SINGAPORE – Despite concerns over low dividends, modest capital gains, and weak market liquidity, investors remain bullish about local stocks, according to a recent survey conducted by the Securities Investors Association (Singapore) (SIAS) and the financial insights platform Beansprout.
According to the latest Straits Times report, the survey, which polled around 1,000 retail investors between November 2024 and January 2025, revealed that approximately 80% of respondents expressed interest in investing in the equities market. Interestingly, older investors, in particular, were drawn to the stability and familiarity of local stocks.
Demographics and preferences
The survey sample was split evenly, with half of the participants aged 45 and above and the remaining respondents aged between 21 and 44. The results highlighted distinct differences in investment preferences across age groups. Among older investors, the appeal of Singapore stocks was particularly strong, with those aged 55 to 64 allocating over 50% of their portfolios to local equities. Investors aged 64 and above even committed 70% or more of their investments to Singapore stocks.
In contrast, younger investors showed a much lower inclination toward local shares. Those under the age of 34 had only 14% of their portfolios invested in Singapore-listed companies.
David Gerald, president of SIAS, explained the generational divide—younger investors are often looking for quicker returns and tend to favour riskier markets like the US or even cryptocurrency. “Younger investors are eager to make money in a hurry and are drawn to high-risk, high-reward opportunities,” said Mr Gerald. “For older generations, however, Singapore stocks offer stability, and many prefer to stay close to home unless they have their children investing on their behalf.”
Concerns and opportunities
While investor sentiment remains positive, several concerns persist. The survey revealed that many investors were worried about the low returns, weak liquidity, and the lack of easily digestible analyst reports. More than half of the respondents also expressed a desire for “better investment options” rather than just a wider range of stocks.
Yet, the poll found that investors who had a significant portion of their portfolios in local equities were more likely to deepen their exposure. This signals a potential long-term commitment to Singapore stocks, provided that investor concerns are addressed.
Recent measures to revitalise the local market
The survey arrives amidst recent efforts by the Monetary Authority of Singapore (MAS) to rejuvenate the local stock market. In February 2025, MAS announced a $5 billion program aimed at partnering with selected fund managers to invest in local stocks. This move, along with tax incentives in the 2025 Budget designed to encourage more companies and fund managers to list on the Singapore Exchange (SGX), is intended to boost the appeal of Singapore equities.
MAS hopes to cultivate a more diverse range of quality initial public offerings (IPOs) and strengthen institutional activity. Streamlining regulations to make the listing process more efficient is also on the agenda, intending to increase investor participation and confidence.
Long road ahead
Despite the promising measures, Mr Gerald cautioned that it will take time for these initiatives to bear fruit. He stressed that addressing investor concerns and building market confidence is crucial to reigniting retail participation in the local market. “The recent measures announced by SGX are meant to make our stock market attractive to investors, but it will take a while for the measures to achieve the objectives,” he noted.
As Singapore works to rejuvenate its stock market, it appears that local investors, especially those from older generations, remain optimistic—though continued efforts to enhance market conditions and address concerns will be key to securing sustained interest from retail investors.