Morgan Stanley is bullish on Singapore stocks and expects 14% returns

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Investors could increasingly be looking to Singapore as a safe place to invest in as uncertainty roils the region, the investment bank said.

"We could see inflows supported by a growing of perception of Singapore as a safe haven amid geopolitical and economic uncertainties in the region," Morgan Stanley analysts Wilson Ng and Derek Chang wrote in a report last week.Valuations for Singapore stocks have bottomed, says Morgan Stanley, but it said that a "sustained rebound is underway."

"We could see inflows supported by a growing of perception of Singapore as a safe haven amid geopolitical and economic uncertainties in the region," analysts Wilson Ng and Derek Chang wrote in a report last week.Singapore, a wealthy city state in the region, has unveiled one of the most generous measures to support its economy –Hong Kong's protests reignited again in May aftersaid to curtail the Chinese city's freedoms.

Deposits from non-residents jumped 44% year-on-year to a record $62.14 billion Singapore dollars in April — the fourth monthly increase and a trend since 2019. "We think the growth of the Singapore REIT market, which led to more representation in benchmarks used by expanding passive real estate and yield focused ETFs, was, and will continue to be, a significant factor driving passive fund inflows," said the report.

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