital into Empire Resorts, including US$740 million via convertible preferred stock, moves that irked minority investors. In May, GENM bought Kien Huat Realty’s 51% stake in Empire Resorts — a related-party deal that drew scrutiny from Bursa Malaysia.
Credit Suisse, while flagging Genting’s global diversification as a strength, warned of “lingering corporate governance concerns arising from extensive related-party transactions.”
Singapore jewel under pressure
Genting’s Singapore arm remains its crown jewel. Genting Singapore (GENS) — 52.6%-owned — accounts for over a third of group ebitda and sits on S$3.3 billion in cash with no debt. Its flagship Resorts World Sentosa (RWS) is undergoing a S$6.8 billion expansion under the RWS 2.0 project, running through 2030.
But GENS also faces regulatory pressure. Singapore’s Gambling Regulatory Authority renewed RWS’s casino licence for just two years — versus three for rival Marina Bay Sands — after finding its performance as a tourist destination “unsatisfactory.” The shortened licence period has raised questions about the resort’s long-term gaming outlook.
Leadership and outlook
Executive chairman Tan Sri Lim Kok Thay, architect of Genting’s global expansion, ceded the CEO role in March to Datuk Seri Tan Kong Han. The new chief’s mandate is clear: deleverage the balance sheet and restore investor confidence. Genting has signalled debt repayment takes precedence over near-term dividends.
For now, the group’s future hinges on two factors: whether GENS’s expansion can bolster non-gaming revenues and whether GENM can reverse its patchy US record. Until then, Genting’s debt-heavy balance sheet and governance concerns are likely to overshadow its global diversification story.
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