Broker: Maybank Research Pte Ltd
Date of Report: 7 July 2025

ASEAN+ Markets Surge: Vietnam’s US Trade Triumph, Singapore’s All-Time High, and Top Stock Picks for Investors

Market Overview: ASEAN+ Rides High on Ceasefire, Oil Retreat, and US Trade Breakthrough

ASEAN+ regional markets are experiencing a robust uptrend, buoyed by a Middle East ceasefire, a decline in oil prices, and renewed optimism surrounding tariff negotiations. Singapore’s Straits Times Index (STI) has reached an all-time high, while Vietnam’s benchmark index leads the region year-to-date with a 10% gain. Vietnam’s first-ever trade deal with the US and its push for domestic reforms have positioned it as the star performer in ASEAN so far in 2025.
Maybank Research has issued upgrades on several stocks across the region, including composite insurer Allianz Malaysia (ALLZ MK), IGB REIT (IGBREIT MK), property-construction conglomerate Sunway Group (SWG MK), property developer Bumi Serpong Damai (BSDE IJ), and personal finance specialist Krungthai Card (KTC TB), all now rated as BUY.

Vietnam: A Landmark US Trade Deal Fuels Bull Run

Vietnam’s historic trade agreement with the US, closing the tariff gap with key trading partners to just 10 percentage points, has created a favorable environment for investment. The country’s established supply chains and competitive workforce are set to benefit further from ongoing domestic reforms and expected fiscal stimulus. Strategists see this as a near best-case scenario.
VN-Index Target for 2025: 1,500 points
Top 3 Vietnam Stock Picks:
Mobile World (MWG)
Military Bank (MBB)
Nam Long (NLG)

Singapore: STI Hits Record Highs Amid Safe Haven Flows

The STI has hit historical highs, with further upside expected due to safe haven flows, attractive capital returns, and China’s growth momentum. Policy reforms are also acting as a catalyst.
Top 3 Singapore Stock Picks:
Singtel
SGX (Singapore Exchange)
CSE Global

Indonesia: First Deregulation Package Spurs Optimism

Indonesia’s government has introduced its first deregulation package, relaxing import requirements on various goods and commodities. This move is helping the country navigate global uncertainty and is expected to stimulate economic activity.
Top 3 Indonesia Stock Picks:
Bank Syariah Indonesia
Telkom Indonesia
Indosat

ISOTeam: High-Conviction Singapore Small Cap with Growth Triggers

ISOTeam is highlighted as an Opportunity+ high-conviction stock. The company recently secured SGD21 million in new contracts, with management expecting a significant increase in project awards driven by public sector upgrading works. New catalysts, such as drone painting, are scheduled to launch by September 2025. Earnings for 2H 2025 are forecast to surge, with a target price implying a 39% upside.
Current Rating: BUY
Target Price: SGD 0.104

Singapore and Malaysia Banks: Neutral Outlook Amid Soft Loan Growth

• Singapore Banks: May 2025 loan growth improved slightly to +3.5% YoY after bottoming at +3.4% in April. However, policy uncertainty from the US is expected to keep loan growth subdued for the rest of 2025. All three local banks are expected to report slow growth, maintaining a NEUTRAL sector rating.
• Malaysia Banking: Industry loans expanded 5.3% YoY in May, up from 5.1% in April. Business loan growth saw a slight uptick, while household loans moderated. The 2025 industry loan growth forecast remains at 5.0%. Top picks by preference: Public Bank (PBK), AMMB, Hong Leong Bank (HLBK), and Hong Leong Financial Group (HLFG).

Top Glove: Mixed Outlook with Headwinds Dominating

Top Glove reported a 3QFY25 core net profit of MYR44.8 million, below Maybank’s expectations but ahead of consensus. The company anticipates improved utilization rates in 4QFY25 as US tariff policy clarity and inventory restocking resume. However, earnings forecasts for FY25–27E have been cut by 19% to 52%. The target price has been trimmed to MYR0.70, and the stock remains rated SELL.
Target Price: MYR 0.70
Current Rating: SELL

Major News and Macroeconomic Updates

• Singapore T-Bills: The latest six-month Treasury bill cut-off yield dropped to 1.85%, the lowest in 2025 and marking the eighth consecutive decline since March.
• Great Eastern Holdings: Denied breaching takeover rules in sharing IFA valuations with OCBC during exit offer negotiations.
• Seatrium: Won a contract from Kinetics (Karpowership) to convert an LNG carrier into a floating storage regasification unit (FSRU) with work commencing in 3Q25.
• Singapore GDP and Manufacturing: Manufacturing grew by 3.9% in May, led by precision engineering, transport, electronics, and biomedical sectors. Singapore is expected to post a resilient 2Q GDP growth of 3.4%, thus avoiding a technical recession.

Sector Outlook: Technology, Media & Telecom (TMT) and More

Maybank’s meetings with 20 investors reveal: – Constructive sentiment on Sea Ltd (SE), with Brazil risk concerns easing. – Mixed views on Grab, as the convertible note offers positive carry but unclear strategic direction. – Rising interest in Indonesia telcos amid prospects for market rationalization. – Singtel and Thai telcos remain core holdings as investors search for the next growth catalyst.

SGX: Beneficiary of Volatility and Structural Cash Flow Growth

The Singapore Exchange (SGX) has seen cash equities’ average daily volume (ADV) rise 20% year-to-date. This is attributed to ongoing US policy uncertainty, driving global investors toward Singapore’s safe haven status.
Key drivers:
Accelerating capital returns from corporate restructuring.
Estimated STI dividend per share (DPS) growth of 7% CAGR for 2025-2027E.
76% YoY increase in buybacks for 2025 YTD.
Construction boom benefiting listed construction players and spill-over beneficiaries.
Falling domestic interest rates.
The Monetary Authority of Singapore’s SGD5bn Equity Development Program (EQDP) is expected to boost market liquidity, especially in small and mid-caps. SGX’s derivatives volumes are up 13% since January, reinforcing its position as a leading risk management venue. With higher velocity and derivatives assumptions, Maybank upgrades FY25–27E PAT by 2-5% and raises the target price to SGD16.09. SGX is maintained at BUY.
Target Price: SGD 16.09
Current Rating: BUY

Singapore Property & REITs: Measures to Tame Price Surge and Strategic REIT Expansion

The Singapore government has raised the stamp duty for property sellers within four years, with rates rising to 16% if sold within the first year. Despite a drop in new private home sales, private home prices climbed 0.5% in 2Q25.
IGB REIT: Announced the acquisition of Mid Valley Southkey Mall in Johor Bahru for MYR2.65bn, marking its first expansion outside Klang Valley. This deal is expected to be earnings- and DPU-accretive, thanks to the mall’s strong footfall and strategic location. Upgraded to BUY with a higher target price of MYR2.56.

Construction & Data Centres: CSE Global’s Multi-Year Breakout

CSE Global is expanding its US capacity with a new, larger facility, gaining traction with major US data center players and qualifying for additional customers. CSE is also poised to benefit from the MAS’s SGD5bn program. The target price is lifted to SGD0.70, pegged to a higher 14.0x FY25E P/E.
Target Price: SGD 0.70

Singapore Market Strategy: Five Catalysts for Growth

Singapore is positioned to benefit from: – Strong domestic resilience – Positive spill-over from China’s recovery – Accelerating corporate capital returns – New opportunities from the JS-SEZ (Johor-Singapore Special Economic Zone) – Efficiencies from AI adoption
The 2025 STI target is raised to 4,185. Top picks include CICT, ComfortDelGro (CD), CSE, Food Empire Holdings (FEH), ISOTeam, Sea, SGX, Sembcorp Industries (SCI), ST Engineering (ST), and Sembcorp Marine (STEng).

Technical Trading Ideas: Actionable Opportunities for Traders

Top Insider Activity, Dividends, and Most Traded Stocks

Key features for investors to watch include: – Notable insider activity – Highest dividend yields – Top 20 most traded stocks in the prior week

Upcoming Events: Signals, Shifts & Strategy – 2H 2025 Investment Outlook

Investors are invited to join the upcoming investment outlook session on 23 July, where top stock ideas and management teams from high-conviction companies will be showcased.

Disclosures and Analyst Certification

All recommendations and opinions reflect the independent views of Maybank Research’s analysts. Investment ratings are defined as follows: – BUY: Expected return above 10% in the next 12 months (including dividends) – HOLD: Expected return between 0% and 10% – SELL: Expected return below 0%

Conclusion: ASEAN+ Markets Offer Multiple Avenues for Growth

With Vietnam leading the charge through a landmark US trade deal and Singapore benefitting from policy certainty and safe haven flows, ASEAN+ markets remain attractive for investors in the second half of 2025. Upgrades to key stocks across insurance, property, construction, finance, and technology signal multiple avenues for growth and portfolio diversification. Investors are encouraged to keep a close watch on sector trends, regulatory developments, and emerging opportunities in the region’s dynamic landscape.