Lim & Tan Securities
8 September 2025

Singapore Equities Outlook: Rate Cut Hopes, Sector Shifts, and Key Stock Analysis for September 2025

Market Overview: Global Indices, Yields, and Commodities Performance

The Singapore market continues to show resilience amid global volatility, with the FSSTI Index closing at 4,307.1, up 0.2% on the day and 13.7% year-to-date. This comes as major indices worldwide display mixed performance, with some Asian markets leading gains and US indices showing signs of a pullback. Notably, the Hang Seng Index advanced 26.7% YTD, while US indices like the S&P 500 and Nasdaq have posted double-digit growths.

US Economic Data Drives Rate Cut Expectations

The US labor market has shown signs of slowing, with non-farm payrolls in August increasing by only 22,000 jobs, well below expectations. The unemployment rate rose to 4.3%. Notably, for the first time since the pandemic, there are now more unemployed people than job vacancies. Several factors are at play, including import tariffs and immigration crackdowns that have reduced the labor pool and slowed hiring.
Key highlights:
Payrolls for July were revised upwards to 79,000 (from 73,000).
August numbers typically see upward revisions later.
The labor market is characterized by low churn—limited hiring and firing—meaning job growth is mainly from new firm creation.
Upcoming revisions could see employment figures revised down by as much as 800,000.
This environment has led to increased expectations of interest rate cuts from the Federal Reserve, with a quarter-point cut anticipated at the September meeting and three cuts expected in 2025. Lower rates will likely benefit Singapore REITs due to lower financing costs and improved yield premiums.

Sector and Stock Analysis: Singapore Market Leaders

Highest Consensus Forward Dividend Yield (FSSTI Universe)

Lowest Consensus Forward P/E

Lowest Trailing Price-to-Book (P/B) Ratio

Lowest Trailing EV/EBITDA (x)

Company Spotlight: Marco Polo Marine (MPM) – Stepping Up Offshore Innovation

Marco Polo Marine (MPM), currently trading at S\$0.069 with a market cap of S\$259 million, has announced a major step forward with the commissioning of its next-generation Commissioning Service Operation Vessel (CSOV Plus). Designed by Salt Ship Design AS of Norway, this vessel is the first of its kind, purpose-built from the keel up for dual-sector operations in offshore wind and oil & gas.
Key features and strategy:
Full lifecycle support for offshore wind projects: construction, cable installation, repairs, maintenance, and crew transfer.
Dual-sector capability: Can operate in both offshore wind and oil & gas industries.
Advanced walk-to-work system and superior station-keeping for safe personnel transfer in wave heights up to 3.0 metres.
Battery hybrid power system and methanol-ready design to reduce emissions and meet evolving environmental regulations.
Powerful 100-tonne Active Heave Compensated (AHC) crane and expansive, customizable deck space.
Construction to begin at Batam shipyard in Q2 2026, with delivery scheduled for Q2 2028.
MPM trades at 10.4x FY25F PE and 1.1x PB, with a positive outlook supported by the vessel launch and the planned listing of its Taiwan subsidiary.
Recommendation: Maintain BUY with a target price of S$0.082.

Global Macro Factors and Technology Tensions: Taiwan, China, and the US

Taiwan has taken a historic step in the global tech rivalry, blacklisting China’s AI and chipmaking giants—Huawei and SMIC—and barring Taiwanese firms from doing business with them without a license. This marks the first use of such a blacklist against major Chinese entities and signals a shift towards tighter controls on tech exports, aligning with US efforts to stymie China’s semiconductor ambitions.
Key implications:
The move could restrict the flow of semiconductor materials, equipment, and expertise to China.
US policymakers have pressured Taiwan to enforce stricter export controls.
Longer-term, this may limit China’s access to the advanced tech ecosystem that has fueled TSMC’s dominance.

Institutional & Retail Fund Flows: Weekly Highlights

Major Company Transactions and Share Buybacks

Significant acquisitions, disposals, and active share buybacks highlight ongoing confidence and strategic positioning among Singapore’s listed companies.
Notable transactions:
Q&M Dental: Quan Min Holdings bought 4,191,400 shares at S$0.50, raising its stake to 54.63%.
VC Plus Ltd: Frank Sui acquired 617,226,008 shares at S$0.003 (10.88% stake), while Tang Yao Zhi disposed the same number.
OCBC, UOB, Keppel, Sembcorp Industries, and others continued with notable share buybacks, indicating managements’ belief in undervaluation or a commitment to shareholder returns.

Dividend and Special Distribution Calendar

Several companies are rewarding shareholders with interim, special, and final dividends. Key upcoming distributions include:
Mapletree Logistics Trust: Payable 10 Sept
Mapletree Industrial Trust: 3.27 cts interim, payable 8 Sept
Keppel Ltd: 15 cts interim, payable 21 Aug
DBS: 60 cts interim + 15 cts special, payable 25 Aug
UOB: 85 cts interim + 25 cts special, payable 28 Aug
And many others, spanning REITs, industrials, and consumer sectors.

SGX Watch-List: Companies Under Regulatory Scrutiny

A total of 32 companies are currently on the SGX Watch-List, including recent additions such as Addvalue Technologies, Renaissance United, Telechoice, and Global Invacom Group. Being on the Watch-List indicates heightened regulatory scrutiny due to financial or operational concerns.

Conclusion: Navigating September 2025

Singapore’s market is at an inflection point, balancing robust sectoral performance and innovation with macroeconomic challenges and geopolitical tensions. Investors should monitor labor market trends, central bank policy shifts, and sector-specific developments, particularly in offshore marine, technology, and financial sectors. Active fund flows and strategic share buybacks suggest selective optimism, while the dividend calendar offers opportunities for yield-seeking investors.