HEADWINDS Back
Economics said this month is likely to be less smooth sailing than 2024, with demand from main buying lovers China, the US, and the European Union straight impacting Singapore’s export-reliant business.
If US interest rates remain high, this does influence its economic rise and have knock-on results in Singapore’s equities business.
Real estate investment trusts ( REITs ), which are anticipated to remain under pressure for the first half of the year but rebound later, could be one of these casualties.
According to Geoff Howie, a business strategist at the Singapore Exchange,” What we’ll be looking for this year is certainly the potential for the REITs to improve their online property income and occupancy rates, generate good hire reversion, and book fresh tenants.”
One of the biggest uncertainties to see is whether the US’ growth momentum is sustain, as there might be more conflicting factors if rates were to remain in stringent territory for long, according to Mr. Yeap.
According to him, China’s economic picture is uneven because both consumer and business confidence are still small, and he said there might need some encouragement to encourage a more robust recovery.
” For nowadays, it seems a lot of problems are also faced by the world’s second largest business. We really need to notice a stronger restoration in China, he said, which will provide a little reversal to Singapore’s trade demand.  ,
The White House’s energy transition, which will add to the growing political tensions between the US and China, and whether President-elect Donald Trump follows through on his pledge to impose levies on trading partners, are other major risks.
” Any tit-for-tat industry retribution between the US and China may have a negative effect on Singapore’s trade growth”, Mr Yeap said.
Also, Singapore may carry general elections by November, and buyer confidence will also be impacted by electors ‘ mission.
“CAUTIOUS OPTIMISM”
Singapore’s economy grew at a higher-than-expected 4 per cent last year, according to advance estimates released by the Ministry of Trade and Industry ( MTI ) on Thursday ( Jan 2 ).
Academics expect slower rise this year, hovering around 2 to 3 per cent.  ,
According to Mr. Howie, buyers may view the year with” careful optimism.”
” We’ve also got steady growth for the year – there were some very important transitions in private pcs, integrated circuits and hydrocarbons”, he noted.
According to Mr. Yeap, Singapore’s equities remain affordable compared to its world peers in terms of assessment.
According to experts, the Johor-Singapore Special Economic Zone will improve connectivity and open up more opportunities for businesses because the region’s economic environment is firm and resilient.
International customer visitors have likewise returned to pre-pandemic levels, which is expected to continue this year, boosting the economy.
” The metallic covering for 2025 is that Singapore’s economic conditions will probably be stable”, Mr Yeap said.
” We’re ( seeing ) a global semiconductor demand that may be set to persist in 2025. That may cause our technology industry to experience a slight decline over the coming weeks.
The Monetary Authority of Singapore’s review team serves as all the attention, as well as the development of the regional stock business.
In addition to promoting the regulatory framework to promote business development, there are other recently discussed measures. In the second half of this year, a record on the suggestions is expected to be completed.
Singapore securities closed the first trading day of the year flattish, inching up 0.16 per share at 3, 793.57.